Salute e Benessere
New ECCIA-Bain report: Europe's high-end sector sounds alarm on tariffs, skills and competitiveness
BRUSSELS , July 2, 2025 /PRNewswire/ -- Latest figures released by the European Cultural and Creative Industries Alliance (ECCIA) show that Europe's high-end and luxury sector represents . The sector continues to drive economic growth, preserve cultural heritage, and champion excellence well beyond the continent. The new report, developed with the technical collaboration of Bain & Company for ECCIA, also indicates that the sector's global leader status with is "clouded" due to external challenges such as tariffs and emerging global trade uncertainty. The sector, which the latest figures show employs 2 million people throughout Europe , is grappling with attracting and retaining the next generation of skilled artisans.
"European luxury goods continue to dominate global markets, with the latest figures demonstrating a strong performance over the past five years and a solid position for growth within the global high-end and luxury market - rooted in the sector's unique resilience and its ability to adapt and seize opportunities in emerging markets," said Claudia D'Arpizio of Bain & Company. "While these new findings show that the sector accounts for , high-end and luxury goods are much more than economic drivers. The brands, through their products and experiences, also represent the ultimate expression of the soft power Europe wields through its creativity, innovation, and craftsmanship - Europe's unique 'artisanal intelligence.' This sector is a creative powerhouse that invests up to , and up to and innovation which contribute to social prosperity, cultural preservation, and economic growth across Europe's clusters of excellence."
The latest findings suggest that the sector's success story faces challenges as the world looks to an uncertain future. Escalating geopolitical tensions, rising tariffs, and protectionist trade policies, especially between the US and China which make up 35-45% of the global revenues for the sector, inject unwanted uncertainty.
"It's tempting to assume that this the sector is shock-proof from some of the economic turbulence we've been seeing. While luxury stocks perform by 4 to 6 times over the broader market in Italy or France , we are sensitive to the some of the warning signs," said Michael Ward , President of ECCIA. "European high-end and luxury brands supported , with since 2019, outpacing broader EU labour market growth. Tariff measures threaten to disrupt global demand, drive up costs, and force companies to reconsider supply chains as we focus on profitability and call for greater stability."
Europe's high-end and luxury sector is a powerhouse on the global stage. The sector's impact with 40% of international travelers citing luxury shopping as a key reason for visiting. Leading brands invest up to 3% of annual revenues in sustainability and up to 5% in education and training. While the latest report's findings suggest that the global luxury market has the , smart and urgent policy support is needed to safeguard one of Europe's cultural and economic treasures.
Although the Bain findings reveal sustained global competitiveness and optimistic growth prospects, European high-end cultural and creative industries face significant challenges due to geopolitical tensions and trade disputes in key markets, such as the USA and China .
Outlined below are to support the sector's long-term sustainable growth and its ability to continue to support the European economy and reputation.
Retaliatory measures, including tariffs and non-tariff barriers, threaten the industry's ability to maintain competitive access to these crucial export destinations. The increasing protectionist rhetoric could further strain the industry, which relies heavily on open markets. Furthermore, our production cannot be relocated, as our business model and appeal are rooted in Europe's cultural heritage and expertise.
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