Market Snapshot

Market Overview

The global Luxury Bags market size was estimated at USD 22.7.0 billion in 2022 and is projected to reach USD 37.1 billion in 2030 at a CAGR of 6.3% during the forecast period 2023-2030.

The market has more room to develop as a result of an increase in social media bloggers and increased use of social media platforms. In other words, increasing consumer knowledge of the newest styles and patterns due to endorsements from bloggers and celebrities, along with the desire to wear the newest styles, is directly impacting market growth. Also, the development and growth of the consumer goods sector is directly affecting the rate of market expansion.

Because more women are entering the workforce and have greater purchasing power, there is a huge increase in demand for the goods. For instance, according to data from the International Labor Organization, 48.5% of women worked in 2018. Moreover, it is projected that the considerable female consumer spending contribution would raise the consumption rate. For instance, it is predicted that female consumers would spend 31.8 trillion USD globally in 2019. The market is also growing as a result of the increasing knowledge of the availability of goods and services like upscale bags brought on by the rising female literacy rate throughout the world.

The market was negatively impacted by COVID-19. This was brought on by the closure of the factories and plants as a result of the lockdown and limitations. Disruptions in the transportation and supply chains added to the market's challenges. In other words, the sector experienced a backlash as a result of the disruptions in the value chain, which included job losses, the supply of raw materials, commerce, and transportation, as well as ambiguous customer demand. The COVID-19's reduction in luxury handbag manufacture further slowed the market's expansion. Yet, as internet and e-commerce platforms were more widely used, e-commerce sales increased when various relaxations were implemented.

Delvens Industry Expert's Standpoint

Due to the luxury fashion industry's strong growth, a broad variety of appealing luxury bags are developed, aiding in the market's worldwide expansion. For instance, according to figures from the fashion industry, 300 million people are predicted to work in the sector, which is worth USD 1.3 trillion. In addition, advertising and endorsement campaigns led by well-known individuals increase consumer appeal and pave the way for rising demand. The market has grown tremendously as a result of rising expenditure on products through online channels. Startup e-commerce and e-retailer websites have seen an increase in transactions as a result of holiday and seasonal promotions, reduced costs, and the accessibility of a variety of items on websites.

Market Portfolio

Key Findings

• Based on type, Clutches, crossbody bags, shoulder bags, and satchels are included in the market segmentation for luxury bags depending on type. Among them are briefcases, hobo bags, and totes. In 2021, the sector of tote bags had the lion's share. Tote bags are versatile containers that may be used for a variety of things. Because of its size and construction, consumers choose tote bags. as compared to totes and bigger luxury purses. Customers may more easily transport necessities to workplaces, institutions, and other locations with the help of these bags. The increasing acceptance of Korean fashion and aesthetics among younger consumers is another factor driving tote bag sales.
   
• Based on material type, comprises leather, cotton, synthetic, and other materials dependent on the kind of material. Throughout the projection period, 2022–2030, the leather sector, which led the market in 2021, is expected to have the fastest growth. The major component used to make luxury bags is leather. Luxury consumer expenditure is the key engine of the leather handbag industry in both developed and emerging economies. Across the world, many working women are prepared to spend money on leather purses. Hence, increasing disposable income for luxury bags has a favourable effect on market expansion.

• Based on consumer group, It has divided the market statistics for luxury bags into categories for men, women, and unisex. Women accounted for the majority of consumers in 2021 and are anticipated to see the fastest rate of growth over the projection period. This is because they are usually lured to stylish clothing and accessories like designer bags and items. The steady increase in working women and the strong demand for distinctive, opulent luxury bags are key factors in the worldwide market's growth.
   
• North America, Europe, Asia-Pacific, and the rest of the world are all covered by the regional market insights. The rising desire for fashion, luxury items, jewelry, and couture in the area is blamed for it. Demand in this industry is also fueled by the presence of well-known brands like Gucci, Burberry, and Louis Vuitton.

Regional Analysis

North America to Dominate the Market

• Due to the presence of numerous important value-added brands in countries like Germany, France, and the United Kingdom, which have been gaining more momentum with target consumers, Europe dominates the market for luxury bags.
   
• On the other hand, Asia-Pacific is fastest growing to have considerable expansion in the luxury bags industry and is expected to display the highest compound annual growth rate.