10 LUXURY Products that ALWAYS SELL During a Recession for Handmade Businesses

Have you ever noticed that even when money is tight, people still find ways to treat themselves? Maybe it’s a fancy coffee, a new lipstick, or that candle they definitely don’t need but absolutely had to have.

Well, my friends, you’re not imagining it—it’s a real psychological phenomenon called the Lipstick Effect!

If you're a handmade artist or small business owner, you can absolutely tap into this! I've done some research on the best luxury handmade products that sell—even in tough times—and I’m excited to share them with you. These are the kinds of items people are still willing to buy, no matter the economy!

 

 

 

The Lipstick Effect is a term economists use to describe how, during recessions, people cut back on big purchases (like cars, vacations, or high-end fashion) but still spend on small, feel-good indulgences.

It started with—yep, you guessed it—lipstick. The idea is that even if someone can’t afford a $500 handbag, they’ll still buy a $20 luxury lipstick to feel glamorous and put together.

This phenomenon can be traced back to the Great Depression of the 1930s. In the four years from 1929 to 1933, industrial production in the United States halved, but cosmetic sales actually went up by 25%! 

The idea was that even if women couldn’t afford a new dress or fancy shoes, they could buy a beautiful new lipstick for a fraction of the cost. Lipstick was seen as a symbol of resilience—a way to look good, feel confident, and maintain a sense of normalcy in tough times. After 9/11, lipstick sales increased by 11%, even though the economy was struggling (CNN). During the Great Recession, cosmetics expenditures increased among women age 18–40. In 2022, lip makeup sales grew 48% year-over-year, even with inflation rising (Fortune). 

Okay, but why do we do this? There are a few key reasons:

1. Emotional Comfort – When things feel uncertain, we crave small, happy moments. A beautifully scented candle, a handmade scarf, or a little splurge on skincare gives us a sense of control and normalcy. During economic hardships, consumers often gravitate towards small luxuries that provide comfort without significantly impacting their finances.
   
   
2. Affordable Status Symbols – People still want nice things—they just opt for smaller luxuries. Instead of a designer bag, they’ll go for a handcrafted leather wallet or a custom piece of jewelry.
   
   
3. Long-Term Value – Consumers get pickier. They’ll invest in quality over quantity, buying one well-made item instead of five cheap ones. That’s great news for handmade sellers!

So, if you make and sell handmade products, you can absolutely tap into this. Here are the best luxury handmade items that align with the Lipstick Effect and keep selling even when people are cutting back.

1. Personalized Jewelry

Jewelry has always been a status symbol, but people don’t need to spend thousands on designer brands to feel special. That’s why personalized jewelry—like engraved rings, birthstone pendants, and charm bracelets—thrives even in a recession. It’s small, meaningful, and timeless, making it an easy justifiable luxury for people who want something personal without breaking the bank.

The global handmade jewelry market was valued at $151.5 billion in 2022 and is projected to reach $472.5 billion by 2032, growing at a CAGR of 11.9% according to Allied Market Research. The luxury jewelry market is expected to grow from $61.02 billion in 2024 to $109.22 billion by 2032, reflecting a CAGR of 7.55% according to Credence Research. 

People love buying jewelry because it's an affordable status symbol. A small gold-filled necklace or sterling silver ring is an accessible luxury compared to high-end designer jewelry. Personalized jewelry can also make customers feel unique and special, especially when customized with their initials or created with their birthstone.  Jewelry is always a great gift option year-round and can be great for many occasions.

To make your products feel more luxurious, focus on using high-quality materials and refining your niche. A minimalist aesthetic is especially trendy right now, and timeless designs always have lasting appeal.

 

2. Handmade Stationery & Journals

In a world full of cheap, mass-produced notebooks, a handmade journal or luxury stationery set feels like a work of art. Whether it’s a hand-bound leather journal, a fabric-wrapped notebook, or gilded-edge sketchbook, people are willing to pay for elevated writing experiences—especially as more turn to journaling for mindfulness and creativity.

A survey conducted by Psychology Today, found that one in six people were active journals, and there is no doubt that daily journaling is very good for our mental health.

For many, journaling is self-care, so a high-end notebook makes writing feel intentional and special. Handcrafted journals made with handmade paper and eco-friendly covers will stand out among mass-produced planners. 

There are several ways to elevate your journals and give them a more luxurious feel. Consider hand-stitched designs, gold foil detailing, embossed leather, or hand-painted covers for a high-end touch. Showcasing premium materialsand offering customization options—like monograms, inspirational quotes, or refillable inserts—can make them even more special.

If you love bookbinding, calligraphy, or working with leather, fabric, or paper, this is the perfect product to tap into the affordable luxury market!

 

3. Artisan Self-Care Products

When money is tight, people cut back on luxury spa days and high-end skincare brands—but they don’t stop treating themselves altogether. Instead, they look for affordable ways to indulge in self-care at home. That’s where handmade artisan self-care products come in.

According to a study by ADV Dermatology, that was conducted with  983 people from around the U.S, they found that the average American spends $83/month on self care with 84% of Americans pampering themself at home so this could be a great offering to create. 

When times are tough, people may skip expensive spa treatments, but they still crave a little indulgence. Handmade soaps, body butters, and bath salts offer a small yet meaningful way to treat yourself without the guilt of overspending. These artisan self-care products provide a luxurious experience at an accessible price, making them a recession-proof staple.

Handmade self-care products are the perfect affordable luxury, offering a way for people to indulge in self-care without overspending. When times are tough, expensive spa treatments might not be in the budget, but a beautifully crafted bar of soap or a rich, whipped body butter provides a similar sense of relaxation and indulgence at a fraction of the cost. These artisan products bring a spa-like experience into the home, making them a popular choice for those looking for small, feel-good purchases.

Scent and texture play a significant role in relaxation, which is why handmade self-care items remain in demand. A soothing lavender and chamomile bath soak or an invigorating eucalyptus and peppermint body scrub can turn an ordinary evening into a calming ritual. Beyond the sensory experience, many consumers are becoming more conscious of the ingredients they put on their skin. Natural, toxin-free alternatives made with organic oils, essential oils, and plant-based butters provide a high-quality experience without the harmful additives found in mass-produced skincare.

High-quality materials like shea butter and botanical extracts, paired with eco-friendly packaging in glass jars or biodegradable wrapping, elevate the product’s value. Unique scent combinations such as vanilla and eucalyptus or chamomile and bergamot make each item feel special, and customizable options like engraved soap bars or personalized labels add an extra touch of exclusivity.

 

 4. Cozy Knitwear & Crochet Accessories

The allure of fast fashion makes sense in times of economic hardship. People still want to dress up, feel good and express their creativity.  But because of slow fashion (or more sustainable and ethical fashion) trending as consumers become more aware of how their climate change, and the negative impact of fast fashion on the planet and to people, many people also may hold off on fast fashion, and instead opt for investing in high-quality, handmade knitwear and crochet accessories that lasts. 

Chunky scarves, wool beanies, and elegant crochet wraps are practical, stylish, and cozy—making them recession-proof bestsellers. The global knitwear market was valued at approximately $894.06 billion in 2024 and is expected to reach $2,481.20 billion by 2033, growing at a CAGR of 12.07% according to Straits Research. 

Handmade knitwear remains a staple because it offers both practicality and timeless appeal. Unlike fast fashion, these pieces are built to last, often becoming cherished heirlooms passed down through generations. Consumers are increasingly drawn to sustainable fashion, choosing high-quality, handcrafted items over mass-produced alternatives. Warm and cozy accessories like wool scarves, knitted hats, and crochet wraps are not only functional for colder months but also stylish additions to any wardrobe.

What makes handmade knitwear feel truly luxurious is the attention to detail and the use of premium fibers such as merino wool, alpaca, and cashmere blends. These materials provide superior softness, warmth, and durability, making them a worthwhile investment. Thoughtfully crafted, one-of-a-kind details set handmade knitwear apart, ensuring each piece is unique. Neutral, timeless designs enhance their versatility, allowing them to complement a wide range of styles and remain fashionable year after year.

 

5. Vegan Leather & Plant-Based Accessories 

With the growing demand for eco-friendly and cruelty-free fashion, vegan leather alternatives—like cork, Piñatex (pineapple leather), apple leather, and mushroom leather—are becoming popular replacements for traditional leather goods. According to NMSC, the global vegan leather market size was valued at $73.38 billion in 2023 and is predicted to reach $139.02 billion by 2030, with a CAGR of 9.58%.

Vegan leather accessories are becoming increasingly popular as consumers seek luxurious, durable alternatives that don’t come at the expense of the environment or animal welfare, especially as more people are actively choosing plant-based and biodegradable materials over traditional leather. Sustainability plays a key role in purchasing decisions, and products made from materials like Piñatex (pineapple leather), cork, and mushroom leather provide an eco-friendly yet high-quality option. With vegan leather mimicking the look and durability of traditional leather, it offers a guilt-free way to enjoy stylish, long-lasting accessories.

What makes vegan leather accessories feel truly luxurious is the careful selection of premium, sustainable materials and elevated craftsmanship. High-end wallets, tote bags, and clutches made from minimalist, sleek designs give off an effortlessly chic look. Hand-stitching, embossing, and gold hardware add refined details that enhance the upscale feel. By offering thoughtfully designed, sustainable alternatives, handmade artisans can create accessories that not only stand out but also appeal to the growing demand for ethical, fashion-forward investment pieces.

 

6. Handmade Luxury Accessories

Luxury handbags might be out of reach for many, but a handwoven or quilted tote bag offers that same high-end feel with a sustainable twist.  According to fortune insights, The global handbag market was valued at $56.46 billion in 2024 and is projected to reach $104.24 billion by 2032, exhibiting a CAGR of 7.12%. 

Handmade tote bags continue to be a popular choice, especially among eco-conscious shoppers looking for sustainable, reusable alternatives to disposable bags. Unlike mass-produced options, a well-crafted tote isn’t just functional—it adds a touch of style to everyday errands. Whether used for grocery shopping, work, or travel, a thoughtfully designed tote bag feels both practical and chic. Customization options, such as unique colors, intricate patterns, or monogrammed initials, add a personal touch that makes these bags even more desirable.

What sets luxury handmade totes apart is the quality of materials and craftsmanship. Using premium fabrics like linen, wool, or quilted cotton elevates their durability and sophistication. Handwoven textures and embroidered details add character, making each bag feel one-of-a-kind. A timeless, minimalist design ensures versatility, allowing the tote to complement any outfit while remaining stylish for years to come. With the perfect balance of functionality and elegance, handmade totes make for a stylish, long-lasting investment in sustainable fashion.

 

7. Custom Embroidered Clothing

Hand-embroidered clothing turns everyday fashion into an artistic statement. Whether it’s delicate floral designs on linen blouses, personalized denim jackets, or even bold gothic/grunge embroidery, handmade embroidery gives clothing a one-of-a-kind, high-end feel. Embroidery has seen a revival due to increased demand for personalized products, with the global embroidery market expected to reach $16.1 billion in the next decade according to Financial Times.

Hand-embroidered clothing is gaining popularity as more people shift toward slow fashion, choosing quality, ethically made pieces over mass-produced fast fashion. Consumers appreciate unique, handcrafted designs that reflect personal style and individuality. Custom embroidery, whether it's initials, meaningful quotes, or symbolic imagery, adds a deeply personal touch, making each garment feel like a one-of-a-kind piece. 

What makes hand-embroidered clothing feel truly luxurious is the intricate detailing and high-quality materials used in its creation. Hand-stitched designs add depth and texture, transforming simple garments into wearable art. Using premium fabrics like linen, organic cotton, or durable denim ensures both comfort and longevity.

 

8. Elegant Ceramic Drinkware 

Handmade ceramic mugs, teacups, and tumblers turn a simple coffee or tea break into an indulgent ritual. Unlike mass-produced drinkware, handmade ceramics have a weight, texture, and warmth that feel artisanal and luxurious.

Specifically, the ceramic tableware segment has shown significant growth, with the global market size estimated at $12.4 billion in 2024 and expected to reach $22.2 billion by 2034, reflecting a CAGR of 7%.

Handmade ceramic drinkware offers a small yet meaningful indulgence, turning everyday coffee or tea into a more intentional, elevated experience. Unlike mass-produced mugs, a hand-thrown or sculpted piece feels personal and unique, making each sip feel a little more special. Beyond daily use, beautifully crafted mugs and teacups also make thoughtful, gift-worthy items, perfect for birthdays, holidays, and housewarmings.

What makes handmade ceramics feel truly luxurious is the craftsmanship and artistry behind each piece. Hand-thrown forms have a distinct organic feel, while artisan glazing techniques like speckled, ombré, or metallic detailing add a high-end touch. 

 

9. Hand-Felted or Wool Knit Slippers

When times are tough, people stay home more and invest in comfort—and what’s cozier than a pair of hand-felted wool slippers or knit house shoes? Unlike synthetic fast-fashion alternatives, handmade wool slippers are warm, breathable, and ultra-durable. Additionally, the global winter footwear market, which includes products like wool knit slippers, is expected to expand from $9.8 billion in 2023 to $17.9 billion by 2033, with a CAGR of 6.2%.  This indicates a rising consumer preference for warm and comfortable footwear during colder seasons, making hand-felted or wool knit slippers a promising luxury item to produce and sell. 

With more people embracing homebody culture, there’s a growing demand for high-quality loungewear and cozy essentials that feel both comfortable and stylish. Handmade wool slippers offer the perfect blend of practicality and indulgence, providing warmth and softness without feeling bulky or synthetic. 

The luxurious feel of handmade wool slippers comes from thoughtful craftsmanship and premium materials. Whether hand-felted or hand-knit, these slippers offer superior softness and long-lasting quality compared to mass-produced alternatives. Natural fibers regulate temperature, keeping feet warm without overheating, while minimalist, neutral color palettes ensure they complement any cozy loungewear aesthetic. 

 

10. Hand-Dyed Silk Sleep Masks & Pillowcases 

A hand-dyed silk pillowcase or sleep mask is the perfect small indulgence—it elevates sleep quality while feeling ultra-luxurious. Unlike cheap satin alternatives, real silk is known for reducing wrinkles, preventing hair frizz, and feeling incredibly soft against the skin. The global sleep mask market was valued at $17.9 million in 2024 and is projected to grow at a CAGR of 5.1% from 2025 to 2030.  This growth is driven by increasing consumer awareness of sleep health and the benefits of quality sleep accessories. 

Similarly, the global beauty pillowcases market, which includes silk pillowcases, was estimated at $937.1 million in 2023, and is expected to grow at a CAGR of 6.0% from 2024 to 2030, reaching approximately $1.49 billion by 2030.  This expansion is attributed to rising consumer interest in luxury bedding and the perceived beauty benefits of silk products according to Grand View Research.

Silk sleep masks and pillowcases have become must-have beauty essentials, thanks to their skincare and haircare benefits. Unlike cotton, silk helps reduce friction, preventing hair breakage and minimizing fine lines, making it a practical yet indulgent beauty investment. 

In order to make your pieces more luxurious, you can use 100% mulberry silk or hand-dyed bamboo silk provides unmatched softness, while botanical or hand-painted dye techniques create a one-of-a-kind aesthetic.

If you enjoyed this article, be sure to check out the post on 6 Products that Never Fail during a Recession for Handmade Businesses. If you want more insights on having an online businesses, definitely make sure to grab your FREE Guide to Launching your Online Art Businesses, and if you're really serious about starting your business and don't know where to begin grab your copy of The Ultimate Online Art Businesses Starter Checklist