Luxury Bags Market, By Type (Clutches, Crossbody Bags, Shoulder bags, Satchels, Hobo Bags, tote bags, briefcases, and others), By Material Type (Leather, Cotton, Synthetic, and Others), By Consumer Group (Men, Women, and Unisex), By Distribution Channel (Store-Based and Non-Store-Based) and Region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
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.
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.
North America to Dominate the Market