ID: MRFR/CR/9092-CR | 99 Pages | Published By Snehal Singh on May 2021
The outbreak of COVID-19 has resulted in lockdown across regions, border restrictions, and breakdown of transportation networks. Due to the COVID-19 outbreak, the economic uncertainty is much higher than past outbreaks such as the severe acute respiratory syndrome (SARS), avian flu, swine flu, bird flu, and Ebola, owing to the escalating number of infected people and the uncertainty about the end of the crisis.
With the outbreak, there was a spike in essential goods such as sanitizers and masks, and household essentials like toilet paper and bread were stocked up by customers. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic. Since bags fall under the non-essential product category, the demand for the same was affected noticeably. The COVID-19 pandemic has severely impacted the tourism industry with border restrictions and government orders for lockdown, forcing people to stay home. Schools, colleges, and institutions were shut, and corporates across the globe observed work from home. These factors negatively impacted the sales of bags during the pandemic. However, with the situation getting back to normal, the demand for bags is expected to increase gradually.
The impact of the COVID-19 pandemic on the pricing of bags was likely to be minimal. However, issues such as supply chain disruptions, logistics, and limited availability of raw materials and labor are expected to cripple the growth of the global bags market up to some extent. With barriers to cross-border transportation of the commodities in the pandemic situation, the manufacturers are highly dependent on the local raw material suppliers, which increases the bargaining power of suppliers. To gain dominance in the market, it was witnessed that various producers were keeping their profit margins low. Manufacturers and producers on third-party e-commerce channels have reduced their prices on online websites.
Tourism is one of the fastest-growing industries in the world. All regions saw a rise in arrivals of international tourists in 2019. An increase in per capita disposable income has increased their spending on tours and travels. Several other factors boosting the tourism industry include growing corporate travel, ease in transportation, and assistance through the Internet for easy plan and booking of holidays. Moreover, people are becoming more aware of the places to travel through social media, travel shows, and advertising. Thus, the rise in travel and tourism has strengthened the demand for travel or luggage bags, driving the growth of the global bags market. Owing to hectic lifestyle, people plan some short holidays as well along with long holidays every year. Thus, they experiment on the types and sizes of bags according to their places to visit and the duration. The outbreak of coronavirus in 2020 had a negative impact on the tourism sector, which impacted the sales of bags. However, with situations going back to normal, the tourism industry is expected to boom again, boosting the sales of bags as well.
The bags market is highly fragmented owing to the presence of several local & regional players. The sales of local & regional players are increasing, which is anticipated to hamper the sales of key players.
People across the globe are gradually becoming aware of theenvironment andthe importance of eco-friendly products. The environmental concerns have increased to a greater extent, and with that, the concept of eco-friendly or going eco-friendly has progressed. There is a high demand for sustainable and eco-friendly products among consumers. However, the market for eco-friendly bags is still grabbing consumer attention due to the limited availability of eco-friendly bags in the market. With the increasing awareness of eco-friendly products, many small-scale manufacturers have entered the market with eco-friendly products such as jute bags, cotton bags, canvas bags, and juco bags. Thus, eco-friendly bags offer an opportunistic market to the existing players.
Global Bags Market Revenue, by Product Type, 2027 (USD Million)
Sources: MRFR Analysis
By Product Type
By product type, the backpacks segment accounted for the major market share in the global bags market and is estimated to retain its dominance throughout the forecast period. The backpacks segment is further bifurcated into school bags, drawstring bags, and others. Among that, the drawstring bags segment is projected to record the highest CAGR during the forecast period. However, the handbags, wallets, & purses segment is projected to exhibit the highest CAGR during the forecast period.
By Material Type
By material type, the polyesters segment has accounted for the major market share in the global bags market and is estimated to retain its dominance throughout the forecast period. The leather segment is projected to exhibit the highest CAGR during the forecast period. Increasing demand for luxury handbags is anticipated to act as one of the significant factors for the rising growth of the leather segment.
By End User
By end user, the 20 years & abovesegment has accounted for the major market share in the global bags market and projected to observe a below-average growth rate during the forecast period. Most of the population falls under the 20 years & above segment, which accelerates the demand for this segment. The 13 to 19 years segment is projected to expand at the highest CAGR during the forecast period.
By Distribution Channel
The store-based distribution channel segmentaccounted for a significant market share in 2019 and is projected to a moderate growth rate during the forecast period. The store-based distribution channel is further bifurcated into supermarkets & hypermarkets, convenience stores, specialty stores, and others. Among the store-based distribution channel, the supermarkets & hypermarkets segment held the maximum market share in 2019, and the trend is expected to continue during the review period.
Global bags market has been divided into North America, Europe, Asia-Pacific, and the rest of the world.
North America has accounted for approximately one-fourth of the total market share in the global bags market in 2019. Itis expected to witness a moderate CAGR during the forecast period. The US has accounted for the majority market proportion in the North American bags market. However, the market in Canada is projected to witness the highest CAGR during the forecast period.
Asia-Pacific has accounted for the major market share in the global bags market and is also projected to witness the highest CAGR during the review period. The growth of the bags market in Asia-Pacific is attributed to several factors. One of the significant factors for the rising growth of bags is the increasing middle-income population in the emerging economies of Asia-Pacific. China has accounted for the maximum market share in the Asia-Pacific bags market. The market in India is projected to register the highest CAGR during the forecast period.
Europe was the second-largest market in the global bags market in 2019 and is projected to witness a moderate growth rate during the forecast period. Premiumization is one of the major trends gaining massive acceptance among European consumers, especially in Western Europe. The demand for leather bags is surging among the corporate professionals in the developed economies of Europe. Germany has accounted for the highest market share in 2019 and is estimated to be dominant throughout the forecast period.
The market in the rest of the world is projected to witness a CAGR of 4.68% during the forecast period. The market in the rest of the world includes South America, the Middle East, and Africa. Among that, South America has accounted for the maximum market share in 2019, with Brazil & Argentina holding significant market shares. The market in the Middle East is projected to witness the highest CAGR during the forecast period. The market in Africa is expected to be sluggish during the review period. The market in several countries of Africa is highly fragmented owing to the presence of several local & unorganized players.
Global Bags Market Share, by Region, 2019 (%)
Sources: MRFR Analysis
The global bags market is highly competitive, with key industry players adopting strategies such as product launches, partnerships, and expansions to strengthen their market positions. Most companies in the market focus on expanding operations worldwide, augmenting their capabilities, and building strong partner relationships.
The growth of market players is dependent on market conditions, government support, and industry development. Thus, vendors should focus on expanding geographically and improving product quality. Nike, Inc. (US), Adidas AG (Germany), Samsonite International SA (Hong Kong), VF Corporation (US), Puma SE (Germany), Louis Vuitton (France), Delsey (France), Hershel Supply Company (Canada), Jensen Lee (US), and Belmil (Serbia) are the leading companies in this market, who compete based on market presence, quality, and price.
Key players are taking steps toward business expansions and entering untapped markets, thereby increasing their customer base. The regional and global players may strengthen their presence through acquisitions during the review period. It has also been forecasted that improvements in the global economic scenario and the growing bags industry in emerging nations would fuel market growth, making it ideal for players to launch new products and increase their global market shares.
|Market Size||USD 94.63 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product Type, By Material Type, By End User, By Distribution Channel, and By Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Nike Inc. (US), Adidas AG (Germany), Samsonite International SA (Hong Kong), VF Corporation (US), Puma SE (Germany), Louis Vuitton (France), Delsey (France), Hershel Supply Company (Canada), Jensen Lee (US), Belmil (Serbia)|
|Key Market Opportunities||Growing Demand in Tourism industry|
|Key Market Drivers||Rising popularity of customized bags|
Bags Industry Size is Expected to reach USD 94.63 Billion during forecast period 2020 to 2027
Bags Market share is anticipated to grow at a 4.9% CAGR during the forecast period of 2020–2027
Nike Inc. (US), Adidas AG (Germany), Samsonite International SA (Hong Kong), VF Corporation (US), Puma SE (Germany), Louis Vuitton (France), Delsey (France), Hershel Supply Company (Canada), Jensen Lee (US), Belmil (Serbia) are the dominant key players in the bags market.
North America Region will dominate the Bags Market