Luxury Handbag Market Benefits, Manufacturing Cost and Forecast To 2026

According to a new market report published by Transparency Market Research titled ‘Luxury Handbag Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026, the global luxury handbag market is expected to reach a value of US$ 35,075.3 Mn by 2026. The market is estimated to expand at a CAGR of 10.0% during the forecast period from 2018 to 2026. In terms of volume, the market is expected to reach over 152,985.1thousand units at a CAGR of approximately 9.0% by 2026.

The luxury handbag market in Asia Pacific is projected to expand at a rapid pace during the forecast period. According to the report, the global luxury handbag market is experiencing high-paced expansion in its size and valuation due to the growth in the e-commerce retail market which is driving the luxury handbag market at present and a similar trend is anticipated to be witnessed over the forecast period.

One of the biggest drivers of the luxury handbag market is increasing population of working women and changing male preference for buying various types of handbags. Luxury handbags are an important accessory in day to day life. Luxury handbags include shoulder bags, satchel bags, handheld bags, sling bags, tote bags, hobo bags, backpacks, wallets, and others. These type of bags are used by both men and women.The demand for luxury handbags is much higher in developing countries and is anticipated to continue rising over the next few years.

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The luxury handbag market can be segmented based on type, material, gender, and distribution channel. Based on type, the market can be categorized into handbag, backpack, wallet, and others. The handbag segment accounted for a prominent market share in 2017 and is forecasted to continue its dominance in the coming years till 2026, as there are numerous varieties and types available in the handbag segment such as tote bags, hobo bags, sling, bags, etc., offering multiple buying options to the customer. In terms of material, the leather segment is expected to expand at a CAGR of over 9.5% to reach over US$ 10,000 Mn in the near future.

This is due to the fact that a stylish handbag made of leather is the first attention-grabber for the consumer. Leather is expected to be followed by the synthetic segment due to rising demand for customizable and unique designs which are more often used by women than men. In terms of gender, the market is largely dominated by women, and the segment is expected to expand at a steady pace as the foremost part of the total luxury handbag market is primarily generating revenue from the women’s segment.

However, the men’s segment is projected to grow at a faster rate in the coming years due to growing demand for male luxury products. Men have started spending more on luxury bags. Based on distribution channel, the market is currently dominated by the offline channel. However, in the near future, sales via the online channel are anticipated to rise at a fast pace owing to growing number of e-commerce platforms such as Amazon, Myntra, eBay, etc. Small manufacturers can sell their handbags through these platforms without investing in a standalone shop.

In terms of geography, Europe dominated the global luxury handbagmarket in 2017 with more than 25% market share and is expected to maintain its leading position in terms of revenue during the forecast period, followed by Asia Pacific. Asia Pacific is projected to be the fastest growing market in the coming years due to major contributions from countries such as China, India, Japan, Macau, and Hong Kong. Japan and China are the major contributors to the growth in this region due to the presence of a large manufacturing base. India is one of the most promising markets due to which luxury handbag players are making huge investments in luxury products, backed by the growing standards of living in the country. In addition, Asia Pacific is becoming a fast growing region with the rising GDP growth rates.

Some of the leading players of the luxury handbag market are PVH Corp. (Calvin Klein), Compagnie Financiere Richemont SA (Chloe SAS), Furla S.p.A., GANNI A/S, Giorgio Armani S.p.A. (Armani), Loeffler Randall, Macy’s Inc., LVMH Moët Hennessy Louis Vuitton SE (Marc Jacobs Int. LLC), Michael Kors Holdings Limited, Rebecca Minkoff, Sungjoo Group (MCM), The Cambridge Satchel Company, MAUS Freres SA (The Lacoste Group), Vera Bradley Sales, LLC., MILLY NY, Tapestry, Inc. (Coach, Inc.), and Longchamp S.A.S. These players are competing against each other to increase their market share. For example, in July 2017, eight new Chloe stores were opened worldwide to increase its luxury handbag offering. Moreover, product development by offering multi functionality options in the handbag, business expansion, strategic partnerships, and opening new facilitiesare other key business strategy adopted by luxury handbag companies across different regions.