Luxury growth accelerates amidst weakening sentiment across APAC in 2026
Expansion in this segment concentrates in emerging Asia as mature markets stall.
The Asia-Pacific region will remain the world’s largest and fastest-growing consumer market in 2026, but spending patterns will diverge across income groups, age cohorts, and markets, according to AP Economic Insights.
The region faces weak consumer sentiment despite economic resilience, with sentiment in Mainland China deflating below 90 in the fourth quarter of 2025 from a peak of 124.4 in mid-2021.
Taiwan and Australia also recorded unfavourable sentiment in 2025, whilst New Zealand showed partial recovery but remained below 2020–2021 levels.
Youth unemployment remains elevated in key markets. Mainland China recorded a youth jobless rate of 16.9% in November 2025. India, despite stronger hiring performance relative to global peers, is expected to see lower hiring volumes in early 2026.
Trade tensions continue to affect export-dependent economies, including Mainland China and Vietnam. Artificial intelligence (AI) is also reshaping entry-level employment in markets such as the Philippines and India.
Inflation has eased across parts of the region, but affordability concerns persist as food price base effects fade in 2026.
The report noted that consumer behaviour is shifting from concern over price increases to pressure over everyday purchasing power.
Gen Z spending is increasingly shaped by discretionary and identity-led categories, with consumers within this generation in Mainland China spending an average of $133 per month on items including plush toys, concert tickets, anime, and comics.
In Japan, nearly half of workers in their twenties engage in “oshikatsu”, which includes fandom spending on idols, anime, and related merchandise.
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