The global handbag products market was valued at USD 55.3 billion in 2022 and is projected to expand at a CAGR of 5.3% from 2023 to 2030. The handbag industry is growing rapidly as consumers demand more stylish and sophisticated bags to match their personal style. Companies are focusing on introducing new designs, materials, and colors to meet the ever-evolving demands of the customers.

The increasing demand for luxury handbags is a major factor driving the growth of the market. The increasing disposable income of customers is allowing them to purchase high-end and designer handbags, further propelling the market growth. Moreover, the availability of a wide variety of handbags, both in terms of design and color, is expected to drive market growth. The growing trend of customization of handbags is also boosting the market growth.

Furthermore, the rising trend of gifting handbags as gifts is expected to fuel the demand for the market. For instance, in April 2021, the Italian luxury fashion brand Prada launched the new Diagramme handbag collection, which offers a variety of styles, colors, and materials for the perfect gift. Moreover, the increasing promotion of handbags through digital mediums is propelling the market growth.

The increasing popularity of online shopping is another major factor driving the market growth. Consumers are now more inclined towards online shopping as it offers convenience, easy availability of different products, and discounts. Furthermore, the increasing availability of e-commerce platforms offering various payment options and discounts is expected to drive the demand for the market.

In addition, the rising number of fashion shows, along with the presence of several influencers and bloggers, is propelling the demand for handbags. The increasing use of social media platforms such as Instagram, Snapchat, and Facebook by fashion influencers and bloggers to post their handbag collections is further boosting the demand for handbags. Moreover, the presence of several luxury brands such as Louis Vuitton, Gucci, and Coach is expected to drive the market growth in the coming years.

The backpack segment held the largest market share in 2020, accounting for over 35% of the market share. The increasing demand for backpacks among college and office-goers due to its convenience and portability is driving the market growth. Moreover, the growing popularity of backpacks among millennials and influencers is contributing to the growth of the market. According to an article published by US News, the backpack trend has been growing exponentially since the beginning of 2020.

The shoulder/tote bag segment is anticipated to expand at the fastest CAGR of 7.4% over the forecast period. The increasing demand for stylish and fashionable handbags and purses among women of all ages is driving the market growth. Moreover, the increasing disposable income among consumers and the increasing trend of online shopping are further driving the demand for shoulder/tote bags. Furthermore, the emergence of various new styles and models of handbags and purses is also contributing to the growth of the market.

The specialty stores segment accounted for the highest market share in 2022, with a market share of over 37.7%. The growth of this segment is driven by the increasing number of exclusive brand stores, multi-brand outlets, and department stores offering a wide range of handbags and accessories. Moreover, the availability of a wide range of designs, sizes, and varieties also acts as a major factor driving the segment’s growth.

The e-commerce segment is expected to expand at the highest CAGR of 11.7% during the forecast period. The rapid growth of internet penetration and the ability to compare prices and features of the product offered by multiple vendors have driven the growth of the segment. Furthermore, the availability of a wide range of handbags and accessories at competitive prices and the convenience offered by online channels to shop from the comfort of home are also some of the major factors driving the growth of the e-commerce segment.

The leather segment accounted for the largest revenue share of 64.3% in the year 2022. The increasing trend of purchasing fashionable and premium leather bags among consumers is a significant factor driving the growth of the segment. The increasing demand for leather bags among consumers is primarily attributed to their durability, style, and convenience. Also, manufacturers are focusing on premiumizing their leather bags by introducing innovative designs and styles. This has been a key factor driving the popularity and demand for leather bags.

The non-leather segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. The increasing popularity of non-leather bags such as canvas, jute, and cotton among consumers is a key factor driving the growth of the segment. The non-leather bags are gaining popularity as they are environment-friendly and provide a unique look. Also, the increasing trend of using non-leather bags for daily use is likely to propel the segment in the forecasted period.

Europe held the largest share of the global market and is expected to dominate the market in the coming years. This can be attributed to the high demand for designer handbags in the region. For instance, a recent survey conducted by the Institute of Luxury Goods & Services in Europe revealed that the average spending per customer on designer handbags was around €1300. Additionally, the presence of prominent luxury handbag vendors, such as Louis Vuitton, Chanel, and Prada, is further driving the market in the region.

Asia Pacific is expected to witness the fastest growth in the coming years. Increasing disposable incomes, especially in India and China, are estimated to drive the market in the region. Additionally, the emergence of several start-ups and online retailers in the region is further expected to increase the sale of handbags. For instance, in November 2021, Singapore-based online luxury handbag retailer Vaunt Luxury opened its first store in Hong Kong.

In this part of the handbag products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your handbag products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a handbag products business comes from sales of handbags and related accessories such as wallets, purses, and belts. Other possible sources of profit include sales of promotional items, website advertising, and sales of handbag-related products such as fabric, thread, and zippers.

Projecting Expenses

In this section, all the regular expenses related to keeping the handbag products business running will be described. The list of operating expenses includes wages, maintenance and repairs, utilities, insurance policies, advertising, and others. Additionally, you will have to account for the cost of raw materials, labor, and overhead costs such as rent, taxes, and other administrative expenses.

Some of the key companies operating in the handbag market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In September 2022, Coach Inc. launched a new collection of handbags inspired by the jazz age.

– In October 2022, Michael Kors launched a new line of handbags made of vegan leather.

– In November 2022, Gucci launched a new range of handbags with modern designs.

Some of the prominent players in the handbag market include:

– Coach Inc.
– Michael Kors
– Prada SpA
– Louis Vuitton
– Gucci
– Kate Spade & Company
– Tory Burch LLC
– Fossil Group, Inc.
– Vera Bradley, Inc.
– Capri Holdings Limited

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global handbag products market based on product type, distribution channel, material type, and region:

1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)

– Shoulder Bags
– Cross-Body Bags
– Tote Bags
– Clutch Bags
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Material Type Outlook (Revenue, USD Million, 2017 – 2030)

– Leather
– Non-Leather

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the Major Drivers of the Global Handbag Market?
[A]: Increasing consumer disposable income, the rise of global fashion trends, and the surge in demand for luxury handbags are the major drivers of the global handbag market. The growing popularity of online shopping for handbags is also expected to fuel market growth.

[Q]: What is the Potential of Product Innovation?
[A]: Innovations in the product designs, materials, and technologies are expected to influence the global handbag market. Consumers are increasingly interested in items that bring convenience, speed, and style to their routine, such as lightweight designs, integrated charging systems, and interactive features.

[Q]: Who are the Key Players in the Handbag Products Market?
[A]: Key players in the handbag products market include Prada, Louis Vuitton, Gucci, Coach, Michael Kors, Longchamp, Tory Burch, Kate Spade, Burberry, and Fendi.

[Q]: Which Region Offers the Largest Opportunity for Sales of Handbags?
[A]: The Asia Pacific region is estimated to be the largest and fastest-growing market for handbags, with an absolute dollar opportunity of $21 B (USD). This region is expected to be highly lucrative for handbag manufacturers due to the increasing number of fashion conscious consumers and the surge in disposable incomes in this region.

[Q]: What are the Key Strategies Adopted by Handbag Manufacturers?
[A]: Handbag manufacturers are regularly investing in product innovations, expanding their geographical presence, and increasing their online presence to capture a larger market share. They are also using various promotional strategies such as collaborations with fashion designers and celebrity endorsements to increase brand visibility and boost sales.