The global personal luxury market will grow 2-5% in fiscal year 2026, accelerating to 4-7% by 2029, according to a new report from Boston Consulting Group and Altagamma. For marketing leaders, the projection signals more than a recovery - it confirms that artificial intelligence has become a permanent fixture in how luxury consumers discover, evaluate, and buy.
AI tools now part of weekly luxury shopping
Nearly 90% of luxury consumers use AI or generative AI tools every week, the report found. And 79% already use AI to research, compare, and evaluate luxury products and experiences before making a purchase. For marketing teams, this means AI is no longer a back-end optimization tool - it's a consumer-facing force that influences purchase decisions. Understanding how to integrate AI into the marketing stack is becoming essential, as explored in AI for Marketing resources.
Despite that consumer adoption, around 60% of fashion and luxury companies remain at emerging or stagnating levels of AI maturity. The gap leaves room for brands that move faster to build AI-driven customer experiences and retention strategies.
What luxury consumers really want now
The report points to a shift in motivation. Consumers are placing greater emphasis on self-reward, time, health, and longevity over traditional status-driven reasons for buying. That change opens new opportunities for brands to frame products around personal well-being rather than pure exclusivity.
"After a period of reset, luxury is back on track, but on a healthier and more balanced foundation. The next growth cycle will be driven by a more balanced consumer pyramid, deeper client relationships, broader lifestyle spending and local wealth," said Filippo Bianchi, BCG managing director and senior partner, global head of luxury.
India's market shifts from aspiration to appreciation
India stands to benefit as rising affluence and digital-first consumers reshape the luxury market. Abheek Singhi, managing director and senior partner at BCG India, said the country's luxury buyers are becoming more intentional.
"India's luxury market is evolving beyond aspiration to appreciation. Consumers are becoming more intentional in their purchases, placing greater emphasis on quality, craftsmanship and lasting value. At the same time, AI is becoming an integral part of the purchase journey," Singhi said.
Why this matters for marketing
The data makes one thing clear: luxury buyers are already using AI throughout their purchase journey, while most luxury brands lag behind. Marketing leaders who build AI fluency now - from consumer insights to campaign optimization - will be better positioned to capture the next growth cycle. The brands that close the AI maturity gap will not just keep up with consumer behavior; they will shape it.
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