Middle East and Africa Luxury Bag Market Report 2024

Type Outlook:

• Handbag
• Shoulder Bags
• Satchel Bags
• Tote Bags
• Hobo Bags
• Duffle Bags
• Backpacks
• Laptop Bags
• Wallets
• Others

Material Type Outlook:

• Leather Luxury Bag
• Nylon Luxury Bag
• Cotton Luxury Bag
• Synthetic Luxury Bag
• Others

End User Outlook:

• Men Luxury Bag
• Women Luxury Bag
• Unisex Luxury Bag

Distribution Channel Outlook:

• Duty Free Stores
• Online Stores
• Hypermarkets
• Specialty Stores

1^st Report Summary

According to Cognitive Market Research, the global luxury bag market size is USD 23514.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 8.80% from 2024 to 2031. 

• The global luxury bag market will expand significantly by 8.80% CAGR between 2024 to 2031.
• North America held the major market of around 40% of the global revenue with a market size of USD 9405.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
• Europe accounted for a share of over 30% of the global market size of USD 7054.26 million and will grow at a CAGR of 7.3% from 2024 to 2031.
• Asia Pacific held the market of around 23% of the global revenue with a market size of USD 5408.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031.
• Latin America market of around 5% of the global revenue with a market size of USD 1175.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
• Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 470.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031.
• The sales of handbags are poised to increase due to their timeless appeal, versatility, and status-symbol significance, coupled with evolving fashion trends and expanding consumer demographics embracing luxury accessories.
• The sales of leather luxury bags are expected to rise owing to their enduring quality, timeless elegance, and enduring appeal, attracting discerning consumers seeking premium craftsmanship and enduring sophistication.
• The men luxury bag held the highest growth rate in luxury bag market in 2024.

2^nd Report Description/ Drivers/Restrains/Covid-19

MARKET DYNAMICS: KEY DRIVERS

Shifting Consumer Preferences Towards Evolving Fashion Trends to Increase Sales

Shifting consumer preferences play a pivotal role in driving sales within the luxury bag market, particularly as fashion trends continually evolve. Consumers seek to express their individuality and status through their accessories, making it imperative for brands to stay attuned to these preferences. As trends change, so do the demands for bag styles, materials, and designs. For instance, the rise of minimalism has spurred interest in sleek, understated luxury bags, while eco-conscious consumers are increasingly gravitating towards sustainable materials and ethical production practices. Moreover, the influence of social media and celebrity endorsements amplifies the visibility of certain bag styles, prompting consumers to emulate their favourite influencers and celebrities. To capitalize on these shifts, luxury brands must remain agile, offering a diverse range of products that resonate with the current zeitgeist while staying true to their brand identity and heritage craftsmanship.

Growth of Online Retail to Propel the Market Growth

The growth of online retail has emerged as a significant driver propelling the expansion of the luxury bag market. E-commerce platforms provide unparalleled accessibility and convenience for consumers worldwide, enabling them to browse and purchase luxury bags from the comfort of their homes. This shift in consumer behaviour towards online shopping has broadened the market reach for luxury brands, breaking down geographical barriers and tapping into previously untapped demographics. Furthermore, online retail offers a personalized shopping experience through targeted recommendations and customization options, enhancing customer engagement and loyalty. Luxury brands have capitalized on this trend by investing in robust digital strategies, including immersive website experiences, social media marketing, and virtual try-on technologies. As a result, the online luxury bag market continues to experience exponential growth, attracting both established brands and emerging designers seeking to capitalize on the vast potential of digital commerce.

Rampant Counterfeiting and Exclusivity of Luxury Brands to Limit the Sales

Rampant counterfeiting poses a significant challenge to the luxury bag market by diluting the exclusivity and prestige associated with authentic luxury brands. Counterfeit products often flood the market, resembling genuine items at a fraction of the cost. This undermines the perceived value of authentic luxury bags, leading to consumer skepticism and reluctance to invest in genuine products. Moreover, the prevalence of counterfeits erodes brand reputation and trust, as consumers may struggle to distinguish between authentic and counterfeit goods. This can result in lost sales and damage to brand equity, particularly among discerning luxury consumers who prioritize authenticity and craftsmanship. To combat counterfeiting, luxury brands invest substantial resources in anti-counterfeiting measures such as holographic tags, RFID technology, and legal enforcement. However, the persistent presence of counterfeit products continues to challenge the growth and profitability of the luxury bag market, emphasizing the importance of ongoing vigilance and brand protection efforts.

Impact of Covid-19 on the Luxury Bag Market

The Covid-19 pandemic has significantly disrupted the luxury bag market, inflicting a negative impact on sales and consumer demand. Lockdown measures, travel restrictions, and economic uncertainties have led to a sharp decline in discretionary spending, particularly on non-essential luxury items like high-end bags. Retail closures and reduced foot traffic in luxury boutiques further exacerbated the situation, impeding sales opportunities for luxury bag brands. Moreover, the decline in social gatherings, events, and travel has diminished the need for luxury bags, which are often associated with special occasions and lifestyle activities. Supply chain disruptions and production delays have also hampered the availability of luxury bags, exacerbating the challenges faced by brands in meeting consumer demand. Overall, the Covid-19 pandemic has cast a shadow over the luxury bag market, necessitating adaptive strategies and resilience to navigate through the ongoing uncertainties and restore growth.

3^rd  Report Scope: / Market Overview

Introduction of the Luxury Bag Market

Luxury bags epitomize exclusivity, craftsmanship, and status, embodying the pinnacle of fashion and sophistication. These meticulously crafted accessories are distinguished by premium materials such as fine leathers, exotic skins, and high-quality hardware. Renowned luxury brands meticulously design and produce each bag, often incorporating intricate detailing and iconic motifs. Luxury bags are not merely functional items but symbols of prestige and taste, coveted by discerning consumers worldwide. With timeless elegance and enduring appeal, they transcend trends, becoming timeless investments and heirloom pieces. The luxury bag market thrives on rarity, impeccable design, and the allure of owning a piece of fashion history.

The growth of emerging economies presents a promising opportunity for increased sales in the luxury bag market. As these economies experience rising incomes, a burgeoning middle class emerges with greater purchasing power and a growing appetite for luxury goods. This expanding consumer base, coupled with the allure of prestigious brands, drives demand for luxury bags. Moreover, urbanization and globalization facilitate greater exposure to international fashion trends, further fuelling the desire for luxury accessories. Luxury brands are strategically tapping into these emerging markets, establishing presence and catering to the evolving preferences of discerning consumers, thereby driving sales growth in these regions.

• In February 2024, Furla introduced its latest creation, the Nuvola bag, during Milan Fashion Week. The brand selected the historic Rimessa dei Fiori in Brera as the venue, transforming it into a captivating space. The immersive installation offered an experiential journey, with a fluid and evolving ambiance akin to shifting clouds. 

(Source: https://ssilife.com.ph/blog/furla-nuvola-bag-new-aesthetic)     

4^th Company Name

Some Prominent Players in the Global Luxury Bag Market Include:

• Furla S.p.A.
• GANNI A/S
• Giorgio Armani S.p.A. (Armani)
• Loeffler Randall
• LVMH Moët Hennessy Louis Vuitton SE
• Macy’s Inc.
• MAUS Freres SA (The Lacoste Group)
• Michael Kors Holdings Limited
• MILLY NY
• Tapestry, Inc. (Coach, Inc.)
• PVH Corp. (Calvin Klein)

5th COMPETITIVE LANDSCAPE

Competitive Landscape of the Luxury Bag Market

The competitive landscape of the luxury bag market is characterized by fierce rivalry among brands vying for market share. Key factors such as product innovation, brand reputation, pricing strategies, and distribution channels shape the competitive dynamics, driving continuous efforts to differentiate and capture consumer attention.

• In September 2023, PVH Corp announced its relocation of the UK headquarters to a new site. The impressive nine-story office building, spanning 111,765 square feet, is now situated at One Wood Crescent, adjacent to the Television Centre in West London. 

(Source: https://therpagroup.com/news/new-location-for-pvh-corps-uk-hq/)  

6^th Region/Country Description

Which Region Dominates the Market in 2024, and Which Region is Expanding at the Fastest CAGR?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to its affluent consumer base, strong purchasing power, and high demand for luxury goods. Additionally, the region benefits from a culture that values fashion and status, driving consistent sales. The presence of established luxury brands and luxury shopping destinations further bolsters sales. Moreover, innovative marketing strategies, celebrity endorsements, and a robust e-commerce infrastructure contribute to sustained growth. As consumers seek unique experiences and self-expression, luxury bags continue to be sought-after items, ensuring a steady increase in sales within the North American market.

Asia-Pacific is the fastest-growing region fuelled by several factors. The region's rapid economic development and rising disposable incomes are driving increased purchasing power among consumers. Moreover, a growing middle class and affluent population in countries like China and India are fuelling demand for luxury goods, including high-end bags. Additionally, changing lifestyles and fashion trends, coupled with a strong cultural emphasis on gifting and status symbols, contribute to the surge in sales. Furthermore, the proliferation of online retail channels and luxury brand expansions into emerging Asian markets further propel the growth trajectory in the region.

7th  Segment Analysis

How are Segments Performing in the Global Luxury Bag Market?

Type Segment Analysis

According to Cognitive Market Research, handbag held the major market share over the forecast period due to their timeless appeal, versatility, and status symbol significance. Additionally, continuous innovation in design, materials, and functionality attracts consumers seeking both fashion and practicality. The enduring popularity of handbags among various demographics, including women and men, ensures sustained sales growth. Moreover, celebrity endorsements, social media influence, and the aspirational nature of luxury handbags contribute to increased demand, solidifying their dominant position in the market.

Backpacks is the fastest-growing category over the forecast period as consumers increasingly prioritize functionality and comfort in their accessories. The versatility of backpacks, suitable for various activities from commuting to traveling, resonates with modern lifestyles. Furthermore, the rise in remote work and leisure activities encourages the adoption of backpacks as essential accessories. Brands catering to urban commuters and outdoor enthusiasts offer stylish yet functional backpack designs, appealing to a diverse consumer base. Additionally, the growing popularity of athleisure and casual fashion trends further propels the demand for backpacks, positioning it as the fastest-growing category in the luxury bag market.

Material Type Segment Analysis

According to Cognitive Market Research, leather luxury bag hold a prominent market share due to their unmatched quality, durability, and timeless elegance. The enduring appeal of leather as a luxurious material, coupled with superior craftsmanship, resonates with discerning consumers seeking investment pieces. Additionally, leather's ability to develop a rich patina over time adds to its allure, making it a symbol of sophistication and status. The versatility of leather bags, suitable for various occasions and styles, ensures sustained demand and solidifies its position as a dominant segment in the luxury bag market.

Nylon luxury bag is the fastest-growing category over the forecast period driven by several factors. The lightweight and durable nature of nylon make it a preferred choice for consumers seeking practical yet stylish options. Additionally, the versatility of nylon bags, suitable for everyday use and travel, appeals to modern lifestyles. The growing emphasis on sustainability and eco-friendly materials further propels the demand for nylon bags, as they are often made from recycled materials and offer a more environmentally-conscious alternative to traditional luxury bags. Moreover, innovative designs and collaborations with fashion influencers contribute to the popularity of nylon bags, positioning it for significant growth in the luxury bag market.

End User Segment Analysis

According to Cognitive Market Research, women luxury bag hold a prominent market share due to several factors. The enduring appeal of luxury handbags as fashion accessories and status symbols continues to drive demand among female consumers. Additionally, the wide variety of designs, styles, and sizes cater to diverse preferences and occasions, ensuring consistent sales. The influence of social media, celebrity endorsements, and fashion trends further contribute to the popularity of women's luxury bags, solidifying their position as a dominant segment in the market.

Men luxury bag is the fastest-growing category over the forecast period propelled by various factors. Evolving perceptions of masculinity and increased fashion consciousness among men drive the demand for luxury bags as essential accessories. Additionally, the growing acceptance of men's fashion as a form of self-expression and personal style fuels the desire for high-quality, sophisticated bags. Brands offering tailored designs, functional features, and premium materials cater to the preferences of discerning male consumers, positioning men's luxury bags for significant growth in the forecast period.

Distribution Channel Segment Analysis

According to Cognitive Market Research, specialty stores hold a prominent market share due to their curated selection, personalized service, and immersive shopping experiences. The allure of luxury boutiques and flagship stores attracts affluent consumers seeking exclusivity and prestige. Additionally, the opportunity for hands-on exploration and expert guidance enhances the overall shopping experience, driving customer loyalty and repeat purchases. The presence of renowned luxury brands and limited-edition releases further bolsters sales in specialty stores, solidifying their position as a dominant distribution channel in the luxury bag market.

Online stores are the fastest-growing category over the forecast period driven by various factors. The convenience of shopping from anywhere at any time appeals to modern consumers' busy lifestyles. Moreover, the vast selection of luxury bags available online, coupled with user-friendly interfaces and advanced search features, enhances the shopping experience. The rise of digital marketing, influencer collaborations, and virtual try-on technologies further propel sales in online stores. Additionally, the expansion of e-commerce platforms into emerging markets and the increasing adoption of mobile shopping contribute to the significant growth of online stores in the forecast period.

8h  FAQ

Frequently asked questions regarding the global Luxury bag market

1. What is the market size for the luxury bag market in 2024?

Answer- The global market size for luxury bag in 2024 was 23514.2 USD million.

2. What is the growth rate for the luxury bag market over the forecast period?

Answer- The global luxury bag market is expected to grow with a CAGR of 8.80% over the projected period.

3. Which is the leading region of the market for luxury bag?

Answer- North America held a significant global luxury bag market revenue share in 2024.

4. Which region is projected to detect the fastest growth in the luxury bag market over the forecast period?

Answer- Asia-Pacific will witness the fastest growth of the global luxury bag market over the coming years.

5. Which country is leading in the luxury bag market in 2024?

Answer- The US had the most significant global luxury bag market revenue share in 2024.

6. What are the key drivers for the growth of the luxury bag market?

Answer- The main drivers of the growth of the luxury bag market are rising disposable incomes, shifting consumer preferences, and growth of online retail.

7. Which is the significant luxury bag market segment by distribution channel?

Answer- The specialty stores had the largest share in the global luxury bag market by distribution channel.

11th  Regional Insights

North America

According to Cognitive Market Research, the global luxury bag market size was estimated at USD 23514.2 Million out of which North America held the major market of around 40% of the global revenue with a market size of USD 9405.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031. In North America, the sales of luxury bags are set to increase due to the growing trend of experiential luxury. The rise of sustainable fashion consciousness among North American consumers fuels the demand for eco-friendly luxury bags crafted from ethically sourced materials. Moreover, the prevalence of influencer culture and social media platforms amplifies brand visibility and product desirability, stimulating sales. The highest market share segment in North America, handbags, will continue to thrive due to their versatility, making them essential accessories for everyday use and special occasions.

Country Analysis

• According to Cognitive Market Research, The United States luxury bag market had a market share of USD 7421.08 million in 2024 and is projected to grow at a CAGR of 6.8% during the forecast period. In the United States, sales of luxury bags are anticipated to increase due to a growing trend towards status symbol purchases and a robust e-commerce infrastructure catering to consumer preferences.
• Canada luxury bag market had a market share of USD 1128.68 million in 2024 and is projected to grow at a CAGR of 7.8% during the forecast period. In Canada, rising disposable incomes and a desire for premium fashion accessories are expected to drive the sales of luxury bags, especially among urban demographics.
• Mexico luxury bag market had a market share of USD 855.92 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period.

Europe

According to Cognitive Market Research, with a market value of USD 23514.2 million in 2024 out of which Europe held the major market of around 30% of the global revenue with a market size of USD 7054.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031. In Europe, the sales of luxury bags are poised for growth due to the region's rich cultural heritage and tradition of craftsmanship. Consumers value heritage brands and artisanal techniques, driving demand for luxury bags that showcase superior quality and timeless elegance. Additionally, the increasing popularity of experiential retail concepts, such as luxury pop-up stores and immersive brand experiences, enhances the allure of luxury bags as aspirational lifestyle items. The highest market share segment in Europe, leather luxury bags, will continue to dominate due to their association with European luxury craftsmanship and heritage, appealing to discerning consumers seeking timeless sophistication.

• United Kingdom luxury bag market had a market share of USD 1185.12 million in 2024 and is projected to grow at a CAGR of 8.1% during the forecast period. In the UK, a culture of luxury and a penchant for high-end fashion contribute to the increasing sales of luxury bags, bolstered by the presence of renowned luxury boutiques.
• France luxury bag market had a market share of USD 648.99 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period.
• Germany luxury bag market had a market share of USD 1396.74 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period. In Germany, renowned for its engineering precision, consumers value craftsmanship, thus driving the sales of luxury bags known for superior quality and meticulous attention to detail.
• Italy luxury bag market had a market share of USD 606.67 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period.
• Russia luxury bag market had a market share of USD 1093.41 million in 2024 and is projected to grow at a CAGR of 6.3% during the forecast period.
• Spain luxury bag market had a market share of USD 578.45 million in 2024 and is projected to grow at a CAGR of 6.4% during the forecast period.
• Luxembourg luxury bag market had a market share of USD 218.68 million in 2024 and is projected to grow at a CAGR of 7.4% during the forecast period.
• Portugal luxury bag market had a market share of USD 148.14 million in 2024 and is projected to grow at a CAGR of 7.1% during the forecast period.
• Greece luxury bag market had a market share of USD 84.65 million in 2024 and is projected to grow at a CAGR of 7.6% during the forecast period.
• Rest of Europe luxury bag market had a market share of USD 1093.41 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period.

Asia Pacific

According to Cognitive Market Research, the global luxury bag market size was estimated at USD 23514.2 Million out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 5408.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2031. In the Asia Pacific region, the sales of luxury bags are expected to surge fuelled by several factors. The burgeoning middle class in countries like China and India, along with rising disposable incomes, drives demand for luxury goods, including high-end bags, as status symbols. Furthermore, the growing popularity of experiential retail and luxury shopping destinations in cities like Tokyo, Shanghai, and Seoul enhances the overall luxury shopping experience, boosting demand for luxury bags. The fastest-growing segment in Asia Pacific, nylon luxury bags, will see increased adoption due to their lightweight, durable properties, catering to the region's urban and on-the-go lifestyles.

• According to Cognitive Market Research, China luxury bag market had a market share of USD 2433.72 million in 2024 and is projected to grow at a CAGR of 10.3% during the forecast period. In China, a burgeoning middle class seeks luxury goods as symbols of social status, fuelling the sales of luxury bags, especially those from prestigious international brands.
• Japan luxury bag market had a market share of USD 746.34 million in 2024 and is projected to grow at a CAGR of 9.3% during the forecast period.
• India luxury bag market had a market share of USD 648.99 million in 2024 and is projected to grow at a CAGR of 12.6% during the forecast period. In India, rapid urbanization and a growing aspirational class are driving the sales of luxury bags, with consumers increasingly seeking premium lifestyle products.
• South Korea luxury bag market had a market share of USD 540.83 million in 2024 and is projected to grow at a CAGR of 9.9% during the forecast period.
• Australia luxury bag market had a market share of USD 281.23 million in 2024 and is projected to grow at a CAGR of 10.5% during the forecast period.
• South East Asia luxury bag market had a market share of USD 373.17 million in 2024 and is projected to grow at a CAGR of 11.8% during the forecast period.
• Rest of Asia Pacific luxury bag market had a market share of USD 383.99 million in 2024 and is projected to grow at a CAGR of 10.6% during the forecast period.

Latin America

According to Cognitive Market Research, the global luxury bag market size was estimated at USD 23514.2 Million out of which Latin America market of around 5% of the global revenue with a market size of USD 1175.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031. In Latin America, the sales of luxury bags are set to rise driven by a burgeoning luxury market and changing consumer preferences. As the region experiences economic growth and urbanization, more consumers are embracing luxury brands and seeking high-quality, statement accessories. Furthermore, the rise of social media platforms as marketing channels amplifies brand visibility and connects luxury brands with Latin American consumers, stimulating sales. The fastest-growing segment in Latin America, men's luxury bags, will see significant uptake as men increasingly prioritize fashion and invest in luxury accessories to elevate their style.

• According to Cognitive Market Research, Brazil luxury bag market had a market share of USD 503.20 million in 2024 and is projected to grow at a CAGR of 8.8% during the forecast period. In Brazil, a country known for its vibrant culture and passion for fashion, rising disposable incomes and a desire for luxury items are propelling the sales of luxury bags.
• Argentina luxury bag market had a market share of USD 197.52 million in 2024 and is projected to grow at a CAGR of 9.1% during the forecast period. In Argentina, a resurgence in luxury consumption amid economic recovery and a desire for prestigious fashion accessories contribute to the increasing sales of luxury bags.
• Colombia luxury bag market had a market share of USD 104.64 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period.
• Peru luxury bag market had a market share of USD 96.41 million in 2024 and is projected to grow at a CAGR of 8.4% during the forecast period.
• Chile luxury bag market had a market share of USD 84.65 million in 2024 and is projected to grow at a CAGR of 8.5% during the forecast period.
• Rest of Latin America luxury bag market had a market share of USD 189.29 million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period.

Middle East and Africa

According to Cognitive Market Research, the global luxury bag market size was estimated at USD 23514.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 470.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031. As MEA countries experience economic diversification and urbanization, more consumers are embracing luxury lifestyles and seeking premium accessories to complement their status. Furthermore, the cultural significance of gift-giving and hospitality in the region contributes to the demand for luxury bags as prestigious gifts. The highest market share segment in MEA, women's luxury bags, will continue to dominate due to the region's traditional emphasis on elegance and femininity, making them coveted accessories for affluent women.

• According to Cognitive Market Research, GCC Countries luxury bag market had a market share of USD 201.28 million in 2024 and is projected to grow at a CAGR of 9.3% during the forecast period. In the GCC Countries, a culture of opulence and a high concentration of high-net-worth individuals drive demand for luxury goods, including high-end bags.
• Egypt luxury bag market had a market share of USD 49.38 million in 2024 and is projected to grow at a CAGR of 8.8% during the forecast period.
• South Africa luxury bag market had a market share of USD 74.30 million in 2024 and is projected to grow at a CAGR of 9.5% during the forecast period. In South Africa, a growing urban population and an emerging luxury market contribute to the increasing sales of luxury bags, driven by aspirational consumer behaviour.
• Turkey luxury bag market had a market share of USD 40.44 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period.
• Nigeria luxury bag market had a market share of USD 49.38 million in 2024 and is projected to grow at a CAGR of 7.6% during the forecast period.
• Rest of MEA luxury bag market had a market share of USD 55.49 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period.