Located in the heart of Europe, Luxembourg stands out with its cosmopolitan population and varied consumption habits. In this context, EY and the Luxembourg Confederation have analyzed the major consumption trends that will impact the country, focusing on three key sectors: food, furniture, and fashion & retail. This study aims to decode consumer behaviors and identify the dynamics specific to each sector.
General Trends: Local Consumption and the Rise of E-Commerce
The study highlights several major trends. Luxembourg residents (52.8% of the population) prefer local businesses, thereby supporting the national economy. In contrast, foreign residents (47.2%) seek products and consumption experiences similar to those in their home countries. Businesses must adapt their commercial and marketing strategies accordingly.
E-commerce is experiencing strong growth: over 70% of Luxembourg residents shop online at least once a month, and 40% of them do so every week. In-store purchases are heavily influenced by the internet, which plays a key role in decision-making. To explore all possible options, consumers often instinctively search for information online and compare prices, whether before or after their visit to the store. Additionally, less than 15% of Luxembourgish businesses sell online, leading to economic loss, as approximately 80% of online purchases by Luxembourg residents are made through online stores located abroad.
Changes in Key Sectors: Furniture and Fashion in Transition
The furniture sector is evolving with a growing demand for eco-friendly materials and modular furniture since the health crisis. Online platforms are developing to offer more customization, although physical stores remain preferred for this type of purchase.
Distribution of Furniture Expenditures
Distribution of Furniture Expenditures (Illustration: EY Luxembourg)
Consumers also express an increased need for flexible payment solutions. However, the option for interest-free payments in three installments is still rarely offered, even though the diversity of economic profiles makes this type of service relevant.
In retail and fashion, digitalization and ecological awareness are changing purchasing behaviors. Consumers are turning to responsible brands and solutions such as second-hand goods and rentals. Local businesses are facing competition from large international platforms, which are capturing an increasing share of the market.
Distribution of Retail and Fashion Expenditures
Distribution of Retail and Fashion Expenditures (Illustration: EY Luxembourg)
Evolution of the Food Sector: Growth and New Preferences
The food sector has experienced a 10% growth in the number of businesses over five years, with nearly one hundred new establishments between 2019 and 2024, accompanied by an 8% demographic increase.
Trends show a growing interest in takeout meals, regional, organic, and sustainable products. This evolution reflects a transformation in consumption patterns towards greater convenience and quality.
In light of these changes, companies must rethink their strategies by integrating omnichannel solutions, emphasizing quality and sustainability, and meeting the expectations of consumers seeking convenience and responsibility.
, EY Luxembourg Manager, Business Consulting
, EY Luxembourg Associate Director, Markets & Business Development