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The handbags market size is forecast to increase by USD 16.56 billion, at a CAGR of 4.79% between 2023 and 2028. The market growth and trends are propelled by the movement towards personalized and customized handbags, bolstered by intensive marketing campaigns, celebrity endorsements, and robust brand promotions by vendors. These efforts aim to amplify consumer awareness and engagement, driving demand for bespoke fashion accessories. Concurrently, there is a notable rise in consumer fashion consciousness, marked by increased spending on personalized goods and accessories. This trend reflects a shift towards individualized style preferences and the desire for unique, statement-making products. Together, these factors stimulate market growth by fostering a dynamic marketplace where customization, brand influence, and consumer choice intersect to shape trends and drive innovation in the fashion accessory industry. As brands adapt to evolving consumer tastes and preferences, opportunities abound for expanding product offerings and enhancing customer loyalty through personalized shopping experiences.
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The leather segment is estimated to witness significant growth during the forecast period. The leather industry holds significant potential, and there is a huge gap between resources and production. In addition, the US, Canada, and Mexico are the largest markets in the region for leather-handbags. Furthermore, handbags are made up of different types of leather.
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The leather segment was the largest segment and was valued at USD 36.14 billion in 2018. Moreover, leather, which is tanned from exotic animals to make leather goods, including leather handbags, has grown during the last few years. In addition, this is due to an increase in demand for leather handbags with different textures, quality, and feel. Furthermore, the shortage of exotic animal skins to manufacture leather handbags has encouraged companies to look for skins of animals such as ostriches and other animals, reptiles, and other animals and birds. In addition, companies are also offering leather handbags made from the skins of animals such as calves, lambs, snakes, crocodiles, and alligators. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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APAC is estimated to contribute 38% 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. The contribution of Chinese consumers to the handbags market in APAC is fuelling the sales of handbags in APAC, subsequently driving the value sales of handbags in APAC. Moreover, the growing fashion industry, led by an increase in the number of fashion events as well as promotions and endorsements by celebrities, is further boosting the demand for handbags in the region, particularly among consumers aged 15-24 years. In addition, the growing target population (aged 15-64 years) and the rising disposable income will also drive the demand for handbags of all categories, including premium and luxury ranges. Furthermore, the growth in tourism in the region plays a pivotal role in driving the growth of the handbags market in APAC. Hence, such factors are driving the market growth in APAC during the forecast period.
An omnibus survey of the female working population in emerging economies revealed a rising preference for eco-friendly raw material like jute in the bag industry and fashion accessories, further amplified by celebrity endorsements emphasizing sustainability over synthetic options derived from pure terephthalic acid (PTA) and mono ethylene glycol (MEG). In the fabric handbag segment, tote bag segment, and satchel bags market, the choice of raw materials is increasingly influenced by celebrity endorsement and fashion bloggers, with brands like Balenciaga and Celine leading trends. The emergence of sustainable alternatives such as banana leather handbags, made from eco-friendly sources like coal derived acetic acid, ethanol, and adipic acid, has gained popularity due to their durability and environmental benefits and mobile phones. This shift reflects a broader consumer demand for stylish yet sustainable accessories, driven by heightened awareness of ecological impacts and a desire for innovative materials in fashion.
One of the key factors driving the market growth is the personalization and customization of handbags. Customization and personalization of handbags are primary trends in the market. For instance, leather handbags are made of precious metals, including gold and silver, or studded stones, such as diamonds. Furthermore, customized products have gained popularity in developed countries in North America and Western Europe over the last five years.
Moreover, emerging countries, such as India and China, are also experiencing a growing demand for customized luxury goods, including luxury handbags. In addition, to improve their product's visual appeal, top market players in the luxury handbag space provide personalized and customized options, leveraging advanced embroidery equipment and other customization tools. Furthermore, the level of personalization and customization varies widely, ranging from custom straps and buckles to intricate embroidery or personalized name tag additions. Hence, the integration of sophisticated embroidery equipment and other customization technologies plays a pivotal role in driving market growth during the forecast period, meeting diverse consumer preferences for unique and personalized luxury handbag designs in key emerging markets like India and China.
A key factor shaping the market growth is the growing preference for affordable luxury handbags. With the limited supply of an increasing demand for luxury handbags, the prices of these products continue to rise. However, considering the difference in buying power and customer preferences, companies are launching affordable luxury products. Furthermore, Gucci, a brand by Kering, has aligned its offerings with different urban classes.
Moreover, instead of following the one-size-fits-all brick-and-mortar expansion, the brand has adopted a tiered approach for its product assortment in China. In addition, in tier-2 cities with less affluent customers, comparatively less expensive leather goods and accessories hold the majority of the shelf space, in contrast to the major markets, such as Beijing and Shanghai, where customers have high spending power. Hence, such factors are driving the market growth during the forecast period.
Stringent government regulations for procuring raw materials such as leather are one of the key challenges hindering market growth. Leather is one of the extensively used raw materials in the handbag segment. However, the leather industries in several countries adhere to strict government regulations. Furthermore, the leather industry in Europe, particularly in Germany, is highly regulated by various government bodies and associations.
Moreover, the players operating in the tanning industry need to follow various regulations for the production of leather, waste disposal, use of chemicals, environmental protection, and recycling. In addition, waste reduction and environment protection measures cost almost 5% of the total operational cost for manufacturers. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. The market forecast focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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 market research and growth 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segment
The Handbags Market is witnessing dynamic growth driven by evolving market trends and analysis. As women's participation in the global workforce increases, the demand for luxury and premium handbags surges, especially among working women in corporate and organized sectors. The leather handbag segment remains dominant, offering luxury wear and personalized products to cater to diverse consumer preferences. Strategic partnerships with celebrities and influencers, coupled with celebrity endorsements, further propel the market forward, influencing the purchasing decisions of millennials and Gen Z consumers. To combat the rise of counterfeit products, brands are leveraging customer interaction platforms and e-commerce platforms to ensure authenticity and trust.
Moreover, the shift towards sustainable fashion drives the adoption of vegan leather alternatives such as banana leather and straw, aligning with initiatives promoted by organizations like the World Tourism Organization. As the market embraces innovation, materials like mesh, nylon, and canvas gain traction, reducing reliance on traditional resources like crude oil and natural gas.
Handbags Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.79% |
Market growth 2024-2028 |
USD 16.56 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.87 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Authentic Brands Group LLC, Burberry Group Plc, Capri Holdings Ltd., Cartier SA, Chanel Ltd., Dolce and Gabbana SRL, Fossil Group Inc., Hermes International SA, Kanmi, Kering SA, Macys Inc., MCM Products USA Inc., Michael Kors Switzerland GmbH, Prada S.p.A, PVH Corp., Samantha Thavasa Japan Ltd., Samsonite International S.A., Tapestry Inc., The LVMH group, and Tory Burch LLC |
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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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