Technology research and advisory company Technavio has released a report on the growth of the global handbag market, which highlights key findings on its estimated increase in value by 14.11 billion US dollars from 2022 to 2027 and a CAGR of 4.3%.
According to Technavio, the handbag market from 2023 to 2027 is divided into three segments: type, distribution channel, and geography. Types of handbags include leather, fabric, and others, while distribution takes place both online and offline. Locations of the market are in Asia Pacific (APAC), North America, Europe, South America, and Middle East and Africa.
Vendors in the market include well-known brands such as Burberry, Dolce and Gabbana, and Chanel, offering a wide range of bags in different sizes from tote bags to cross body and shoulder bags.
There has been a growing demand for leather handbags with various textures, qualities, and feels over the past several years, which Technavio believes will fuel the segment’s growth during the forecast period.
One of the key drivers 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 aesthetics of the product can be 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.
According to the report, customers increasingly prefer 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 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 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.
Reformation is a sustainable fashion brand founded in 2009 by Yael Aflalo. The brand is known for its eco-friendly and ethically made clothing, as well as its chic and effortless designs that appeal to fashion-conscious consumers. Reformation’s collections include dresses, tops, bottoms, and outerwear, and the brand also offers a bridal collection, shoes, and now a handbag line. The company operates both online and through its brick-and-mortar stores in the United States and the United Kingdom, and is committed to reducing its environmental impact through sustainable practices and materials.
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