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

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

The handbags market is forecasted to register a CAGR of 4.5% during the forecast period, 2021 – 2026.

Since the COVID-19 pandemic has forced a major part of the world’s population to sit at home owing to travel restrictions and lockdown, the industry of fashion apparel and accessories has been hit hard as offline retail stores and shopping outlets were shut off for a significant duration of the year. Also, most of the potential consumers limited their spending on fashionable accessories and appeals, which directly impacted the sales revenues of the top big brands in the handbags market. However, as the pandemic situation is improving gradually, the spending patterns of consumers have increased, and the market is expected to regain its potential as the economies of the developing nations improve.

The handbags market is highly driven by consumer preferences toward changing trends and fashion, particularly among the millennials. In order to cater to the growing demand, especially in the luxury handbags segment, key players are trying to form strategic partnerships and expansions.

The handbags market is driven by the growing fashion industry, with handbags being considered a major fashion statement. Also, the increasing social media influence on consumers from Instagram and Twitter is responsible for the inclination of potential consumers toward the market. Since the majority of the global young adult population is engaged in these social media platforms, handbag companies are targeting their product ranges at this age group.

However, the presence of counterfeit products is one of the key challenges faced by brands globally.

Key Market TrendsGrowing Demand for Leather Goods

Leather is one of the most widely traded commodities in the world. There is a continuous demand for leather from the fashion industry, driven by footwear, luggage bags, and accessories such as handbags. This is due to the increase in the production of light leather for handbags and its imports from Asian countries such as China, India, and Vietnam. Major importing countries of leather for handbags are the United States and Japan. However, hit by high import tariff rates of leather from China in 2018, India has become one of those opportunistic markets for imports of leather handbags for major companies from the United States and Europe. In addition, in 2016, Hermes International witnessed an increase in sales of around 14.5% from leather goods and saddlery, driven by sustained demand and increased production capacity. However, in 2017, the company witnessed revenue growth of 11% from Asia-Pacific and the United States, driven by the sales of re-exports of leather handbags.

The growing demand for leather goods is expected to drive the leather handbags sector due to the rise in re-export operations conducted by two luxury brand importers, Hermes and Louis Vuitton.

Europe and North America are Leading the Handbags Market

Western consumers are increasingly becoming brand conscious about their consumption choices, especially those that reflect their style and personality. Hence, the handbags segment in the regions of Europe and North America has witnessed an evolution in the recent past. The fashion accessories segment has gone from being a mere necessity purchase to gaining a foothold in the lifestyle shopping category. The growth of e-commerce, with the facilities of online shopping, is also expected to contribute significantly to the growth of the retail market in the coming few years in the European and North American regions.

Competitive Landscape

The market studied is highly competitive, with a considerable number of regional and global players operating in the market studied. The major strategies adopted by these companies include product innovations, expansions, and mergers and acquisitions. The major players dominating the handbags market are Coach, Kate Spade, LVMH, Michael Kors, Ted Baker, Baggit, Hidesign, Fossil, and Gucci. An advanced distribution network provides a competitive advantage to the key market players. Moreover, it is crucial for players to continuously innovate to operate and grow in the market due to the rapidly changing consumer demands and preferences.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Burberry Group PLC
LVMH
Prada Holding SpA
Kering Holland NV
Capri Holdings Limited
Chanel International BV
Kate Spade & Company
Chanel SA
Kering SA
Hermes International SA

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