More than just a label: Sustainability’s growing role in luxury branding

Luxury is experiencing an identity shift. Once defined by ostentatious displays of wealth–big logos, extravagant embellishments, and unapologetic excess–the new luxury consumer prefers a different approach. In many parts of the world, ‘quiet luxury’ is now trending. It's not just about simple style, it's about creating timeless, exclusive products with great craftsmanship, sustainable innovation, and meaningful cultural connections.

But here's the challenge. Luxury traditionally thrives on rarity, indulgence, and status. How can this industry address the growing demand for sustainability and conscious consumption without losing its core appeal? Can luxury really be both aspirational and responsible, or are brands still grappling with how to communicate this effectively?

Recent insights from Hall & Partners suggest sustainability isn’t merely trendy; it’s quickly becoming essential in luxury shopping decisions on both sides of the Atlantic. In the UK, 61% of luxury buyers prioritise sustainability credentials, whereas this trend is even more pronounced in the US, with over 66% influenced by sustainability when making luxury purchases. Even though a small minority (just 16% in the US) places less emphasis on sustainability, it's clear the majority in both markets now expect their luxury purchases to reflect their personal values. 

What does sustainable luxury really mean, and is it on the rise?

Sustainable luxury goes beyond just eco-friendly products; it redefines luxury itself. It combines exclusivity, craftsmanship, and superior quality with responsible practices, ethical sourcing, and transparency. Essentially, it allows consumers to enjoy luxury responsibly, making them feel empowered and genuinely connected to their choices.

Quality, craftsmanship, design, and brand reputation continue to lead the way for both US and UK luxury consumers. In the US, 70% prioritise design, and 77% value craftsmanship. Similarly, UK consumers highly value quality (66%) and design (64%).

Yet sustainability is clearly gaining ground. Approximately one-third of luxury buyers–35% in the US and 33% in the UK–actively look for sustainably produced items. Ethical production also resonates, appealing to 37% of US buyers and 30% of UK consumers. Although brand reputation still holds weight, slightly more so in the US (around 47%versus 42% in the UK), luxury is increasingly blending traditional values with modern, ethical considerations. Brands recognising these shifts can gain a loyal customer base by aligning with evolving consumer expectations.

Making a statement without the noise

Younger generations, particularly Millennials and Gen Z, are driving this shift towards sustainability. They expect brands to authentically demonstrate environmental and social responsibility. Yet, luxury must remain synonymous with exclusivity, craftsmanship, and emotional appeal.

This is the crossroads where luxury now finds itself. It’s becoming less about what you own and more about what your purchases say about your values. Brands such as Hermès are all about sustainability and quality craftsmanship. The brand puts a spotlight on products that last, cares about minimising environmental impact, and is serious about ethical practices, especially when it comes to sourcing leather and keeping its production responsible. Stella McCartney, a pioneer in eco-conscious luxury fashion, is already ahead, having presented a collection that was 96% sustainable during Paris Fashion Week 2025. Even luxury automaker Bentley is introducing hybrid models to cater to affluent, eco-conscious customers. These examples prove sustainability can seamlessly blend with luxury without sacrificing desirability. 

One size doesn’t fit all

However, our research highlights regional differences. While sustainability strongly influences Western luxury markets, in Asia and the Middle East, craftsmanship, social status, and cultural heritage often hold more sway. These consumers value narratives of artisanal skill, legacy, and innovation more than environmental credentials alone. For brands targeting these markets, localisation–through cultural storytelling, collaboration with local artists, and bespoke experiences–is key to success.

The real challenge for luxury brands is effectively communicating their sustainability efforts. The C Space 'The S Word' report highlights a critical paradox: nearly 80% of consumers say sustainability matters to them, yet only 12% believe brands genuinely follow through on their sustainability promises. Authenticity is vital; any hint of greenwashing can damage a brand’s prestige significantly, as Burberry learned in 2018 when it faced backlash for destroying unsold goods worth millions to maintain exclusivity.

Another significant finding in the report is the purchasing power of Gen Z, who will spend $9 trillion globally by 2034. They prioritise sustainability but refuse to compromise on quality or desirability. Therefore, luxury brands must position sustainability not as an obligation but as an enhancement of product appeal and exclusivity.

The future of luxury branding

What does this mean for brands and marketing teams? Luxury’s future isn't merely about exclusivity; it's exclusivity with purpose. To genuinely connect with the next generation of luxury consumers, sustainability must be deeply embedded in brand identity, craftsmanship, and values.

For brands looking to expand globally and drive consistent growth, understanding local markets is crucial.

Louis Vuitton exemplifies this by combining its heritage of iconic leather goods and fashion with deep cultural insight, showcasing how localisation can elevate luxury. It is winning hearts in China by blending global luxury with local culture. With collections that resonate culturally, exclusive store experiences, and vibrant digital engagement on WeChat and Weibo, it has tapped right into what Chinese luxury lovers want. Plus, smart celebrity collaborations and genuine sustainability efforts make Louis Vuitton not just aspirational, but also socially conscious–a clear favourite among China's luxury shoppers.

This evolution presents both opportunities and challenges. Offering high-quality products alone isn't sufficient. Authenticity in sustainability will secure brand loyalty and longevity. Brands that embed sustainability into their story will secure their future.

Now is the time to rethink your brand approach. Are you telling the right story? Balancing exclusivity with meaningful impact? And importantly, are you prepared to evolve alongside today’s luxury consumer? If you're looking to refine your brand strategy, Hall & Partners can help you navigate this new era of luxury with insights that turn cultural shifts into competitive advantage.