Global Luxury Handbag Market - Industry Trends and Forecast to 2029

Global Luxury Handbag Market Analysis and Size

Millennials and generation Z spends a huge chunk of their salaries in buying luxury goods and services. Luxury handbags are manufactured using high grade leather and are designed by professional stylists. Guccio Gucci S.p.A. (Italy), Giorgio Armani S.p.A. (Italy), Valentino S.p.A. (Italy), Burberry Group PLC (UK), Chanel S.A. (France), Dolce & Gabbana S.R.L. (Italy), Prada S.p.A. (Italy), Atelier (US), Louis Vuitton (France) and Tory Burch LLC (US) are the major players operating in this market.

• Data Bridge Market Research analyses that the luxury handbag market is expected to undergo a CAGR of 8.20% during the forecast period. This indicates that the market value, which was USD 22.61 billion in 2021, would rocket up to USD 42.48 billion by 2029. “Handbag” dominates the type segment of the luxury handbag market owing to the rising number of fashion-conscious consumers globally.

Global Luxury Handbag Market Definition

From the name itself, it is clear that luxury handbag are the handbags that are crafted using high grade and quality materials. Luxury handbags are manufactured by skilled craftsmen and are seen as an investment and a symbol of prestige. Luxury handbags are easily available via online and offline modes of distribution.                         

Report Scope and Market Segmentation

Luxury Handbag Market Dynamics

Drivers

• Fashion Consciousness Influenced The Market Growth

Growth in the number of social media bloggers coupled with rising penetration of social media platforms is widening the scope of growth for the market. In other words, rising awareness about the latest trends and designs via celebrity and blogger endorsements coupled with the consciousness to wear the latest trends is directly influencing the market growth of the market. Also, growth and expansion of consumer goods industry is directly influencing the market growth rate.   

• Growing Awareness to Direct the Market Demand and Supply

Increased awareness about the different types of brands in the market is inducing increased demand and supply on global scale. Rising availability of a wide array of raw materials to manufacture the handbags is inducing a good market growth rate.       

• Growing Disposable Income to Direct the Market Growth

Rising spending capacity on premium products coupled with increasing internet penetration is inducing the market growth rate. Additionally, the rise in the use of personal stuff and the prevalence of improved distribution sector is creating a great scope of growth for the market.

Opportunities

• Rising Research and Development Operations

Increased funding from federal government pertaining to the research and development proficiencies is also bolstering the growth of the market. Research and developmental operations directed towards sustainable development will ensure optimum and judicious use of resources, thereby improving the market value. 

• Rise in the Technological Advancements

Rising technological advancements pertaining to the manufacturing technology is further inducing growth in the market value. Increasing number of technological advancements driven with a view to minimize the production costs and wastage coupled with rise in the acceptance of laundry services that are accessible over the internet has ensured a bright future for the market. 

Furthermore, upsurge in the strong demand for various end-use industries will positively impact the market’s growth rate. Additionally, rise in the awareness among people about e-commerce platforms and growing awareness regarding the benefits of handbags will further cushion the market's growth rate. Also, rising number of product innovation activities rising number of working women population across the globe and availability of different colors, shapes, and designs that offer aesthetic appeal will further increase the demand of the smart bottle market. 

Restraints/Challenges Global Luxury Handbag Market

On the other hand, high cost associated with the research and development proficiencies, limited infrastructural facilities, uneven high cost of the products and negative impact of COVID-19 on supply chain are expected to obstruct market growth. Also rising import duties and high taxation coupled with supply of counterfeit products and lack of suitable infrastructure in low- and middle-income countries are projected to challenge the market in the forecast period of 2022-2029.

This luxury handbag market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the luxury handbag market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Luxury Handbag Market

COVID-19 had a negative impact on the market. This was because of the shutdown of the manufacturing facilities and plants owing to the lockdown and restrictions. Supply chain and transportation disruptions further crated hindrances for the market. In other words, the industry faced a backlash owing to the disruptions in value chain, including workforce losses, raw materials supply, trade and logistics, and uncertain consumer demand. The decrease in production of luxury handbags during the COVID-19 further derailed the market growth rate. However, when some relaxations were given, e-commerce sales saw a rise owing to the rising penetration of online and e-commerce channels. The future as well of the market is on the brighter side owing to the increased proliferation of internet and e-commerce channels.

Recent Development

• In February 2022, Louis Vuitton a French company is increasing its capacity to produce ultra-high-end handbags, to ramp up competition in France with Hermès USA. On the other hand, Hermes USA is opening three new factories as it wrestles to keep up with the demand for some of its products.

Global Luxury Handbag Market Scope

The luxury handbag market is segmented on the basis of type, material, end-user, and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Handbag
• Backpack
• Wallet
• Others

On the basis of type, luxury handbag market is segmented into handbag, backpack, wallet, and others. Handbag has been further segmented into shoulder bags, satchel bags, sling bags, tote bags, and hobo bags. Others have been further segmented into laptop bags and messenger bags.

 Material  

• Cotton
• Leather
• Nylon
• Synthetic

Based on material, luxury handbag market is segmented into cotton, leather, nylon, and synthetic.

End-user  

• Men
• Women
• Unisex

On the basis of end-user, luxury handbag market is segmented into men, women, and unisex.

Distribution channel  

• Duty-Free Stores
• Online Stores
• Discount Stores
• Hypermarkets
• Specialty Stores

Based on distribution channel, luxury handbag market is segmented into duty-free stores, online stores, discount stores, hypermarkets, and specialty stores.

Luxury Handbag Market Regional Analysis/Insights

The luxury handbag market is analysed and market size insights and trends are provided by country, type, material, end-user, and distribution channel as referenced above.

The countries covered in the luxury handbag market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Europe dominates the luxury handbag market owing to the fact that some of the countries such as Germany, France, and UK comprise of several key value addition brands that have been gaining higher level of traction among target customers.

Asia-Pacific on the other hand, is estimated to witness significant amount of growth in the eyewear market and is projected to show the highest compound annual growth rate during the forecast period. This is because of the high population and growing acceptance of fashion products.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Luxury Handbag Market Share Analysis

The luxury handbag market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to luxury handbag market.

Some of the major players operating in the luxury handbag market are:

• Macy’s Inc. (US)
• MARC JACOBS INTERNATIONAL, LLC (US)
• Michael Kors (US)
• LACOSTE (France)
• PVH Corp. (US)
• MCM Worldwide (Germany)
• Michael Kors GmbH (Switzerland)
• Ralph Lauren Corporation (US)
• Cartier International SNC (France)
• Guccio Gucci S.p.A. (Italy)
• Giorgio Armani S.p.A. (Italy)
• Valentino S.p.A. (Italy)
• Burberry Group PLC (UK)
• Chanel S.A. (France)
• Dolce & Gabbana S.R.L. (Italy)
• Prada S.p.A. (Italy)
• Atelier (US)
• Louis Vuitton (France)
• Tory Burch LLC (US)   

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