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Luggage Industry Facts and Statistics

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Introduction

There has been a significant decline in the revenue generated by the luggage industry. The pandemic restrictions on travel have supported this decline and will take time to recover. New technology and R&D within the industry is helping consumers choose from economical to luxury products with improved security. The following stats cover topics such as trends and innovations, a hindrance to the luggage industry, global leading manufacturers, etc.

General Overview

  1. In 2020, the luggage market was valued at approximately 16 billion U.S. dollars worldwide decreasing from 22 billion dollars in the previous year as a result of the COVID-19 pandemic.
  2. Baggage or luggage consists of bags, cases, and containers which hold a traveler’s articles while the traveler or passenger is traveling.
  3. The size of the global luggage market is expected to increase USD 16.67 billion between 2020-2024, accelerating at a CAGR of over 7% during the forecast period
  4. The luggage market is projected to register a CAGR of 7.3% during the forecast period (2021 – 2026).
  5. The Global Luggage Bag Market Size was 16400 million USD In 2020 and it is projected to reach 25870 million USD in 2027, growing at a CAGR of 7.9% During 2021-2027.
  6. This growth in the luggage market size will be attributed primarily to the rise of the travel and tourism industry.
  7. Increased demand for different varieties of luggage such as sports luggage, business luggage, and leisure luggage.
  8. In 2016, travel luggage products held a 44.44 percent share of the overall global luggage market.
  9. The change in lifestyle, the growing travel and tourism industry, and the customer inclination toward high-end luggage are likely to positively impact the growth of the market during the forecast period.
  10. The growing convenience of online shopping has led to a major shift in consumer preferences for the purchase of travel bags and other luggage bags through e-commerce platforms, such as Amazon and eBay.
  11. The business bags segment is gaining significant traction in the market studied, due to the increasing business travel worldwide and economic improvements in the developing markets.
  12. The market is dominated by unorganized players with low-priced products.
  13. The increase in the demand for luggage bags is directly proportional to the growing travel and tourism industry.
  14. Currently, the tourism industry is one of the fastest-growing and most diversified sectors globally.
  15. Countries, such as China, the United States, South Korea, Brazil, the Netherlands, Spain, Germany, and the United Kingdom, have strong outbound tourism.
  16. According to the World Bank Group, international tourism in terms of the number of arrivals globally reached 1.25 billion in 2016.
  17. Asia-Pacific Emerges as the Fastest Growing Region
  18. In Asian countries, like India, the luggage market has become highly competitive, with established brands, like VIP, competing in the market with new players, like Da Milano.
  19. Close to 23.94 million Indians traveled abroad in 2018, which was a rise of 9.5% compared to the previous year.
  20. The Asian luggage industry is increasingly engaged in the production of luggage bags, backpacks, duffel bags, laptop bags, and other various business travel bags, thus, driving the market further in the Asia-Pacific region.
  21. Some of the major players in the market are Samsonite International SA, LVMH, and VIP Industries Limited.
  22. In December 2020, Away launched its newly expanded holiday collection with the launch of its brand new core travel collection just in time for the holidays. The new product offering includes three new backpack styles in a range of colors, a nylon-and-leather zip tote bag, a laptop bag, and a messenger bag.
  23. In July 2018, VIP, a globally renowned company, partnered with BuyMore, a brand of Counfreedise Retail Services Ltd, with an aim to expand its retail through online retail.
  24. In April 2017, Samsonite acquired eBags, one of the popular online retailers of handbags, luggage, backpacks, laptop bags, and travel accessories.
  25. The “Luggage Bag Market” segment had the largest market share in 2020.
  26. Representing the developed world, the United States will maintain a 5.2% growth momentum.
  27. Within Europe, which continues to remain an important element in the world economy, Germany will add over US$952 Million to the region’s size and clout in the next 5 to 6 years.
  28. In Japan, Casual/Regular Use Bags will reach a market size of US$2 Billion by the close of the analysis period.
  29. As the world’s second-largest economy and the new game-changer in global markets, China exhibits the potential to grow at 9% over the next couple of years and add approximately US$7.3 Billion in terms of addressable opportunity for the picking by aspiring businesses and their astute leaders.
  30. Demand for luggage in Russia is expected to surge at a robust CAGR of more than 8%, according to this luggage industry research.
  31. The U.S. Accounts for Over 27.1% of Global Market Size in 2020.
  32. China, the world’s second-largest economy, is forecast to reach an estimated market size of US$16.4 Billion in the year 2027 trailing a CAGR of 8% through 2027.
  33. Japan and Canada, each forecast to grow at 2.9% and 4.7% respectively over the 2020-2027 period in the luggage industry.
  34. The European market will reach US$16.4 Billion by the year 2027.
  35. Business/Computer Bags Segment Corners a 13.8% Share in 2020
  36. China will remain among the fastest-growing in this cluster of regional markets.
  37. The entire luggage industry is divided into hard luggage and soft luggage
  38. In India, the organized luggage industry is dominated by VIP with a market share of 50%+, followed by Samsonite & Safari.
  39. To deal with the rising cost in China, VIP has set up 3 manufacturing facilities for Soft luggage in Bangladesh and that is running at 100% capacity.
  40. Canteen Store Department (CSD) work is attracting huge masses toward till because of -No Rent, Sales tax is exempted (in India), and Retailers have to sell the product at the lowest cost. Can’t sell below this price anywhere.

Hindrance to the luggage Industry

  1. In price-sensitive markets, such as some emerging economies across Asia-Pacific and Latin America, the easy availability of cheaper substitutes/counterfeit products as compared to branded products is hindering the growth of the luggage market.
  2. Sudden occurrences such as Covid-19
  3. Growing global travel and tourism industry augmenting the growth
  4. Introduction of new and upgraded technological advancements
  5. High competition and the entrance of new opponents in the luggage market
  6. The changing landscape of channels of distribution such as e-commerce and other mediums.

Top 10 global leaders in the luggage industry

  1. Samsonite-Established for over 100 years, they have a strong following in both the business and consumer markets. 
  2. American Tourister- since 1993 they have been owned by the same company like Samsonite.
  3. Delsey-They has been in the luggage sector for nearly 50 years and specializes in hard case luggage. 
  4. Briggs & Riley-established in 1993
  5. Tumi-Considered a luxury brand, they specialize in hard cases, abrasion-proof ballistic nylon soft cases, and high-end fine leathers.
  6. Rimowa-It’s a heritage brand too, established in 1898
  7. Victorinox-Famous for making Swiss army knives, they started making luggage in 1999.
  8. Away-So, we are talking about integrated USB charging, integrated TSA-approved locks, and intelligent storage solutions.
  9. Travelpro- A favorite of many a frequent flyer, this mid-priced range has a strong reputation for durability, great quality, and all at a great value.
  10. London Fog-In is a world where design can become generic, their designs stand out almost in a retro classy way.

The trends and innovations in the luggage industry

  1. “The biggest factor leading to the evolution of the luggage industry is that luggage is not just a travel utility anymore, it is a lifestyle product, a fashion accessory.
  2. Trendy-looking trolleys and bags add to the look.
  3. The luggage industry is ensuring its presence on different mediums, and online retail in turn is responsible for the industry’s growth trajectory.
  4. E-commerce has proved to be the fastest-growing channel for all our brands, and we predict that the trend will only increase over the years,
  5. With the travel and tourism sector set to witness growth, the Indian luggage industry is expected to see a growth of 8.3 percent from 2019 to 2023.
  6. The growing demand for high-quality luggage products –dustproof, fireproof, crack-proof, and durable –is expected to expedite the growth of the luggage sector.
  7. The growing customer inclination towards high-end luggage equipped with Global Positioning System (GPS) tracker, rising urbanization, and increasing disposable income are expected to drive the luggage market over the predicted years.
  8. Discount selling, comfort, replacement of bags, convenience in choice through e-commerce is identified as key trends of the market.
  9. The modern traveler can be expected to have packages containing clothing, toiletries, small possessions, trip necessities, and on the return trip, souvenirs. For some people, luggage and the style thereof is representative of the owner’s wealth.
  10. In 2021, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Luggage Market by Distribution Channel

  1. Specialty Stores
  2. Departmental Stores
  3. Hyper Markets & Supermarkets
  4. Internet Sales

Conclusion

The industry has seen a change of view among the customers as now, they not only see luggage bags for their utility but also for their look and feel. It has become a fashion statement and thus consumers are choosing their luggage bags and cases with a good thought.

TheDigitalHacker
TheDigitalHacker
TheDigitalHacker.com is a Google News-approved technology conglomerate research and publishing platform.
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