In a surprising twist, the luxury market, long seen as the domain of the ultra-wealthy, is being redefined by an unexpected group: middle-class and lower-income consumers. Recent data reveals that these demographics are now major contributors to global luxury spending, challenging traditional notions and forcing brands to adapt to a new reality.
According to a May 2025 blog post citing Bain & Company, an astonishing 70–75% of global luxury spending comes from middle-income households, typically earning between $40,000 and $150,000 annually, depending on the region. Meanwhile, a scientific article from the Journal of Business Research estimates that lower- and middle-class consumers account for nearly half of the luxury market, with projections suggesting this group will grow to 450 million consumers by 2025. Though estimates vary, the trend is unmistakable: luxury is no longer just for the elite.
This shift reflects the rise of “aspirational luxury” or “mass luxury,” where brands target the “aspiring class”—consumers who save up for high-end goods as symbols of achievement or status. Far from being occasional buyers, these middle-class consumers often form emotional bonds with brands, driving repeat purchases and reshaping the industry.
The growing influence of middle-class buyers has pushed luxury brands to rethink their strategies. Entry-level products—like smaller accessories or limited-edition items—have become key to capturing this demographic, blending attainability with prestige. Yet, economic challenges are casting a shadow over this trend.
A May 2025 Business Insider article reports that inflation and financial strain have led middle-income U.S. households to cut back on discretionary spending, contributing to a 2% contraction in the global personal luxury goods market in 2024. This suggests that aspirational buyers are vital, but their spending power is sensitive to economic headwinds.
To unpack this phenomenon, let’s look at the numbers. Middle-income households, as defined by Bain & Company, span a broad range—$40,000 to $150,000 annually—while the Pew Research Center pegs the U.S. middle class at $54,572 to $161,220. Here’s a breakdown of luxury spending by income group:
| Income Group | Annual Income Range (USD) | Estimated Share of Luxury Spending |
|---|---|---|
| Middle-Income Households | $40,000–$150,000 (varies) | 70–75% (Bain & Company, 2025) |
| Lower-Income Consumers | Below $40,000 | Included in the above, the exact share is unclear |
| High-Net-Worth Individuals | Above $150,000 | Smaller fraction of sales |
Unlike the ultra-wealthy, who may buy luxury goods transactionally, middle-class consumers often exhibit brand loyalty and view purchases as emotional milestones.
Psychologically, the appeal lies in aspiration. A 2022 Harvard Business Review article notes that middle-market consumers “trade up” for quality and emotional satisfaction, paying premiums for goods that signal success. However, economic pressures, like inflation and rising costs, are prompting a rethink. A September 2024 Unity Marketing report suggests that affluent consumers, including the middle class, are shifting away from luxury as a status symbol, opting for more conscientious spending.
The trend is geographically specific. In the Americas, 10% of luxury spending fell in Q3 2023, according to Business Insider, a reflection of economic anxiety. Middle-class buyers in China are opting for restrained goods amid “luxury shame,” according to Vogue Business in June 2024. Despite these challenges, the outlook is positive elsewhere. A 2024 Bain & Company press announcement foresees that emerging markets—Latin America, India, and Southeast Asia—will see more than 50 million new upper-middle-class luxury buyers by 2030, driving long-term growth.
All sources don’t see the figures in the same way. The blog post of May 2025’s 75% rate is lower than the Journal of Business Research’s estimate of nearly 50%, perhaps because of differing definitions or methods. And there is concern with the blog’s reference to Bain & Company when they don’t have the report. Nevertheless, the consensus across sources is that middle-class consumers represent a powerhouse in terms of spending on luxury.
The high-end market stands at a fork in the road, fueled by middle-class and low-income shoppers who increasingly propel worldwide consumption. Led by aspiration and emotion, these shoppers are redefining what is considered high-end, but financial setbacks test their resolve. With the growth of emerging markets, companies need to find a balance between accessibility and elitism to attract this new core buyer. One thing is sure: the image of high-end is shifting and is more diverse than ever before.
