Handbag Market Report 2026

The handbag market size has grown strongly in recent years. It will grow from $67.18 billion in 2025 to $71.17 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to growth of fashion retail industry, rising female workforce participation, expansion of luxury and premium accessory segments, increasing urban lifestyle adoption, growth of organized retail channels.

The handbag market size is expected to see strong growth in the next few years. It will grow to $89.6 billion in 2030 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to increasing focus on sustainable fashion consumption, rising adoption of digital fashion marketing, expansion of cross-border e-commerce, growing demand for affordable luxury products, increasing integration of smart features in handbags. Major trends in the forecast period include growing demand for sustainable and vegan materials, rising popularity of customizable and personalized handbags, expansion of online-first and direct-to-consumer brands, increasing focus on functional and multi-compartment designs, enhanced emphasis on fashion-led seasonal collections.

The growing female workforce is anticipated to drive the expansion of the handbag market in the coming years. The female workforce refers to the segment of the labor force comprised of women, representing those actively engaged in employment across various industries, sectors, and professions. As more women join the workforce and achieve financial independence, their purchasing power increases. This empowerment encourages women to spend on accessories such as handbags, addressing professional requirements as well as diverse social and recreational activities. For example, in February 2025, according to the UK Parliament, a UK-based government body, between October and December 2024, 16.37 million women aged 16 and above were employed in the UK, reflecting an increase of 195,000 women compared to the previous year. The female employment rate stood at 71.8%. Consequently, the rise in the female workforce is contributing to the growth of the handbag market.

Prominent companies in the handbag market are actively innovating by introducing new products, such as the stylish Tribeca handbag, to enhance their profitability. The Tribeca handbag, launched by Michael Kors LLC in January 2024, stands out as a popular and fashionable accessory. Crafted from supple, quilted leather, it offers diverse styles such as cross-body and shoulder bags. The handbag exudes sophistication with its polished push-lock fastening, combining practicality with style to accommodate personal items such as wallets, phones, and keys. This chic and luxe handbag becomes an ideal choice for everyday use, reflecting the industry's focus on meeting evolving consumer preferences.

In August 2023, Tapestry, Inc., a US-based luxury fashion holding company, completed the acquisition of Capri Holdings Ltd. for $8.5 billion. This strategic move brings together six highly complementary brands with global reach, leveraging Tapestry's data-rich customer engagement platform and diversified direct-to-consumer operating model. Capri Holdings Ltd., a US-based company, is recognized for designing exceptional and innovative products across the full spectrum of fashion luxury categories. This acquisition positions Tapestry, Inc. to strengthen its presence in the luxury fashion market and capitalize on the synergies between the combined brands.

Major companies operating in the handbag market are VIP Industries Ltd., Louis Vuitton Malletier, H and M Hennes and Mauritz GBC AB, Chanel Ltd., Hermès International S.A, Fendi, Guccio Gucci S.p.A, Coach IP Holdings LLC, Tapestry Inc., Victorias Secret and Co, Prada S.p.A, Michael Kors, Burberry, Calvin Klein Inc., ALDO Group Inc., Fossil Group Inc., Kate Spade, Zouk, Ted Baker, Loewe (LVMH), Zadig & Voltaire, BAGGIT, Tumi (Samsonite), Anya Hindmarch, Lino Perros, Da Milano Leathers Pvt. Ltd., Aranyani, MCM Worldwide, Proenza Schouler.

North America was the largest region in the handbag market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the handbag market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the handbag market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The handbag market consists of sales of shoulder, satchel, handheld, and sling bags Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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