Handbag Market (By Raw Material: Leather, Fabric; By Product: Tote Bag, Clutch; By Distribution Channel) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global handbag market was surpassed at USD 77.42 billion in 2023 and is expected to hit around USD 149.89 billion by 2033, growing at a CAGR of 6.83% from 2024 to 2033. The handbag market in the United States was accounted for USD 16.4 billion in 2023.

Key Pointers

• Asia Pacific led the market with a revenue share of 38% in 2023.
• North America region is expected to grow at a CAGR of 5.48% from 2024 to 2033.
• By Raw Material, the leather handbag segment generated the maximum market share of 57% in 2023.
• By Raw Material, the fabric handbag segment estimated to expand the fastest CAGR of 5.85% from 2024 to 2033.
• By Product, the tote bag segment contributed the largest market share of 42% in 2023.
• By Product, the satchel bags market is expected to grow at a CAGR of 8.18% during forecast period.
• By Distribution Channel, the offline distribution channel captured the maximum market share of 78% in 2023.
• By Distribution Channel, the online distribution channel segment is anticipated to grow at the fastest CAGR of 8.68% from 2024 to 2033.

Handbag Market Overview

The handbag market, a cornerstone of the fashion industry, is a dynamic ecosystem shaped by evolving consumer preferences, innovative designs, and global fashion trends. As a quintessential accessory transcending mere utility, handbags have become a canvas for self-expression, reflecting individual style, status, and cultural influences.

Handbag Market Growth

The growth of the handbag market is propelled by a confluence of factors that collectively contribute to its expanding trajectory. One of the primary drivers is the increasing disposable income among consumers, affording them the capacity to invest in fashion accessories. Additionally, evolving fashion sensibilities and a growing emphasis on personal style contribute to sustained demand. The market's resilience is further underscored by its ability to adapt to economic fluctuations, ensuring consistent growth. As consumers become more conscious of sustainable practices, the integration of eco-friendly materials in handbag production serves as another growth catalyst. Furthermore, technological advancements, such as the incorporation of smart features, appeal to a tech-savvy consumer base. The dynamic interplay between traditional retail and the rise of e-commerce platforms also plays a pivotal role, providing consumers with convenient access and diverse choices. This amalgamation of economic, cultural, and technological factors positions the handbag market on a trajectory of continuous expansion.

Report Scope of the Handbag Market

Handbag Market Dynamics

Drivers

• Resilience to Economic Fluctuations: The handbag market has showcased resilience, adapting well to economic changes, and demonstrating consistent growth, making it a reliable sector for investment.
• Sustainable Practices: Growing environmental consciousness among consumers has led to a surge in demand for handbags made from eco-friendly materials, pushing brands towards sustainable production methods.

Restraints

• Fast Fashion Impact: The rise of fast fashion encourages quick turnovers of trends, which may contribute to a disposable mindset among consumers, impacting the long-term demand for durable and timeless handbag designs.
• Supply Chain Disruptions: Global events, natural disasters, or geopolitical tensions can disrupt the handbag supply chain, leading to production delays, increased costs, and potential shortages in the market.

Opportunities

• Innovation in Design and Materials: Continuous innovation in design, including unique shapes, textures, and artistic elements, as well as the use of novel materials, provides an opportunity for brands to captivate consumer interest and stay ahead of evolving fashion trends.
• Digital Marketing and Influencer Collaborations: Leveraging digital marketing strategies and collaborating with influencers allows handbag brands to connect with a broader audience, build brand awareness, and influence consumer purchasing decisions in the digital space.

Raw Material Insights

Based on raw material, the leather handbag segment held the largest market share of 57% in 2023. Growing consumer preference for luxury goods and accessories is a major factor driving the demand for leather handbags. Leather is the primary raw material for luxury handbags and accessories. Rising consumer spending on luxury items in developed and developing economies can be attributed to the growing number of working women, who are increasingly willing to invest in leather handbags to create a versatile wardrobe collection. The rise in people’s discretionary income is also expected to create the demand for leather goods in developing countries like Thailand, Egypt, UAE, Saudi Arabia, and India. The demand for leather handbags is also supported by the advent of online shopping, particularly in Asia Pacific.

The fabric handbag segment is projected to grow at a CAGR of 5.85% from 2024 to 2033. Fabric handbags include bags made of cotton, silk, canvas, velvet, jute, and nylon. Key players in the market are investing in developing innovative raw materials to create handbags with different textures and appearances. Concerns regarding sustainability are encouraging players to adopt natural fibers like jute and cotton. Several retailers and supermarkets are increasingly using cotton tote and jute bags to reduce the use of single-use plastic.

Product Insights

In terms of product, the Tote bag segment contributed the largest market share of 42% in 2023. Tote bags are multi-purpose bags that can be used for a variety of tasks. Tote bags are popular among consumers due to their size and material. Tote bags are larger than other types of purses. These bags make it easier for consumers to carry essentials to offices, universities, and other places. The rising influence of Korean fashion and aesthetics among younger consumers is also driving the sale of tote bags. In addition, the stylish nature of totes helps consumers make a style statement on formal occasions.

The satchel bags market is expected to grow at a CAGR of 8.18% during forecast period. Satchel bags are available in different sizes from mid to large sizes with a flat bottom and two short handles. The bag can be worn either diagonally across the body or can be hung on the side. Satchel bags are versatile bags, which can be used by both men and women. These bags are gaining preference among consumers as they are useful for carrying multiple everyday work items like tablets, wallets, and laptops. The pandemic haltered the demand for satchel bags owing to work-from-home orders. In March 2021, the shopping platform Lyst, in its Year in Fashion Report, revealed that at the end of 2020, Telfar depicted a 270% week-on-week rise for its satchel bags and other handbags since August 2020.

Distribution Channel Insights

In terms of distribution channel, the online distribution channel segment is projected to grow at the fastest CAGR of 8.68% over the forecast period owing to the rising popularity of e-commerce and social media channels. Younger consumers increasingly prefer online shopping owing to the digitalization of services. Companies operating in the market are constantly improving customer databases and digital stores to cater to a larger set of consumers. They are also utilizing social media platforms such as WeChat, Pinterest, Instagram, Twitter, and Sina Weibo as a way of communicating with customers to increase traffic for both online and offline distribution channels.

For instance, Capri Holdings, owner of leading brands like Michael Kors, Versace, and Jimmy Choo, has been expanding its global retail footprint by accelerating its omnichannel and e-commerce development. Companies such as Coach and Kate Spade have informational websites in China, Malaysia, Singapore, Taiwan, and Hong Kong to reach their consumers in Asia Pacific.

The offline distribution channel held the largest market share of 78% in 2023. The offline distribution channel for handbags includes department stores, specialty stores, and other retail stores. Consumers prefer offline stores as they offer a wide product variety with better convenience and accessibility than online stores. Leading handbag makers are partnering with wholesale stores like Macy’s, Bloomingdale’s, and Saks Fifth Avenue in the U.S. and Selfridges, Printemps, and Galeries Lafayette in Europe. Such collaborations help in accessing a larger customer base. Companies are also investing in larger spaces, along with decorative items, flooring, and wall casings, to attract consumers and increase footfall and sales via offline channels.

Regional Insights

Asia Pacific dominated the market with a revenue share of 38% in 2023. The rise in consumer buying power, combined with the increase in online shopping portals, has fueled the demand for handbags across Asia Pacific. Growing fashion consciousness and spending on personal items and accessories have also been observed to be major factors driving the market growth. For instance, according to data released by Net-a-Porter in May 2020, the sales of handbags in Asia Pacific saw a strong growth of 261% compared to 2019.

In addition, China has seen exponential growth in terms of economic development and household consumption of consumer goods during the last decade. The rise in sales of luxury goods in China is expected to fuel the demand for handbags.

However, the North America handbag industry is expected to grow at a CAGR of 5.48% from 2024 to 2033. The growing influence of the fashion industry over a wider population and increased discretionary spending are expected to fuel the demand for handbags in the North America region. For instance, according to the data released by Trading Economics in July 2023, disposable personal income in the U.S. increased from USD 19,873.52 billion in May 2023 to USD 19,941.02 billion in June 2023.

Furthermore, clearance sales and Black Friday deals are popular in the U.S., with women, in particular, purchasing accessories like purses. During these events, international suppliers in the North America market see a boost in sales. Therefore, the consistent appeal of accessories is expected to drive market growth over the forecast period.

Handbag Market Key Companies

• Louis Vuitton
• Hermès International S.A.
• Michael Kors
• Fossil Group, Inc.
• Guccio Gucci S.p.A.
• Prada S.p.A.
• Burberry Group Plc
• Tapestry, Inc.
• Chanel
• Compagnie Financière Richemont SA

Handbag Market Report Segmentations:

By Raw Material

• Leather
• Fabric
• Others

By Product

• Tote Bag
• Clutch
• Satchel
• Others

By Distribution Channel

• Online
• Offline

By Region

• North America
• Europe
• Asia Pacific
• Central and South America
• Middle East and Africa