The global handbag market size was valued at USD 49.12 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 5.8% over the forecast period. In recent years, handbags have become one of the desired personal products worldwide. The accessibility, visibility, and desirability of various handbags have boosted their widespread recognition and strong performance. Made from various materials like mesh, leather, nylon, straw, canvas, vegan leather, and jute, handbags are used by everyone for various purposes in their day-to-day life. For instance, people usually prefer canvas handbags for shopping; people working in the corporate sector usually prefer leather bags, whereas, for parties or a night out, women tend to opt for clutches or wristlet handbags.
The COVID-19 pandemic resulted in lockdown orders and travel restrictions, forcing the majority of the global population to stay at home. As shopping outlets and offline retail stores remained closed for a substantial period in 2020, the fashion accessories & apparel, as well as luxury goods markets, saw a tremendous decline in the overall business. This was attributed to factors, such as restrictions on international import & export as well as tourism & travel and reduced spending on fashionable apparel and accessories by the majority of consumers. The demand for handbags is primarily driven by the increasing brand awareness among customers at a global level and the surging number of women in the workforce across various sectors.
In addition, the increasing preference for sustainable and eco-friendly handbags among customers is offering strong growth opportunities to the market. Handbag manufacturers/brands, such as Bellroy, Angela Roi, ABLE, Pixie Mood, GUNAS, BAGGU, von Holzhausen, and A A K S, offer handbags that are made using vegan leather, plant-based & upcycled materials, and sustainable materials. For instance, in June 2020, Guccio Gucci S.p.A. launched all-sustainable collections that comprised outwear, pants, tote bags, backpacks, mini bags, footwear, and other accessories using recycled, organic, and sustainable source materials. These factors are driving the market. Furthermore, with increased spending on goods through online platforms, the market has been experiencing significant growth. Startup e-retailers and e-commerce websites have gained more traction owing to festive/seasonal sales, discounted prices, and the availability of an extensive range of products on websites. For instance, according to the data provided by Global WebIndex (GWI), over USD 2.4 trillion were spent on online consumer goods in 2020.
Based on raw materials, the global market has been further segmented into leather, fabric, and others. In 2021, the leather raw material segment dominated the global market and accounted for more than 49.00% share of the global revenue. Leather is the primary raw material for luxury handbags and accessories. The market for leather handbags is primarily driven by luxury consumer spending in developed as well as developing economies. Several working women across the globe are willing to invest in leather handbags.
The rise in disposable income is also expected to create the demand for leather goods in developing economies like Thailand, Egypt, the UAE, Saudi Arabia, and India. For instance, in April 2021, Louis Vuitton launched Nona Source, the first online platform for resourcing exquisite materials from the Group’s Fashion & Leather Goods Maisons. During the COVID-19 pandemic, Burberry’s leather goods segment recorded decent sales of entry-level items for smaller bags and wallets. The demand for leather handbags is supported by the advent of online shopping and the increasing investment in luxury goods in the Asia Pacific.
Based on products, the global market has been further categorized into tote bags, clutches, satchels, and others. The tote bag segment dominated the market in 2021 and accounted for the maximum share of more than 41.00% over the forecast period. The segment is projected to expand further at a steady growth rate over the forecast period. Tote bags are multi-utility bags that can be used for various purposes. The size and material of tote bags make them popular among consumers. Tote bags are bigger as compared to other handbags. These bags make it easier for consumers to carry essentials to offices, universities, and other places. The rising influence of Korean fashion and aesthetics among younger consumers is also driving the sales of tote bags.
In addition, the design of totes helps consumers make a style statement on formal occasions. The rise in disposable income and the increase in the demand for luxury bags are also among the major factors driving the segment. The need for luxury bags for social events and parties is anticipated to drive the sales of clutch bags. Several consumers prefer lightweight and minimal bags for social events as they help make a style statement. Moreover, the rising influence of celebrity fashion and social media is also boosting the segment growth. Companies operating in the market are utilizing targeted marketing and automation strategies to increase the sales of clutch bags.
The offline distribution channel segment dominated the global market in 2021 and accounted for the largest share of more than 79.00% of the overall revenue. The segment is projected to expand further at a steady growth rate during the forecast period. The major factor contributing to the growth of this segment includes the inclination of customers towards purchasing high-end products from exclusive stores or company stores. These company stores offer customers a personalized experience and make it easy for them to assess the quality of the handbags personally.
The online distribution channel segment is projected to grow at the fastest growth rate during the forecast period. The growth of the online distribution channel segment can be attributed to the rising popularity of e-commerce and social media channels. Younger consumers are increasingly preferring online shopping n account of the digitalization of services. Companies operating in the market are constantly improving customer databases and digital stores to cater to a larger set of consumers. These factors are anticipated to drive the online segment over the forecast years.
North America dominated the global market in 2021 with the largest revenue share of more than 31.00%. The region is expected to remain dominant throughout the forecast period registering a steady CAGR during the forecast period. The fashion industry’s expanding influence over a wider population is expected to fuel the demand for handbags in the North America region, given the high discretionary wealth of people. Furthermore, clearance sales and Black Friday deals are popular in the U.S., with women, in particular, crowding to acquire accessories like purses. During these events, international suppliers in the North American regional market see a boost in sales.
As a result, market growth is likely to be bolstered during the projection period due to the consistent appeal of accessories. The market in the Asia Pacific is expected to grow at the fastest CAGR over the forecast period. The rise in consumer buying power and increased number of online shopping portals have fueled the demand for handbags across the Asia Pacific. Growing fashion consciousness among consumers and spending on personal items and accessories have also supported the market growth. For instance, according to the data released by Net-a-Porter in May 2020, the sales of handbags saw a strong growth of 261% in the Asia Pacific compared to 2019.
The global market is characterized by the presence of various global players. Companies undertake various strategies, such as mergers, acquisitions, partnerships, agreements, geographical expansions, and new product developments to gain higher market share. Some of the prominent players operating in the global handbag market include:
Louis Vuitton
Hermès International S.A
Michael Kors
Fossil Group, Inc.
Guccio Gucci S.p.A
Prada S.p.A
Burberry Group Plc
Tapestry, Inc.
Chanel
Compagnie Financière Richemont SA
Report Attribute |
Details |
Market size value in 2022 |
USD 51.25 billion |
Revenue forecast in 2030 |
USD 81.79 billion |
Growth rate |
CAGR of 5.8% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2017 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD million and CAGR from 2022 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, distribution channel, raw material, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Germany; U.K.; China; India; Brazil; South Africa |
Key companies profiled |
Louis Vuitton; Hermès International S.A.; Michael Kors; Fossil Group, Inc.; Guccio Gucci S.p.A.; Prada S.p.A.; Burberry Group Plc; Tapestry, Inc.; Chanel; Compagnie Financière Richemont SA |
Customization scope |
Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global handbag market report based on raw material, product, distribution channel, and region:
Raw Material Outlook (Revenue, USD Million, 2017 - 2030)
Leather
Fabric
Others
Product Outlook (Revenue, USD Million, 2017 - 2030)
Tote Bag
Clutch
Satchel
Others
Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)
Online
Offline
Regional Outlook (Revenue, USD Million, 2017 - 2030)
North America
U.S.
Europe
Germany
U.K.
Asia Pacific
China
India
Central & South America
Brazil
Middle East & Africa
South Africa
b. The global handbag market size was estimated at USD 49.12 billion in 2021 and is expected to reach USD 51.25 billion in 2022.
b. The global handbag market is expected to grow at a compound annual growth rate of 5.8% from 2022 to 2030 to reach 81.79 billion by 2030.
b. North America dominated the handbag market with a share of 31.5% in 2021. The demand for handbags is increasing in North America due to new innovations and product launches by established market players.
b. Some key players operating in the handbag market include Tapestry, Inc.; LVMH Moët Hennessy - Louis Vuitton SE; Michael Kors; Compagnie Financière Richemont SA; Gucci; Burberry Group PLC; and Ted Baker plc.
b. Key factors that are driving the handbag market growth include the increasing use of handbags among working-class women, the rapid growth of the corporate and organized sectors, and rising global demand for luxury/premium handbags.
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The clothing, footwear, & accessories industry is anticipated to witness checkered growth throughout 2020, as a result of the unprecedented supply chain disruptions caused by the COVID-19 outbreak worldwide. The expected decline in the global sales of clothing, footwear, & accessories is attributable to massive supply chain disruptions across significant export markets, including China and India. However, the industry is likely to recover over the forecast timeframe, given the rising popularity of online/e-commerce sales. From a manufacturing standpoint, the sustainable or ethical fashion trend is expected to favor market growth throughout the forecast timeframe. Luxury apparel is another lucrative space for prospective manufacturers to target, given the mushrooming number of affluent and fashion-conscious consumers across the globe. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
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