GVR Report cover Handbag Market Size, Share & Trends Report

Handbag Market Size, Share & Trends Analysis Report By Raw Material (Leather, Fabric), By Product (Tote Bag, Satchel), By Distribution Channel (Online, Offline), By Region (EU, APAC, North America), And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-2-68038-927-2
  • Number of Pages: 95
  • Format: Electronic (PDF)

Report Overview

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.

U.S. handbag market size, by product, 2020 - 2030 (USD Billion)

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.

Raw Material Insights

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.

Product Insights

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. 

Distribution Channel Insights

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.

Global handbag market share, by distribution channel, 2021 (%)

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

 Handbag Market Report Scope

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.

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Segments Covered in the Report

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

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