Handbag Market Size
|2019 - 2029
|Base Year For Estimation
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Handbag Market Analysis
The Handbags Market is expected to register a CAGR of 7.5% during the forecast period.
- The growing adoption of luxury wear, high purchasing power, and the influence of celebrity endorsement are driving the market growth. The bag industry is highly competitive and requires continuous innovation and development, especially in the case of product design and improvement, to keep up with changing consumer trends. Further, customers, particularly millennials and Gen Z, are becoming more open to premium fashionable accessories, including handbags, and are willing to experiment with various branded superior fashion accessories due to evolving fashion perceptions and increased exposure to global fashion trends.
- In addition, key players focus on strategic partnerships and expansions to cater to the growing demand, especially for luxury handbags. The ever-increasing fashion industry drives the handbag market, with bags considered a major fashion statement. Also, due to the increasing social media influence on the purchasing behavior of consumers, companies are targeting their product ranges through e-commerce channels. However, the presence of counterfeit products is a critical challenge brands face globally.
Handbag Market Trends
Influence of Social Media and Aggressive Marketing Strategies
- The growing influence of social media is a critical factor for players to make their brand presence in the handbag business. Celebrities, influencers, and fashion bloggers exhibiting their outfits on social media platforms such as Facebook and Instagram have inspired people to purchase more fashion accessories.
- Companies are experiencing significant changes in how they engage with customers as social media and internet shopping become more mainstream across generations. In addition, companies are more focused on marketing and advertising their products to reach the intended audience. Celebrity endorsements of new designs and collections by brands help sales of many types of handbags among the young population. Thus, these days, celebrities endorse branded fashion products such as watches, bags, apparel, and footwear, among others, on their Facebook pages, Instagram profiles, and Snapchat stories to increase the sales of fashion products.
- For example, In April 2021, Balenciaga, a luxury fashion brand of Kering Group, entered the South American market by launching its products through the Iguatemi 365, an online platform of conglomerate Iguatemi Group. More options to reach consumers have emerged due to mobile phone proliferation.
- Furthermore, consumers are adopting and discarding fashion trends faster than ever because of social media. Over the last few years, social media has had the most significant impact on the fashion business. For instance, the survey conducted by UNCTAD (United Nations Conference on Trade and Development) in association with the NIC.br (Brazilian Network Information Center) in October 2021 revealed that online purchases had increased by 6-10% across different product categories, including personal care, cosmetics, and fashion accessories.
Europe and North America are Leading the Market
- The European handbag market is driven by evolving fashion trends, particularly among millennials. Due to the growing demand for personalized products, key players offer customized handbags to increase their customer base, resulting in sales growth. Further, key players use customer interaction platforms to get feedback regularly.
- Moreover, the growing convenience of online shopping has led to a significant shift in consumer preferences toward purchasing handbags through e-commerce platforms, including third-party channels, such as Amazon and Zalando, and the company's websites.
- Furthermore, the number of international tourists visiting European countries is expected to support the sales of bags. For example, according to the World Tourism Organization, Europe reported the highest volume of inbound travelers in 2021, with roughly 288 million arrivals. As per the analysis, Italy and France are expected to remain among the top countries for luxury shopping in Europe, Germany, and the United Kingdom. Moreover, consumers' shift toward sustainable fashion influences key brands to replace animal-sourced leather with vegan leather in newly launched handbags.
- For instance, in 2022, Cardiff-based start-up company Dozi-imp launched its first collection of artisanal, luxury vegan leather handbags. These handbags are made from Pinatex, an innovative vegan leather made from waste leaves of pineapple, developed by the UK-based ananas anam.
Handbag Industry Overview
The market studied is competitive, with many regional and global players operating in the market studied. The major strategies adopted by these companies include product innovations, expansions, and mergers and acquisitions. The major players dominating the handbag market are Burberry Group PLC, Prada Holding BV, Fossil Group, Inc., Michael Kors, and Gucci. An advanced distribution network provides a competitive advantage to the key market players. Moreover, players focus on continuous innovation to operate and grow in the market and cater to the rapidly changing consumer demands and preferences.
Handbag Market Leaders
Burberry Group PLC
Prada Holding BV
Fossil Group, Inc.
Guccio Gucci S.p.A
*Disclaimer: Major Players sorted in no particular order
Handbag Market News
- April 2023: The sustainable fashion brand Rashki from India joined forces with Atma Leather to introduce India's inaugural collection of banana leather handbags. Rashki has unveiled a diverse range of bags crafted from Banofi, including the striking Snow black and white crossbody bag, the environmentally-conscious Unica Eco handbag featuring elegant wooden handles, and the versatile Fede tote bag.
- March 2023: The renowned French fashion house Coperni made a bold statement in the fashion world by launching an exquisite handbag crafted from meteorite rock. This unique accessory was introduced in the premium luxury segment with a price tag of €40,000.
- October 2022: Titan made a significant foray into the women's handbag market with the introduction of its latest brand, IRTH. IRTH has entered the Indian market, positioning itself as a competitor to established brands like Lavie and Baggit.
Handbag Market Report - Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Fast Fashion Trend
4.1.2 Inflating Income Level of Individuals
4.2 Market Restraints
4.2.1 The Presence Of Counterfeit Products
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.2 Bucket Bag
5.1.4 Tote Bag
5.1.5 Other Product Types
5.2 By Distribution Channel
5.2.1 Online Retail Stores
5.2.2 Offline Retail Stores
5.3.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 South Africa
18.104.22.168 Saudi Arabia
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Burberry Group PLC
6.4.3 Prada Holding SpA
6.4.4 Kering Holland NV
6.4.5 Capri Holdings Limited
6.4.6 Chanel International BV
6.4.7 Kate Spade & Company
6.4.8 Chanel SA
6.4.9 Kering SA
6.4.10 Hermes International SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Handbag Market Research FAQs
What is the current Global Handbags Market size?
The Global Handbags Market is projected to register a CAGR of 7.5% during the forecast period (2024-2029)
Who are the key players in Global Handbags Market?
Michael Kors, Burberry Group PLC, Prada Holding BV, Fossil Group, Inc. and Guccio Gucci S.p.A are the major companies operating in the Global Handbags Market.
Which is the fastest growing region in Global Handbags Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Handbags Market?
In 2024, the North America accounts for the largest market share in Global Handbags Market.
What years does this Global Handbags Market cover?
The report covers the Global Handbags Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Handbags Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the top sustainability initiatives in the Handbag Industry?
The top sustainability initiatives in the Handbag Industry are a) Use of recycled materials & ethical sourcing practices and b) Highlighting brands' leadership
What are the future growth opportunities for the handbag industry?
Increasing expansion into men's & non-leather segments, driven by evolving fashion trends & consumer preferences are the future growth opportunities for the handbag industry.
Bag Industry Report
The global handbag market is on a robust growth path, fueled by the rising workforce participation of women and a surge in demand for stylish yet practical accessories. With a valuation in the billions and a positive outlook towards sustainability, the market is set to soar, propelled by internet and mobile phone usage. Handbags, serving as both fashion statements and essential carriers, are seeing increased demand, especially in the luxury and premium segments, as well as for durable leather products. Innovations in design and materials are meeting evolving consumer preferences, with key players focusing on product innovation and strategic expansions. The future looks promising, driven by fashion trends, technological advancements, and a shift towards eco-friendly products. Statistics for the Handbag Market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Handbag analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.