Only 48% of Hong Kong consumers eye spending more on luxury next year

Over 10% of consumers are cutting back on categories like handbags (9%) and travel experiences (4%).

Only 48% of Hong Kong luxury consumers plan to increase spending in 2025, significantly lower than the 56% reported in Mainland China, according to MDRi.

MDRi said economic pessimism, driven by international monetary policies and geopolitical tensions, is dampening consumer confidence and contributing to this subdued outlook.

It said Hong Kong faces growing economic uncertainty with 12% of luxury consumers intending to cut back spending in 2025, compared to just 9% in Mainland China. 

The firm also noted a growing polarization in Hong Kong’s luxury market. Whilst demand for certain high-value segments persists, over 10% of consumers are cutting back on categories like handbags (9%) and travel experiences (4%), reflecting shifting priorities amongst luxury shoppers.

Although Hong Kong remains a popular shopping destination for Tier 3 Mainland Chinese shoppers, it is losing appeal amongst Tier 1 consumers, who increasingly prefer domestic luxury experiences in Mainland China.

Despite challenges, Hong Kong's luxury market saw modest growth in high-value segments in 2024. Average luxury spending increased by 3% to $223,900, with notable gains in jewellery (+64%) and handbags (+66%), reflecting continued demand for select luxury items.