Luxury Bag Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
Luxury Bag Market: Overview and Definition
The luxury bag market refers to the production and sale of high-end, premium bags made from high-quality materials, and sold at a premium price. Luxury bags are typically associated with well-known brands that are renowned for their quality and craftsmanship, and are often viewed as status symbols.
The luxury bag market includes a range of different types of bags, including handbags, backpacks, clutches, and totes, among others. These bags are made from a variety of materials, including leather, exotic skins, and high-quality textiles, and often feature intricate designs and embellishments.
The luxury bag market is driven by consumer demand for high-quality, fashionable bags that are seen as a symbol of status and sophistication. Luxury bags are often associated with luxury fashion brands that have a reputation for quality and style, and are often worn by celebrities and fashion icons.
The luxury bag market is also influenced by factors such as changing fashion trends, consumer preferences, and the availability of raw materials. Many luxury bag brands invest heavily in marketing and branding efforts to build their brand recognition and appeal to discerning consumers.
Overall, the luxury bag market is expected to continue growing as consumer demand for high-end, premium bags remains strong, particularly in emerging markets where disposable incomes are rising. However, the market is also expected to face challenges from changing consumer preferences and increased competition from emerging luxury bag brands.
The global luxury bag market is projected to grow at a CAGR of around 8.8% during the forecast period 2021-2032.
Luxury bags are superior quality bags made with fine premium materials which are used to carry personal items including money or other personal belongings such as tiffin, document files, etc. These are crafted and designed by professional fashion-accessory stylists and are purchased as status and prestige symbols by consumers with higher disposable incomes for making a style statement.
Luxury bags are available in different shapes, colors, designs, and sizes and are commonly custom-made according to the needs of the buyer.
The primary factors influencing the growth of this market include: the proliferating demand for handbags in order to carry personal items especially by the women population across the globe, the growing population of working women globally, the rapidly changing consumer preferences towards new designer accessories especially because of everyday changing fashion trends across different regions, the rising self-individualism among people and the surging number of international tourist arrivals and expenditure worldwide etc.
Additionally, the manufacturers in the global luxury bag market across different regions have been consistently focusing on adopting various research and development activities for the launch of bags with new and innovative features. Some of the recent developments in the market include: the introduction of convertible or multipurpose handbags with several conversion features and the launch of handbags with specific compartments for mobiles and other accessories which helps to organize things in the handbag etc. This is enabling manufacturers to cater to the demand from the high-end and premium customers and is thereby propelling the adoption rate and growth of the luxury bags sale.
Moreover, the vendors in the luxury bags market are looking to put in substantial investments to gather the attention and interest of the younger segment of the population, i.e. millennials and Gen Z, who are known to be the customers of the future. They are also largely emphasizing on keeping an eye on the new class of consumers popularly known as the HENRYs (High-Earners-Not–Rich-Yet), which is on the rise nowadays. They are digital savvy, love online shopping, are big spenders on luxury products and are thus anticipated to become opportunity creating participants for the luxury bags market in the near future.
Furthermore, other factors such as the increasing trend of premiumization among product manufacturers, the rising per capita income of target customers and their spending capacity on premium products, the soaring high demand for leather made luxury bags because of its premium feel and high durability, the increasing penetration of online sales channel by using social media to engage with the consumers and the increasing number of celebrity endorsements as a popular marketing tool by luxury bags manufacturers are also anticipated to bring about substantial growth towards the luxury bag market in the next few years.
However, factors such as high taxation and import duties associated on luxury goods, the increasing presence of counterfeit copies of luxury bags in the market in different regions, the stringent government regulations for procuring raw material such as leather, the rising labor cost and the fluctuating raw material prices may hamper the growth of the market during the forecast period.
LUXURY BAG MARKET SEGMENTATION:
By Product Type:
- Shoulder Bags
- Satchel Bags
- Handheld Bags
- Sling Bags
- Tote Bags
- Hobo Bags
- Duffle Bags
- Laptop Bags
- Messenger Bags
By Consumer Group:
By Distribution Channel:
- Duty free stores
- Online stores
- Discount Stores
- Specialty stores
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Geographically, the European region accounts for the largest share in the global luxury bags market and is further expected to continue the trend in the forecast period as well. The growth in the region can be attributed to factors such as the increasing recognition of countries like Italy and France for high end items all over the world, the high presence of several well-established brands in the region, the rapid product innovation in the handbags industry in the region, the high number of well-informed buyers and their high spending on high end items in the region, the rising investments and development in the Eastern European region and the increasing number of new foreign retailers and luxury brands entering the market in the region etc. The major contributors to the region include Italy, Germany, France and the U.K.
The North American region is the second largest market in the luxury bag market with estimations of its market size growing remarkably in the forecast period. This can be attributed to factors such as the increasing disposable incomes of people, the growing availability of various luxury brands and the high willingness of people to pay for premium products in the region etc. The major contributor to the region is the U.S.
The Asia-Pacific region is the fastest growing luxury bags market in terms of region and is further expected to grow at a thriving growth rate in the upcoming years on account of factors such as the rising spending by millennial population on personal luxury goods in the region, the increasing working women population in the region, the rapidly changing fashion trends in the region, the proliferating demand for premium bags in order to carry handbags as a fashion accessory and the escalating number of affluent consumers in the major economies of the region etc. Additionally, the ever-growing population, the expanding trade of luxury goods in the developing nations and the presence of major brands in the region are other important factors expected to drive the market in the Asia Pacific region during period of forecast.
FEW KEY PLAYERS IN LUXURY BAG MARKET:
The global luxury bag market is highly fragmented and competitive with the presence of key operating players including:
- Luxottica Group
- Mulberry Group
- Vera Bradley
- Guccio Gucci S.p.A
- Samsonite International S.A.
- Ralph Lauren Corporation
- Cartier International SNC
- MCM Worldwide
- Burberry Group Plc
- PRADA Group
- Tapestry Inc.
- Tumi brand
- Valentino S.p.A.
- LVMH Moet Hennessy - Louis Vuitton
- Tory Burch LLC
- Dolce & Gabbana S.R.L.
- Chanel S.A.
- Burberry Group PLC
- Chanel S.A.
- Loeffler Randall Inc.
- Macy’s Inc.
- Michael Kors Holdings Limited
- The Lacoste Group
- Kate Spade
- Giorgio Armani S.p.A.
- PVH Corp. (Calvin Klein)
- Ganni A/S etc.
- Furla SpA
- ZV France SAS
- Compagnie Financière Richemont SA
- Hermès International
- Kering SA
- Other Players
Some of these players from time to time adopt different strategic business collaborations and partnerships in the form of mergers and acquisitions for the purpose of increasing their revenue, market share and their geographical footprints across different regions around the globe.
- In May 2021, Givenchy launched its new, sleek, chain-handled style 4G handbag. The new 4G style takes its name from the brand's archival four G logo (a house motif developed by its late founder Hubert de Givenchy), which is featured prominently as the metal clasp. It is made available in a range of leathers, either smooth, crinkled or embossed with the Givenchy’s 4G emblem, and in chain or flap versions and can worn in a number of ways — as a clutch, shoulder bag or hands-free slung across the body.