BUSINESS: Research + Stats U.S. Handbag Sales Soar in 2023 By Staff Monday, March 27, 2023 1:35 PM Despite fears of recession, handbag sales continue to rise in the U.S. According to new figures from Statista, the handbag industry is expected to grow by 1.6 percent annually between 2023 and 2026. Experts are forecasting the U.S. handbag industry will reach $12.6 billion in 2023. This was echoed in a recent report from Gitnux, which predicts the handbag market will reach $80 billion globally by 2028, with an annual growth rate of 4.7 percent. The U.S. women’s luxury handbag market is expected to grow to $14 billion by 2025. Meanwhile, the Japanese market is only expected to reach $5.5 billion by 2025, at an annual growth rate of 3.5 percent. This is a turnaround from declining sales over the past three years. In 2020, handbag sales fell by 17.6 percent from the previous year to $7.7 billion in 2020. The leather handbags accounted for 40 percent of handbag sales. In 2020, the retail sales value of women’s handbags in the U.S. was approximately $7.7 billion, with a 17.6 percent decline from 2019. Leather handbags account for the largest segment of the market, making up over 40 percent of sales. Chanel, Hermes and Delvaux remain the most sought after bags in the luxury market, with prices reaching more than $10,000 per item. Chanel has garnered the most attention on social media, with more than 15 million followers on Weibo in China, and 55 million followers on Instagram. Online sales are also expected to reach record growth over the next few years as consumers move away from in-store shopping. Online sales channels are projected to grow by 8.8 percent between 2021 and 2028.