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The wallets market size is estimated to grow at a CAGR of 10.01% between 2022 and 2027. The market size is forecast to increase by USD 11.12 billion. The growth of the market depends on several factors such as the wide availability of wallets on online channels, the increasing advertising and marketing campaigns by vendors, and the increasing urbanization and the trend of minimalism.
This wallets market report extensively covers market segmentation by product (conventional wallets and smart-connected wallets), distribution channel (online and offline), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing urbanization and the trend of minimalism is the key factor driving the growth of the market. As more and more people live in densely populated urban areas and adopt more minimalist lifestyles, there is a need for slim, compact wallets that can efficiently hold all the essentials while taking up minimal space in the bag. These wallets meet the need for convenience and practicality, matching the preference of urban dwellers to only carry essentials such as ID cards, a few credit cards, and cash.
For example, brands like Bellroy and Ridge Wallet have become popular for offering sleek designs that prioritize function without compromising on style. These trends highlight the importance of optimizing wallet design to easily fit into a minimalist, urban lifestyle. Due to these factors, the demand for wallets is expected to grow and thus, drive the market growth during the forecast period.
The emergence of subscription and rental models is the primary trend in the market. Some wallet companies have deployed subscription or leasing strategies to appeal to the growing trend toward availability rather than ownership. For a monthly subscription fee, companies like “The Wallet Club” give their customers access to a variety of luxury wallets. This strategy allows consumers to change wallets frequently, follow current trends, and experiment with different styles.
Moreover, “PocketPass” is another innovative company that offers users a variety of wallets, going from minimalist to premium, on a subscription basis. Such techniques not only reduce the financial burden on consumers but also promote sustainability by extending the wallet lifecycle. This trend aligns with modern consumers' demands for flexibility, variety, and low environmental impact. Therefore, this trend is expected to drive the growth of the market during the forecast period.
Intense competition between players is a challenge that affects the growth of the market. The global wallet market is favorably dynamic due to the existence of several regional and international market players competing on factors such as marketing and promotional strategies as well as new product offerings. Competition among players is fierce due to the entry of startups. The existence of many players has raised competition in the market, leading to price wars.
Moreover, the global wallet market is fragmented due to the existence of many unorganized regional providers. Additionally, regional players have vast distribution and service networks, which affects global suppliers. Tough competition among market players is expected to negatively impact the growth of the global wallet market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Wallets Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The conventional wallets segment is estimated to witness significant growth during the forecast period. A conventional wallet is a small box used to hold personal items such as cash, transaction cards, identity cards, and other items. Regular wallets are usually made of leather or fabric; however, many other types of flexible flat sheet materials are also used to make them useable for both men and women.
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The conventional wallets segment was the largest segment and was valued at USD 13.30 billion in 2017. Increasing internet penetration across the globe is inspiring wallet manufacturers to leverage e-commerce platforms to offer a variety of conventional wallets to consumers. Hidesign and Caprese (famous brands of VIP Industries Ltd. (VIP)) is one of the market players that has expanded its product reach through online channels. Additionally, the demand for environmentally friendly and personalized conventional wallets in the global wallet market is increasing. LVMH offers personalization of its portfolio. Hence, with the increasing availability of different types of conventional wallets in the market, the conventional wallet segment is expected to witness significant growth during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. China, Japan, India, Australia, Thailand, and Hong Kong are some of the key countries contributing to the growth of the regional wallet market. The wallet market in APAC is expanding significantly due to a combination of heritage and innovation.
Furthermore, the growing menace of counterfeit products in the APAC region is the primary factor restraining the market growth in this region. The easy availability of counterfeit products, especially in countries such as China, India, Hong Kong, and Thailand, makes it difficult for genuine sellers to penetrate the market optimally. Additionally, low prices of counterfeit wallets will attract consumers, thereby hindering the potential sales of branded wallets and the growth of the regional market during the forecast period.
In 2020, the outbreak of the COVID-19 pandemic had a negative impact on the APAC wallet market. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of supply chain activities. Furthermore, the wallet market in the APAC region saw a recovery in 2021 and 2022, driven by a thriving e-commerce landscape, technological advancements such as smart wallets, and rising disposable income. However, sudden changes in consumer tastes and economic considerations can alter the market trajectory. Hence, such factors are expected to drive market growth in the region during the forecast period.
The wallets market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Wallets Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.01% |
Market growth 2023-2027 |
USD 11.12 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.75 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAGGIT, Bellroy Pty Ltd., Buffalo Jackson Trading Co., Burberry Group Plc, Calleen Cordero Designs Inc., Da Milano Leathers Pvt. Ltd., Ekster Wallets BV, Etienne Aigner AG, Fossil Group Inc., Hermes International SA, Hidesign, Kenneth Cole Productions Inc., Kering SA, Matt and Nat SE, Montblanc, Mulberry Group Plc, Ralph Lauren Corp., Tory Burch LLC, Zazzle Inc., and Furla Spa |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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