The global handbag market size is projected to reach USD 78.46 billion by 2028, exhibiting a CAGR of 6.8% during the forecast period. Fortune Business Insights™ shares this information in its report, titled “Handbag Market, 2021-2028”. As per the report, the value of the market stood at USD 47.57 billion in 2020.
Increasing Availability of Eco-friendly Bags to Boost the Market
Handbags have always been a fashion statement among consumers, and with improved fashion sense in the time of social media influencers, pop culture, and globalization, the demand for luxury consumer products has only heightened in recent years. However, as awareness about the environment and rampant animal cruelty spreads, several bag brands have been utilizing novel eco-friendly materials to create sustainable hand-bags. For example, New York-based Angela Roi has been committedly developing vegan, leather-free totes and bucket bags. Cuyana, another US-based bag company, offers bags manufactured from recycled and up-cycled materials. The spreading presence of such products is expected to fuel the growth of the market in the forthcoming years.
The market has been segmented in the following manner:
Based on product type, the market segments include tote, clutch, satchel, and others. In terms of raw material, the market has been divided into leather and fabric. On the basis of end-user, the market has been bifurcated into men and women. By region, the market has been clubbed into North America, Europe, Asia Pacific, South America, and the Middle East Africa.
What Does the Report Offer?
The report provides a detailed analysis of the key market aspects, namely, the dominant companies, end-users, and leading product types. Apart from this, the report contains tangible insights into the current upcoming market trends and highlights prominent industry developments. In addition to these factors, the report supplies a holistic understanding of the main drivers, restraints, and segments that are contributing to the growth of the market.
Restraining Factor
Falling Household Incomes amid COVID-19 to Disrupt Market Growth Prospects
The COVID-19 pandemic, while causing an unprecedented downturn in national economies, has delivered even more severe setbacks to individual household incomes. According to the World Bank’s high-frequency monitoring phone surveys, on average, 36% of those working prior to the pandemic outbreak were without a job in the April-July period, while 62% of households reported a reduction in total income. In India, to take a country-specific example, a decline of 5.4% in per capita income is envisaged, according to a report released by the State Bank of India, the country’s top lender. In such dire circumstances, the demand for dispensable consumer goods, such as handbags, is likely to diminish substantially. This is reflected in the 2020 values of the global market, with its CAGR dropping by 25.6% and its size expected to reach USD 49.63 billion in 2021.
Regional Insights
Fortune Business Insights™ Predicts Europe will Lead the Market Backed by High Personal Incomes
Europe is anticipated to lead the handbag market share during the forecast period owing to the high disposable incomes of consumers in the region. In 2020, the Europe market size stood at USD 16.14 billion. The market in Asia Pacific is forecasted to make prolific progress due to increasing employment and rapid expansion of the consumer goods industry. In addition, a growing young population in the region has also propelled the demand for fashion items, such as handbags. In North America, the market will be driven by the rising popularity of unisex handbags designed specifically for business activities.
Competitive Landscape
Acquisitions New Product Launches to be the Dominant Growth Strategies for Key Players
Prominent players in the handbag industry are making strategic acquisitions to cement their leading position in this industry. This strategy has emerged as the key growth accelerator for several fashion brands and has turned to be financially beneficial for startups and smaller entities. Besides this, large bag manufacturers are increasingly focusing on developing products using recyclable and sustainable materials to future-proof their brands, thus aiding the handbag market growth.
Key Industry Developments:
- January 2021: LVMH Moët Hennessy Louis Vuitton SE announced the successful acquisition of Tiffany Co., the US-based jewelry brand. The takeover was important for LVMH as Tiffany’s jewelry and watch offerings perfectly complement LVMH’s 75 Maisons.
- November 2019: Prada announces the launch of Re-Nylon, a novel project under which the company will introduce its iconic bags using regenerated nylon called Econyl. Produced by the textile yarn maker, Aquafil, Econyl is obtained through the recycling and purification of plastic waste extracted from fishing nets, fiber waste, and oceans.
Source:
https://www.fortunebusinessinsights.com/handbag-market-103860
