The global luxury handbag market is expected to reach a valuation of 94 billion dollars by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 5.3 percent from 2021 to 2028.
Increased brand recognition and rising spending on handbags in emerging economies are driving the market. An increase in disposable income and a rise in purchasing power are other factors boosting the market growth. The use of handbags has become important for a women as emerging economies are having an increase in women in the workforce and busy lifestyles have fueled the market growth globally.
Luxury handbags are considered to be an important accessory globally, thus driving the market over the forecast period. The major factors responsible for industry growth are increased disposable income in the developing economies and augmented use of luxury handbags. In addition, brand recognition and power are driving the industry. Hence, due to these reasons, the market is anticipated to witness lucrative growth over the forecast period.
The tote bags segment accounted for the largest share of nearly 36 percent in 2020. Tote bags allow consumers to carry several goods at the same time due to their larger space. Hence, it is popular among working women as they require enormous space to keep things like files and laptops. Moreover, these bags are available for every requirement of the consumer, which has increased the demand for tote bags. Additionally, shifting consumer preference from plastic bags to tote bags is estimated to fuel the segment growth in the coming years.
Europe dominated the market with a revenue share of more than 34 percent in 2020. This is attributed to the growing popularity and trend of luxury handbags in this region, particularly in Germany, the U.K., and France. Furthermore, the increasing purchasing power of the consumers in this region is driving the market. Asia Pacific is expected to register the fastest CAGR of 6.0 percent from 2021 to 2028 owing to the growing trend of luxury lifestyles among millennial women in countries including China and India.
By product, tote bags accounted for the largest share of almost 36.0 percent in 2020 in light of the increasing number of working women who prefer these products as they are considered to be durable products with in-built aesthetic features. Gucci, Tumi, and Valentino are ranked top three for key players in the luxury handbag market by Million Insights.