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The handbag market size is estimated to grow at a CAGR of 4.3% between 2022 and 2027. The handbag market size is forecast to increase by USD 14,110.72 million. The growth of the market depends on several factors, including the personalization and customization of luxury handbags, the increasing marketing campaigns, celebrity endorsement and brand promotion activities, and the increased consumer fashion consciousness and spending on personal goods.
This handbag market report extensively covers market segmentation by type (leather, fabric, and others), distribution channel (offline and online), 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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Personalization and customization of luxury handbags are notably driving the market growth, although factors such as stringent government regulations for procuring raw materials, such as leather, may impede the market growth. 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.
Personalization and customization of luxury handbags is the key factor driving the growth of the global handbag market. Customization and personalization of handbags have become a new trend in the market over the past five years, especially in the developed countries of North America and Western Europe. Emerging markets such as India and China are also seeing increased demand for customized luxury goods such as luxury handbags. In the luxury segment, key market players are offering customized and personalized products to enhance product aesthetics.
The extent of customization and personalization can vary from the strap and buckles to embroidery or the inclusion of a name tag. Customization allows buyers to personalize their handbags, which makes them more expensive than standard products. Moreover, a rise in the customization and personalization of handbags globally supports the growth of the market due to the high price of bags and new purchases. This is expected to propel the value sales of the global handbag market during the forecast period.
Increased demand at airport retail stores is the primary trend in the global handbag market. Travelers generally prefer to shop for luxury and premium goods such as handbags at airport duty-free shops. Airport retail is growing in popularity around the world, and most major airports are being renovated to support large dedicated areas for retail outlets and shopping malls.
Other factors, such as checking in two hours prior to the departure time, delayed flights, and last-minute shopping, also contribute to the growth of the market in focus. Many national and international brands, such as Samsonite brand of Samsonite International and TUMI from VIP, have retail outlets in domestic and international terminals across India. The increasing number of retail outlets at airports is expected to boost the growth of the global handbag market during the forecast period.
Stringent government regulations for procuring raw materials, such as leather is a major challenge to the growth of the global handbag market. Leather is one of the most used raw materials in the handbag segment. However, the leather industry in certain countries is subject to strict government regulation. The leather industry in Europe, especially Germany, is heavily regulated by various government agencies and associations. Those working in the tanning industry must comply with various regulations regarding leather production, waste management, chemical use, environmental protection and recycling. Waste reduction and environmental protection measures contribute nearly 5% of total operating costs to manufacturers.
In 2014, the EU Commission banned the use of chromium VI in leather, particularly in products that come in direct contact with human skin. This regulation impacted the manufacturers and suppliers of products. The Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) organization has restricted the use of various chemicals in the tanning process. Such regulations and restrictions increase the costs borne by vendors and hinder production processes which may impede the growth of the market during the forecast period.
The handbag market 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 Handbag Market Customer Landscape
Vendors 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.
Dolce and Gabbana S.r.l: The company offers handbags such as Sicily medium bags, PVC sicily bags, and sicily small bags. Also, under this segment, the company offers footwear, clothing, accessories, beauty products for men, women and children, and food and beverages.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the leather segment will be significant during the forecast period. The leather handbag market is expected to grow at a notable rate during the forecast period. The leather industry holds potential, and there is a wide gap between resources and production.
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The leather segment was valued at USD 35,179.46 million in 2017 and continued to grow by 2021. The US, Canada, and Mexico are the largest market in the region for leather handbags. Handbags are made up of different types of leather. Leather which is tanned from exotic animals to make leather goods, including leather handbags, has grown during the last few years. This is due to an increase in demand for leather handbags with different textures, quality, and feel. Further, vendors are also offering leather handbags made from the skins of animals such as calves, lambs, snakes, crocodiles, and alligators. The demand for such handbags is also high due to their premium and exclusive look and feel. Such factors will increase the segment growth during the forecast period.
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APAC is estimated to contribute 44% 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 Asia Pacific handbag market boosts the sales of luxury handbags in the Asia Pacific region, which, in turn, drives the valuable sales of handbags in the region. The contribution of the luxury segment is primarily due to strong consumer confidence, high disposable income and increasing urbanization in the region. In addition, the growth of the fashion industry, led by an increasing number of fashion events, promotions and celebrity endorsements, continues to drive demand for handbags in the region, especially among 15- to 24-year-old consumers. Such factors will increase the market growth in the region during the forecast period.
In 2020, due to the COVID-19 pandemic, the handbag market in the region suffered considerable loss because of the closure of brand stores and airport stores, as well as the trade barrier created by governments to curb the spread of infection. However, in 2021, with the introduction of vaccines in the region, the vendor resumed operations in manufacturing plants owing to the ease of lockdown restrictions. The brand outlets were also reopening across the region, which propelled the demand for handbags. Consumer spending on luxury products is increasing, which will positively impact the growth of the market during the forecast period.
The handbag 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.
Technavio categorizes the global handbag market as a part of the global apparel, accessories, and luxury goods market, within the textiles, apparel, and luxury goods market. The parent, global apparel, accessories, and luxury goods market covers products and companies engaged in the manufacturing/marketing of apparel, accessories, and luxury goods. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Handbag Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.3% |
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Market growth 2023-2027 |
USD 14,110.72 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.61 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Burberry Group Plc, CHANEL Ltd., Compagnie Financiere Richemont SA, Deeya International, Dolce and Gabbana S.r.l, Fossil Group Inc., Hermes International SA, Kering SA, Macys Inc., MCM Products USA Inc., Michael Kors Switzerland GmbH, Nath Brothers Exim International Ltd., Prada S.p.A, PVH Corp., Samsonite International SA, Tapestry Inc., Ted Baker PLC, The LVMH group, Tory Burch LLC, and VALENTINO Spa |
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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, Market condition analysis for forecast period. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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