Europe Handbags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Handbags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe handbags market is projected to register a CAGR of 5.25% during the forecast period, 2022-2027

The Europe handbags market is highly driven by consumer preferences towards changing fashion trends, particularly among millennials. With the growing demand for personalized fashion, key players are engaged in designing customized handbags to increase their customer base, resulting in sales growth. Further, key players are using customer interaction platforms to get customer feedback regularly. Moreover, the growing convenience of online shopping has led to a major shift in consumer preference toward the purchase of handbags through e-commerce platforms, including both third-party channels, such as Amazon and Zalando, and the company's websites.

Furthermore, consumers' shift toward sustainable fashion is influencing key brands to replace animal-sourced leather with vegan leather in newly launched handbags. For instance, in 2022, Cardiff-based start-up company, Dozi-imp launched its first collection of artisanal, luxury vegan leather handbags. These handbags are made from Pinatex, an innovative vegan leather made from waste leaves of pineapple, developed by the UK -based ananas anam.

Key Market TrendsInclination towards the Luxury Products

With the rising population of working women, their spending power is also increasing, which, resulted in a strong preference for premium brands. Thus, luxury handbags have been gaining popularity across the region, due to their popularity among the younger and more affluent shoppers. Moreover, the sales of bags are expected to be supported by the number of international tourists visiting European countries. For example, according to World Tourism Organization, Europe reported the highest volume of inbound travelers in 2021, with roughly 288 million arrivals. As per our analysis, Italy and France are expected to remain among the top countries for luxury shopping in Europe, along with Germany, and the United Kingdom.

Additionally, companies are increasingly incorporating sustainable products in their portfolios, in line with consumer awareness and interest in environment-friendly products. For example, Gucci handbags are produced with the Rainforest Alliance-certified leather, which is manufactured under strict regulations, in order to limit deforestation and protect wildlife habitats. Similarly, various companies are coming up with new product innovations to improve brand images and subsequently, market shares.

Influence of Social Media Platform and Celebrity Endorsement

Social media offers marketers a broad set of instruments to connect to targeted customers in a personalized and interactive manner. Different social media platforms enable different innovative strategies for major players’ social media presence. In this framework, Instagram has become a popular social media platform for luxury brands. Thus, increasing communication between consumers and key players through social media platforms and online channels is driving the sales of the latest trendy handbags in European countries.

Celebrity endorsements enhance consumers' preference and confidence while choosing products. Thus, these days, celebrities endorsed branded fashion products such as watches, bags, apparel, and footwear, among others, on their Facebook pages, Instagram profiles, and Snapchat stories to increase the sales of fashion products across the region. For instance, Jennifer Lopez endorses the Coach brand. The luxury purse brand has created a campaign with Jennifer in a series of videos that put a new spin on Coach’s iconic horse-and-carriage logo. Such campaigns associated with celebrities have a significant influence on the buying decisions of the young generation and millennial audiences.

Competitive Landscape

The market is highly competitive with several fast fashion brands and global luxury brands, such as Guess Inc, Tapestry, Inc., Chanel Limited, PVH Corp., and Fossil Group, Inc., among others. The key players in the market are offering new products to gain a competitive advantage in the market. For instance, in 2022, Stella McCartney launched a luxury mushroom leather bag. This is the first time that a product crafted from mycelium, a vegan leather substitute made from the root-like structure in mushrooms. The black, crescent moon-shaped clutch bag is draped in a silver and gold statement chain, which comprises the handle.

The key players are embarking on mergers and acquisitions and are focusing on the expansion of distribution capabilities as one of their key strategies to achieve consolidation and optimize their offerings. Moreover, industry participants emphasize merging or acquiring leather tanneries to inflate production procedures and achieve dominance in the handbag market.

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• The market estimate (ME) sheet in Excel format
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