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

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

The luggage market is projected to register a CAGR of 7.3% during the forecast period (2021 - 2026).

Since the COVID-19 pandemic has forced the major part of the global population to sit at home, owing to travel restrictions and lockdown, the luggage and backpacks industry has been hit hard by the pandemic. Also, most of the potential consumers limited their spending on travel luggage, which directly impacted the sales revenues of top big brands in the luggage market. However, as the pandemic situation is improving gradually, the spending patterns of consumers have strengthened, and the market is expected to regain its potential, as the economies of the developing nations improve.

The change in lifestyle, the growing travel and tourism industry, and the customer inclination toward high-end luggage are likely to positively impact the growth of the market during the forecast period.

The growing convenience of online shopping has led to a major shift in consumer preferences for the purchase of travel bags and other luggage bags through e-commerce platforms, such as Amazon and eBay.

The business bags segment is gaining significant traction in the market studied, due to the increasing business travel worldwide and economic improvements in the developing markets.

In price-sensitive markets, such as some emerging economies across Asia-Pacific and Latin America, the easy availability of cheaper substitutes/counterfeit products as compared to branded products is hindering the growth of the luggage market. Moreover, the market is dominated by unorganized players with low priced products.

Key Market TrendsSignificant Growth in the Tourism Industry

The increase in the demand for luggage bags is directly proportional to the growing travel and tourism industry. Over the past few years, the global travel and tourism industry has witnessed significant growth. Currently, the tourism industry is one of the fastest-growing and most diversified sectors globally. Countries, such as China, the United States, South Korea, Brazil, the Netherlands, Spain, Germany, and the United Kingdom, have strong outbound tourism. According to the World Bank Group, international tourism in terms of the number of arrivals globally reached 1.25 billion in 2016. Moreover, from the last few years, the spending on leisure travel by the baby boomer segment has been increasing rapidly, which, in turn, has further boosted the growth of the market. Thus, with the growth in tourism, the demand for backpacks, travel packs, smart luggage bags, carpet bags, duffel bags, and laptop bags is also likely to increase in the years to come.

Asia-Pacific Emerges as the Fastest Growing Region

In Asian countries, like India, the luggage market has become highly competitive, with established brands, like VIP, competing in the market with new players, like Da Milano. The growth of the market is set to increase due to a rise in travel and tourism activities and a surging number of business travelers, which led to a surge in the sales of travel and business bags. Close to 23.94 million Indians traveled abroad in 2018, which was a rise of 9.5% compared to the previous year. This indicated a rise in the demand for luggage. The Asian luggage industry is increasingly engaged in the production of luggage bags, backpacks, duffel bags, laptop bags, and other various business travel bags, thus, driving the market further in the Asia-Pacific region.

Competitive Landscape

The luggage market is highly competitive. The market has key players competing for major market share and small regional players catering to a small region to capture the market share. Some of the major players in the market are Samsonite International SA, LVMH, and VIP Industries Limited. The key strategies adopted by the players in the market are new product launches with innovative designs, followed by mergers and acquisitions. Expansion is another strategy that gives an upper edge to the manufacturers to expand their consumer base globally.

Additional Benefits:

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

Companies Mentioned

LVMH
Samsonite International SA
VIP Industries Limited
Nike Inc.
VF Corporation
United States Luggage Company LLC
MCM Worldwide
ACE Luggage Co. Ltd
Etienne Aigner AG
Adidas AG

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