April 20, 2024

Luggage Market to Flourish at High CAGR owing to Rising Trend of Tourism

Luggage such as suitcases, duffel bags, and travel bags are an integral part of the tourism and travel industry across the world. They are used for carrying clothes, cosmetics, and other essentials while travelling. Increasing disposable incomes of people and rising trend of business trips and leisure travels are generating huge demand for high-quality luggage solutions.

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 from 2024 to 2031.

Key Takeaways

Key players operating in the luggage market include Tapestry Inc., Rimowa GmbH, Louis Vuitton Malletier, S.A., Victorinox Swiss Army, Inc., Samsonite International S.A, Coach Inc, VF Corporation, Antler Limited, Delsey S.A., Bric’s Industria Valigeria Fine SpA, Etienne Aigner AG, and VIP Industries Limited. These companies are focusing on new product launches and strategic collaborations to strengthen their presence across major markets.

The key opportunities in the luggage market include emerging demand from millennial travelers for trendy and fashionable luggage, growing women traveler base and their preference for handbags and cosmetic bags, and adoption of direct sales model through e-commerce platforms. Manufacturers are leveraging these opportunities through innovative product designs and marketing campaigns targeting different customer segments.

Geographically, the Asia Pacific region is expected to witness highest growth in the luggage market during the forecast period. This can be attributed to rising middle-class population, increasing living standards, and growing tourism industry in countries like China, India, Vietnam, and Indonesia. Key players are expanding their manufacturing facilities and distribution networks in Asia to tap the vast market potential.

Market drivers

One of the major drivers for the luggage market is the rising trend of tourism globally. According to the World Tourism Organization, international tourist arrivals grew by 6% in 2017 to reach 1.3 billion and this number is estimated to surpass 1.8 billion by 2030. This exponential growth in tourism is fueling the demand for comfortable and durable luggage from travelers. Furthermore, increasing disposable incomes allow people to spend more on travel and leisure activities which translates to higher sales of premium luggage.

PEST Analysis

  • Political: The luggage market is affected by various trade policies and regulations related to import duties imposed by different countries. Changes in such policies impact the overall market trends.
  • Economic: Factors such as disposable incomes, GDP growth rates, and standard of living influence consumer spending on luxury and premium luggage products. Higher economic growth leads to increased demand.
  • Social: Changing travel patterns and rising international tourism are important social drivers. Consumer preferences for lightweight, durable and fashionable luggage types also affect manufacturers’ product development strategies.
  • Technological: Innovations in materials like carbon fiber and development of smart features integrated with tracking technologies allow for stronger, luggage with added safety/security. Connected luggage using IoT sensors helps users remotely monitor bags.

Geographical regions with high market share

The luggage market in terms of value is concentrated most prominently in North America and Europe. Developed countries in these regions witness high passenger traffic both for business and leisure, driving sales of various luggage products. Within Europe, major markets include Germany, France, UK and Italy. The United States accounts for the largest share within North America.

Fastest growing geographical region

The Asia Pacific region is envisioned as the fastest growing market for luggage during the forecast period. This growth can be attributed to factors like rising standards of living, expanding middle-class population and increasing disposable incomes in developing countries like India and China. Greater domestic and international travel from the expanding middle class is boosting the demand for good quality and stylish luggage options.