Luxury Handbags Market Size was valued at USD 27.12419 billion in 2021. The Luxury Handbags market industry is projected to grow from USD 28.07076 billion in 2022 to USD 51.00349 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.15% during the forecast period (2023 - 2032). The demand for luxury handbags is driven by several factors, including the desire for exclusivity, superior quality, and craftsmanship. These bags are often associated with high-end fashion brands and exclusive boutiques, which further fuels their appeal and status.
Figure 1: Luxury Handbags Market (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The working women population in the US is increasing over the years, this translates to increased financial freedom, thus impacting the spending on fashion products positively. In addition, the US government is also taking several initiatives and programs to boost female participation in the workforce including the Protecting the Right to Organize Act, American Jobs Plan, Gender Equity and Equity Action Fund, Women Entrepreneurs Finance Initiative, etc. The initiatives are expected to fuel the growth of the working women population further in the upcoming years. In the UK, women's participation in the workforce has been very promising over the years (Refer to figure 12) and according to the Office for National Statistics, UK the labor force in the nation has witnessed an addition of 2 million more female in 2021 compared to the level in 2010. Women occupying leadership positions including managers, senior officials, and directors have recorded a growth of 25% over 2010 figures. In addition, female in the age group 16-24 is one of the fastest-growing segment among the working women population in the UK. The working women population is expected to increase in the upcoming years fueled by various government measures like child-care support facilities, increasing investments in jobcentre through Department for Work and Pensions (DWP), etc. Similar were the trends of working women population growth in many developed economies including Canada, Germany, France, Japan, Finland, Denmark, etc. For instance, between 2011 and 2021, Canada’s working women population witnessed a growth of 14.62%.
Based on product type, the Luxury Handbags Market segmentation Clutches, Crossbody Bags, Shoulder Bags, Satchels, Hobo Bags, Tote Bags, Briefcases, and Others. The tote bags segment held the majority share in 2021 contributing to around a market value of USD 6,911.74 million of Luxury Handbags Market revenue. Tote bags are usually large bags which are used to carry (or tote) a variety of objects. The bag's size varies, but it is distinguished by its huge top opening and lack of fasteners. It also features two parallel handles on either side that is used to carry the bag. Tote bags come in a variety of shapes, hues, and patterns. The owner's objectives determine how they are used. A tote bag is typically used for regular activities such as trips to the grocery store. A variety of materials are used to manufacture a tote bag. Cotton and linen are the most popular material types. However, some producers are also using jute and hemp, two eco-friendly fabrics, to create bags. Furthermore, the incorporation of smart technology into tote bag designs is one of the newest trends in the industry. These smart bags have built-in speakers, wireless charging, and GPS tracking, among other capabilities. They are ideal for people who are constantly on the move and want to keep organized and connected without having to carry a separate bag for their technological devices. As tote bags may serve numerous functions and don't require several bags, the use of smart technology in tote bags also contributes to waste reduction.
May 2022: VitroLabs announced the closing of a USD 46 million Series A funding round led by Agronomics with participation by Kering.
June 2021: The Kering company invested in Handbag subscription service Cocoon for latest business model like rental and resale.
Figure 2: Luxury Handbags Market, By Product Type, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on source, the Luxury Handbags Market segmentation includes Leather, Cotton, Synthetic, and Others. The leather segment held the majority share in 2021 contributing to around ~45-50% of the Luxury Handbags Market revenue. The leather segment is further bifurcated as tumbled, suede, nappa, and others. The others include full grain, top grain, pebbled, and pullup leather. The growing inclination of consumers towards leather bags owing to the various benefits provided by it such as durability, full-grain leather is a hardy material that is extremely durable and can bear strain and abrasion for years. Moreover, leather products require less upkeep than those made of other materials. Hence such factors are likely to boost its market growth in the upcoming years. Besides this, another key benefit of leathers owing to which it is widely used in the production of luxury handbags is due to its well-known strength and toughness. An individual can use a leather purse every day without worrying about tearing it. Its inherent flexibility serves as a complementing quality to its durability, and over time it becomes flexible, giving its shape a distinctive form that makes it age wonderfully without losing any of its fashionable appearance, form, or functionality. Another factor includes, unlike other synthetic materials used to produce bags, leather is a natural substance.
Based on end user, the Luxury Handbags Market segmentation includes Men, Women, and Unisex. The women segment held the majority share in 2021 contributing to around ~55-60% of the Luxury Handbags Market revenue. The growing women working population, high disposable income, and inclination towards luxury lifestyle as a status symbol has boosted the segment growth. For instance, according to International Labour Organization, the current globe labour force participation rate for women is under 47%. Furthermore, the spending power among women is increasing. Women consumers are increasingly spending on luxury accessories and luxury handbags, which is further supporting the growth of the segment. Besides this, the presence of major players providing luxury handbags coupled with the growing expansion policies adopted by them is likely to propel its market growth. For instance, in October 2022, What Goes Around Comes Around, the reputable reseller of recognized high-end vintage, entered a partnership with Amazon which in turn has increased its foothold in the premium market. As a result of the partnership, Amazon's website now has a special WGACA section showing vintage luxury accessories and bags.
July 2019: Inditex merged Zara and Zara Home. The Zara Home brand, which has wider portfolio of handbags.
Based on distribution channel, the Luxury Handbags Market segmentation includes specialty stores, and online. The specialty stores segment held the majority share in 2021 contributing to around ~85-90% of the Luxury Handbags Market revenue. A specialty store is a retail establishment that sells unique and specialized goods. These shops specialize in offering a specific product category or brand. Specialty stores include company dedicated stores as well as multi branded stores. The growing benefits provided by specialty stores such as specialty shops have the advantage of being able to give clients comprehensive information about the product of their choice. Specialty stores have an advantage in terms of staffing and training, which results in more knowledgeable employees. Employees are more likely to just deal with one kind of product, which makes it simpler for them to give prospective clients comprehensive information that best meets their needs. For instance, a prospective consumer looking to purchase a handbags will probably visit an handbag store since it will be simpler for them to select the item of their choosing there. Furthermore, the presence of many specialty stores across various regions of the world, coupled with the frequent visit of consumers there is likely to contribute to its overall segment growth.
June 2022: Prada launched its new handbag collection in Triangular category. he triangular-shaped functional elements served as the primary inspiration for the silhouette, aligned with the brand’s historical style code and inclusive logo.
By Region, the study segments the market into North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific Luxury Handbags market has held the largest market share among the region in the Luxury Handbags Market. Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including China, India, and Japan. The various expansion policies that have been adopted by major players in the region are expected to drive the demand for luxury handbags in the upcoming years. Asia-Pacific is one of the most lucrative regions among the manufacturers of luxury handbags. The growth of the luxury handbags market in Asia-Pacific is attributed to several factors, such as increasing population and rapid urbanization in emerging economies. The rising per capita disposable income acts as a significant factor for the growth of the luxury handbags market. Furthermore, the luxury handbags market in Asia-Pacific is growing due to the rapidly changing consumer trends, and the shift from physical stores to digital stores. China holds the xx% share in the Asia-Pacific luxury handbags market. The Chinese consumers' inclination towards luxury and their youth population's preference for new trends are some of the major drivers for luxury handbags in the country. Several major players in the luxury handbags market have a strong market share in the region.
The major countries studied are the US, Canada, Mexico, the UK, France, Germany, Italy, Spain, China, India, Japan, Australia and New Zealand, South America, the Middle East, and Africa.
Figure 3: LUXURY HANDBAGS MARKET SHARE BY REGION, 2022 & 2032 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The North American region includes major countries such as the US, Canada, and Mexico. The native people of North America are diverse in terms of culture, language, and ecological adaptations to various environments. Moreover, most of the population in North America perceive luxury products as synonymous with quality, exclusivity, and rarity. The increasing rate of millennial spending and the arrival of digital and niche-born brands are further diversifying luxury handbags in the region. The prime growth engine of the luxury handbag market in North America is the shift in a generation where 83% of the luxury growth in 2020 is fueled by Gen Y and Gen Z. The new generation is low on patience and are inclined more towards speed and convenience, which is creating a tremendous growth rate in the handbags industry. The impact of digital influencers has changed the marketing strategies of legacy brands where traditionally they relied on storytelling to market their brands, and now, they are relying on social media as one of the most viable and expedient ways to showcase their brand values.
Europe basically includes the UK, Germany, France, Italy, Spain, and Rest of the Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the Luxury Handbags Market owing to the increasing urbanization and consumers per capita expenditure on luxury goods that in turn positively influencing the market growth. Europe is the origin for international luxury brands for various products such as cosmetics & personal care, food & beverage, clothing and apparels along with handbags as there is a culture of technical excellence. For instance, Swiss watchmaking has no technical equivalent worldwide. Similarly, Italy is popular for its high-end fashion and apparel, where the 'Made in Italy' logo equates to high quality. Moreover, the evolution of the consumer group and rapid Internet adoption contribute to the sales of luxury items in the region. Luxury bags brands in the region are taking innovative measures to compete in the highly competitive market, such as introducing limited-edition products, celebrity endorsements, high investments in marketing, and opening retail stores in prestigious locations. However, rapid transformation in consumer habits has seen a shift towards value-based consumer spending.
The key companies are continually striving to gain a competitive edge through innovative product offerings, strategic collaborations, and extensive research and development activities. The heritage brands boast a rich history of craftsmanship and exclusivity, resonating with discerning consumers seeking timeless elegance. Additionally, newer contenders like Gucci and Prada have swiftly risen to prominence, captivating a younger audience with their innovative designs and strategic marketing initiatives. The market is further diversified by boutique luxury brands like Bottega Veneta and Celine, which have garnered devoted followings for their minimalist aesthetics and unique materials.
One of the key business strategies deployed by the Luxury Handbags industry to gain a competitive advantage among the competitors is increasing product launch. Also, expansion with new startups and small-scale manufacturers augment the production capacity to meet the increasing demand for various Luxury Handbags types in the market.
Ralph Lauren company prominently deals in designing, marketing, and distributing premium lifestyle products. The company functions in five major categories like apparel, home, footwear & accessories, fragrances, and hospitality. It has several brands under its name, including Label, Ralph Lauren Collection, Ralph Lauren Purple, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps. The company has around 504 retail stores which have around 4.0 million square feet of space acquired. The company also has a digital commerce site which is handled by third-party sources. Additionally, the company has around 193 factory stores located in North America whereas Europe includes 59 factory stores by segment. The company serves more than 120 countries in North America, Asia, and Europe.
Kering is involved in developing, designing, manufacturing, marketing, and selling apparel and accessories. The company offers a vast product portfolio with numerous product segments including leather goods such as handbags and wallets, purses, leather products, eyewear, shoes, accessories, jewelry, and watches for men and women. Kering offers its products under several brands including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, and Girard-Perregaux. The company sells its products through department stores, multi-brand stores, and franchise stores, as well as e-commerce sites. Kering offers its products in Asia-Pacific, Western Europe, North America, and Japan.
Luxury Handbags Industry Developments
August 22, 2023: NEW YORK, NY — Celebrate the launch of The RL 888, a new handbag collection with a distinct look and feel, from Ralph Lauren (NYSE: RL). The RL 888 campaign, which pairs a sleek, contemporary handbag with an otherworldly, rugged, and weathered landscape, will emphasize juxtaposition, a defining feature of the brand and showcase the exceptional handcraftmanship of RL's most opulent label.
Luxury Handbags Product Type Outlook
| Report Attribute/Metric | Details |
| Market Size 2021 | USD 27.12419 Billion |
| Market Size 2022 | USD 28.07076 Billion |
| Market Size 2032 | USD 51.00349 Billion |
| Compound Annual Growth Rate (CAGR) | 6.15% (2023-2032) |
| Base Year | 2022 |
| Forecast Period | 2023-2032 |
| Historical Data | 2020, 2021 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Material Type, End User, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World. |
| Countries Covered | The U.S, Canada, Mexico, the UK, France, Germany, Italy, Spain, China, India, Japan, Australia and New Zealand, Brazil, Argentina, GCC Countries, South Africa, Nigeria, and Egypt |
| Key Companies Profiled | Ralph Lauren (US), PVH Corp (US), Kering (France), LVHM (Paris), Giorgio Armani (Italy), Channel SA (France), Dolce & Gabbana (Italy), Burberry Ltd (UK), Inditex (Spain), Capri Holding, ltd (US), Nordstrom (US), Valentino spa (Italy), Prada Group (Italy) |
| Key Market Opportunities | Growing working women population Growth of the e-commerce industry Increasing revenge spending on fashion products |
| Key Market Dynamics | Product Launch and Expansion |
Luxury Handbags Market Highlights:
Frequently Asked Questions (FAQ) :
The Luxury Handbags market is valued at USD 27.12419 Billion in 2021.
The US Luxury Handbags market is valued at 5.34217 Billion in 2021
The Luxury Handbags market is expected to grow at a CAGR of 6.15% during the forecast period
Asia-Pacific held the largest share market in the Luxury Handbags market
The key players include Ralph Lauren, PVH Corp, Kering, LVHM, and Giorgio Armani.
Tote Bags is the leading segment in the Luxury Handbags market in 2021.
Which material type had the largest market share in the Luxury Handbags market?
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