How big is the bag market? At least US$94 billion by 2028

According to the latest report of Million Insights, by 2028, the global luxury handbag market is expected to be valued at US$94 billion. The compound annual growth rate from 2021 to 2028 is expected to reach 5.3%.

Emerging economies, especially the Chinese mainland market, have promoted this market with increased brand awareness of handbags and increased spending on handbags. The increase in consumer disposable income and the increase in purchasing power are another important factor driving market growth. With the increase in the female labor force in emerging economies and the busy work and lifestyle driving the growth of the global market, the use of handbags has become very important for women.

On a global scale, luxury handbags are considered an important accessory and therefore promote the development of the market during the forecast period. The main factors leading to the growth of the industry are the increase in the disposable income of developing economies and the increase in the use of luxury handbags. In addition, brand recognition and strength are also driving the development of the industry. Therefore, due to these reasons, the market is expected to witness very attractive growth during the forecast period.

In 2020, the handbag market accounted for the largest share of nearly 36% of the leather goods market. Due to the larger space of the handbag, consumers can carry multiple commodities at the same time. Therefore, it is very popular among professional women because they need huge space to save files and laptops and other things.

Europe's dominant market, with a revenue share of over 34% in 2020, is attributed to the increasing popularity and trend of luxury handbags in this region, especially in Germany, the UK and France. In addition, the increasing purchasing power of consumers in the region is also driving the development of the market. Due to the growing trend of luxury lifestyles of millennial women in countries such as China and India, the compound annual growth rate of the Asia-Pacific region from 2021 to 2028 is expected to reach 6.0%.

From the product point of view, handbags accounted for the largest proportion in 2020, close to 36.0%, because more and more professional women like these products because they are considered to be durable products with inherent aesthetic characteristics.