Handbag Market Analysis: Insights to Prepare You for Next Season

As the fashion industry’s leading wholesale management ecosystem, JOOR processes a tremendous volume of orders for a network of more than 14,000 brands and 650,000 curated fashion buyers across 150 countries.

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Using data aggregated from transactions on JOOR over the past three years, we have performed an in-depth analysis of the global handbag market and identified trends currently shaping the fashion landscape today. These findings not only provide information on topics such as price points, silhouette preferences, and regional differences, but also reveal insight into some of the larger shifts the industry is facing including the luxury slowdown and rise in accessible fashion.

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Read on to learn more about these exclusive JOOR handbag insights and discover how to use this data to shape your strategy for the category in the upcoming seasons.

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If you're looking to expand your handbag business, also check out our latest JOOR Passport show launched as a complement to this handbag market report. Titled In the Bag: The World's Top Handbag Retailers, this digital event presents a curated list of notable handbag boutiques, creating an invaluable resource for brands seeking new partners around the world.

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The Luxury Slowdown Looks Set to Continue 

When looking at retailers’ investment in handbags as a percent of total transaction volume on JOOR from 2021-2024, the category has remained relatively flat, revealing handbags to still be a key part of a buyer’s selection.

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But what price point of handbags are being purchased? Our data shows declines in all handbag price brackets over $500. This trend comes as no surprise following the luxury slowdown that has recently been occurring across the fashion industry due to shifts in consumer priorities, high interest rates and an economic downturn in China.

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When consumers do invest in a luxury purchase, they choose European brands. In 2024, 90% of handbags over $1,000 were purchased from EMEA-based brands, a fact that has remained relatively consistent over the past five years. That said, globally this price point has experienced the most pronounced decline, with retailers scaling back the portion of their handbag purchases in this price bracket from 7% to 3% of buys in response to shifts in customer demand.

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The cost of living crisis has led some consumers to prioritize trips, home improvements, and experiences over designer bags, while those who are still buying luxury are seeking out true value for their money as designer handbag prices have continued to rise. A perceived decline in quality but a steady increase in price has led many consumers looking for luxury handbags to visit resale sites like TheRealReal and Vestiaire Collective instead. 

The Key Takeaway for Retailers:

Reflect on your handbag options and potentially reduce your buy of higher price point products depending on your customers’ desire. If your demographic is still purchasing handbags over $1,000, think about how you can create a unique purchase experience that is more attractive than a resale site. Elite customer service, free repairs and lifetime guarantees are all not only sought after but now expected by customers shopping for luxury handbags.

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The Key Takeaway for Brands:

Reduced spending in the over $1,000 handbag category increases competition, so luxury handbag designs must stand out to catch both buyers’ and consumers’ eyes. A renewed interest in quality means high-level craftsmanship and intense attention to detail are valued more than ever before, so your designs should showcase artisanal skill wherever possible. 

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Accessible Style is on the Rise

The most rapidly growing segment of the handbag market was seen in the $250-$500 retail price bracket, increasing from 63% to 70% over the past three years, revealing accessible fashion’s continued increase in popularity. This trend has been growing steadily post-pandemic with brands like Coach, Michael Kors and Marc Jacobs dominating the category.

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While this has always been the former’s sweet spot, this demand has also prompted several other brands to begin to re-enter the category this year including Alice + Olivia, Badgley Mischka and Monse as they recognize the growth potential in this price point. The increased demand for lower-priced handbags reflects the democratization of luxury fashion, the rise of the middle class and the entry of Gen-Z shoppers into the market. 

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The second-largest area of growth was seen in the category of handbags under $250. This price point has typically always been reserved for consumers looking to buy entry-level handbags without compromising their finances, but brands such as Polene, JW Pei and Telfar have reinvented the idea of luxury with innovative styles, shapes and marketing campaigns at affordable price points. These designs appeal to a wider range of quality-conscious consumers than ever before.

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The Key Takeaway for Retailers:

A large segment of customers have an appetite for accessible styles at the moment, so adjust your buy to ensure you have product in the $250-$500 range available to shop. 

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The Key Takeaway for Brands:

If it aligns with your brand identity, consider expanding or introducing entry-level offerings that will allow you to capitalize on this market opportunity.

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Tote Bags Remain on Top 

When analyzing trends in handbag styles, totes have maintained their hold on the top spot as the largest-selling handbag style for the past five years, accounting for 41% of the handbag category in 2024, followed by crossbodies at 21% and shoulder bags at 17%. The totes category has also experienced the most dramatic growth in percent of total units, skyrocketing from 12% pre-pandemic to a high of 50% in 2023.

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This spike highlights the impact of the new remote working era ushered in during COVID-19 and the continued hybrid workforce that remains today. Owning a stylish but slightly larger bag that can fit your laptop is a modern essential as today’s worker moves between the office and home. 

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In 2024, totes scaled back slightly to 41% of the handbag category following saturation in the market, with shoulder bags, top handle bags and backpacks all on the rise and experiencing growth of at least 2% each. However, the tote style still strides ahead of other shapes as a clear consumer favorite.

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From Marc Jacobs’ The Tote Bag to Dior’s cotton Book tote, the style has an endless potential that allows it to touch all price points and demographics. Thanks to its practicality, consumers view totes as a low-cost per-wear item, enhancing the silhouette's attractiveness in an era where fashion’s value is more important than ever.

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The Key Takeaway for Retailers

‍Consumers are investing in tote bags that can easily fit electronics and work essentials inside but can also be worn out to dinner. Consider multifunctional accessories when choosing your assortments for the coming seasons. 

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The Key Takeaway for Brands

Canvas totes are a cost-effective way to enter this category if a more classic leather style does not align with your brand aesthetic. Relatively easy to manufacture, these styles are also a smart marketing move as they act as a wearable billboard for your brand and are popular amongst Gen-Z and millennial consumers.

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Regional Tastes Reign Supreme 

The digital age has helped to usher in the globalization of fashion and homogenization of trends, but our data reveals that despite this buying habits remain distinctly localized. Our handbag market analysis found that EMEA-based retailers invested in the highest penetration of luxury handbags, with 10% of handbag purchases priced over $1,000 and 35% over $500.

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The data also revealed that North America is dominated by the accessible luxury segment with 84% of retailers' handbag assortments in the $250-$500 price bracket. Several factors could account for the region’s preference for this price point, perhaps a response to inflation and increases in cost of living or simply the fact that the market is dominated by accessible American brands.

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APAC-based retailers have the highest penetration of handbags under $250 at 57%, which leads us to believe that quality-conscious consumers in the Asia-Pacific region are not only seeking out brands at lower price points but higher priced brands are creating more entry point products to try and woo them too.

South America most closely mirrors EMEA with retailers opting for a balanced assortment across price brackets, reinforcing our belief that this market is an exciting opportunity for many brands. The South American apparel industry is projected to grow annually by 2.9% from 2024 to 2029 and we expect to see growth across the accessories and handbags categories as well. 

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The Key Takeaway for Retailers:

Data is an important tool when building your assortments as a retailer, but you should also leverage customer feedback as one of the most valuable tools in your business arsenal. Speaking to consumers and collecting insights into local shopping behavior is invaluable to help uncover the handbag brands that best match your clients' desires. 

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The Key Takeaway for Brands:

There is demand across the handbag category, however, it may take further research to uncover which markets to target to make wholesale work for you. Our newest JOOR Passport show In The Bag: The World’s Top Handbag Retailers highlights the most renowned boutiques from across the globe, so you can easily discover handbag stores that align with your brand.

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The show is open to the public but only those with a JOOR account can log in to access retailers' contact details and instantly reach out to begin expanding their presence in new regions and unlocking new markets.

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How JOOR can Help you Flourish in the Handbag Market

Taking these handbag insights into consideration may lead your business to new wholesale goals for the coming season. Book a demo to see how JOOR can help you flourish in the handbag category and beyond, no matter whether you are a brand or a retailer.

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