Handbag Market Overview, 2024-29

In many cultures, handbags are symbolic of identity, style, and social standing. The fact that handbags are seen as necessary accessories in many cultures for both utilitarian and symbolic purposes adds to their ongoing appeal on the international scene. For handbag brands, emerging markets in Latin America, Africa, and Asia-Pacific offer substantial development prospects. In these areas, the demand for handbags is driven by rising disposable incomes, urbanisation, and growing fashion consciousness among customers. Regional preferences for handbags differ greatly. For instance, Asian consumers typically choose current, logo-centric designs, but European consumers frequently go towards timeless, classic patterns.

Gaining an understanding of these regional preferences is essential for organisations looking to go worldwide. One of the global businesses with the quickest rate of growth is tourism. There was an increase in foreign visitor arrivals in every region. Their expenditure on trips and excursions has grown due to an increase in per capita disposable income. Additional reasons driving the tourism sector include the rise in business travel, the accessibility of transportation, and the simplicity with which vacation plans may be planned and booked online. Moreover, social media, travel programmes, and advertisements are making consumers more aware of the destinations they should visit. Propelled the expansion of the world market for handbags. People schedule both lengthy and short vacations each year due to their busy lifestyles. As a result, they experiment with different handbag kinds and sizes according to the locations and length of their visits.

According to the report “Global Handbag Market Outlook, 2029”, the market is anticipated to cross USD 75 Billion by 2029, increasing from USD 53.83 Billion in 2023. The market is expected to grow with 6.73% CAGR by 2024-29. Ever-changing fashion trends influence consumer preferences for handbags. People often seek to stay up-to-date with the latest styles, designs, and colours, driving demand for new handbag collections. Handbags serve the practical purpose of carrying essentials such as wallets, phones, and keys. Consumers seek handbags that are both stylish and functional, leading to demand for designs with ample storage and organisation features.

Celebrity and influencer endorsements on social media platforms have a big impact on what people decide to buy. There may be a spike in demand for handbag manufacturers when celebrities are spotted wearing or supporting them. Cultural norms and values play a significant role in driving demand for handbags. In some cultures, handbags hold symbolic significance and are considered essential accessories for everyday life, special occasions, or religious ceremonies. Handbag demand often fluctuates with seasonal changes and fashion cycles. Brands release new collections aligned with seasons and trends, leading to increased consumer interest and demand for specific styles during certain times of the year. Economic conditions, such as GDP growth, employment rates, and disposable income levels, impact consumer spending habits and purchasing power. During periods of economic prosperity, consumers may be more willing to splurge on luxury handbags, driving demand. Demographic factors such as age, gender, and lifestyle preferences influence handbag demand. For example, younger consumers may prefer trendy, budget-friendly options, while older consumers may prioritise quality and durability.

Market Drivers

• Fashion Trends: Fashion trends play a pivotal role in driving the handbag market as consumers seek to align their accessories with current styles and preferences. Handbags are not just functional items but also fashion statements, reflecting personal style and cultural influences. Handbag designers and brands closely monitor fashion trends showcased on fashion runways, in magazines, and on social media platforms. They adapt their designs, colours, and materials to reflect prevailing trends and consumer tastes, ensuring their collections remain relevant and desirable. Consumers often purchase new handbags to complement their outfits and stay in line with the latest fashion trends.
• Globalisation and Travel: Globalisation and international travel have significantly expanded the reach of handbag brands and increased consumer access to diverse styles and designs from around the world. Tourists frequently purchase handbags as souvenirs or luxury goods, contributing to global demand. Handbag brands capitalise on globalisation by expanding their presence in international markets through brick-and-mortar stores, e-commerce platforms, and collaborations with local retailers. This global expansion strategy allows brands to reach new customers and tap into emerging markets. Travel also influences handbag design and functionality, with brands creating travel-friendly collections featuring features like RFID protection, lightweight materials, and convertible straps.

Market Challenges

• Economic Instability: Economic instability, characterised by factors such as recessions, currency fluctuations, and trade tensions, can significantly impact consumer spending habits and purchasing power. During periods of economic downturn, consumers may prioritise essential purchases over discretionary items like handbags, leading to decreased demand and sales in the handbag market. Uncertainty in the global economy can also affect consumer confidence, causing individuals to become more cautious with their spending and less willing to splurge on luxury or non-essential items like designer handbags.
• Rising Production Costs: Rising production costs, including labour, materials, and transportation, can squeeze profit margins for handbag manufacturers and retailers. Labour costs may increase due to factors such as minimum wage hikes, labour shortages, or changes in labour regulations, particularly in regions where handbags are manufactured. Fluctuations in the prices of raw materials, such as leather, textiles, and hardware, can also impact production costs for handbag manufacturers. For example, spikes in the cost of leather or metal hardware can drive up the overall production costs of handbags.

Market opportunity

• Emerging Markets Expansion: Emerging markets in regions such as Asia-Pacific, Latin America, and Africa present significant growth opportunities for the handbag market. Rising disposable incomes, urbanisation, and increasing fashion consciousness among consumers in these regions drive demand for handbags as aspirational and lifestyle products. Handbag brands can capitalise on this opportunity by expanding their presence in emerging markets through strategic partnerships, localised marketing campaigns, and tailored product offerings.
• Product Innovation and Differentiation: Product innovation and differentiation present opportunities for handbag brands to stand out in a competitive market and cater to evolving consumer preferences. Brands can differentiate themselves by focusing on innovation in design, materials, and functionality, offering unique features that set their handbags apart from competitors. Incorporating sustainable practices, such as using eco-friendly materials, implementing ethical manufacturing processes, and promoting transparency in the supply chain, can appeal to environmentally conscious consumers and drive brand loyalty.

Based on the product types, they are segmented into tote bags, clutches, satchels, and others. Among them, the satchels are growing at the highest rate during the Forcaste period.

Satchels are well-known for being useful and adaptable, which makes them appropriate for a range of situations and lifestyles. Their structured design, flap clasp, several pockets, and crossbody strap let users safely carry items while freeing up their hands. Satchels have become a popular fashion trend in recent years, favored by both men and women for their classic and timeless appeal. Fashion designers and brands have introduced modern interpretations of the traditional satchel, incorporating new materials, colours, and embellishments to cater to contemporary tastes. Satchels have a unisex appeal, appealing to a broad demographic of consumers regardless of gender.

Their versatile design and neutral aesthetic make them suitable for both men and women, offering a stylish and practical accessory option for diverse preferences. In urban environments where commuting and navigating crowded spaces are common, satchels offer practicality and convenience. Their hands-free design and organised compartments make them ideal for carrying everyday essentials such as wallets, phones, keys, and tablets while on the go. The minimalist aesthetic of satchels appeals to consumers seeking understated elegance and simplicity in their accessories. Satchels often feature clean lines, subtle hardware, and timeless designs that complement a range of personal styles and outfits. Furthermore, social media platforms and influencers play a significant role in driving the popularity of satchels. Influencers and celebrities often showcase satchels in their outfit posts and fashion content, influencing their followers' purchasing decisions and creating buzz around the trend.

In terms of the raw material types, they are segmented into leather, fabric, and others. In terms of the end user, they are segmented into online and offline.

Customers are looking for environmentally suitable substitutes for conventional materials like leather as a result of growing environmental consciousness and a move towards more sustainable operations. Because fabrics may be created from renewable resources like organic cotton, recycled polyester, or plant-based fibres like hemp or bamboo, they provide a sustainable choice. Concerns about animal welfare and ethical sourcing have led some consumers to opt for fabric handbags over leather ones. Fabrics do not involve the use of animal hides, making them a cruelty-free choice for individuals who prioritise ethical considerations in their purchasing decisions.

Fabric handbags are often lighter in weight compared to their leather counterparts, making them more comfortable to carry, especially for extended periods. This lightweight quality makes fabric handbags suitable for everyday use, travel, and activities where portability is important. Fabrics can be easily dyed, printed, or embellished, allowing for customisation and personalisation of handbag designs. Consumers can choose from a variety of fabric options and customise their handbags with unique patterns, colours, or embroidery to reflect their individual style preferences. Furthermore, online is growing in demand as the distribution channel of the handbag market. E-commerce platforms leverage data analytics and algorithms to provide personalised product recommendations and curated selections based on a consumer's browsing history, preferences, and past purchases. This tailored shopping experience enhances customer satisfaction and encourages repeat purchases. Advancements in virtual try-on technologies allow consumers to visualise how handbags will look and fit before making a purchase. Augmented reality (AR) and virtual reality (VR) applications simulate the experience of trying on handbags virtually, enhancing the online shopping experience and reducing returns.

Based on the report, the major regions covered include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

North America contributes to the handbag market. North America is home to a large population with high disposable incomes and a strong appetite for fashion and luxury goods. Affluent consumers in countries like the United States and Canada are willing to invest in premium handbag brands, driving demand for luxury and designer handbags. The United States, in particular, has a vibrant fashion culture with a strong emphasis on individual style and trends. Consumers in North America are keen to stay up-to-date with the latest fashion trends and invest in accessories like handbags to complement their outfits.

Many of the world's leading handbag brands, including Coach, Michael Kors, Kate Spade, and Tory Burch, are headquartered in or have a significant presence in North America. These brands have established a strong foothold in the market and cater to a diverse range of consumer preferences. North America boasts a robust retail infrastructure, with a multitude of department stores, specialty boutiques, and e-commerce platforms offering a wide selection of handbag brands and styles. Consumers have access to a variety of shopping channels, both online and offline, making it convenient to purchase handbags. North America hosts numerous fashion events, such as New York Fashion Week, where handbag brands showcase their latest collections. Extensive media coverage of these events and collaborations with fashion publications further elevate the visibility of handbag brands in the region. The stable economy and relatively high consumer confidence levels in North America contribute to robust spending on discretionary items like handbags. Even during periods of economic uncertainty, consumer demand for aspirational and luxury products remains resilient.

The market studied is competitive, with many regional and global players operating in the market studied. The major strategies adopted by these companies include product innovations, expansions, and mergers and acquisitions. The major players dominating the handbag market are Burberry Group PLC, Prada Holding BV, Fossil Group, Inc., Michael Kors, and Gucci. An advanced distribution network provides a competitive advantage to the key market players. Moreover, players focus on continuous innovation to operate and grow in the market and cater to the rapidly changing consumer demands and preferences. The key players of the market are increasingly shifting their focus towards incorporating hand-bags with the internet of (IoT) technology.

This will help enrich the experience of owning the product, as the technology allows to give notification alerts to the user’s smart-phone and also provides a cautionary signal for prevention against loss of smartphones. For instance, Glimm Smart Bag 1.0 uses an IoT technology that has bluetooth connectivity, and three different shades of jewels which provide crucial notifications from the phone. This bag also comes with the ability to provide warning signs when the smartphone is at a far-off distance.

• In June 2023, Michael Kors announced the launch of the Pride capsule collection that included an Elliot backpack, Slater sling pack, and sparkling Raquel pavé watch. In addition, the company announced its partnership with the Stonewall National Monument Visitor Center (SNMVC), which will involve a cobranded tote and charitable donation. The black canvas tote will carry the SNMVC logo on the inside, with a rainbow MK logo on the outside.
• In March 2023, Hermès International S.A. announced the launch of six new handbags for Fall/Winter 2023: Sac Mini Médor, Sac So Medor, Drawstring Tote Bag, Arcon Bag, Fringe Birkin, and Harness Birkin. The collection was classic and modern at the same time, with an entirely feminine look.
• In April 2023, the sustainable fashion brand Rashki from India joined forces with Atma Leather to introduce India's inaugural collection of banana leather handbags. Rashki has unveiled a diverse range of bags crafted from Banofi, including the striking Snow black and white crossbody bag, the environmentally-conscious Unica Eco handbag featuring elegant wooden handles, and the versatile Fede tote bag.
• In March 2023, the renowned French fashion house Coperni made a bold statement in the fashion world by launching an exquisite handbag crafted from meteorite rock. This unique accessory was introduced in the premium luxury segment with a price tag of €40,000.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Handbag market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Tote Bag
• Clutch
• Satchel
• Others (Hobo, Body Cross, Saddle)

By Raw Material

• Leather
• Fabric
• Others

By End User

• Offline
• Online

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Handbag industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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