The United States and Western Europe are key markets for luxury goods, yet it is the latter that is best known for the traditional high-quality craftsmanship and materials that are central to the appeal of luxury goods today. By providing an overview of key features of the markets for luxury in the United States and Western Europe, this chapter will reveal not only differences in demand but also how the luxury industries in these two key areas are converging in many ways. The chapter is based on research in Euromonitor International’s database and reports and is organised around three key cornerstones of luxury, namely, rarity, emotion, and quality.