Handbag Market- Global Industry Analysis and Forecast (2022-2029)

Handbag Market was valued at US$ 49.56 Bn. in 2021. Global Handbag Market size is expected to grow at a CAGR of 6.69 % through the forecast period.
Handbag Market Overview:
A handbag is a type of fashion accessory that is typically used by women to carry vital personal utility items. Handbags are often made by sewing many pieces of cloth or leather together in a range of sizes, designs, and colors. The most prevalent varieties of handbags on the market include shoulder, satchel, handled, and sling bags. Gender-neutral bags are becoming increasingly popular among customers of all ages. People are becoming increasingly fascinated by the product's fashionable appeal, material quality, and attractive design, which is resulting in slow market growth. It is commonly utilized to enhance the user's appearance while also serving as a helpful storage device. The product's demand is forecast to be fueled by the booming travel and tourist market, which is driving up demand for the goods.

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Handbag Market COVID-19 Impact:

COVID-19's impact has been extraordinary and devastating, with the product experiencing a negative demand shock throughout the pandemic. As a result of the coronavirus pandemic, consumer spending on luxury like as handbags has decreased, forcing many manufacturers to raise the price of their items to compensate for the loss. Gucci increased the price of their handbags by up to 9% to compensate for the sales drop caused by COVID-19. Similarly, its competitors, including as Chanel and Louis Vuitton, are raising their product pricing. Furthermore, the deployment of social distancing and lockdown has resulted in a drop in the manufacture of these bags, hampered the market's growth.
Handbag Market Dynamics:
Market Trends:

To increase demand, shift your focus to creative items. As a result, a growing number of businesses are focusing on handbags with new features such as detachable flaps, power units, outer shells, and other characteristics, creating a potential for market growth. For example, the Autumn Blue Signature Handbag from Evolution Smart Bag features an evolution power unit, an EVA outer shell, a charging base, an interior bag, and a detachable flap. Also, the increased creation of these cruelty-free and particularly made for vegans bags has had a favorable influence on purchasing habits. According to information supplied by the Vegconomist, Lug introduced its first PETA-approved leather items, which included a handbag.

Leather is one of the world's most traded commodities. This is owing to the fashion market's constant need for footwear, baggage bags, and accessories like purses. This is owing to an increase in the manufacture of light leather for handbags and the importation of the material from Asian nations such as China, India, and Vietnam.

Hermes International had a 14.5 % growth in revenue from Leather Goods and Saddlery, thanks to strong demand and additional manufacturing capacity. However, sales of re-exports of leather handbags grew by 11% in Asia-Pacific and the United States, resulting in revenue increase of 11%.

Driving Factors:

The growing number of women in the workforce has aided in rising demand for the goods by increasing their purchasing power. According to figures issued by the International Labor Organization, women account for 48.5 percent of the workforce. Moreover, the female population's strong consumer expenditure is forecast to enhance the consumption rate. According to Catalyst.Org, female consumer expenditure is estimated to reach USD 31.8 trillion. Also, the rising female literacy rate has increased knowledge of the availability of luxury goods such as handbags, which is assisting market growth.

The market will be fuel by the public's growing interest in fashion items. The fashion market's explosive growth leads in the manufacturing of a wide range of appealing handbags, which helps the market gain traction. According to figures provided by the Business of Fashion Ltd., the fashion sector is estimated to be worth USD 1.3 trillion and employ 300 million people. Also, celebrity endorsements and commercials used in promotional efforts serve to attract more customers, paving the way for increased demand. Chanel, for example, has named Penelope Cruz as its brand ambassador, according to the National News.

Restraining Factors:

Bag-packs, briefcases, drawstring bags, and other alternatives to handbags are progressively acquiring market share throughout the world and are expected to have a negative influence on handbag market growth. Similarly, the fact that many men prefer these alternative items to handbags has had a detrimental influence on the market. Moreover, leather items, including these types of bags, are seeing a drop in export in several places throughout the world, which has a negative impact on growing consumption. According to statistics published by Leather India.Org, India's export of leather and leather goods has decreased from USD 2398.44 million to USD 2276.39 million.
Handbag Market Segment Analysis:
Based on Product Type, Due to the product's bigger size compared to other types of handbags, the tote sector is expected to dominate the market. Its adaptability and convenience in carrying more goods while maintaining their elegant appearance is forecast to propel its popularity. For example, the Carmen Tote has one zip pocket, two slide pockets, three credit card slots, one adjustable and detachable shoulder strap, and two handles, making it extremely adaptable and practical for most users. Due to the product's adaptability for numerous situations and purposes, including casual, formal, and semi-formal settings, the clutch, satchel, and others (hobo, body cross, saddle) segments are also boosting their market presence.

Based on the Raw Material, Because of its appealing properties, such as being inherently waterproof, robust, timeless, and flexible, the leather sector is expected to dominate the market. As a result, this aspect is expected to raise the large items, such as handbags. The Leather Goods & Footwear Manufacturing Association of Bangladesh, for example, estimates that the leather goods market in Bangladesh is worth USD 95.4 billion. Fabric (cotton, wool, silk, polyamide, and polyester), on the other hand, is forecast to have a large influence on the market since it is favoured for various uses and weather conditions.Based on the Distribution Channel, The offline distribution channel dominated the market with 84.3 % share in 2021. Exclusive retail outlets have grown in popularity among women in recent years, and manufacturers have grown their distribution channels. As a result, market growth has accelerated, particularly in developed countries. Gucci, for example, turned its flagship shops into interactive art galleries by including pieces by Spanish artist Ignasi Monreal. This has increased the number of creative artworks available to customers. Because customers in emerging countries are becoming more conscious of brands, manufacturers are building brand stores there.

The fastest CAGR of 7.4 % is forecast for the internet distribution channel. Due to the tremendous growth of smartphone users throughout the world, the number of online shoppers is rapidly growing. Because of the shift in consumer choice from offline to online buying, the market's top companies have begun offering online delivery. Gucci's "New Store Concept" includes stores that combine online and in-store purchasing. Coach's e-commerce revenues and website traffic have increased dramatically over the last several years. This indicates that the product's online sales will likely increase quickly in the near future.
Handbag Market Regional Insights:
The Europe region dominated the market with 30 % share in 2021. The high per capita income of several nations in this area has resulted in an increase in demand for trendy items, including these types of bags. According to Trading Economics statistics, Germany has a per capita income of USD 53,815, Italy has a per capita income of USD 42,413, France has a per capita income of USD 46,184, and the United Kingdom has a per capita income of USD 46,699. Domestic brands such as Louis Vuitton, Chanel, Gucci, and others, which have a strong presence and are constantly gaining popularity among local customers, have also had a favourable impact on regional market growth.

The APAC region is expected to witness significant growth at a CAGR of 6.69% through the forecast period. Because of the increased employment rate, which leads to increased purchase of consumer products, Asia Pacific is predicted to make continuous advances in the market. According to the International Labour Organization, Asia Pacific's employment-to-population ratio was 33.1 % last year, down from 33.2 % the year before. Additionally, the market's growth is expected to be aided by a rising number of young people's preference for fashion items.

Because of the booming rise of small firms, North America is likely to experience significant growth. This feature is important in growing the use of handbags intended exclusively for business. There are 30.7 million small enterprises in the United States, with 59.9 million employees. Furthermore, the availability of a variety of fashion exhibits, such as Apparel Sourcing USA, Stylemax Chicago, and Micam Americas Las Vegas, helps to speed up product consumption.

Because of the increasing number of people relocating to cities, South America is expected to increase significantly. According to the United Nations Economic and Social Commission, more than 80 % of Latin America's population lives in cities.

The objective of the report is to present a comprehensive analysis of the Handbag Market to the stakeholders in the market. The past and current status of the market with the forecast market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the market with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the market to the decision-makers.

The reports also help in understanding the Handbag Market dynamic, structure by analyzing the market segments and forecasting the Handbag Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Handbag Market make the report investor’s guide.
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Handbag Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US$ 49.56 Bn.


Forecast Period 2022 to 2029 CAGR:
6.69 %
Market Size in 2029:
US$ 83.20 Bn.


 Segments Covered:
by Product Type
• Tote
• Clutch
• Satchel
• Others


by Raw Material
• Leather
• Fabric (cotton, wool, silk, polyamide & polyester)


by Distribution Channel
• Online
• Offline



Handbag Market by Region
• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa
Handbag Market Key Players
• Coach IP Holdings LLC
• Louis Vuitton Malletier
• Chanel Ltd.
• Guccio Gucci S.p.A
• Prada S.p.A
• Fendi
• Burberry
• Hermès International S.A
• Kate Spade
• Calvin Klein Inc.
• Michael Kors
• Fossil Group Inc.
• Ted Baker

Frequently Asked Questions:

1. Which region has the largest share in Global Handbag Market?
Ans: Europe region holds the highest share in 2021.

2. What is the growth rate of Global Handbag Market?
Ans: The Global Handbag Market is growing at a CAGR of 6.69% during forecasting period 2022-2029.

3. What is scope of the Global Handbag market report?
Ans: Global Handbag Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Handbag market?
Ans: The important key players in the Global Handbag Market are – Coach IP Holdings LLC, Louis Vuitton Malletier, Chanel Ltd., Guccio Gucci S.p.A, Prada S.p.A, Fendi, Burberry, Hermès International S.A, Kate Spade, Calvin Klein Inc., Michael Kors, Fossil Group Inc. and Ted Baker

5. What is the study period of this market?
Ans: The Global Handbag Market is studied from 2021 to 2029.