Luggage products include, but are not limited to, handbags, backpacks, briefcases, suitcases, wallets, cosmetic bags, computer bags, etc., which are usually made of leather, artificial leather, synthetic leather, plastic, textiles and other materials. While meeting people's daily life and travel needs, the luggage industry also reflects the pursuit of fashion, taste and individuality.
Analysis of the market status of the luggage industry
The revenue of the global luggage market will reach $187.6 billion in 2024, and the compound annual growth rate of the luggage market is expected to remain at about 3.93% from 2024 to 2028. The global luggage and briefcase market reached $16.13 billion in 2023 and is expected to grow to $30.38 billion by 2030, at a compound annual growth rate (CAGR) of 9.6% (2024-2030).
In 2022, the total retail sales of consumer goods in China's luggage will reach 231.89 billion yuan, reflecting the huge scale of China's luggage market. It is predicted that the global luggage market will reach about 211.2 billion US dollars in 2025, and the size of China's luggage market will reach 337.9 billion yuan, showing China's important position in the global luggage market.
China is an important base for global luggage production, with a large number of luggage production enterprises and a complete industrial chain. This makes China's luggage industry occupy an important position in the global market. With the improvement of domestic consumption level and consumers' pursuit of quality and fashion, the scale of China's luggage market continues to expand. Data show that from 2017 to 2023, the size of China's luggage market will increase from 188.4 billion yuan to 234.9 billion yuan, with a CAGR of 3.2%.
According to the analysis of the "2024-2029 China Luggage Industry Market In-depth Research and Investment Strategy Forecast Report" released by the China Research Institute of Puhua Industry Research Institute
At present, the luggage industry is suffering from the severe challenge of multiple rising costs. The appreciation of the RMB, the rising prices of raw materials and the rise in the cost of labor of enterprises have jointly pushed up the production cost of bags, which in turn poses a serious threat to the price advantage and product competitiveness of China's luggage products in the international market.
It is particularly noteworthy that the key raw materials on which the production of bags depends, such as polyester cloth and PVC, have been directly affected by the rebound in international crude oil prices, and their prices have continued to rise. The increase in the cost of raw materials has undoubtedly brought heavy pressure to the production and operation of China's luggage enterprises, further exacerbating the cost pressure. This pressure is directly reflected in the export price of products, which makes the price of China's luggage products gradually lose its competitive advantage in the international market.
What's more severe is that the export tax rebate policy for clothing, shoe leather, luggage, toys and other industries has been adjusted, and the tax rebate rate has been reduced from the original 13% to 11%. The adjustment of this policy means that the amount of tax rebates that enterprises can obtain for exports is reduced, which in turn reduces the export profits of enterprises. This phenomenon of reduced profits has undoubtedly further weakened the price competitive advantage of China's luggage products in the international market.
Research and analysis of the market prospect trend of the luggage industry
With the steady increase in per capita disposable income, this has laid a solid foundation for the growth of luggage consumption. At the same time, branding and large-scale development has become the general trend of the industry, the competitiveness of China's luggage brands is increasing, and the markup rate of products is also showing a steady upward trend.
It is worth mentioning that with the relaxation of the national epidemic prevention and control policy, many places have introduced policies and measures to promote the recovery and development of the tourism industry. These policies are aimed at encouraging residents to participate in domestic tourism activities, and at the same time, major tourist cities are required to strengthen the reception of tourists and improve the quality of tourism services.
In the long run, the implementation of these policies will strongly promote the growth of domestic tourists, which in turn will boost the market demand of the luggage industry. As one of the indispensable equipment in tourism, the market demand for bags will continue to grow with the recovery of tourism. Therefore, we have reason to believe that the market scale of the luggage industry will continue to expand in the future, and the industry will usher in a broader development prospect.