Luxury Brands Are Shifting Focus: Older Consumers Become a Key Market

As we move into 2025, there is a growing shift within the luxury goods sector towards older consumers, a demographic that has traditionally been overlooked in favor of younger, trend-driven buyers. This shift reflects the changing economic landscape, where those over the age of 50 now control the majority of global wealth, making them an increasingly valuable target for luxury brands.

While younger consumers are often associated with luxury purchases, they also tend to be more price-sensitive and fickle in their preferences. In contrast, older generations, particularly those with established wealth, offer a more stable, lucrative market. As brands begin to recognize this, they may find themselves rethinking their strategies to cater to a demographic that values quality, tradition, and long-lasting value over fleeting trends.

The Overlooked Wealth of Older Consumers

Older consumers have long held the key to luxury brand success, but many luxury brands have missed this opportunity by focusing too heavily on younger audiences. According to Bellamy Grindl, founder of Retailytics, older shoppers not only have more disposable income, but they are also less price-sensitive and remain loyal to brands they trust.

Grindl emphasized, "Older generations not only have more disposable income but are also less price-sensitive and highly brand-loyal. They value quality and heritage, which aligns perfectly with what luxury brands offer. The problem is many feel ignored because media and marketing remain hyper-focused on younger audiences. By prioritizing youth, brands risk alienating a demographic that’s eager to invest in their products."

This untapped group’s affinity for luxury brands is often based on values such as craftsmanship and heritage, qualities that resonate deeply with their purchasing behavior. Luxury goods, therefore, align well with the lifestyle of older consumers, who are less driven by the latest trends and more focused on lasting value.

How Luxury Brands Can Engage Older Consumers Effectively

To engage this valuable consumer group, luxury brands need to adjust their marketing strategies to be more inclusive of older shoppers. Grindl suggests that brands should focus on creating authentic connections that align with the interests and preferences of older generations.

"Luxury brands should focus on truly engaging with older consumers in a way that feels authentic and values their purchasing power,” Grindl explained. “Things like refining messaging, expanding channels to meet the customer where they are, and celebrating heritage and craftsmanship to build deeper emotional connections.”

Older consumers are not only financially capable but also highly invested in the brands they love. As such, their loyalty can translate into sustained sales, especially if brands create experiences that emphasize the quality, craftsmanship, and history behind their products.

The Changing Consumer Landscape: Wealth and Loyalty

As brands continue to focus on wealthier segments, it's important to recognize that high earners, especially those making over $200,000 annually, play a significant role in the luxury market. According to PYMNTS Intelligence’s recent report, “Why One-Third of High Earners Live Paycheck to Paycheck,” those in the highest earning brackets tend to allocate substantial portions of their income to luxury goods and experiences. On average, these consumers spend around 9.3% of their income on recreation, leisure, and entertainment, and 8.5% on clothing, accessories, and personal care.

Sudip Mazumder, SVP at Publicis Sapient, further pointed out that tapping into older consumer demographics allows luxury brands to reduce dependency on younger buyers, whose preferences can change rapidly.

“Luxury brands face challenges in relying solely on youth trends, especially in light of the possibility of new tariffs that could increase production costs, prompting price hikes,” Mazumder said. “Younger consumers are often price-sensitive and their preferences can change rapidly, making it risky for brands to focus exclusively on appealing to them. Meanwhile, older consumers, especially those over 50, hold a significant portion of global wealth and tend to value quality, brand loyalty and lasting value in luxury items.”

This makes older consumers a more stable and reliable customer base, which helps luxury brands weather economic volatility, like fluctuations in tariffs or changes in market conditions.

Embracing a Multi-Generational Strategy: Why Balance is Key

Luxury brands are beginning to recognize that appealing to both younger, trend-driven consumers and older, wealth-conscious buyers can create a more resilient business model. A multigenerational approach allows brands to broaden their consumer base while mitigating the risks associated with a single demographic focus. By embracing both ends of the spectrum, brands can better balance their marketing strategies and protect against shifting trends.

Zachary Robichaud, an instructor at the Ted Rogers School of Management, echoed this sentiment, stating, “Luxury brands targeting older consumers is a significant trend for 2025, driven by shifting demographics and the purchasing power of this audience. Older consumers now control the bulk of global wealth, making them an essential demographic for retailers seeking sustainable growth."

As populations age, luxury brands are adapting their offerings to meet the desires of older shoppers, focusing on timeless designs, quality craftsmanship, and personalized experiences. This shift enables brands to create loyal customers who appreciate the durability and reliability of luxury products, ensuring sustained revenue growth.

Personalized Experiences: The Key to Winning Over Wealthy Shoppers

According to PYMNTS, wealthy shoppers—especially those earning more than $100,000 annually—are particularly interested in personalized offers. The intelligence report, “Personalized Offers Are Powerful — but Too Often Off-Base,” found that 89% of consumers in this income bracket want personalized experiences. This is significantly higher than the 83% of consumers earning between $50,000 and $100,000 and more than the 74% of those earning less than $50,000.

Personalized experiences are especially crucial for wealthier consumers, who expect their luxury purchases to reflect their unique tastes and preferences. By integrating personalized offerings into their marketing strategies, brands can forge deeper emotional connections with older, high-earning consumers, ultimately increasing loyalty and sales.

Looking Ahead: Tariffs, AI, and the Future of Retail

As the retail landscape continues to evolve, there are a few trends that could shape the direction of the industry in the near future. One of the major concerns for luxury brands is the potential for tariffs on imports, which could increase production costs and force retailers to adjust their supply chains.

Craig Rowley, senior client partner at Korn Ferry, pointed out that retailers are focusing on reducing costs while enhancing service quality. “Retail continues to focus on reducing costs while improving services,” Rowley said. “Clients are looking carefully at operating expenses and looking for savings. The industry is also barreling ahead on investment in AI [artificial intelligence]. AI will help to accelerate decision-making by providing real-time insights to the market and provide merchandise offerings that better meet the needs of customers.”

Rowley also highlighted the growing importance of improving eCommerce and omnichannel operations. “Retailers are working hard to understand customer segmentations because boomers are retiring and millennials are buying more from retail than other segments,” he added.

This investment in technology will help luxury brands continue to meet the evolving demands of both younger and older consumers, ensuring they remain competitive in an increasingly digital marketplace.

In 2025, luxury brands are waking up to the untapped potential of older consumers, a market that controls a significant portion of global wealth. By adapting their strategies to cater to both younger, trend-driven buyers and older, wealth-conscious shoppers, brands can create a more resilient business model that leverages personalized experiences, emphasizes quality, and builds lasting loyalty across generations.