Key Insights
Essential data points from our research
The global handbag market size was valued at USD 49.12 billion in 2021
The market is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2028
Revenue in the Handbags segment amounts to US$64.62bn in 2023
Hermès Birkin bags have increased in value by 500% over the last 35 years
Louis Vuitton was named the most valuable luxury brand in 2022 with a brand value of $124.2 billion
The Chanel Medium Classic Flap bag price has increased by 60% between 2016 and 2022
40% of luxury purchases are made by Gen Z and Millennials, who heavily influence handbag trends
65% of handbag consumers research online before buying offline
The resale market for handbags grew 2x faster than the primary luxury market in 2022
Leather material held the dominant market share of over 75% in the handbag industry in 2021
The vegan leather market is projected to reach $89.6 billion by 2025 partially driven by handbags
90% of a handbag's carbon footprint comes from raw material production and processing
Online channels accounted for 20% of global luxury sales in 2022, significantly boosted by handbags
Department stores still account for 30% of premium handbag sales in the US
Social commerce sales of accessories are expected to triple by 2025
Consumer Demographics & Behavior
- 40% of luxury purchases are made by Gen Z and Millennials, who heavily influence handbag trends
- 65% of handbag consumers research online before buying offline
- The resale market for handbags grew 2x faster than the primary luxury market in 2022
- 62% of women claim they are willing to spend more on a handbag that is sustainable
- Women aged 25-34 are the largest consumer demographic for designer handbags
- 50% of luxury resale buyers say they shop secondhand to access discontinued styles
- Millennial consumers are projected to represent 50% of the luxury market by 2025
- Impulse buying accounts for nearly 20% of handbag purchases in the mid-market sector
- 75% of luxury handbag shoppers say brand heritage is a key purchasing factor
- The average number of handbags owned by an American woman is 11
- 30% of Gen Z consumers have purchased a luxury item (often a bag) by age 20
- Handbag rental subscriptions saw a 150% growth in user base in 2021
- Searches for "vintage handbags" increased by 55% on Pinterest in 2022
- 48% of consumers wait for sales to purchase mid-tier handbags
- Men’s bags are the fastest-growing accessory category, with purchases up 18% in 2022
- 25% of handbag buyers are influenced by influencer unboxing videos on TikTok
- Consumers in South Korea spend the most per capita on luxury goods including handbags
- Emotional attachment is cited by 60% of consumers as a reason for keeping luxury bags
- 70% of pre-owned luxury handbag buyers are first-time buyers of that specific brand
- Chinese consumers account for approx 33% of global luxury spend, heavily weighted in handbags
Interpretation
Today’s handbag market reads like a cultural ledger where Gen Z and Millennials already buy 40% of luxury bags and will likely be half the market by 2025, 30% of Gen Z have bought a luxury item by age 20, 65% of shoppers research online before buying offline and 25% are swayed by TikTok unboxings, resale grew twice as fast as the primary luxury market in 2022 while rentals climbed 150% and Pinterest vintage searches rose 55%, half of resale buyers chase discontinued styles and 70% of pre-owned purchasers are brand newcomers, 62% of women say they will pay more for sustainability even as 75% cite brand heritage and 60% cite emotional attachment, men’s bags surged 18%, mid-market impulse buys account for nearly 20% and 48% wait for sales, Americans own on average 11 handbags, and global spending remains concentrated with China at about one third and South Korea leading per capita.
Luxury Sector & Brand Value
- Hermès Birkin bags have increased in value by 500% over the last 35 years
- Louis Vuitton was named the most valuable luxury brand in 2022 with a brand value of $124.2 billion
- The Chanel Medium Classic Flap bag price has increased by 60% between 2016 and 2022
- LVMH’s Fashion & Leather Goods business group recorded organic revenue growth of 20% in 2022
- Telfar’s shopping bag retains an average of 195% of its retail value on the resale market
- Kering (owner of Gucci) generated €9.7 billion from leather goods in 2021
- The Hermès Himalaya Birkin set a world record for the most expensive bag sold at auction for over $500000
- 85% of luxury brand growth in 2021 was driven by the "Big Three" groups (LVMH, Kering, Richemont)
- Coach dominates the accessible luxury handbag market with a 23% share in the US
- Gucci sales dropped 14% in late 2022 in China due to lockdowns affecting handbag purchases
- The price of a Lady Dior bag increased by roughly 8% in 2022
- Prada reported a 21% increase in net revenues in 2022 driven largely by leather goods
- Michael Kors brand revenue was $3.8 billion in FY2023, largely driven by handbags
- Bottega Veneta's revenue exceeded €1.7 billion in 2022 due to the popularity of the 'Cassette' bag
- Luxury handbags act as a better investment than the S&P 500 according to Art Market Research
- Loewe was named the hottest brand in Q2 2023 by Lyst Index partly due to its handbag popularity
- Chanel limits purchases of its most popular bags to one per customer per year in some regions
- Saint Laurent revenue grew 23% in 2022 driven by leather goods
- The "It Bag" phenomenon contributes to a 15-20% spike in brand search traffic upon a viral release
- 91% of high-net-worth individuals own at least one luxury handbag
Interpretation
Handbags have quietly become portable blue chip investments: Hermès Birkins rose roughly 500 percent over 35 years and a Himalaya Birkin sold for over $500,000, Chanel and other classics have surged, Telfar retains about 195 percent of retail on resale, and with LVMH, Kering and Richemont driving most luxury growth, leather goods powering brand revenues, viral It Bags and purchase limits fuelling scarcity, and many pieces even outperforming the S&P 500, it is little wonder that 91 percent of high net worth individuals own at least one.
Market Overview & Financials
- The global handbag market size was valued at USD 49.12 billion in 2021
- The market is expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2028
- Revenue in the Handbags segment amounts to US$64.62bn in 2023
- The United States generates the highest revenue globally in the handbag segment, reaching approximately US$13bn in 2023
- The Asia Pacific region dominated the handbag market with a share of over 35% in 2020
- Europe is the second-largest regional market for handbags due to the presence of key fashion hubs like France and Italy
- The global luxury handbag market was valued at $22.69 billion in 2020
- By 2031, the global handbag market is projected to reach $78.02 billion
- The tote bag segment held the largest revenue share of more than 35.0% in 2021
- Average volume per person in the Handbags segment is expected to amount to 0.33 pieces in 2023
- China’s luxury handbag market is projected to grow by 6% annually through 2025
- The clutch handbag segment is expected to witness the fastest CAGR of 6.5% during the forecast period
- The North American handbag market was valued at USD 10.5 billion in 2019
- Import of handbags into the US grew by 15% year-over-year in 2022
- The Indian handbag market is anticipated to grow at a CAGR of 10.7% between 2023 and 2028
- The premium handbag segment prices usually range between $500 and $2000, covering 20% of the market volume
- France exports over $5 billion worth of leather handbags annually
- Canada’s handbag market revenue is roughly USD 1.2 billion annually
- The mass-market handbag segment accounts for approximately 45% of total global sales volume
- Inflation caused a 4% rise in average handbag prices globally in 2022
Interpretation
Like a well-filled tote, the global handbag market has swelled from about $49.1 billion in 2021 to roughly $64.6 billion in 2023 and is forecast to hit $78 billion by 2031 at a mid-single-digit CAGR, with Asia Pacific and the United States driving revenues, luxury and premium segments grabbing outsized value despite representing a smaller share of volume, mass-market still accounting for nearly half of sales, and rapid growth in China and India plus inflation and surging U.S. imports reshaping margins and trade flows.
Materials, Sustainability & Manufacturing
- Leather material held the dominant market share of over 75% in the handbag industry in 2021
- The vegan leather market is projected to reach $89.6 billion by 2025 partially driven by handbags
- 90% of a handbag's carbon footprint comes from raw material production and processing
- Mushroom leather (Mycelium) handbags are expected to see a 50% production increase by 2025
- Approximately 10000 liters of water are required to produce one luxury leather handbag
- Using recycled polyester in handbag linings reduces energy consumption by 50% compared to virgin polyester
- Italy is responsible for 40% of global luxury leather goods production
- Hermès owns 45 production workshops in France to control manufacturing quality
- The market for biodegradable handbags is growing at a CAGR of 9%
- 30% of luxury brands now offer repair services to extend handbag lifecycles
- Canvas handbags account for approximately 15% of the market share
- Exotic skin handbags (croc, python) have seen a 5% decline in production due to ethical bans
- Upcycled materials usage in handbags increased by 40% among indie designers in 2022
- 80% of counterfeit handbags are made in China, complicating global supply chains
- Hardware (buckles, zips) accounts for 15% of the total manufacturing cost of a detailed handbag
- The cost of calfskin leather rose by 20% in 2021 impacting manufacturing margins
- Stella McCartney was the first major luxury brand to produce a mushroom leather bag commercially
- 3D printing in handbag hardware prototyping reduces lead time by 70%
- EU regulations on chromium usage in leather tanning have forced 25% of tanneries to update processes
- Handbags made from cactus leather save 164% of water compared to animal leather
Interpretation
The handbag industry, still dominated by leather with over 75% market share, is being forced to carry its conscience as prominently as its logo, as staggering water and carbon footprints, rising calfskin costs and tougher EU tanning rules accelerate a shift toward vegan, mushroom and cactus leathers, recycled linings, upcycling, repair services, biodegradable options and rapid prototyping technologies that promise lower impacts and faster cycles even as Italy and luxury houses cling to production control and counterfeits and exotic-skin bans complicate the transition.
Sales Channels & Digital Commerce
- Online channels accounted for 20% of global luxury sales in 2022, significantly boosted by handbags
- Department stores still account for 30% of premium handbag sales in the US
- Social commerce sales of accessories are expected to triple by 2025
- Counterfeit leather handbags cost the global economy over $30 billion annually
- Farfetch (luxury marketplace) sells over 1000 brands, with bags being a top 3 category
- 55% of luxury handbag shoppers visit a physical store to touch the product before buying online
- Rebag's "Clair" AI tool estimates instant resale prices for over 50 brands helping digital liquidity
- The RealReal processes approximately 15000 luxury items per day, a majority being handbags
- Live shopping (livestream) accounts for 10% of fashion e-commerce in China, driving impulsive bag sales
- 60% of handbag brands now use blockchain to verify authenticity preventing online fraud
- Mobile devices account for 70% of traffic to luxury handbag brand sites
- Direct-to-Consumer (DTC) channels provide 50% higher margins for handbag brands than wholesale
- Amazon's "Luxury Stores" initiative has onboarded almost 100 brands to capture bag sales
- Travel retail (airport stores) accounted for 15% of luxury handbag sales pre-pandemic
- Digital ID technology in handbags is expected to be adopted by 40% of top luxury brands by 2025
- Instagram Checkout features increase conversion rates for accessories by 20%
- eBay’s authenticity guarantee service for handbags over $500 increased category trust by 40%
- Duty-free sales of handbags in Hainan, China, grew by 80% in 2021
- StockX (resale platform) saw a 200% increase in handbag trades in 2021
- Virtual handbags in Roblox (e.g., Gucci Garden) sold for over $4000 (more than physical value)
Interpretation
Luxury handbags are caught between touch and click: 20% of global luxury sales moved online while department stores still hold 30% of US premium bag sales and 55% of shoppers insist on feeling a bag before buying, even as mobile drives 70% of traffic, social commerce and livestreaming surge, DTC lifts margins by about 50%, resale platforms and AI (The RealReal processes roughly 15,000 items a day and StockX has seen trades soar) create instant liquidity, blockchain and digital IDs fight a $30 billion counterfeit drain, and virtual bags selling for thousands prove that authenticated perception often matters as much as leather.
References
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