The global handbag market size isprojected to reach USD 78.46billion by 2028 owing to the increasing availability of premium bagbrands on e-commerce platforms. FortuneBusiness Insights™ shares this information in its report, titled “Handbag Market, 2021-2028”. The reportfurther states that the global market value was USD 47.57 billion in 2020, and the market is expected toregister a CAGR of 6.8% from2021 to 2028.
COVID-19 Impact
The COVID-19 pandemic has seriously injured the consumer goodsindustry and has hampered the handbag market growth. According to FortuneBusiness Insights™, the global market slumped by a staggering 25.6% in2020, with its size predicted to reach USD 49.63 billion in 2021. The main reasons for themarket’s declining growth trajectory in the 2020-21 period include sharp demandcontractions underpinned by falling incomes, increasing raw material prices,and reduced production.
Sequential Brands Group and Centric Brands to Collaborate forHandbag and Jewelry Collections
In November 2019, Sequential Brands Group teamed up with Hollywoodcelebrity Jessica Simpson to enter into a multi-year licensing partnership withCentric Brands. Under the agreement, the two companies will collaborate todevelop, manufacture, and distribute Simpson’s new line of handbag and jewelrycollections. The in-house teams of both companies will share their expertise tocreate a range of products that will be based on Jessica Simpson’s brandphilosophy that fashion should be approachable and fun for women. Suchalliances between fashion brands and celebrities are rapidly augmenting the prospectsof this market.
Tote Segment to Dominate the Market with 34.5% Share
By type, the market has been segmented into tote, clutch, satchel,and others. At 34.5% in 2020, the tote segment is expected todominate the global market during the forecast period. This is primarilyattributable to the meteoric rise in the popularity of tote bags amongconsumers due to their versatility. For example, since tote handbags are madefrom fabric, usually cotton, they are reusable, thus making them a sustainablealternative to plastic bags.In Europe, too, this segment dominates, holding amarket share of 34.6% in 2020.
Based on raw material, the market has been divided into leatherand fabric. On the basis of end-user, the market has been categorized into menand women. In terms of geography, the market has been grouped into NorthAmerica, Europe, Asia Pacific, South America, and the Middle East and Africa.
Presence of Large Fashion Brands to Stimulate Market Growth inEurope
- Europe is poised to lead the handbag market share for the foreseeable future as the region is home to prominent fashion brands, such as Louis Vuitton and Prada. Complementing this is the high per capita income of consumers in Western Europe, which makes products of these brands affordable to a broad range of people. In 2019, the region’s market size stood at USD 16.14 billion.
- South America is expected to create huge investment and sales opportunities for market players due to the rapidly expanding urban population in the continent, while promising economic growth in Africa is likely to spike the demand for luxury consumer products, such as handbags.
Entry of New Players in the Market to Heat up Competition
Leading bag makers in this market are set to face intensecompetition as new players enter the market and alter the governing dynamics.These companies are introducing novel bag offerings in a bid to capture a widercustomer base and establish their presence in the market. In response, the existingkey players in the market are aggressively expanding their distributionnetworks, engaging in acquisition activities, and actively collaborating withdiverse entities to deepen their footprint.
Industry Development:
- August 2019: Galvan, a London-based fashion major, released its maiden handbag collection to supplement its eveningwear and bridal-wear line. The three bags launched by the company have been made from silk satin and sequins and have been produced in Italy, designed to suit any outfit.
Browse Summary of This Research:
https://www.fortunebusinessinsights.com/handbag-market-103860
