USD 28.31 billion
Luxury Handbags Market Size, Share, and Growth Analysis
Luxury Handbags Market By Product Type (Clutches, Crossbody Bags), By Material Type (Leather, Cotton), By End User (Men, Women), By Distribution Channel (Specialty Stores, Online), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25K2105 |
Region:
Global |
Published Date: January, 2025
Pages:
185
|Tables:
93
|Figures:
71
Format -
Luxury Handbags Market Insights
Luxury Handbags Market size was valued at USD 28.31 billion in 2023 and is poised to grow from USD 30.24 billion in 2024 to USD 51.18 billion by 2032, growing at a CAGR of 6.8% during the forecast period (2025-2032).
The global workforce has seen a significant rise in women's participation over the years. This increased participation is boosting the demand for accessories, which fulfills the requirements of working women, leading to the rising demand for handbags. In recent times, handbags have evolved from accessories to an essential item, addressing the various demands of modern professional life. Modern working women prefers a combination of style and practicality, making handbags crucial for their daily routines. They need to transition seamlessly between professional and personal settings, and handbags fulfill this role adeptly. These versatile companions carry work-related items like laptops, documents, and planners, along with personal essentials such as wallets, cosmetics, and electronic devices.
In addition, luxury and premium handbags have evolved beyond their utilitarian role, transforming into symbols of status and personal style. The growing purchasing power of consumers, particularly in emerging economies, combined with aspirational buying tendencies, is propelling the desire for high-end handbags. Notably, alongside well-established luxury brands, emerging designers and niche players are entering the market, introducing distinctive designs and craftsmanship. These brands cater to consumers seeking exclusivity and individuality, thus enriching the diversity of the luxury handbag industry.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Online
Fastest Growth
Offline
Growth Rate
6.8% CAGR
Global Luxury Handbags Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Luxury Handbags Market Segments Analysis
Global Luxury Handbags Market is segmented by Product Type, Material Type, End User, Distribution Channel and region. Based on Product Type, the market is segmented into Clutches, Crossbody Bags, Shoulder Bags, Satchels, Hobo Bags, Tote Bags, Briefcases and Others. Based on Material Type, the market is segmented into Leather, Cotton, Synthetic and Others. Based on End User, the market is segmented into Men, Women and Unisex. Based on Distribution Channel, the market is segmented into Specialty Stores and Online. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product
Based on product, the tote bag segment is dominating the market with the largest luxury handbags market share. Tote bags are multi-purpose bags that can be used for a variety of tasks. Tote bags are popular among consumers due to their size and material. Tote bags are larger than other types of purses. These bags make it easier for consumers to carry essentials to offices, universities, and other places. The rising influence of Korean fashion and aesthetics among younger consumers is also driving the sale of tote bags. In addition, the stylish nature of totes helps consumers make a style statement on formal occasions. Tote bags are considered more environment-friendly because they can be used multiple times, reducing the need for disposable bags. This aligns with sustainability goals to reduce plastic pollution. For instance, in 2021, Anya Hindmarch, a fashion designer based in England, collaborated with Sainsbury's and Waitrose supermarket chains in the UK to reuse shopping tote bags to tackle sustainability challenges.
The satchel segment is expected to grow at a significant CAGR during the forecast period. Satchel bags are available in different sizes from mid to large sizes with a flat bottom and two short handles. The bag can be worn either diagonally across the body or can be hung on the side. Satchel bags are versatile bags, which can be used by both men and women. These bags are gaining preference among consumers as they are useful for carrying multiple everyday work items like tablets, wallets, and laptops. The pandemic haltered the demand for satchel bags owing to work-from-home orders. In March 2021, the shopping platform Lyst, in its Year in Fashion Report, revealed that at the end of 2020, Telfar depicted a 270% week-on-week rise for its satchel bags and other handbags since August 2020.
Analysis by Distribution Channel
Based on distribution channel, the online segment is dominating the luxury handbags market. This segment is leading during the forecast period owing to the rising popularity of e-commerce and social media channels. Younger consumers increasingly prefer online shopping owing to the digitalization of services. Companies operating in the market are constantly improving customer databases and digital stores to cater to a larger set of consumers. They are also utilizing social media platforms such as WeChat, Pinterest, Instagram, Twitter, and Sina Weibo as a way of communicating with customers to increase traffic for both online and offline distribution channels. For instance, Capri Holdings, owner of leading brands like Michael Kors, Versace, and Jimmy Choo, has been expanding its global retail footprint by accelerating its omnichannel and e-commerce development. Companies such as Coach and Kate Spade have informational websites in China, Malaysia, Singapore, Taiwan, and Hong Kong to reach their consumers in Asia Pacific.
As per luxury handbags market analysis, the offline segment is experiencing tremendous growth in the luxury handbags market. The offline distribution channel for handbags includes department stores, specialty stores, and other retail stores. Consumers prefer offline stores as they offer a wide product variety with better convenience and accessibility than online stores. Leading handbag makers are partnering with wholesale stores like Macy's, Bloomingdale's, and Saks Fifth Avenue in the U.S. and Selfridges, Printemps, and Galeries Lafayette in Europe. Such collaborations help in accessing a larger customer base. Companies are also investing in larger spaces, along with decorative items, flooring, and wall casings, to attract consumers and increase footfall and sales via offline channels.
Global Luxury Handbags Market Analysis by Distribution Channel
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Luxury Handbags Market Regional Insights
Asia Pacific is dominating with the largest luxury handbags market share. The rise in consumer buying power, combined with the increase in online shopping portals, has fueled the demand for handbags across Asia Pacific. Growing fashion consciousness and spending on personal items and accessories have also been observed to be major factors driving the market growth. For instance, according to data released by Net-a-Porter in May 2020, the sales of handbags in Asia Pacific saw a strong growth of 261% compared to 2019. In addition, China has seen exponential growth in terms of economic development and household consumption of consumer goods during the last decade. The rise in sales of luxury goods in China is expected to fuel the demand for handbags.
Over the course of the projected period, it is anticipated that the luxury handbags market in North America would expand with the highest growth rate. The growing influence of the fashion industry over a wider population and increased discretionary spending are expected to fuel the demand for handbags in the North America region. For instance, according to the data released by Trading Economics in July 2023, disposable personal income in the U.S. increased from USD 19,873.52 billion in May 2023 to USD 19,941.02 billion in June 2023. Furthermore, clearance sales and Black Friday deals are popular in the U.S., with women purchasing accessories like purses. During these events, international suppliers in the North America market see a boost in sales. Therefore, the consistent appeal of accessories is expected to drive market growth over the forecast period.
Global Luxury Handbags Market By Geography
- Largest
- Fastest
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Luxury Handbags Market Dynamics
Luxury Handbags Market Drivers
Increasing Popularity of Online Sales
- Since it facilitates efficient and fair communication, which supports efficient decision-making for consumers, e-commerce has helped to create a cornerstone of trust with consumers. E-commerce has benefits, including quick access, availability around the clock, global reach, and a wide range of products. These features have given Internet retail a competitive advantage over more conventional purchasing methods, which has led to the market's recent exponential rise.
Rapid Growth of Emerging Markets
- Due to rising disposable income, emerging economies, like India, China, Indonesia, and the Philippines, are increasingly spending on high-end handbags. The largest consumers of luxury goods in Hong Kong are those aged 30 to 49 since they have the highest disposable income. Increasing disposable income is also fueling market expansion in India, including the emergence of a young population, rising disposable income, an increase in the number of working women, and a surge in the affordability of luxury goods.
Luxury Handbags Market Restraints
High Taxes and Import Tariffs of Luxury Goods
- The costs of internal shipments are high; local taxes, import duties, trade margins, and other levies add up to higher prices for imported luxury handbags. Accounting for these elements raises the cost of such products for consumers to an extraordinarily high level, which poses a severe challenge to the pricing of luxury handbags. The market for handbag products is hindered by the trade war between the two largest economies that create handbags, notably the United States and China because both nations impose high import taxes on goods.
Availability of Counterfeit Products
- The luxury handbag market experiences significant growth due to the increasing trend of fashion and the rising demand for high-end accessories. Tote bags remain popular choices due to their versatile storage capacity. Innovative designs, durability, strength, resilience, and flexibility are key attributes that define luxury handbags, making them valuable investments for consumers. However, the market is plagued by the proliferation of counterfeit handbags, which pose a threat to both consumers and genuine vendors.
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Luxury Handbags Market Competitive Landscape
The key companies are continually striving to gain a competitive edge through innovative product offerings, strategic collaborations, and extensive research and development activities. The heritage brands boast a rich history of craftsmanship and exclusivity, resonating with discerning consumers seeking timeless elegance. Additionally, newer contenders like Gucci and Prada have swiftly risen to prominence, captivating a younger audience with their innovative designs and strategic marketing initiatives. The market is further diversified by boutique luxury brands like Bottega Veneta and Celine, which have garnered devoted followings for their minimalist aesthetics and unique materials.
Top Players in Luxury Handbags Market
- Hermes International S.A. (France)
- Chanel S.A. (United Kingdom)
- Louis Vuitton (LVMH Moët Hennessy Louis Vuitton) (France)
- Gucci (Kering S.A.) (France)
- Prada S.p.A. (Italy)
- Burberry Group Plc (United Kingdom)
- Tapestry, Inc. (United States)
- Capri Holdings Limited (United States)
- Ralph Lauren Corporation (United States)
- Michael Kors (Capri Holdings Limited) (United States)
- Coach (Tapestry, Inc.) (United States)
- Kate Spade (Tapestry, Inc.) (United States)
- Dolce & Gabbana S.r.l. (Italy)
- Giorgio Armani S.p.A. (Italy)
- Fendi (LVMH Moet Hennessy Louis Vuitton) (France)
- Saint Laurent (Kering S.A.) (France)
- Bottega Veneta (Kering S.A.) (France)
- Balenciaga (Kering S.A.) (France)
- Mulberry Group plc (United Kingdom)
- Salvatore Ferragamo S.p.A. (Italy)
Recent Developments
- In March 2024, Louis Vuitton unveiled its “Metaverse Bag” which enabled users to ‘travel’ into the bag through their mobile AR applications. This initiative is part of LVMH’s strategy in reaching out to the Gen Z market.
- In January 2024, as part of its Circular Lines Initiative, Gucci has launched its new collection which uses only eco-friendly materials such as organic fabric and recycled leather. The company Aiise as Gucci paid to have their handbags appear on Snapchat to allow AR modeling of the bags before acquiring them.
- In February 2024, A new line of Birkin bags made from hand-painted silk and crocodile leather was created by Hermès, and the company intended it for UHNW consumers. Hermès is also rapidly increasing its operations in China by opening new flagship locations in major cities such as Beijing and Shanghai.
Luxury Handbags Key Market Trends
- Rising Popularity of Customized Luxury Handbags: The luxury handbag market is witnessing an increasing demand for customized tote bags, driven by consumers' desire for unique and personalized accessories. Customization goes beyond traditional leather handbags to include innovative designs made of high-quality materials such as gold, silver, and precious stones. Furthermore, this trend is particularly prominent in developed regions like the America and Asia Pacific, where consumers prioritize durability, strength, resilience, and flexibility in their luxury purchases.
- Increasing Collaborations with Artists and Designers: Luxury handbag companies can produce distinctive, limited-edition pieces that stand out by collaborating with artists and designers. These partnerships provide new viewpoints and creative components to classic designs, drawing customers looking for uniqueness and creativity, while opening lucrative opportunities for the luxury handbags market. Limited-edition partnerships instill in customers a sense of urgency and exclusivity, which fuels demand and cultivates a collector's mindset. The limited quantity of these collaboration pieces raises their perceived worth, luring collectors of luxury handbags to buy and possibly even invest in these one-of-a-kind pieces.
Luxury Handbags Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the luxury handbags industry is a thriving segment of the consumer goods industry, driven by the growing working women population and the desire for financial freedom. High-end fashion brands continue to capture the hearts of fashion-conscious consumers, including millennials and generation Z, through their commitment to craftsmanship and design innovation. Handbags come in various styles, such as clutches, crossbody bags, shoulder bags, satchels, hobo bags, totes, briefcases, and wallets. These bags are made from a range of materials, including cotton, linen, jute, synthetic fabrics, and even smart technology integrations like built-in speakers, wireless charging, and GPS tracking. Men and women, as well as unisex consumers, seek out these luxury accessories to complement their lifestyle.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 28.31 billion |
| Market size value in 2032 | USD 51.18 billion |
| Growth Rate | 6.8% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Luxury Handbags Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Luxury Handbags Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Luxury Handbags Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Luxury Handbags Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Luxury Handbags Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Handbags Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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