Branding Internacional

The New Generation of Luxury Consumption in the USA: What Your Company Needs to Know

Understand the new luxury trends and discover how to prepare your company to conquer this strategic audience in the USA.
Published by
AdvizeOne
Published in
March 30, 2025

In recent years, the luxury market in the United States has undergone profound transformations driven by the arrival of a new generation of consumers. With habits different from previous generations, these new consumers—mainly Millennials and Gen Z—are redefining the meaning of luxury, demanding from brands an innovative position aligned with values such as sustainability, technology, and personalization.

For companies seeking to expand their operations in the American market, understanding these changes is essential to gain space in this highly competitive segment. In this article, we analyze the main trends in new luxury consumption in the USA and how your company can take advantage of these changes to gain a competitive advantage.

Young Consumers: A Paradigm Shift in Luxury

Historically, the luxury market was associated with exclusivity, tradition, and the clear demonstration of social status. However, the new generation of American consumers brought new priorities to the fore, such as authenticity, ethics, and unique experiences. Recent research carried out by major consultancies, such as Deloitte and Bain & Company, highlights that by 2025, Millennials and Generation Z will represent more than 50% of the global luxury market, making it essential to fully understand them.

1. Sustainability and Consumer Ethics: Unlike previous generations, young luxury consumers in the USA are increasingly concerned with social and environmental issues. Brands that are unable to prove transparency in production, ethical origin of materials, or concrete sustainable actions tend to lose space quickly. Sustainable luxury is no longer a differential, but a basic expectation for these consumers.

2. Personalized and Digital Experiences: This generation values experiences much more than the simple possession of assets. Exclusive events, advanced personalization, and memorable digital interactions are key elements to engage young consumers. Technologies such as augmented reality, NFTs, and artificial intelligence have been successfully used by major brands to create these differentiated and memorable experiences.

3. Brand Authenticity and Purpose: The new generation seeks brands that share their values and have clear purposes. Young American consumers don't just buy products; they choose brands that tell authentic stories and demonstrate genuine commitment to specific social or cultural causes. Brands that are unable to connect emotionally with their target audience face major challenges to grow in this segment.

Sectors with the Highest Growth in New Luxury

The luxury market in the United States is experiencing significant growth in some specific segments, directly driven by this new consumer profile:

  • Sustainable Beauty and Cosmetics: Brands that offer natural, cruelty-free, and personalized cosmetics have experienced rapid growth in the American market.
  • Circular and Second-Hand Luxury Fashion: Digital platforms for the resale of clothing, accessories and luxury goods have grown exponentially, with consumers more aware and attentive to the environmental impact of their choices.
  • Luxury Technology: Premium technological products, such as smart wearables, luxury electric cars, and personalized devices, have gained significant space among young high-income consumers.

How Your Company Can Adapt to This New Scenario

International companies planning to enter or expand in the American market need to adapt quickly to the requirements of these new consumers. To ensure success in this highly competitive landscape, it is essential to consider some key strategies:

  • Get to know your target audience in depth: Use data and market intelligence to understand the preferences, values, and behaviors of younger consumers.
  • Invest in sustainability and transparency: Make sustainable practices an integral part of your brand's strategic positioning, clearly communicating these actions to consumers.
  • Explore technological innovation: Use advanced digital tools to create unique and personalized experiences that truly captivate your target audience.
  • Build a strong and authentic narrative: Ensure that your brand's story and purpose are clear and aligned with young consumers' expectations of authenticity.

If your company wishes to explore the opportunities offered by the new generation of luxury consumers in the USA, AdvizeOne can help make that strategy a reality.

Schedule a strategic consultation with us and discover how your company can successfully position itself in the American luxury market.

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