Market Highlights

The global bags market is projected to be valued at USD 94.63billion by 2027, expanding at a CAGR of 4.9% during the forecast period. The exchange of gifts has long been thought of as a fundamental part of human relationships. This trend of gift exchange has increased significantly over the last decade; this can be attributed to globalization and the acceptance of cross-cultural festivals and celebrations. People tend to gift on various occasions, such as anniversaries, birthdays, Friendship Day, Valentine’s Day, Mother’s Day, and Father’s Day. Increasing per capita disposable income of the population is a major factor in favor of increased exchange of gifts around the world. Along with personal gifting and festival gifting, the trend of corporate gifting is on the rise with an increasing number of corporate offices. Corporates indulge in gifting their clients and employees to cultivate stronger and mutually beneficial relationships. This also helps the companies build their brand image. Bags have been considered among the most preferred products for gift exchange among individuals as well as corporates. The wide variety of bags available in the market offer better options to choose from, which is an added advantage. Thus, the trend of offering bags as gift exchange is expected to exponentially boost the sales of bags, thereby propelling the market growth.

The bag market is highly competitive and oversaturated. Standing out in such a competitive market becomes increasingly difficult for the manufacturers. Thus, businesses compete on every level possible to effectively reach out to their target audience. Owing to this, the companies are looking for a way to make themselves unique. One of these ways is product customization and personalization. In recent times, consumers prefer personalization over common products in the market.

Segmental Analysis

The global bag market has been segmented based on product type, material type, end user, distribution channel, and region.

By product type, the global market has been divided into backpacks, handbags, wallets & purses, duffle & gym bags, sling & crossbody, and others.The backpacks segment accounted for the largest market share of 35.35%, with a market value of USD 23,074.9 million in 2019; it is expected to register a CAGR of 4.72%. Backpacks are bags primarily carried either on the back or are attached to the waist. Students nowadays carry their books and supplies to and from school in a bag referred to as a backpack, knapsack, rucksack, book satchel, book bag, or book pack. According to a recent MRFR study, it has been estimated that over 43 million students across the US carry their school material in backpacks. Moreover, backpacks are generally intended for daily use as they are light and compact and are ideal for work, school, or daily errand runs. The different types of backpacks include school bags, daypacks, belt bags, bum bags or waist bags, drawstring bags, rucksacks, satchel backpacks, knapsacks, and randoseru.

By material type, the global market has been divided into polyesters, nylon, leather, cotton canvas, others. The polyesters segment held a prominent share of the global bags market. Bags made with polyesters have a higher resistance to ultra-violet (UV) degradation than nylon but lacks durability, especially in backpacks. However, polyesters are a strong and durable material for backpacks made for kids. Backpacks made of polyester are affordable and are available in vibrant colors. The leather segment is projected to record the highest CAGR during the forecast period. Leather is among the oldest materials used in bag making owing to its durability, strength, and abundant availability from wildlife resources. Though there is a shift in consumer preference for non-animal-based products, leather offers a premium look over other materials and remains a popular choice among consumers.

By end user, the global market has been divided into 5 to 12 Years, 13 to 19 Years, 20 Years & Above. The 20 years & above segment held a prominent share of the global bags market. However, the 13 to 19 Years segment is projected to be the faster-growing segment during the forecast period.

Based on distribution channels, the global bags market has been classified into store-based and non-store-based. The store-based segment is further segmented into supermarkets & hypermarkets, convenience stores, specialty stores, and others.The store-based accounted for the larger market share in 2020. Consumers prefer store-based channels as they provide a one-stop shopping experience. However, the non-store-based segment is projected to expand at a higher CAGR during the forecast period

Regional Analysis

Geographically, the global bags market has been categorizedasNorth America,Europe, Asia-Pacific,and the rest of the world. As per MRFR analysis, Asia-Pacific dominated the market, accounting for the largest share in 2020. The European bag market accounted for the second-largest market share in 2020.

Key Findings of the Study:

• • The backpack segment is estimated to retain its prominent share by 2027. The handbags, wallets, & purses segment is anticipated to register the highest growth rate during the forecast period.

• • The leather segment is projected to witness the highest CAGR during the forecast period due to the increasing consumer inclination toward luxury bags.

• • The store-based segment is estimated to retain its prominent share by 2027. The non-store-based segment is anticipated to register a higher growth rate of 5.85% during the forecast period.
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The post The global bag market to record a CAGR of 4.9% during the forecast period first appeared on CRI Report.