Luxury Handbags Market is Increasing Per Capita Disposable Incomes and Growing Online Retail Market is Propelling the Growth

Market Research Future (MRFR) has published on the “Global Luxury Handbags Market”.

Luxury Handbags Market Highlights

Luxury handbags are highly coveted accessories that have become a symbol of prestige, elegance, and style. The demand for luxury handbags is driven by several factors, including the desire for exclusivity, superior quality, and craftsmanship. These bags are often associated with high-end fashion brands and exclusive boutiques, which further fuels their appeal and status.

Luxury handbags come in a variety of types, including tote bags, shoulder bags, cross-body bags, clutch bags, and backpacks. They are typically made from premium materials such as leather, exotic skins, or precious metals, and are crafted by skilled artisans using meticulous techniques and attention to detail. Some luxury handbags also feature unique designs and embellishments, such as intricate stitching, hardware, and signature logos. Due to their high price points, luxury handbags are often considered investment pieces that retain their value over time and can be passed down from generation to generation as heirloom items. Overall, luxury handbags are a testament to fine craftsmanship and serve as a status symbol for those who appreciate the exclusivity and prestige that comes with owning a high-quality accessory.

The global Luxury Handbags market is projected to witness significant growth during the forecast period, exhibiting a CAGR of 6.15% during the forecast period. The global luxury handbags market is projected to experience steady growth in the coming years, driven by various factors. One of the key drivers of this market is the growing working women population globally. As more women enter the workforce, they seek high-end fashion accessories to complement their professional attire, including luxury handbags. It is anticipated that this pattern would persist, particularly in emerging markets.

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Market Synopsis

According to the MRFR analysis, the global Luxury Handbags market size is projected to reach USD  51,003.49 million by 2032 at a CAGR of 6.15%.

Handbags have varied roles in working women's life including serving as storage and carrying means of their day-to-day amenities like phones, wallets, laptops, cosmetics, medicines, etc. More than a means of essential accessories, handbags are considered a style element in the daily dressing of a woman. The status symbol created by owning a luxury handbag along with the exclusivity and style it adds to a women’s personality is some of the key factors that contribute to women’s tenacity in buying luxurious handbags. For instance, according to ICSID.org, a business and industrial blog statistics, on average women in the UK spends Euro 6,144 on handbags alone annually. Earning wages of working women provides them the financial freedom to meet their grooming needs and boost their buying capacity for luxurious goods.  Also, post-lockdown, employers have rolled out a return to office initiatives which are further expected to boost the demand for handbags in the upcoming years. Thus, the growing working women population is anticipated to drive the growth of the market during the forecast period.

COVID-19 Impact on Luxury Handbags Market

The COVID-19 pandemic has impacted numerous industries throughout the world. The outbreak has caused disruption and volatility in the global capital markets and authored an economic slowdown during 2020. Governments across the globe have issued several stages of lockdown to curb the spread of the virus, leading to the closure of offices, the entertainment industry, shopping malls, etc. Also, the restrictions on cross-border movements have limited international tourism, and the transport of goods across regions, and caused severe supply chain issues. Though the outbreak has had no negative effect on essential goods, the non-essential have witnessed a negative impact on its demand. As social events, public gatherings, and working from the office have been restricted, the demand for handbags was also affected during the pandemic.

The government-led lockdowns have impacted the consumer’s purchase decisions during the pandemic as many retail stores were closed. However, e-commerce channels played a major role in buying essential things. As consumers are increasingly getting accustomed to the convenience provided by e-commerce sites, manufacturers are witnessing increased demand from such sales channel. Though the prominence of online shopping has been there for a while even before the pandemic, the increased time during the pandemic and other factors has made people shift to online shopping. In addition, price-sensitive consumers are looking for ways to reduce their spending on luxury goods including handbags, as e-commerce sites are known for offers and discounts, and sales through such channels are anticipated to increase further. Thus, the trend of online purchases of luxury handbags is expected to continue the trend in the upcoming years and the market players are increasing their investments in e-commerce sales channels to capitalize on increasing demand.

Competitive Landscape

The key players operating in the global luxury handbags market include Ralph Lauren (US), PVH Corp (US), Kering (France), LVHM (Paris), Giorgio Armani (Italy), Channel SA (France), Dolce & Gabbana (Italy), Burberry Ltd (UK), Inditex (Spain), Capri Holding, ltd (US), Nordstrom (US), Valentino spa (Italy), Prada Group (Italy). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach and diverse product portfolios. Ralph Lauren (US), PVH Corp (US), Kering (France), LVHM (Paris), Giorgio Armani (Italy), Prada Group (Italy), and Inditex (Spain) are the players dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence. The market players are focused on investing in research & development and adopting strategic growth initiatives such as product launches, joint ventures, patent approval, acquisition, expansion, certifications, partnerships, and investment to strengthen their market position and capture a large customer base.

Segmentation

By Product Type

• Clutches: Clutches are usually small, flat handbag without handles or straps. The rising living standard of consumers coupled with the High-Net-Worth Individuals (HNWIs) has increased the demand for luxury clutches for a better appearance which is turn is fueling its market growth. For instance, according to MRFR analysis, in 2019, there were 5.9 million HNWIs living in the US, up over 11% from the previous year. China, Germany, the US, and Japan are some of the biggest nations with a population of HNWIs. The market for luxury handbag is also expanding as High-Net-Worth Individuals (HNWIs) and wealthy consumers become more prevalent. HNWIs are defined as those with a combined net worth of greater than USD 1 million.


• Crossbody Bags: The crossbody bags rests directly on the hip and is worn diagonally across the body. These bags are currently in trend because it is one of the most adaptable pieces of casual chic couture. Crossbody bags are usually made up of a variety of styles and materials, including leather, suede, fabric, imitation leather, waxed canvas, and even woven straw. Furthermore, the adoption of crossbody bags is growing among consumers owing to the various benefits associated with it such as its comfort, as the crossbody design equally distributes the added weight over both sides of the body, and the bag is quite secure owing to the fact that a crossbody bag is wrapped around the entire body and cannot be removed in plain sight.


• Shoulder Bags : A shoulder bag is usually a handbag or wallet with one strap long enough to be slung over the shoulder. The straps are typically strongly reinforced on bags. The strap is intended to be carried by the user hands-free by being looped over the shoulder and supported by it. What distinguishes the bag from other bags are the straps. These straps could be little, wide, long, or short, but their function is obvious. The shoulder bag can be carried with only the strap. Some bags may have straps, but many are made to be carried by hand, using the wrist, inner elbow, or other methods. Moreover, shoulder bags are created to hold all the necessities (wallet, lipstick, sunglasses, phone, etc.) for the day yet are tiny enough to be carried comfortably under the arm. These bags contain unique fittings that allow the shoulder strap to be modified, allowing the sling length to be changed. They also have a lot of hinged buckles that may be adjusted to fit an individual needs.


• Satchels: A satchel bag is a medium- to large-sized bag that is often built with two short handles on top and a flat bottom that resembles a shoulder bag. It frequently has an adjustable crossbody strap and is like a leather briefcase in terms of design and use. Moreover, satchels bags are usually made up of leather, nylon, vegan leather, suede and many other materials, which are usually preferred by consumers according to their needs and requirements. For example, if an individual want a bag that can withstand rainy weather and is more rugged, they usually consider a nylon satchel. It's a wonderful option for exercising or engaging in outdoor activities away from the office.


• Hobo Bags: The Hobo bag has a strap that may or may not be adjustable that holds it at each end in a crescent-shaped shape. It is typically distinguished by having a sizable bag made of supple, flexible materials, such leather or suede, that tends to collapse and fold over itself when worn hanging from the shoulder. Moreover, an individual can carry a range of practical and necessary accessories in this bag owing to the presence of many compartments, including a smartphone, perfumes, cosmetic bags, personal care goods, and much more. It's the best choice for any circumstance and occasion. Hence, the numerous benefits possessed by hobo bags is considered as a key factor for its growing adoption among the consumers.


• Tote Bags: Tote bags are usually large bags which are used to carry (or tote) a variety of objects. The bag's size varies, but it is distinguished by its huge top opening and lack of fasteners. It also features two parallel handles on either side that is used to carry the bag. Tote bags come in a variety of shapes, hues, and patterns. The owner's objectives determine how they are used. A tote bag is typically used for regular activities such as trips to the grocery store. A variety of materials are used to manufacture a tote bag. Cotton and linen are the most popular material types. However, some producers are also using jute and hemp, two eco-friendly fabrics, to create bags. Furthermore, the incorporation of smart technology into tote bag designs is one of the newest trends in the industry. These smart bags have built-in speakers, wireless charging, and GPS tracking, among other capabilities.


• Briefcases: A briefcase is usually a rectangular case, which is especially used for carrying business documents as well as laptops. Moreover, briefcases come in a wide range of materials these days, including fabric, leather, vinyl, plastic, and even thin metal. The growing business trips by businessman as well as consumer’s preference for leather briefcases owing to its elegance and durability is likely to contribute to segment’s overall market growth. For example, according to MRFR analysis, every day, 1.3 million people in the US alone travel for work. The covid-19 epidemic led the industry to stall considerably, but the corporate travel market is predicted to increase by 188% in 2028.In addition, the US and China spend the most on business travel, followed by Sweden, India, and Indonesia.


• Others: Other segments include sling bag, and wristlets among others. A sling bag is a tiny, lightweight bag that may be worn every day but is frequently used for travel. Sling bags are usually small, but they're getting bigger to fit clothing for daily use. Moreover, the most preferred material for sling bag is usually canvas since it is eco-friendly, easy to maintain, very fashionable as well as classy and stylish. Hence, the growing demand for sling bags for everyday use as well as travel purposes has compelled manufacturers to come up with a wide range of products to cater the consumer demand.

By Material Type

• Leather: The leather segment is further bifurcated as tumbled, suede, nappa, and others. The others include full grain, top grain, pebbled, and pullup leather. The growing inclination of consumers towards leather bags owing to the various benefits provided by it such as durability, full-grain leather is a hardy material that is extremely durable and can bear strain and abrasion for years. Moreover, leather products require less upkeep than those made of other materials. Hence such factors are likely to boost its market growth in the upcoming years. Besides this, other key benefits of leathers owing to which it is widely used in the production of luxury handbags is due to its well-known strength and toughness. An individual can use leather purse every day without worrying about tearing it.


• Cotton: The growing benefits possessed by cotton bags such as sustainability is likely to contribute to its overall segment growth. Hence, the growing inclination of consumers towards sustainability and eco-friendly products coupled with the presence of various popular brands offering a wide range of cotton handbags is set to fuel its market growth in the upcoming years. For example, Louis Vuitton one of the most well-known luxury handbag manufacturers in America sells a large selection of fashionable handbags also cotton tote handbags, each with a distinctive style. The Neverfull, Speedy, and Alma are some of the most well-known Louis Vuitton purses.


• Synthetic: Synthetic materials, commonly referred to as faux, imitation, vegan, or PU leather, are synthetic materials that resemble leather but aren't created from an animal's skin or hide, unlike real leather. Natural and/or synthetic fibers covered in a plastic polymer or a substance similar make up the synthetic material. Polyurethane (PU), polyvinyl chloride (PVC), or textile-polymer composite microfibres are typically used to create synthetic materials. Hence, the growing inclination of consumers towards vegan leather has compelled manufacturers to come up with a wide range of products which in turn would fuel its market growth.


• Others: Other segments include nylon, canvas and many more. Reliable canvas is a knitted fabric, not a specific raw material. This fabric often has a basic weave pattern and is composed of cotton or linen. It is incredibly flexible, water-proof, and strong. The best option for bags that will be used frequently every day when deciding what material to use is canvas. It makes sense that canvas is the material most frequently used to make tote bags and various other handbags. In addition, fashion houses are experimenting with canvas to create ever-more-interesting forms and designs as tote bags have become a key trend recently.

By End User

• Men: The changing lifestyles of consumers have increased the demand for luxury brands accessories, and many more which in turn has increased the demand of luxury handbags. Hence, the presence of major players providing a wide range of branded luxury handbags for men is set to positively influence its market growth. For instance, Harrods Limited provides a range of briefcases of various brands such as Paul Smith, Carl Friedrik,, Burberry, Bottega Veneta, Cartier available at various price ranges such as USD 683 to US 2,496. Furthermore, cultural shifts drive this segment's growth as men have become more concerned with their appearance, coupled with rising disposable income levels for men. Owing to the increasing number of style-savvy male consumers, manufacturers in the luxury handbags industry focus on products targeted for male audiences.


• Women: The growing women working population, high disposable income, and inclination towards luxury lifestyle as a status symbol has boosted the segment growth. For instance, according to International Labour Organization, the current globe labour force participation rate for women is under 47%. Furthermore, the spending power among women is increasing. Women consumers are increasingly spending on luxury accessories and luxury handbags, which is further supporting the growth of the segment. Besides this, the presence of major players providing luxury handbags coupled with the growing expansion policies adopted by them is likely to propel its market growth. For instance, in October 2022, What Goes Around Comes Around, the reputable reseller of recognized high-end vintage, entered a partnership with Amazon which in turn has increased its foothold in the premium market. As a result of the partnership, Amazon's website now has a special WGACA section showing vintage luxury accessories and bags. The action underlines the ongoing momentum of luxury resale and is an expansion of Amazon's Luxury Shops experience, which the ecommerce giant launched in 2020.


• Unisex: The growing demand for unisex products among consumers such as clutches, crossbody bags, tote bags and many more has compelled manufacturers to come up with a wide range of products which in turn would boost its market growth. For instance, in July 2020, Gucci launched a brand-new, "genderless" purchasing section on its website "MX Gucci. The website states that the new part is "set out to challenge binary thinking and consider how these ideas apply to the bodies. The House presents MX, a celebration of individuality in the name of all gender equality. Gucci MX organizes their merchandise into four groups: Shoes, Accessories, Handbags and Baggage, and Ready to Wear. Besides this, the recent strategies adopted by key players in order to expand its product portfolio and better serve the customers is likely to propel its market growth. For instance, in June 2020, Gucci launched its new, "genderless" shopping category on its website, which the brand has called "Gucci MX”.

By Distribution Channel

• Specialty Stores: A specialty store is a retail establishment that sells unique and specialized goods. These shops specialize in offering a specific product category or brand. Specialty stores include company dedicated stores as well as multi branded stores. The growing benefits provided by specialty stores such as specialty shops have the advantage of being able to give clients comprehensive information about the product of their choice. Specialty stores have an advantage in terms of staffing and training, which results in more knowledgeable employees. Employees are more likely to just deal with one kind of product, which makes it simpler for them to give prospective clients comprehensive information that best meets their needs. For instance, a prospective consumer looking to purchase a handbags will probably visit an handbag store since it will be simpler for them to select the item of their choosing there. Furthermore, the presence of many specialty stores across various regions of the world, coupled with the frequent visit of consumers there is likely to contribute to its overall segment growth.


• Online: Online sales channel usually includes e-commerce websites, and traditional marketplaces such as Amazon, Flipkart, and many more. E-commerce is a distribution channel through which goods and services flow from producers to consumers through the internet. E-commerce is one of the channels for people to buy and sell products in a more convenient way. This channel is also comprised of both online purchases through brick-and-mortar firms’ websites and from pure-play e-tailers’ websites. The key benefits of this channel are, it is rapidly growing, offers global marketing reach, can be directly operated by consumers, and many more. The growing sales of luxury handbags through online sales channels particularly after the pandemic as well as the recent launch of luxury handbags through an e-commerce platform as consumers are preferring more online shopping and finding it convenient is expected to boost its market growth in the upcoming years. For instance, in April 2022, Rebag, the industry leader in trading, buying, and selling luxury accessories such as handbags, fine jewelry, watches, and more, entered into a partnership with Moda Operandi, the platform for fashion discovery that handpicks brands from all over the world to showcase exceptional design and fashion to a global audience.

By Region

• North America: The North American region includes major countries such as the US, Canada, and Mexico. The native people of North America are diverse in terms of culture, language, and ecological adaptations to various environments. Moreover, most of the population in North America perceive luxury products as synonymous with quality, exclusivity, and rarity. The increasing rate of millennial spending and the arrival of digital and niche-born brands are further diversifying luxury handbags in the region. The prime growth engine of the luxury handbag market in North America is the shift in a generation where 83% of the luxury growth in 2020 is fueled by Gen Y and Gen Z. The new generation is low on patience and are inclined more towards speed and convenience, which is creating a tremendous growth rate in the handbags industry.


• Europe: Europe basically includes the UK, Germany, France, Italy, Spain, and Rest of the Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the global luxury handbags market owing to the increasing urbanization and consumers per capita expenditure on luxury goods that in turn positively influencing the market growth. Europe is the origin for international luxury brands for various products such as cosmetics & personal care, food & beverage, clothing and apparels along with handbags as there is a culture of technical excellence. For instance, Swiss watchmaking has no technical equivalent worldwide. Similarly, Italy is popular for its high-end fashion and apparel, where the 'Made in Italy' logo equates to high quality. Moreover, the evolution of the consumer group and rapid Internet adoption contribute to the sales of luxury items in the region. Luxury bags brands in the region are taking innovative measures to compete in the highly competitive market, such as introducing limited-edition products, celebrity endorsements, high investments in marketing, and opening retail stores in prestigious locations.


• Asia-Pacific: Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including China, India, and Japan. The various expansion policies that have been adopted by major players in the region are expected to drive the demand for luxury handbags in the upcoming years. Asia-Pacific is one of the most lucrative regions among the manufacturers of luxury handbags. The growth of the luxury handbags market in Asia-Pacific is attributed to several factors, such as increasing population and rapid urbanization in emerging economies. The rising per capita disposable income acts as a significant factor for the growth of the luxury handbags market. Furthermore, the luxury handbags market in Asia-Pacific is growing due to the rapidly changing consumer trends, and the shift from physical stores to digital stores.


• Rest of the World: The rest of the world includes South America, the Middle East, and Africa, will witness moderate growth in the luxury handbags market in the coming years owing to the growing innovations by major players operating in the region. The growth of the luxury handbags market is anticipated to be driven by several factors, such as the changing lifestyles of the consumers and new product developments. Key market players are also promoting their products to create strong awareness among consumers. Rising per capita disposable income and product launches are expected to fuel the demand for luxury handbags in the region. The Middle East luxury handbags industry has been through a period of expansion in the past few years. Major key players in the market have grown by expanding their distribution network and opening new brand stores in the region.