Luxury handbags are expensive designer bags that are prominent accessories for fashion lovers. These bags are swiftly gaining popularity globally, especially among working females. With improving economic conditions and growing consumer inclination toward handbags that offer durability & aesthetics, luxury handbags are swiftly gaining traction and enabling the manufacturers to expand their customer base globally.
The Global Luxury Handbags Market is projected to grow at a CAGR of around 6.3% during the forecast period, i.e., 2022-27. The growth of the market is driven primarily by the swiftly expanding fashion sector entwined with an escalating working female population. Besides, with the growing brand awareness among consumers & their swiftly improving economic conditions, changing living standards, and greater preference toward luxury living, the sales of extravagant handbags are accelerating rapidly & fueling the overall market growth.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada|
|Europe: Germany, The UK, France, Italy, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia and Others|
|Latin America: Brazil, Mexico|
|Middle East & Africa: Israel, Turkey, UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||Burberry, Calvin Klein Inc., Coach IP Holdings LLC, Chanel Ltd, Fendi, Giorgio Armani S.p.A. , Guccio Gucci S.p.A., Hermès International S.A., Kate Spade, Louis Vuitton Malletier, Michael Kors Holdings Ltd, Prada S.p.A. , Others|
|Unit Denominations||USD Million/Billion|
Moreover, the growing inclination of people toward procuring luxury handbags as a status symbol and for their aesthetic appeal, high material quality, and elegant designs are the other prominent aspects driving the global luxury handbags market.
Furthermore, an increasing number of tourists, coupled with strategic brand promotions & advertisements by celebrities to attract a greater consumer base, are also anticipated to play a crucial role in propelling the demand for these handbags globally through 2027.
Impact of Covid-19 on the Global Luxury Handbags Market
The advent of Covid-19 had a decelerating effect on most industries worldwide, and the Global Luxury Handbags Market was no exception. While governments of different countries imposed stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, the leading players in the market witnessed several unprecedented challenges associated with the production & distribution of their luxury handbags across the world.
Besides, since the duration of the limitations was uncertain & the world was undergoing massive financial fluctuations, a majority of the people avoided spending on non-essential products & preserving them for essentials only. As a result, the demand & sales of luxury products, including handbags, severely declined amidst the crisis.
Moreover, the disruptions in the supply chain & transportation network further hampered the deliveries of raw materials & pre-produced bags across different regions and introduced significant delays. It resulted in slow & expensive production of these handbags, which compelled companies like Gucci, Louise Vuitton, & Channel to hike the prices of final products as compensation for their losses.
Nonetheless, with the gradually declining number of Covid-19 cases, restrictions were uplifted & business operations got recommenced. The market leaders resumed their production & distribution at full capacity to regain their usual growth pace and introduce several new products in the Global Luxury Handbags Market in the coming years.
Based on the Product:
Amongst all, Tote bags are projected to dominate the Global Luxury Handbags Market with the largest share during 2022-27. It owes to their burgeoning demand, especially from the working females across different corners of the world, due to versatility, convenience, & large size of these bags to carry more items than others.
Another reason behind their rapidly increasing popularity is that their aesthetic appeal remains intact despite numerous items kept into them. Moreover, tote bags offer several pockets, laptop sleeves, zip pockets, adjustable straps, handlers, & several other features, which are other prominent aspects attributing to their mounting demand worldwide.
On the other hand, Clutches, Satchels, & other bags like a hobo, body cross, and saddles, among others, are anticipated to gain considerable momentum in the global market through 2027 owing to their sustainability & extensive applications for different occasions, right from casual to formal, and semi-formal settings.
Based on the Raw Material:
Here, leather acquired the largest share in the global market in the previous years, and the same trend is expected during 2022-27. It owes principally to its properties to resist water and offer greater flexibility & durability, i.e., leading to its increasing procurement among manufacturers for the production of luxury handbags.
Besides, the growing inclination of customers toward attaining luxury handbags with characteristics like water & dustproof, crack-proof, durability, and looks are other prominent factors propelling the demand for luxury leather handbags and, in turn, augmenting the overall market growth. Moreover, several handbag manufacturers using exotic leather to cater to the consumer requirements for high quality & premium products is another crucial driver for the global market of luxury leather handbags.
Geographically, the Global Luxury Handbags Market expands across:
Here, Europe is projected to dominate the market with the largest share during 2022-27. It attributes principally to the improving per capita income of people across different countries in the region, coupled with the rapid expansion of the fashion industry. Hence, the growing production & sales of luxury handbags is driving the regional market. In addition, the extensive presence of prominent market players in Europe introducing new features & styles in luxury handbags, which are gaining swift traction among the locals, is another crucial aspect fueling the regional market growth.
On the other hand, Asia-Pacific is anticipated to demonstrate the fastest market growth through 2027, principally due to the rapidly increasing employment rate and a rising number of working females. Besides, the growing inclination of the younger generation toward fashion & premium products is another factor anticipated to substantially contribute to the Asia-Pacific Luxury Handbags Market over the coming years.
Recent Developments in the Global Luxury Handbags Market
Key Drivers: Growing Fashion Consciousness & Easy Availability of Luxury Handbags
The growing worldwide popularity of luxury handbags of different brands owing to their easy availability across various countries, coupled with the escalating fashion consciousness among people & their improving purchasing power, are the prominent factors driving the Global Luxury Handbags Market through 2027.
Possible Restraint: Easy Availability of Substitutes like Backpacks, Briefcases, String Bags, and others
Since the demand for bags would always remain prevalent among people of all ages for different applications, the easy & widespread availability of alternatives like backpacks, string bags, briefcases, etc., might change consumer preference for luxury handbags, and, as a result, would negatively impact the growth of the Global Luxury Handbags Market in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Luxury Handbags Market is projected to grow at a CAGR of around 6.3% during 2022-27.
A. Increasing brand awareness, easy availability of luxury handbags, and improving financial conditions of the people are the prominent factors expected to drive the Global Luxury Handbags Market during 2022-27. However, the easy & extensive availability of alternatives like backpacks, briefcases, & string bags, among others, might hamper the growth of the global market in the years to come.
A. Tote bags are projected to emerge as an area of remunerative opportunities for the leading players in the Global Luxury Handbags Market over the forecast years.