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The North America handbag market size was valued at USD 11.86 billion in 2022 and is projected to grow from USD 12.77 billion in 2023 to USD 19.35 billion by 2030, exhibiting a CAGR of 6.12% during the forecast period of (2023-2030).
People commonly use handbags for their regular clothing and accessory needs. In the bag production process, companies face a problem retaining the workability and general scrap leather quality in a finished bag product. Hence, companies are implementing various production methods to produce high-quality leather bags and avoid such issues. For instance, LANCASTER, a Paris, France-based handbag manufacturer with a strong presence in the U.S. and Canada, uses a unique chemical process to recycle leather into dubbed recycled leather scrap. This helped the company retain the original leather quality from the scrap material.
Increased Luxury Handbag Prices to Sustain Market During COVID-19 Pandemic
Nowadays, companies are hiking the prices of purse items to curb their overall COVID-19 lost sales. From April to May 2020, prominent brands such as Gucci, Chanel, and Prada hiked the prices of their bags in the European and U.S. market. This has maintained the region’s handbag revenues during the pandemic. Nowadays, people increasingly prefer to shop for personal goods from online shopping stores to avoid coronavirus infection. This helped in uplifting product revenues during the pandemic. For instance, Wolf & Badger, a U.K.-based luxury goods online retailer, reported a 414% spike in its Canadian luxury goods sales in 2020 over 2019.
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Shifting Consumer Trends toward Usage of Sustainably Made Bags to Drive Market
Consumers increasingly prefer to use sustainably made goods in their daily lives. Therefore, companies are focusing on developing vegan leather-based purses to offer environmentally friendly products to these consumers. For instance, in March 2021, LugLife, a popular lifestyle goods company specializing in producing fashionable, well-appointed handbags, announced its first PETA-approved, vegan leather-based handbags collection on QVC’s ‘Saturday Morning Show’ in the United States. Additionally, growing companies focusing on developing cruelty-free luxury goods will ease the North American market development.
Consumers’ Acceptance of Purses as Their Regular Fashion Need to Drive the Markets
Rising consumer acceptance of luxury handbags as their daily fashion need drives the market's growth. Additionally, easier consumer accessibility of the clutches and cross-body purses of elegant designs and luxury patterns will fuel the demand for such items. Besides this, growing consumer awareness regarding the availability of such purses through social media sites and applications such as Instagram, Snapchat, and others is driving the North America handbag market growth.
Moreover, women consumers widely use a tote and satchel for regular official usage. Therefore, the rising number of working women population is likely to ease the consumption of such items, thereby driving the growth of the hand purses industry. According to the World Bank Group, an international financial institution, in 2021, Mexico's female labor force participation rate increased from 41% of the total labor force in 2020 to 44% in 2021.
The rising number of middle-income population groups, mainly in China and India from the Asia Pacific region and other regions such as Europe, the Middle East, and North America, will support the demand for such products.
Rising Consumer Spending on Luxury Goods to Fuel the Market Growth
Rising consumer spending (per capita income) on luxury goods such as clothing, digital watches, jewelry, and others uplifts product revenues, thereby driving the region's market growth. For instance, Kering S.A.’s luxury empire, including a few American brands such as Gucci, Bottega Veneta, and Yves Saint Laurent, reported a 31.2% revenue growth and reached USD 11.02 billion in 2021. Additionally, the increasing popularity of luxury & premium quality bags among the middle-income group of the region’s population will fuel the market growth in the region.
Governmental Import Restrictions to Limit the Market Growth
Uncertain U.S. governmental import restrictions imposed on luxury goods are expected to limit the country's product consumption, restraining the market growth. For instance, in July 2020, Trump Administration imposed 25% import duties on French hand purse manufacturers. Additionally, large consumer preference towards buying luxury goods from local manufacturers, particularly in Mexico and Canada, is expected to limit the Louis Vuitton and other foreign brands' business growth in these countries, thereby hampering the industry growth.
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Roomier Size of Totes Makes the Tote Segment Hold a Major Market Share
North America handbag market analysis can be conducted based on various product types such as tote, clutch, and satchel. Roomier size of totes has enabled women consumers to store shopped items such as lipsticks, cosmetics, documents and notes, sanitizers, and others. This has made the tote segment hold a major market share. Additionally, easier disposability and reusability of such purses are helping the hand purse segment grow further. Nowadays, women fashion seekers mainly prefer to use compact-sized and fashionable purses in public events and gatherings. Therefore, the clutch handbags segment is expected to grow faster due to clutches compact size and luxury outlook over other types.
The Satchel segment is expected to grow considerably due to the softer material design, availability of straps, and rectangular shape of such bags over other types. Additionally, increasing consumers’ preference towards using satchels for their daily office work coupled with the growing employment rate in the region is fueling the satchel segmental growth. Others’ segment includes saddle and cross-body purses. Rising outdoor leisure trends among people drive the others' segmental growth.
Higher Durability and Fashionable Outlook Makes Leather Bags Dominate the Market
The leather segment holds a major North America handbag market share due to its higher durability and fashionable appearance over another raw material types. Additionally, the growing expansion of the leather goods companies further supports the segmental growth in the region. For instance, in October 2022, Danier, a Canadian fashion brand, expanded its supply chain capabilities by opening its store locations in three Canadian locations: Toronto, Halifax, and outside of Calgary.
Easier consumers’ accessibility to cost-effective fabric bags of different sizes, colors, functionalities, and price ranges mainly fuel the fabric segmental growth. Moreover, the rising popularity of print-on-demand fabric purses among the region’s population further uplifts the product revenues from the fabric segment.
Large Spending on Clothing and Accessory Makes Women's Segment Hold a Major Market Share
The women segment holds a major market share owing to the large female consumers' demand for clothing and accessory items for regular usage. According to the data presented by the U.S. Department of Commerce, Census Bureau, in February 2021, women's clothing and accessory products sales from U.S. retail stores reached USD 2.15 billion, 1.12% up over the previous month. Additionally, women are largely concerned about their appearance in public gatherings and events. This factor has mainly fuelled women’s demand for newer clothing and accessories, thereby skyrocketing women's segmental growth.
Evolving outdoor leisure trends mainly drive the demand for cross-body and hobo bags among the region’s men population. Moreover, increasing fashion education and social media influence among millennial men will further enhance segmental growth.
Higher Prices of Purses at Brand Stores Makes Others Segment Hold a Major Market Share
Others segment includes brand and specialty stores. The presence of luxury and premium quality clothing and accessory items of higher prices in these stores makes others segment exhibit a major market share. Additionally, shifting trends of the middle-income group of the population towards premium and luxury goods fuel the segmental growth in the region.
In departmental stores, consumers can purchase various clothing and accessories such as watches, jewelry, handbags, and others under one roof. This drives the departmental stores' segment at a faster rate. Additionally, regular discounts & coupons by such stores will likely motivate people to shop for consumer goods from these stores, thereby supporting segmental growth.
The presence of many mass retailers associated with clothing and accessory items in the U.S. and Canada results in considerable revenues for the clothing and accessory items from these stores. According to the data presented by the Department of Statistics, Government of Canada, as of 2021, there were 230,845 retail merchandising establishments selling jewelry, luggage, and leather goods in Canada. Second-hand clothing item retailers RealReal, Thredup, Depop, and others mainly support the off-price segmental revenues in the region.
The U.S. market was estimated at USD 10.03 billion in 2022. U.S. holds a leading position in the North American market due to the large consumption of various handbags among the U.S. population for their regular fashion needs. According to the data published by the International Trade Centre (ITC), in 2022, USD 17.45 billion of leather-based saddlery & harness goods, travel goods, and hand purses were imported into the United States, 25.25% up over the previous year.
Large import of luxury goods essentially helps the U.S. to meet its local consumer demand for such items. Additionally, increased U.S. consumers' fashion sense and luxurious lifestyle result in greater demand for premium quality handbags.
Increasing consumer trends towards using smaller-sized luxury totes and clutches in Canada will likely provide newer market growth opportunities. In addition, the rising acceptance of premium shoulder bags among the middle and lower-income groups of the population further fuel the Canadian market growth.
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The Mexican population mainly prefers fashion goods from local manufacturers such as Jaime Ibiza, Collectiva Concepcion, PANTERA, POPPY BARLEY, and many others over foreign brands. This will provide newer opportunities for local manufacturers to grow their business in the country. Also, the rising adoption of designer and classic hand bags among the middle-income Mexican population is further fueling the product revenues in the country.
Global Expansion and Product Launch are the Strategies Adopted by Key Companies to Grow their Business
Companies mainly focus on introducing boutiques in the Canadian and Mexican markets to expand their business in these countries. Additionally, they conduct various rounds of investments to launch a newer product collection and grow their business in the region. For instance, in August 2020, Hermosa Beach, a luxury handbag brand of Hammitt Inc., invested USD 2.0 million to launch ‘Brand Ambassador,’ a purse collection by endorsing the actress Jamie Chung in California, U.S.
An Infographic Representation of North America Handbag Market
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The market research report offers a deep market analysis. It focuses on key aspects such as competitive landscape, product types, raw materials, end-user, distribution channels, and application areas. Besides this, it gives insights into the various market trends and highlights key fashion industry developments.
In addition to these mentioned factors, the report on the market outlook has several other factors that have contributed to the growth of the market in recent years.
CAGR of 6.12% during 2023-2030
Value (USD Billion)
By Product Type
By Raw Material
By Distribution Channel
North America (By Product Type, Raw Material, End-User, Distribution Channel, and by Country)
Fortune Business Insights says that the North America market size was USD 11.86 billion in 2022 and is projected to reach USD 19.35 billion by 2030.
In 2023, the North American market value stood at USD 12.77 billion.
Registering a CAGR of 6.12%, the handbag market is forecasted to grow during (2023-2030).
The tote segment is set to lead the market based on product type.
Growing consumers acceptance of shoulder purses as their regular fashion needs to drive the markets growth.
Tapestry Inc., Michael Kors USA., and LVHM are some of the key players in the North American market.
The U.S. dominated the worlds market in terms of share in 2022.
Shifting consumer trends towards using sustainably made bags to drive the adoption of these products.
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