Loewy was born in Paris in 1893, the son of Maximilian Loewy, a Jewish journalist from Austria, and a French mother, Marie Labalme. Loewy distinguished himself early with the design of a successful model aircraft, which won the Gordon Bennett Cup for model airplanes in 1908. By the following year, he had commercial sales of the plane, named the Ayrel.

Loewy served in the French army during World War I (1914–1918), attaining the rank of captain. He was wounded in combat and received the Croix de guerre. After the war he moved to New York, where he arrived in September 1919.

In Loewy’s early years in the United States, he lived in New York and found work as a window designer for department stores, including Macy’s, Wanamaker’s and Saks in addition to working as a fashion illustrator for Vogue and Harper’s Bazaar. In 1929 he received his first industrial-design commission to contemporize the appearance of a duplicating machine by Gestetner. Further commissions followed, including work for Westinghouse, the Hupp Motor Company (the Hupmobile styling), and styling the Coldspot refrigerator for Sears-Roebuck. It was this product that established his reputation as an industrial designer. He opened a London office in the mid-1930s that continues to operate.

The International Harvester company was a manufacturer of agricultural machinery and construction equipment. In 1935 it engaged Loewy to overhaul the product line, from the company’s logo to operator ergonomics. The first new machine to reflect Loewy’s design aesthetic, a crawler tractor known as the International TD-18, was launched in 1938.

Loewy had a long and fruitful relationship with American car maker Studebaker. Studebaker first retained Loewy and Associates and Helen Dryden as design consultants in 1936 and in 1939 Loewy began work with the principal designer Virgil Exner. Their designs first began appearing with the late-1930s Studebakers. Loewy also designed a new logo to replace the “turning wheel” that had been the Studebaker trademark since 1912.

In 1937, Loewy established a relationship with the Pennsylvania Railroad, and his most notable designs for the firm involved some of their passenger locomotives. He designed a streamlined shroud for K4s Pacific #3768 to haul the newly redesigned 1938 Broadway Limited. He followed by styling the experimental S1 locomotive, as well as the T1 class. In 1940, he designed a simplified version of the streamlined shroud for another four K4s. In 1942, he designed the streamlined shroud for the experimental duplex engine Q1 which was his last work of streamlining PRR’s steam engine.

In 1946, at the Pennsylvania Railroad’s request, he restyled Baldwin’s diesels with a distinctive “sharknose” reminiscent of the T1. He also designed the experimental steam turbine engine V1 “Triplex” for PRR which was never built. While he did not design the famous GG1 electric locomotive, he improved its appearance with welded rather than riveted construction, and he added a pinstripe paint scheme to highlight its smooth contours.

During World War II, American government restrictions on in-house design departments at Ford, General Motors, and Chrysler prevented official work on civilian automobiles. Because Loewy’s firm was independent of the fourth-largest automobile producer in America, no such restrictions applied. This permitted Studebaker to launch the first all-new postwar automobile in 1947, two years ahead of the “Big Three.” His team developed an advanced design featuring flush-front fenders and clean rearward lines. The Loewy staff, headed by Exner, also created the Starlight body, which featured a rear-window system that wrapped 180° around the rear seat.

Raymond Loewy worked for NASA from 1967 to 1973 as a Habitability Consultant for design of the Skylab space station, launched in 1973. One of NASA’s goals in hiring him was to improve the psychology, safety, and comfort of manned spacecraft. Due to long duration confinement in limited interior space in micro-g with almost non-existing variability in environment, the comfort and well-being of the crew through the use of esthetics played high importance. Loewy suggested a number of improvements to the layout, such as the implementation of a wardroom, where the crew could eat and work together, the wardroom window, the dining table and the color design, among others. A key feature of Raymond Loewy’s design for the sleep compartments was that the floor plan for each of the three was different to create a sense of individual identity for each compartment. Elements of the crew quarters included sleep restraints, storage lockers, privacy partitions, lighting, a light baffle, privacy curtains, mirrors, towel holders and a communication box. The table was designed by Loewy in order to avoid creating hierarchical positions for crew members during long missions. Food was eaten using forks, knives and spoons, which were held in place on the table by magnets. Liquids were drunk from squeezable plastic containers.

In 1980, Loewy retired at the age of 87 and returned to his native France.

He died in his Monte Carlo residence in 1986. He was raised a Roman Catholic and was buried in the cemetery of a Catholic church in Rochefort-en-Yvelines, a village located 40 km south-west of Paris, where he owned the castle de la Cense. He was survived by his wife Viola, and their daughter Laurence.

In 1992, Viola and Laurence Loewy, with the support of British American Tobacco, established the Raymond Loewy Foundation in Hamburg, Germany. The foundation was established to preserve the memory of Raymond Loewy and promote the discipline of industrial design. An annual award of €50,000 is granted to outstanding designers, in recognition of their lifetime achievements. Notable grantees include Karl Lagerfeld, Philippe Starck and Dieter Rams.

In 1998, Loewy’s daughter, Laurence, established Loewy Design in Atlanta, Georgia, to manage her father’s continued interests in the United States. In 2006, the Loewy Gallery, opened in Roanoke, Virginia, through the supportive efforts of the O. Winston Link Museum, the local business community, art patrons, Laurence Loewy, David Hagerman, and Ross Stansfield. Laurence died of natural causes October 15, 2008, and is survived by her husband David Hagerman. Hagerman is the representative for the Estate of Raymond Loewy, which remains dedicated to reintroducing Loewy’s design philosophy of MAYA, or “most advanced, yet acceptable”, to a new generation, through design exhibitions, publications, and documentaries. In October 2017, the documentary, Raymond Loewy: designer of American dreams, originally conceived by Laurence Loewy, premiered to Paris audiences. The film has aired on the French Arte channel.

On November 5, 2013, Loewy was honored with a Google Doodle depicting a streamlined locomotive bearing a resemblance to the K4s Pacific#3768 shroud design, using the wheels of the train to form the word Google.