Technology research and advisory company Technavio released a report on the growth of the global handbag market, pointing out its estimated increase in value by 14.11 billion US dollars from 2022 to 2027 and a CAGR of 4.3% and highlighting key findings on this development.
The handbag market 2023 to 2027 is split up into three segments by Technavio - type, distribution channel and geography. Types of handbags include leather, fabric and others, distribution takes place online and offline, and locations concern Asia Pacific (APAC), North America, Europe, South America and Middle East and Africa.
Vendors of the market include Burberry, Dolce and Gabbana and Chanel, to name a few, offering a wide range of bags in different sizes from tote bags, to cross body, and shoulder bags.
Over the past several years, there has been an upsurge in demand for leather handbags with various textures, qualities, and feels. This element will fuel the segment's growth during the course of the forecast.
A key driver of this development is the personalisation and customisation of luxury handbags, which has heavily emerged as a new trend over the past five years, particularly in western Europe and North America.
The product’s aesthetics are improved through embroidery, straps and buckles, or the inclusion of a name tag, which at the same time increases its value in comparison to standard products.
The report revealed the customers’ increased preference to shop duty-free at airports for high end and luxury items, such as handbags, during the forecast period. Last-minute shopping or external factors such as delays and early check-ins further push the growth of the market. This uprising trend results in renovations of retail outlets within airports to enable this shopping experience.
The research company explains that strengthening the foothold in the fast-growing segments while maintaining the positions in the slow-growing ones is a key action for brands in this context.
However, Technavio also discloses how stringent government regulations will play a major role in terms of challenges for the growth of the market during the forecast period.
Due to a number of associations and government departments enforcing these rules, for example in Europe and particularly in Germany, parties operating within the tanning industry should adapt and consider ethical production, synthetic use and reuse.
This factor, alongside fluctuating operational costs and the measures needed to reduce waste and protect the environment which make up almost 5 percent of manufacturer’s total costs, might impede the growth of the handbag market.