The global handbags market was estimated at USD 47.1 billion in 2018 and is expected to expand at substantial CAGR during the forecast period, between 2021 and 2028. A handbag, also known as a purse is a handy medium that is used to hold any personal items like money, phones, and cosmetics. Traditionally, handbags were used by women and were marketed by key companies according to the needs of women. However, in recent times, handbags are made for both, men and women adhering to both their needs. These bags are made of different materials and are enclosed with either a zip or a clasp. With the rising brand consciousness of consumers, many handbags are custom made and are made with intricate designs, colors, materials, and clasps to attract consumers. Handbags are not just a tool for carrying things around, but also a style statement.
Market Trends, Drivers, Restraints, and Opportunities:
- Rising women workforce is a major driver for the handbags market as the requirement for handbags among women has increased substantially.
- Increasing brand awareness and rising disposable income influence people to buy expensive handbags of specific luxury brands which drives the market.
- Rising prevalence of the internet and online shopping has played a major role in the growth of the handbags market.
- Social media marketing by key players and the presence of various social media and fashion influencers has encouraged the younger generation to buy expensive and fashionable handbags.
Scope of the report:
The report on the global handbags market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Handbags Market - Global Industry Analysis, Size, Share, Growth, Trends And Forecast
2018 & 2019
Product Types (Tote Bags, Clutch, Satchel, and Others), Raw Materials (Leather and Fabric), Distribution Channels (Online and Offline)
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa
Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast
Key Players Covered in the Report
Tapestry Inc.; LVMH Moët Hennessy - Louis Vuitton SE; Michael Kors; Compagnie Financière Richemont SA; Gucci; Fossil Group, Inc.; Chanel S.A.; Hermès International; Prada S.p.A.; Burberry Group PLC; and Ted Baker plc.
Handbags Market Segment Insights:
The tote bags segment is projected to hold major market share
Based on product types, the handbags market can be segmented into tote bags, clutch, satchel, and others. The tote bag segment held the major market share in 2018 in terms of revenue due to rising popularity of tote bags and new designs and variety of choices available in the market. As compared to other handbags, tote bags are convenient, offer large storage space, and look fashionable too which shifted consumer preference. Due to the elimination of plastic bags, tote bags are commonly used for shopping purposes. These bags can carry large items like laptops, iPads, and files. Luxury brands and many other companies have started launching their tote bags based on new fashion trends, which is expected to drive the segment. Clutches are very small bags that offer small storage space and can only be used to keep phones, money, and some cosmetic items. However, with rising disposable income and brand consciousness, many consumers buy these bags as they add a fashion statement and are made in various innovative designs and colors.
The leather segment dominated the market
Based on raw materials, the market can be bifurcated into leather and fabric. The leather segment dominated the market due to rising demand for leather handbags. Leather is durable, dustproof, and crack proof which encourages people to buy leather hand bags. Also, marketing techniques and the integration of innovative products in the market are major drivers of this segment. High end, premium leather used by key players makes them more exotic and expensive which further fuel the market. However, due to rising awareness about vegan leather handbags is expected to affect the market dynamics.
The offline segment is estimated to grow at a rapid pace
Based on distribution channels, the market can be divided into online and offline. The availability of exclusive retail stores derives the offline segment is estimated to grow at a rapid pace. People prefer to shop handbags through offline mode due to the availability of exclusive discounts and customer service increased in the recent times. Additionally, the widespread awareness about brand thefts and duplication also resulted in the rising popularity of the offline segment. However, due to the spread of COVID 19, the online segment witnessed significant growth as people could purchase handbags from the official websites of the brands, to follow the safety protocols and to stay quarantined. The ease of payment and reasonable prices also encouraged people to buy handbags through e-commerce.
North America is anticipated to dominate the market
In terms of regions, the global handbags market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America constituted a significant share of the market in 2020 due to mergers and acquisitions conducted by key market players. Moreover, increasing marketing and social media influencing by key companies and growing fashion and brand awareness in the US are driving the market. The market in Asia Pacific is projected to expand at a significant CAGR during the forecast period due to the rising disposable income and standard of living of the people, especially in developing countries like India, China, and Japan.
Segments covered in the report
By Product Types
- Tote Bags
By Raw Materials
By Distribution Channels
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
- Tapestry Inc.
- LVMH Moët Hennessy - Louis Vuitton SE
- Michael Kors
- Compagnie Financière Richemont SA
- Fossil Group, Inc.
- Chanel S.A.
- Hermès International
- Prada S.p.A.
- Burberry Group PLC
- Ted Baker plc
Key players of the global handbags market include Tapestry Inc.; LVMH Moët Hennessy - Louis Vuitton SE; Michael Kors; Compagnie Financière Richemont SA; Gucci; Fossil Group, Inc.; Chanel S.A.; Hermès International; Prada S.p.A.; Burberry Group PLC; and Ted Baker plc. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.