Industry Insights
The global luggage market was valued at USD 16.01 billion in 2017 and is projected to exhibit a CAGR of 16.5% from 2017 to 2025. The gains in tours & travel industry of countries in South Asia including, India, Sri Lanka, and the Maldives as a result of increased government spending on the development of new destinations is expected to promote the utility of luggage over the next eight years.
Furthermore, rising disposable income and domestic & international travel of the middle-class population in countries including China and India is projected to increase the consumption of luggage market at large.
Global luggage market revenue, by region, 2015 - 2025 (USD Billion)
Segmentation by Product
• Travel
• Business
• Sports
• Others
Travel luggage market is expected to reach more than USD 23.0 billion by the end of 2025. Changing lifestyle among the working-class professionals along with the extensive brand campaigns by companies including Samsonite International and LVMH Moët Hennessy is expected to increase leisure spending among consumers over the next eight years.
Sports bags are expected to foresee strong gains, growing at a CAGR of more than 17.0% from 2017 to 2025. Rising spending towards fitness management among adults on a global level as a result of increasing concern related to lifestyle diseases is expected to promote the utility of sports bags for keeping stuff including tracksuits, energy drinks, and gym accessories.
Business travel luggage is expected to witness growth at a CAGR of 17.1% from 2017 to 2025. Globalization and business expansion to other geographies are among the factors driving the business travel market. According to the Global Business Travel Association, international business travel was valued USD 273.7 billion in 2013 and increased to USD 341 billion in 2018, growing at a CAGR of 4.49% from 2013 to 2018.
Segmentation by Distribution Channel
• Offline
• Online
In 2017, luggage sale through offline channel generated revenues of more than USD 13.0 billion. In the offline channel, hypermarkets and supermarkets were the key retail formats. Hypermarkets and supermarkets are expected to continue to be among the leading store formats for luggage sale, besides specialty stores, which carry a wide array of luggage from various brands. Availability of a wide range of brands and the convenience to look and feel luggage before buying are among the key factors that entice consumers to physical stores.
In 2017, luggage sale from online channel accounted for more than 15.0% of global market. Convenience offered by online shopping has led to a major shift in consumer preferences for purchase of travel bags and other goods through e-commerce platforms such as Amazon and Alibaba. Availability of a wide assortment and extended services such as free-home delivery and cash backs among others are expected to add to the growth of the market in the coming years.
Segmentation by Region
• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa
In 2017, luggage sale from online channel accounted for more than 15.0% of the global market. The convenience offered by online shopping has led to a major shift in consumer preferences for the purchase of travel bags and other goods through e-commerce platforms such as Amazon and Alibaba. Availability of a wide assortment and extended services such as free home delivery and cash backs among others are expected to add to the growth of the market in the coming years.
The aviation industry is also at a boom as the number of passengers is growing at a much faster rate in the Asia Pacific. According to the International Air Transport Association (IATA), China will replace the U.S. as the world’s largest aviation market in terms of air traffic by the end of 2024. In addition, India will be the third largest aviation market followed by Japan and Indonesia as the fifth and seventh largest aviation markets by the end of 2025. This growth in the aviation industry of Asia Pacific is projected to play a crucial role in increasing the utility of luggage during travel in the near future.
In Europe, tourism is expected to remain one of the major industries over the coming years. According to a report by the European Parliament, in 2017, international tourist arrivals reached 671 million tourists which is 51.0% of the total tourist arrivals globally. Furthermore, the European Union estimated that citizens of Germany spent USD 89.19 billion on international travel, followed by the U.K. with a total expenditure of USD 72.24 billion in 2016. The high expenditure on travel and tourism industry is expected to expand the utility of luggage in Europe the near future.
Competitive Landscape
Global luggage manufacturers are adopting strategies including merger & acquisition and collaboration with distributors for gaining a competitive edge and strengthening their presence. For instance, in April 2017, Samsonite International S.A. acquired eBags Inc. for USD 105.0 million. In addition, in March 2016, the company completed the acquisition of luxury bags manufacturer Tumi, Inc. for USD 1.8 billion. Some of the key players in the market include Samsonite International SA, LVMH Moët Hennessy - Louis Vuitton, Delsey SA, VIP Industries Ltd, Rimowa GmbH, Hermès, Kering SA, Shanghai Taifeng Cases Co Ltd, and Safari Industries Ltd.
