Editor’s Note
This article highlights the robust growth trajectory of the global handbag market, projected to expand from USD 56.46 billion in 2024 to USD 104.24 billion by 2032. Key drivers include sustained consumer demand for fashion and the strong market position of Europe, which held over a third of the global share in 2024. The U.S. market is also poised for significant growth, underscoring the sector’s dynamic evolution.
The global handbag market was valued at USD 56.46 billion in 2024. The market is projected to be worth USD 60.29 billion in 2025 and reach USD 104.24 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.12% during the forecast period. Europe dominated the handbag market with a market share of 34.33% in 2024. Furthermore, the handbag market size in the U.S. is expected to reach an estimated value of USD 17.6 billion by 2032, driven by growing demand for fashionable and functional accessories, along with the rising trend of premium and designer brands catering to diverse consumer preferences.
The product exhibits gradual market expansion as people are increasingly drawn to its appealing aesthetics, material quality, and elegant design. It is popularly used to enhance the user’s appearance while also serving as a useful storage unit. The thriving growth of the travel and tourism industry, leading to an increased need for the product, is likely to drive product demand. For example, according to data published by the United Nations World Tourism Organization, in 2018, international tourist arrivals witnessed a 5% growth, reaching 1.4 billion.
The coronavirus outbreak resulted in reduced consumer spending on luxuries such as handbags, forcing several brands to increase the price of their products to compensate for their losses. For example, according to data issued by The Economic Times, in June 2020, Gucci increased the price of its handbags by up to 9 percent to offset the decline in sales due to Covid-19. Similarly, its competitors, such as Chanel and Louis Vuitton, are also raising product prices. Furthermore, the implementation of social distancing and lockdowns worldwide has led to a decrease in the production of these bags, hindering market growth.
Shift towards innovative products to meet peak demand.