Luxury, lifestyle and the evolution of the global consumer

The way luxury consumers choose to invest is changing. Where once the goal was accumulation, it’s now altogether more personal, centred on the modern-day pursuit of wellness, purpose and personal growth. The mood music has changed from one of conspicuous consumption into something far more specialised and thoughtful. They want unique experiences, exceptional access and passion purchases.

This shift is shown in the number of elite new private members’ clubs opening their doors in prime global cities, many focused less on late-night carousing and more on cutting-edge health diagnostics. It’s shown too in boutique branded residences and in carefully curated shopping streets. In London, the Great Estates – Howard de Walden and Cadogan among them – have assembled an alluringly mix of prestigious, fashion-forward brands, offering a wonderfully individual community-focused relevance in Marylebone, Pavilion Road and the King’s Road.

What does this shift mean for the luxury asset market?

The Wealth Report 2026 examined this in detail. “Today’s buyers are highly disciplined, targeting rarity, provenance and relative value,” outlines Liam Bailey, Global Head of Knight Frank’s Research Department. “This led to solid gains for luxury investments like impressionist art and watches. The Knight Frank Luxury Investment Index has successfully stabilised, closing 2025 down just 0.4%. Despite recent volatility, the long-term picture is robust, with the index rising 38.6% over the past decade.”

Luxury collectibles do indeed appear to be finding their feet again although performance over the year has been patchy. After a prolonged three-year correction, the Luxury Investment Index saw the largest increase in Impressionist art, up 13% year-on-year. Modern and post-war art also showed positive year-on-year change, up 7.1% and 5.2% respectively, followed closely by watches, registering 5.1% year-on-year growth.

The luxury brands and assets dominating the market

Two brands dominated the increases in the secondary watch market: Rolex, which climbed 4.6% over the year with nearly all models bar the Sea-Dweller and Sky-Dweller performing admirably, and Philippe Patek, the industry standard-bearer, recording a 12.1% increase largely driven by the Aquanaut and the Nautilus models. Their success masked weakness elsewhere in this market, providing another example of wealthy consumer’s highly selective approach to luxury investment alongside a noticeable decrease in speculative behaviour.

“While impressionist art and watches posted solid gains, buyers have generally remained active but highly disciplined,” says Alasdair Pritchard, Partner in Knight Frank’s Private Office. “New investment sectors are gaining traction, including vintage haute couture, rare fossils and fractional ownership platforms, which are successfully opening up luxury collectibles to a passionate, younger demographic of investors.”

This shift in buyers’ mindset to invest beyond more traditional luxury items like handbags or diamonds, is another example of how luxury consumers are evolving. It’s part of the transformation economy, prioritising experience over acquisition, but also demonstrates how wealthy buyers are now less about display and more about taste, knowledge and personal connection.

The shift in mindset behind luxury purchases

“Consumers are drawn to rare curiosities for a range of reasons, including the desire to diversify their portfolios through non-correlated asset classes, or simply because they feel a connection,” outlines Malte Häusler, MD of Berlin-based start-up online trading platform Timeless Investments, quoted in The Wealth Report. Whether it’s a pair of signed trainers worn by basketball player Kobe Bryant or a black 1976 first-generation BMW 6 Series Coupé, “people are really keen to invest in items they feel passionate about,” he says.

“Looking at the ultimate mobile assets, the super-yacht market has rebounded spectacularly, with total sales surging 70% last year to a massive US$8.5 billion,” says Bailey. “That includes incredible activity at the very top end, with sales of yachts over 70 metres jumping by 60%, pushing the average asking price of a sold yacht to US$16.6 million. In the skies, flight data shows a clear pivot away from simple travel towards true multi-location living, as the wealthy seamlessly move between financial hubs and lifestyle destinations. Crucially, a record 47% of first-time private jet flyers are now under 45, pointing to the massive influence of newer, highly mobile wealth.”

Amid this clear shift in consumer behaviour, The Wealth Report 2026 shows that some things remain unchanged. It’s clear that top-end rarity still commands demand and ultra-prime assets remain resilient, whether that’s a super-yacht, a Patek Philippe watch or a van Gogh painting. While experiences are now a primary driver for many wealthy individuals, either through travel or a desire for wellness and longevity, an enthusiasm for collecting remains evident, especially when value is perceived in an object’s provenance and personal meaning rather than in its prestige. The most desirable collectibles today are not for purely putting on display.

“Collecting is not conspicuous consumption, it’s conspicuous taste,” says Lee Bofkin, one of the UK’s most prolific private collectors, based in London’s Shoreditch. “More than consumption, people want to demonstrate luxury as a sense of taste. If you’ve got that and it’s internalised, it commands respect.”