May 18, 2024

Luggage Market is Expected to be Flourished by Growing Travel and Tourism Industry

Luggage refers to bags, cases or containers which hold a traveller’s clothes, personal items, and other transportable belongings while the traveler is in transit. Common types of luggage include suitcases, duffel bags, and trunks. Suitcases on wheels are very popular as they make travel easier by allowing travelers to roll their bags rather than carrying them. The growing travel and tourism industry has significantly boosted the demand for various types of luggage in recent years. The tourism industry plays a vital role in the economic development of many countries. People are increasingly traveling to new places for vacation, business trips, and other reasons. This has boosted the luggage market as travelers need bags and suitcases to pack and transport their belongings while traveling.

The global luggage market is estimated to be valued at US$ 102.83 billion in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growing travel and tourism industry is one of the major drivers propelling the luggage market’s growth. As the middle-class population and disposable incomes are rising globally, more people can afford to travel for leisure and business purposes. This is increasing the demand for travel bags, suitcases, duffel bags, and other luggage products. Another factor fueling the market growth is the increasing popularity of multipurpose and smart luggage. Manufacturers are integrating new technologies in luggage, such as batteries, digital locks, and tracking systems. They are also making luggage in innovative designs, lightweight materials, and multiple compartments to meet varied customer needs.

Segment Analysis

The global luggage market is dominated by checked luggage sub segment which holds around 60% market share. This is because checked luggage allows travellers to pack more items and clothes which is ideal for long duration trips. Carry on luggage sub segment is the fastest growing segment growing at 11% annually owing to increase in number of short business trips.

PEST Analysis

  • Political: The luggage market is impacted by government regulations around the world related to airplane luggage size and weight restrictions. Strict guidelines impact luggage specifications and design.
  • Economic: The strong GDP growth in developing nations of Asia Pacific is driving increased outbound tourism and travel. This positively impacts the luggage market demand. Higher disposable incomes allow people to purchase more suitcases and bags.
  • Social: Changing lifestyle and increased number of vacations taken by millennials and generation z is propelling the luggage market growth. Social media trend of travelling and destination weddings also fuel the demand.
  • Technological: Luggage brands are launching smart bags integrated with USB ports, Bluetooth speakers and GPS tracker. This allows bag tracking and anti-theft features. Strong focus on lightweight and durable materials like carbon fiber further pushes the market growth.

Key Takeaways

The global luggage market size was valued at US$ 102.83 billion in 2024 and is projected to reach US$ 163.37 billion by 2031, registering a CAGR of 9.7% during the forecast period. The Asia Pacific region dominated the market with over 35% share in 2024 led by strong demand from China, India and other developing countries.

Regional analysis
The Asia Pacific region is projected to witness fastest growth during the forecast period growing at a CAGR of 12%. Developing economies like China and India are experiencing rapid growth in tourism and business travel resulting in increased luggage purchases. In China, the largest luggage market, e-commerce penetration is driving online luggage sales.

Key players
Key players operating in the luggage market are Samsonite International S.A., Rimowa GmbH, VF Corporation, Louis Vuitton Malletier S.A., Tumi Holdings Inc. and VIP Industries Limited. Samsonite led the market with around 15% share in 2020 led by its variety of suitcase and travel bag brands like American Tourister, Hartmann, High Sierra and more.