The luxury handbag market size was valued at $58.3 billion in 2018 and is expected to reach $89.9 billion by 2026, registering a CAGR of 5.6% from 2019 to 2026.
In an age of fast changing trends, luxury handbag manufacturers have started to keep an eye on the new consumer class, HENRYs (High-Earners-Not–Rich-Yet), which is on the rise nowadays and is anticipated to become increasingly relevant in the future. In addition, companies are committing to make significant investments to stimulate interest of the younger segment of the population, i.e. millennials and Gen Z, also known as customers of the future. According to the Equifax, a consumer credit agency, HENRYs earn between $100,000 and $250,000 and have digital savvy, love online shopping, and are big spenders on luxury products. In addition, continuous efforts of luxury handbag manufacturers on the evolution of their product offerings, coupled with rise in per capita income of target customers are some of those key reasons behind the growth of the global luxury handbag market.
Premiumization has been enduring its trend in different industries that includes food industry, apparel industry, cosmetic industry and others. It is a process where manufacturers make a brand or a product more appealing to consumers by emphasizing on its superior quality and exclusivity. Owing to the surge in per capita income of majority of target customers, they emphasize on quality of product rather than its price. This sustaining trend has majorly contributed to the overall growth of the global handbag market, in terms of value sales.
Since these ‘new’ tech savvy generation look for individualized, seamless brand relationship, luxury handbag brands are investing worldwide to market digitally, by increasingly using social media to engage with these consumers. Meanwhile, companies are also re-examining the value of brand heritage and brand history for their customers. Furthermore, due to rise in internet penetration and influence of social media luxury brands have started to engage with customers by leveraging on social media platforms.
The global luxury handbag market is segmented on the basis of type, distribution channel, and region. By type, it is classified into handbag, backpack, wallet, and others. By distribution channel, it is segmented into duty-free stores, online stores, discount stores, hypermarkets, and specialty stores. By region, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (German, France, the UK, Italy, Spain, the Netherlands, and Rest of Europe), Asia-Pacific (Japan, China, Australia, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
By Type
Backpack segment would exhibit the highest CAGR of 6.10% during 2019-2026.
By type the luxury handbag market is segmented into handbag, backpack, wallet, and others. Among these sub-segments, the handbag segment accounts for the higher value of luxury handbag market as the number of fashion-conscious consumers is on the rise. In addition, luxury handbag manufacturers are adopting different marketing strategies to increase customer base and improve brand image. Moreover, online advertisements of luxury handbags, coupled with celebrity endorsements has enhanced brand values and increased their preference among buyers.
By Distribution Channel
Online Stores segment would exhibit the highest CAGR of 14.40% during 2019-2026.
By distribution channel, the luxury handbag market is segmented into duty free stores, online stores, discount stores, hypermarkets, and specialty stores. Specialty stores offer a wide range of products and thus, account for a higher market share. In addition, manufacturers carry out different types of promotional events in view of generating sales through such stores, such as discount offers, seasonal pricing strategies, and customer loyalty programs. The online stores segment is the fastest growing segment, owing to increase in internet penetration, especially in North America, Europe, and Asia-Pacific. Consumers now rely on internet to gain information and consider online shopping as the most convenient way for any kind of purchasing. Thus, most of the key manufacturers have gone online and have created their own web portals for selling products.
By Region
Asia-Pacific would exhibit the highest CAGR of 8.20% during 2019-2026.
By region, the luxury handbag industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Europe is the most dominant region in the global luxury handbag market since some of the countries like Germany, France, the UK, and other comprises of several key value addition brands that have been gaining higher level of traction among target customers. Rise in women working population in Europe is anticipated to be a significant driver for the luxury handbag market. In addition, rise in investments in Eastern Europe, for instance, boom in retail infrastructure across Russia where 63 new complexes in 40 Russian cities have been completed, are expected to have a positive impact on the market growth. Moreover, increase in the number of millionaires, owing to economic growth in Asia-pacific further escalates the luxury handbag market growth.
Key players profiled for luxury handbag industry include LVMH, Furla SpA, Longchamp, Luxottica Group, Mulberry Group, Vera Bradley, Guccio Gucci S.p.A, Samsonite International S.A./Tumi brand, Valentino S.p.A., and ZV France SAS
Key Benefits for Stakeholders
- The report provides an extensive luxury handbag market analysis of the current and emerging luxury handbag market trends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the current market trends and future estimations that help evaluate the prevailing market opportunity.
- A comprehensive analysis of the factors that drive and restrict the luxury handbag market growth.
- An extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential segments or regions exhibiting favorable growth.
Luxury Handbag Market Report Highlights
| Aspects | Details |
 By Type |
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 By DISTRIBUTION CHANNNEL |
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 By Region |
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 Key Market Players | Mulberry Group plc, LUXOTTICA GROUP, Guccio Gucci S.p.A, Vera Bradley Sales, LLC, Longchamp, ZV France SAS, Furla S.p.A, Lvmh group, Valentino S.p.A., Samsonite International S.A |
Analyst Review
According to the insights of CXOs of leading companies, target customers’ capacity of buying and experiencing luxury goods is one of the key reasons behind the overall growth of the global luxury handbag market.
The rise in internet penetration around the globe, especially in developing countries like India, Brazil, and China, coupled with easy access to social media websites like Facebook and Instagram is anticipated to drive the market for luxury handbags during the forecast period. Moreover, endorsement of luxury handbags by celebrities also has a positive impact on the market growth.
Initiating key mergers and acquisitions is a key strategy considered to be adopted by luxury handbag manufacturers. The rise in rate of internet penetration around major parts of the world also makes way for manufacturers to initiate several key online marketing programs as online platforms are one of the easiest ways to create awareness about specifications and features of the luxury handbag products among target customers.
The global luxury handbag industry has witnessed prominent adoption in developed regions, owing to swift change in consumer lifestyle and increase in disposable income. Europe generated maximum revenue and is expected to lead throughout the forecast period. However, Asia-Pacific countries such as China and Japan are the most lucrative markets for luxury good companies, as they have indicated increase in fashion consciousness.
The Luxury Handbag Market was valued at $ 58,393 million in 2018, Europe has the highest market share as customers tend to choose premium quality products owing to the rise in per capita income. In addition, luxury handbag are premium products due to high pricing with value added features and specification.
The luxury handbag market will be $ 89,939 million by 2026, owing to factors such as social media marketing through social media marketing strategy, the global luxury handbag market sights critical opportunity in gaining traction and eventually increase its registration among its target segments.
The Luxury Handbag Market is projected to grow at a CAGR of 5.60% in the forecast period (2019-2026), owing to factors such as emergence of young populace, increase in disposable income, rise in number of working women, and surge in affordability of luxury products are expected to drive the growth of the market.
The key factor driving the luxury handbag market growth are rise in number of working women, penetration of high-end brands through social media platform has also attracted consumers. In addition, rising spending among the developing nation has further contributed towards the market growth.
The luxury handbag market is segmented by type, distribution channel, and region. By type segment comprises of handbag, backpack, wallet, and others. By distribution channel the market is segmented across duty free stores, online stores, discount stores, hypermarket, and specialty stores. Based on region the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Increase in online retail of luxury handbag, growth in emerging market, rise in working women population, premiumization trend provide immense opportunity, and rise of social media marketing are some of the trend of luxury handbag market.
Some of the key players profiled in the luxury handbag market include LVMH, Furla SpA, Marcolin Group, De Rigo, Longchamp, Luxottica Group, Mulberry Group, Safilo Group, Vera Bradley, Guccio Gucci S.p.A, Luxottica Group, Vera Bradley, Inc, and Samsonite International S.A./Tumi brand.
The emerging market across Asia-Pacific and LAMEA region are growing at a CAGR of 7.60% and 7.40% respectively. The growth in the emerging economies is contributed owing to rise in spending pwer of consumers, and increase in fashion awareness among young generation due to social media and other platforms.
The European market accounts for maximum market share of the luxury handbag market, owing to high net worth of individual, and rise in working women population has contributed towards market growth in the region.
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