# Luxury market shift toward prestige beauty

> Live situation record from CLSTR: https://clstr.news/situations/luxury-market-shift-toward-prestige-beauty
> Updated: 2026-09-29T23:20:25.000Z. Sources: 4. Developments: 2.

The luxury goods market is experiencing a transition in consumer demand, moving away from traditional high-end fashion and leather goods toward prestige cosmetics. Following a period where the global luxury market lost roughly 20 million customers between 2024 and 2025, major fashion and leather divisions for LVMH and Kering reported a 5% decline in the first half of the year.

In contrast, the prestige beauty market has shown growth, rising 7% in North America, 5% in Europe, and 10% in Latin America during the first half of the year. This shift is attributed to Generation Z consumers who prioritize wellness and aesthetics, often seeking ‘signs of luxury’ through more accessible items like skincare and makeup. Several luxury houses are responding to this trend by strengthening their beauty presence, such as Hermès and Celine.

## Timeline

### 2026-09-29: Luxury market shifts focus from fashion to prestige beauty

The luxury market is shifting from fashion and leather goods to prestige cosmetics as consumers seek more accessible ways to experience luxury, leading to growth in the beauty sector despite declining sales in'

2 sources. https://clstr.news/cluster/luxury-market-shifts-focus-from-fashion-to-prestige-beauty

### 2026-09-14: Luxury brands and beauty industry expand into pet market

Luxury fashion and beauty brands are entering the pet market, with Rituals launching dog care products and designers like Tommy Hilfiger and Gucci offering high-end pet fashion and accessories.

2 sources. https://clstr.news/cluster/luxury-brands-and-beauty-industry-expand-into-pet-market

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Cite as: Luxury market shift toward prestige beauty. CLSTR, https://clstr.news/situations/luxury-market-shift-toward-prestige-beauty