Handbags Market Assessment, By Product Type [Shoulder Bag, Crossbody Bags, Wallets, Others], By Size [Mini, Small, Medium, Large], By Raw Material [Leather, Fabric, Others], By Design [Printed, Textured, Solid, Embellished, Others], By Price Range [Mass S

Handbags Market Assessment, By Product Type [Shoulder Bag, Crossbody Bags, Wallets, Others], By Size [Mini, Small, Medium, Large], By Raw Material [Leather, Fabric, Others], By Design [Printed, Textured, Solid, Embellished, Others], By Price Range [Mass Segment, Premium Segment, Luxury Segment], By End-user [Women, Men], By Distribution Channel [Online, Offline], By Region, Opportunities and Forecast, 2017-2031F

Global handbags market is projected to witness a CAGR of 6.1% during the forecast period 2024-2031, growing from USD 57.45 billion in 2023 to USD 92.58 billion in 2031. Factors which are driving the growth of handbags market are consumers’ increasing disposable income, which is increasing the demand for luxury and superior-quality handbags, visibility of both men’s and women’s handbag in global fashion shows, consumers’ preference for functional and versatile handbags, such as compartments for tech gadgets, inducing the manufacturers to innovate and introduce latest products in the market, and consumers’ gradual shift towards sustainable, vegan, and cruelty-free handbags.

Consumers’ growing awareness and interest in fashion trends, consumers’ increasing trust on social media to make informed purchases and expansion of e-commerce and online platforms are the other factors which are fostering the growth of the handbags market. The availability of a variety of designs, patterns, and colors with the increase in the functionality of the product in terms of size, pockets, and other innovative designs is driving the growth of the market.

Handcrafted luxury designer bags are driving the market growth as they are gaining popularity among the consumers due to their exclusivity, unique designs, limited availability, craftsmanship, and status symbol. Urban consumers with high disposable income prefer handcrafted luxury bags as they are superior in quality and luxurious designs which are lacking in the mass-produced bags. For instance, in December 2023, Heritage Brand unveiled the latest handcrafted luxury handbag, the Fyra. The handbag is handcrafted with intricate detail in the brand’s Oregon headquarters.

Consumers are increasingly preferring online retail for purchasing handbags as it offers convenience to them. The consumers can avail discounts and shortlist the products from a wider range of products through e-commerce platforms and brand’s websites from the comfort of their homes.

Women’s Handbags to Dominate the Market

Women's handbags are dominating the market for several reasons. Handbags are essential accessories for women that serve both functional and fashion purposes. They provide a practical solution for carrying personal items, which have evolved to be essential for daily usage.

Fashion plays a significant role in the dominance of women’s handbags in the market. The fashion industry is continuously innovating and evolving with the launch of the latest colors, designs, and materials, appealing to consumers and keeping them engaged and eager to purchase new items. Moreover, as the purchasing power of the women has increased, they are increasing spending on the fashion accessories.

In April 2024, Hie launched a latest collection of sustainable and vegan handbags, ‘Woman on the go’, featuring tote bags and crossbody bags. The collection includes a broad range of handwoven vegan leather crossbody bags such as Hailey, Kylie, Lara, Victoria, Freya, Aria, and Scottie along with Alora tote bag.

Influence of Social Media Supporting the Market Growth

Social media plays a significant role in supporting the growth of the handbags market due to several reasons. Social media platforms have vast audiences and real-time engagement, making them ideal for showcasing new handbag collections and market trends. The influencers and bloggers on social media are trendsetters and provide authentic reviews which resonate well with their followers, driving the growth of the market.

Manufacturers collaborate with bloggers for their presence on social media as an effective tool for marketing. These endorsements serve as a powerful form of word-of-mouth marketing, enhancing the credibility and appeal of the brand. Additionally, the influencers sharing the feedback after their purchases further boosts the consumers’ trust and brand visibility.

Social media platforms help the brand in engaging directly with their audience, collecting valuable feedback and fostering brand loyalty. Thus, the dynamic interaction between consumers, brands, and influencers is significantly accelerating the growth of handbags market, making social media platforms an indispensable tool in the modern times where digital media is on surge, appealing to the consumers and keeping them informed about the latest market trends.

Celebrity Closets Fostering the Growth

Consumers are increasingly preferring the products from the personal closet of the celebrities, which is fueling the growth of the handbags market.

Celebrities often set fashion trends and their choices are closely followed by their fans and general public as they are the trendsetters and perceived as fashion icons. When celebrities are seen using certain handbags, they become highly desirable to the consumers, where the consumers seek for similar products.

The social media platforms provide glimpse of the celebrities’ personal closets, where they showcase their collection of luxury handbags. The bags which have been used once or never by celebrities are put on sale for the general public to purchase at a lesser price. It enables the consumers to get their hands on their handbags from their favorite celebrities’ closet at a relatively lesser and affordable price, appealing to the urban consumers and augmenting the growth of the handbags market.

For instance, in December 2023, Luella Roche hosted an in-personal sales, Loved By, which featured the handbags and other fashion products from the closets of celebrities such as James, Amber Valletta, Dree Hemingway, Ava DuVernay, Carolyn Murphy, Laura Harrier, and more. The celebrity personal closet sale was a hit with Julianne Moore’s Chanel bag being sold within the initial hours of the launch.

It protects the environment, promoting the growth of secondhand or used handbags for a sustainable future.

Demand for Synthetic Bag Material Will Drive Market Growth

The manufacturers are using high-quality synthetic materials, offering comparable durability and aesthetic appeal without the associated ethical and environmental drawbacks. Sustainable materials, such as vegan leather, made from plant-based sources or polyurethane are more affordable and are appealing to a boarder audience. Apart from the usage of leather alternatives, manufacturers are introducing handbags from recycled fabrics, which is the current market trend.

The leather bags are losing significance in the market due to consumers’ growing concerns towards the exploitation of animals to produce the leather bags. Various consumers are increasingly becoming aware of the animal welfare issues and the environmental impact associated with leather production, including deforestation, increasing water usage, and pollution from tanning processes. It has driven a shift towards more sustainable and cruelty-free alternatives in the handbags market.

In October 2023, Guccio Gucci S.p.A. launched its first vegan handbag, which has been made from 75 percent plant-derived raw material sources. It is made from animal-free material, Demetra, which is made from materials including bio-based polyurethane, made from non-GMO wheat and corn, plant-based viscose and wood pulp.

Future Market Scenario (2024 – 2031F)

The handbags market is witnessing exponential growth due to several reasons. It has been anticipated that the appearance of men’s handbags in global fashion shows is increasing the reach of the men’s handbags, creating awareness among the audience and facilitating in the expansion of the market. High profile global fashion shows such as Milan in Paris and New York are showcasing men’s handbags as an essential accessory, normalizing its usage among men. For instance, Paris Fashion Show 2024, featured men’s bag collections from brands such as Hermes, Dior, Louis Vuitton, and others. Thus, visibility encourages the wider acceptance of men’s handbags within the fashion industry, creating opportunities for the market to grow in the future.

Key Players Landscape and Outlook

Key players are helping in the growth of the market by focusing on continuous product innovation, retail expansions, and strategic marketing. The manufacturers are actively expanding their product portfolio, increasing the base of the customers, and catering to their evolving needs.

The key players are seeking the help of mergers and acquisitions to eliminate any direct head-to-head competition with other dominant players in global handbags market. The regulatory authorities are noting such plans and trying to eliminate such acquisitions in the market in order to facilitate healthy and fierce competition among the key players.

For instance, in April 2024, The Federal Trade Commission sued to block Tapestry, Inc.’s USD 8.5 billion acquisition of Capri Holdings Limited, a deal which seeks to combine three close competitor brands, namely, Coach, Kade Spade, and Michael Kors. The blocking of the deal facilitated a healthy head-to-head competition between Tapestry’s and Capri’s brands.