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Handbag Market

Handbag Market Size, Share & Trends Analysis Report By Product (Tote Bag, Clutch, Satchel, Others ), By Raw Material (Leather, Fabric, Others ), By Distribution Channel (Online , Offline) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Report Code: SRCP3416DR
Study Period 2018-2030 CAGR 5.5%
Historical Period 2018-2020 Forecast Period 2022-2030
Base Year 2021 Base Year Market Size USD 48.70 Billion
Forecast Year 2030 Forecast Year Market Size USD 78.85 Billion
Largest Market North America Fastest Growing Market Asia Pacific
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Market Overview

The Handbag Market size was valued at USD 48.70 billion in 2021. It is projected to reach USD 78.85 billion by 2030, growing at a CAGR of 5.50% during the forecast period (2022-2030).

Handbags are currently one of the most popular types of personal items. Different handbags' availability, prominence, and desirability have increased their wide acceptance and powerful performance. Handbags are ubiquitous in modern society and serve a variety of functions for their owners. They can be created from various materials, such as mesh, leather, nylon, straw, canvas, vegan leather, and jute. For instance, individuals typically favor canvas handbags for shopping; professionals in the corporate world typically favor leather bags; conversely, women usually prefer clutches or wristlets for events or a night out.

Market Dynamics

Global Handbag Market Drivers

Rising Global Demand for Premium, Lightweight, and Luxury Handbags

One of the most sought-after materials for the production of luxury products is thought to be leather. The demand for leather in the fashion business is consistently high, driven by purses, shoes, watches, wallets, and other accessories. Compared to handbags made of materials like fabric, nylon, canvas, and others, leather-based bags are more in demand. The manufacturers of high-end leather handbags include Hermès International S.A., Louis Vuitton, Gucci, and Prada. A leather handbag can range from USD 40 to USD 500,000.

Shoppers favor lightweight handbags since they are easier to carry and place less stress on the shoulders. These handbags are constructed of nylon, neoprene, and Dyneema, the strongest fiber in the world (a variety of synthetic rubber). Consumers worldwide can also buy high-end, pricey, high-quality, and lightweight handbags because of their increasing disposable income. There is a big market for fashionable, lightweight handbags among working women, which is expected to drive market growth over the forecast period.

Global Handbag Market Restraints

Fluctuations in Raw Material Prices

The price of raw ingredients, such as caprolactam and benzene, pure terephthalic acid (PTA), and mono ethylene glycol (MEG), which are needed to make nylon, leather, and polyester fiber, has increased, primarily due to the increase in the price of crude oil and a shortage of resources. Natural gas, crude oil, and coal are the primary raw materials or hydrocarbons used in manufacturing. The fluctuations in crude oil prices also affect raw material prices.

Additionally, the profitability of intermediate petrochemical producers of acetic acid, ethanol, and adipic acid is impacted by raw material price volatility, impacting end-use industry prices. The trends in supply and demand significantly impact the price of nylon globally. Due to a lack of supply compared to demand, caprolactam's price increased, impacting the cost of nylon. This scenario is expected to impact the cost of the global handbag market growth.

Global Handbag Market Opportunities

Integration of Technology and Innovative Designs

Handbag manufacturers must use cutting-edge technologies and make significant modifications to their product lineups to survive the fierce competition in the luxury goods and accessories sector. Manufacturers of handbags may find it advantageous to include cutting-edge materials and technologies, including sensors and cameras, to create distinctive goods that satisfy shifting market wants. In addition, market players invest money in research and development to develop handbags best suited for particular tasks. The incorporation of technical features into handbags encourages consumers to buy them.

For instance, Celine, a luxury leather and ready-to-wear clothing manufacturer based in Paris, France, provides "My Headphone plugs are included in "Phone Mini Bags." These enable consumers to enjoy music without having to use their phones. Louis Vuitton showed versions of two of its monogram handbags with integrated, flexible OLED digital panels in May 2019 at its Cruise 2020 presentation. The Louis Vuitton monogram is printed in brown and cream on PVC-coated canvas, with black patent leather accents on the sides, and functioning video screens are included on the Canvas of the Future bags.

Regional Analysis

The global handbag market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Market

North America is the most significant shareholder in the global handbag market and is anticipated to grow at a CAGR of 5.50% over the forecast period. Given that consumers in the North American region have a high discretionary income, the fashion industry's growing influence over a larger audience is anticipated to increase demand for handbags in that region. Additionally, Black Friday deals and clearance sales are well-liked in the United States, where women, in particular, swarm to buy accessories like purses. International suppliers in the North American handbag market have occasionally increased sales. As a result of accessories' ongoing attractiveness, market growth will probably be supported during the projection period. In North America, there is a rising demand for handbags due to new developments and product introductions by established market participants.

Asia-Pacific is expected to grow at a CAGR of 7.30% during the forecast period. The expansion in consumer purchasing power and the growth of online shopping portals have spurred the demand for handbags in the Asia-Pacific region. Growing fashion consciousness and expenditure on clothing, accessories and other personal things have been identified as significant market drivers for handbags. For instance, according to information provided by Net-a-Porter in May 2020, Asia-Pacific had a significant increase in handbag sales of 261% from 2019 to 2020. These handbags capture the feminine but subtle design that defines bohemian chic. Since most handbags are made of supple leather or another flexible material, they appear slouchy when carried over the shoulder.

Europe is expected to grow significantly over the forecast period. The increased per capita use of handbags, an improving economy, and higher disposable income all contribute to the growth of the handbag market in Europe. The market is also expanding due to rising customer demand for aesthetically pleasing handbags and developing options to employ a variety of handbags. The growing availability of tote bags, a market sector, is also driven by rising demand due to expanding retail markets, including supermarkets, hypermarkets, and specialty shops. Additionally, the market for totes is anticipated to be driven by the growing use of fashionable totes for necessities, cosmetics, and beauty goods in the coming years. The expanding purchasing power of European consumers is also increasing demand for high-end and luxuriant clutch purses.

Report Scope

Report Metric Details
Segmentations
By Product
  1. Tote Bag
  2. Clutch, Satchel
  3. Others 
By Raw Material
  1. Leather
  2. Fabric
  3. Others 
By Distribution Channel
  1. Online 
  2. Offline
Company Profiles Louis Vuitton Hermès International S.A Michael Kors Fossil Group Guccio Gucci S.p.A Prada S.p.A Burberry Group Plc Tapestry Inc. Chanel Compagnie Financière Richemont SA.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global handbag market is segmented by product, raw material, and distribution channel.

By Product Analysis

Based on product, the global market is bifurcated into tote bags, clutches, satchels, and others.

The tote bags segment is the highest contributor to the market and is anticipated to grow at a CAGR of 5.95% over the forecast period. Tote bags are versatile bags that can be used for several things. Consumers like tote bags because of their size and construction. Compared to other purses, tote bags have a more sizable capacity than different types. These bags make it simpler for customers to transport necessities to workplaces, colleges, and other locations. The growing appeal of Korean fashion and aesthetics among younger consumers also drives tote bag sales. Additionally, totes' stylishness aids shoppers in making a fashion statement at formal events.

The two main reasons propelling the handbag market are the rising disposable income and the demand for luxury bags. Clutch bag sales are expected to be fueled by a social event and party demand for upscale bags. For social events, many customers favor thin, simple purses because they add an element of style. In addition, the growing impact of social media and celebrity fashion is accelerating the expansion of the clutch market. Companies in the market are using automation and targeted marketing techniques to boost clutch bag sales. Another factor influencing the demand for clutch handbags is the acceptance of cruelty-free goods like vegan leather. The adoption of plant materials for manufacturing clutch bags and other handbags is being pushed by major market participants in response to restrictions on animal leather raised by governments worldwide.

By Raw Materials Analysis

Based on raw materials, the global market is bifurcated into leather, fabric, and others.

The leather segment owns the highest market share and is expected to grow at a CAGR of 6.60% during the forecast period. The main driver of the demand for leather handbags is the shift in consumer preference toward luxury goods and accessories. The main component of high-end handbags and accessories is leather. The luxury consumer expenditure in developed and developing economies is the primary driver of the leather handbag market. Due to the increasing desire for a diverse wardrobe collection, many working women worldwide are prepared to invest in leather purses. As people's disposable income increases, the market for leather items is also anticipated to increase in emerging economies like Thailand, Egypt, the UAE, Saudi Arabia, and India. Consumers are drawn to leather handbags by the popularity of handbags in pastel hues and designs.

The materials used to make fabric purses include cotton, silk, canvas, velvet, jute, and nylon. By introducing handbags in various textures and materials, significant competitors in the handbag business are continually innovating their products. Players are encouraged to use natural fibers like jute and cotton because of concerns about sustainability. Several businesses and supermarkets are adopting cotton tote and jute bags more frequently to lessen the usage of single-use plastic. For instance, in 2019, Prada unveiled Re-Nylon, a substitute for nylon manufactured from yarn recovered from landfills, oceans, and other industrial waste sources. These bags are perfect for daily usage because they can contain heavy stuff like books, laptops, and other items.

By Distribution Channel Analysis

Based on the distribution channel, the global handbag industry is bifurcated into online and offline.

The offline segment is the highest contributor to the market and is expected to grow at a CAGR of 6.10% during the forecast period. Department stores, specialty stores, and other retail establishments all fall under offline distribution channels. Customers favor physical businesses over online ones because they provide a more comprehensive selection of products and are more convenient and accessible. Additionally, major market players are implementing the omnichannel strategy and expanding their brick-and-mortar presence in China due to the country's rising demand for luxury and personal goods.

Due to the growing popularity of social media and e-commerce, the internet sector is projected to grow at a respectable rate. The digitalization of services has led to a rise in the preference for online purchasing among younger consumers. To serve a broader range of customers, businesses in the handbag industry are constantly enhancing their client databases and online shops. For instance, Michael Kors intends to use omnichannel and the assistance of its e-commerce partners to speed up the growth of its brands, Versace and Jimmy Choo. China, Malaysia, Singapore, Taiwan, and Hong Kong all offer informational webpages for brands like Coach and Kate Spade.

Market Size By Product

Recent Developments

  • November 2022- In India, Charles & Keith launched a limited-edition line inspired by football. With a selection of sporty handbags and shoes, the limited-edition collection is made to commemorate the World Cup season.
  • November 2022- The Fabulous World of Dior, a spectacular presentation illuminating the revered halls of the legendary department store, was introduced by Dior in collaboration with Harrods this holiday season.

Top Key Players

Louis Vuitton Hermès International S.A Michael Kors Fossil Group Guccio Gucci S.p.A Prada S.p.A Burberry Group Plc Tapestry Inc. Chanel Compagnie Financière Richemont SA. Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the Handbag Market?
Handbag Market size will grow at approx. CAGR of 5.5% during the forecast period.
Some of the top prominent players in Handbag Market are, Louis Vuitton, Hermès International S.A, Michael Kors Fossil Group, Guccio Gucci S.p.A, Prada S.p.A, Burberry Group Plc, Tapestry Inc., Chanel Compagnie, Financière Richemont SA., etc.
In the Handbag Market, North America has established itself as the market leader with a significant market share.
The Asia Pacific region is projected to exhibit the highest rate of growth in the Handbag Market.
The global Handbag Market report is segmented as follows: By Product, By Raw Material, By Distribution Channel


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