Handbags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The handbags market is forecasted to register a CAGR of 4.5% during the forecast period, 2021 – 2026.

Since the COVID-19 pandemic has forced a major part of the world’s population to sit at home owing to travel restrictions and lockdown, the industry of fashion apparel and accessories has been hit hard as offline retail stores and shopping outlets were shut off for a significant duration of the year. Also, most of the potential consumers limited their spending on fashionable accessories and appeals, which directly impacted the sales revenues of the top big brands in the handbags market. However, as the pandemic situation is improving gradually, the spending patterns of consumers have increased, and the market is expected to regain its potential as the economies of the developing nations improve.

The handbags market is highly driven by consumer preferences toward changing trends and fashion, particularly among the millennials. In order to cater to the growing demand, especially in the luxury handbags segment, key players are trying to form strategic partnerships and expansions.

The handbags market is driven by the growing fashion industry, with handbags being considered a major fashion statement. Also, the increasing social media influence on consumers from Instagram and Twitter is responsible for the inclination of potential consumers toward the market. Since the majority of the global young adult population is engaged in these social media platforms, handbag companies are targeting their product ranges at this age group.

However, the presence of counterfeit products is one of the key challenges faced by brands globally.

Scope of the Report

A handbag, commonly known as a purse, is a handy medium-to-large bag used to carry personal items. The handbags market is segmented by product type, distribution channel, and geography. By product type, the market has been segmented into satchel, bucket bag, clutch, tote bag, and other product types. By distribution channel, the market has been segmented into online retail stores and offline retail stores. By geography, the market has been segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasting have been done in value terms of USD million.

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Key Market Trends

Growing Demand for Leather Goods

Leather is one of the most widely traded commodities in the world. There is a continuous demand for leather from the fashion industry, driven by footwear, luggage bags, and accessories such as handbags. This is due to the increase in the production of light leather for handbags and its imports from Asian countries such as China, India, and Vietnam. Major importing countries of leather for handbags are the United States and Japan. However, hit by high import tariff rates of leather from China in 2018, India has become one of those opportunistic markets for imports of leather handbags for major companies from the United States and Europe. In addition, in 2016, Hermes International witnessed an increase in sales of around 14.5% from leather goods and saddlery, driven by sustained demand and increased production capacity. However, in 2017, the company witnessed revenue growth of 11% from Asia-Pacific and the United States, driven by the sales of re-exports of leather handbags.

The growing demand for leather goods is expected to drive the leather handbags sector due to the rise in re-export operations conducted by two luxury brand importers, Hermes and Louis Vuitton.

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