At the end of 2021, the global luxury bag market will reach a value of 65.48 billion dollars (compared to 62.30 in 2020). And with a compound annual growth rate (cagr) of 5.3%, it will reach 94 billion dollars in 2028. The increase in the female working population around the world is the main growth factor. This is revealed in a report by the company Million Insight: according to them, in 2020 the tote model represented the largest share of the market (about 36%).
Global luxury bags’ market
According to the report, the increase in disposable income in developing economies leads women to spend on new bags. Luxury accessories are considered important and their purchase is now easier thanks to the internet. In addition, writes Million Insight, in the fashion world, the bag is considered the most important element to evaluate a look. The power of the brand together with its recognition represents a growth driver. The identikit of the buyer of designer bags according to Equifax, a consumer credit agency, earns between 100,000 dollars and 250,000 dollars a year, loves online shopping, is digitally savvy and spends a lot on luxury products.
If the tote bag is the most widespread (36%), the shoulder bag will have the greatest growth between 2021 and 2028. Regarding the material, luxury leather bags represented 47% of the market in 2020. This segment is destined to grow significantly, thanks to the growing number of brands and the improvement of lifestyle. The report highlights a critical factor: increasing demand and the consequent rise in the price of finished products could lead to less availability of leather bags for high-end consumers. The player companies in the sector are focusing mainly on the innovation of new products to meet the growing demand. Furthermore, they are making substantial investments to stimulate the attention of the younger segment of the population.