Luggage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Luggage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The luggage market is projected to register a CAGR of 7.47% during the forecast period 2022-2027.

Since the COVID-19 pandemic has forced a 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. Also, most 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 market’s growth during the forecast period.

The growing convenience of online shopping has led to a major shift in consumer preferences in 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 developing markets.

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 industries globally. Countries such as China, United States, South Korea, Brazil, the Netherlands, Spain, Germany, and United Kingdom, have strong outbound tourism. Moreover, in 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. According to the World Tourism Organization (UNWTO), international tourism in terms of the number of arrivals globally reached 1.3 billion in 2019. However, due to the COVID-19 pandemic, the number of international tourist arrivals in 2020 dropped significantly, reaching around 0.4 billion, resulting in the sales of luggage bags declining massively in 2020. Nevertheless, in 2021, with governments worldwide easing restrictions on travel and 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.

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 market is set to grow due to a rise in travel and tourism activities and a surging number of business travelers, which is expected to lead to a surge in the sales of travel and business bags. According to the Ministry of Tourism, India, around 26.92 million Indians traveled abroad in 2019, which was a rise of 11.69% compared to 2017. This indicated increased demand for luggage. With the rise of urbanization and leisure activities, travel has expanded significantly in this region. People are becoming more inclined toward branded and fashionable travel accessories, including luggage. In recent years, luggage has evolved from a typical clothing packing medium to a more pleasant, convenient, and multi-purpose travel companion. The Asia-Pacific luggage market 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.

The luggage market is highly competitive. The market has key players competing for the major share and small regional players catering to a small region. Some of the major players in the market are Samsonite International SA, LVMH, VIP Industries Limited, Adidas AG, and Nike Inc. The key strategies adopted by 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 manufacturers to expand their consumer base globally. Partnerships are another strategy preferred by companies to strengthen their market dominance. The major players are constantly trying to leverage their product portfolio to increase their market presence locally through this strategy.

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