Handbag Market Size, Share & Trends Report

Handbag Market Size, Share & Trends Analysis Report By Product (Tote Bag, Clutch, Satchel), By Raw Material (Leather, Fabric), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-927-2
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Report Overview

The global handbag market size was valued at USD 47.0 billion in 2018 and is anticipated to witness significant growth in the forecast period. Rising women workforce, along with increasing brand awareness, is driving the demand for the product over the world. Over the past few years, demand for handbags has increased due to growing availability of designer bags in different varieties.

U.S. handbag market

Increased usage of handbags among working class women on a global level is expected to remain a key trend in the market. In addition, rapid growth of the corporate and organized sectors has been fueling the demand for the product in the countries including China, India, South Korea, and Indonesia. According to some studies, over the past few years, women participation in Science, Technology, Engineering, and Mathematics (STEM) has increased significantly in U.K.

Rising income, along with growing brand awareness in the developing countries, have been boosting the industry growth significantly. Consumers of these economies have increased the spending on luxury goods, including handbags. Furthermore, manufacturers of this industry are launching affordable bags, which, in turn, has expanded the consumer base of the market across the world. In addition, manufacturers have been adopting omni-channel strategies to strengthen the distribution channel of the business. As a result, availability of the product has increased in the developing nations including China and India.

Growing demand for luxury products has driven the market for high-end designer bags over the world. Producers of the industry are also expanding the product portfolio by introducing innovative quality products in different varieties to meet the requirement of the consumers. However, high import duty in this industry may affect the market growth in the near future.

Product Insights

As of 2018, tote bag led the market and accounted for 41.7% share of the global revenue. It has larger space than other handbags and allows the consumer to carry a number of goods at the same time. Therefore, it has gained significant popularity among working women as they require a large space to carry essential stuff such as laptop and files. Furthermore, availability of a wide range of tote bags for every requirement of the consumer has also boosted the demand for these bags.

Shifting consumer preference towards tote bags from plastic bags for shopping purposes is expected to fuel the growth of the product in the upcoming years. Manufacturers of this industry have been emphasizing on the production of innovative tote bags. For example, Gucci has launched a striped raffia beach tote, which has gained significant popularity among women.

Raw Material Insights

As of 2018, leather bags dominated the market and accounted for 48.5% share of the global revenue. Better durability, dustproof, and crack-proof properties of leather bags are driving its demand over the world. Durability associated with this product attracts consumers to spend on these luxury products. Manufacturers are catering to the demand of the high-end and premium customers by using exotic leather.

Increasing availability of fashionable and innovative products is fueling the growth of leather bags over the world. In 2015, Coach, a popular brand of Tapestry, Inc., launched Coach 1941, which is a higher-priced leather product line. Rising popularity of vegan leather handbags among consumers is expected to impact the market dynamics in the near future.

Distribution Channel Insights

As of 2018, the offline distribution channel dominated the market and accounted for 84.3% share of the total revenue. Over the past few years, exclusive retail stores have gained significant popularity among women and manufacturers have also strengthened their distribution channel. This, in turn, has boosted the market growth, especially in developed nations.

For instance, in 2018, Gucci transformed its flagship stores into interactive art galleries using works of art from Spanish artist Ignasi Monreal. This has widened the consumers’ purchasing option with innovative artworks. Manufacturers are opening brand stores in the developing nations due to increasing brand awareness among consumers of these economies.

Global handbag market

The online distribution channel is expected to register the fastest CAGR of 7.4% from 2019 to 2025. The number of online shoppers is increasing remarkably due to rapid penetration of smartphone users over the world. The leading players of this industry have started online shipping due to shifting consumer preference from offline to online shopping.

In 2015, Gucci launched its boutiques that integrate both online and in-store shopping experiences under its "New Store Concept". Over the past few years, Coach has witnessed significant growth in e-commerce sales and traffic on the website. This implies that the online sales of the product are expected to grow rapidly in the near future.

Regional Insights

As of 2018, North America dominated the market with more than 30.0% share of the global revenue. The average revenue per person of this market has reached to around USD 36.5 in 2019. It has been growing significantly since 2010. High demand for good quality handbags is driving the market in this region. Furthermore, high purchasing power of consumers in the developed economies allows consumers to spend on such luxury products.

Asia Pacific is projected to register the fastest CAGR of 10.4% from 2019 to 2025. Manufacturers have been strengthening the distribution channel in this region to meet the growing product demand. China is one of the prominent markets of this region that has witnessed a significant rise in the import of the product in the last few years. Increasing per capita income in developing economies including China and India is expected to fuel the growth of the industry.

Key Companies & Market Share Insights

Key players in this industry include Tapestry, Inc.; LVMH Moët Hennessy - Louis Vuitton SE; Michael Kors; Compagnie Financière Richemont SA; Gucci; Fossil Group, Inc.; Chanel S.A.; Hermès International S.A.; Prada S.p.A.; Burberry Group PLC; and Ted Baker plc. Manufacturers are expected to invest significantly in the development and innovation of quality products in order to expand their product portfolio.

Growing demand for the product and rising profit are expected to attract new players in this industry. Producers are focusing on business expansion in the emerging economies across the globe. For instance, in August 2017, Burberry launched Qixi bags namely red “Belt Bag” and red “Pin Clutch”, exclusively for China through the first WeChat Mini-Program.

Handbag Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 51.89 billion

Revenue forecast in 2025

USD 67.85 billion

Growth Rate

CAGR of 5.4% from 2019 to 2025

Base year for estimation

2018

Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, raw material, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; U.K.; Germany; India; China; South Africa; Brazil

Key companies profiled

Tapestry, Inc.; LVMH Moët Hennessy - Louis Vuitton SE; Michael Kors; Compagnie Financière Richemont SA; Gucci; Burberry Group PLC; Ted Baker plc

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis on the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global handbag market report on the basis of product, raw material, distribution channel, and region:

  • Product Outlook (Revenue, USD Million, 2015 - 2025)

    • Tote Bag

    • Clutch

    • Satchel

    • Others

  • Raw Material Outlook (Revenue, USD Million, 2015 - 2025)

    • Leather

    • Fabric

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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