- Smart luggage is driving growth of the market.
- Stringent regulations imposed on smart luggage by International Air Transport Association is one the factors restraining growth of the market.
- The business bags segment is gaining significant traction in the luggage market.
Luggage such as suitcases and bags are available in various size, shape, and designs to enhance convenience and comfort while travelling. Growing travel and tourism industry along with rising participation in adventure sports and outdoor sports is driving growth of the global luggage market. According to the World Travel and Tourism Council, global domestic expenditure on travel and tourism in 2014 was $340.4 billion, which increased to $574.6 billion in 2016. Technological developments such as smart luggage is further fueling growth of the global luggage market. For instance, in January 2018, 90FUN launched new smart suitcase 90FUN Puppy 1 which follows the traveler.
However, stringent regulations imposed on smart luggage by International Air Transport Association is one the factors restraining growth of the market. For instance, smart luggage containing lithium batteries and non-removable batteries are banned by major airlines such as American Airlines due to risk of fire.
Business bags segment is gaining significant traction in the luggage market due to increasing business travel worldwide, economic improvements in the developing markets, and developments in the manufacturing sector. According to the World Travel and Tourism Council, business travel investment is estimated to grow by 4.0% in 2017 from 2016 to $1.2 trillion and increase by 3.7% per annum to $1.7 trillion in 2027.
Specialty stores segment held largest market share in 2016, owing to the various expansions and advertising by the specialty stores retailers. For instance, in October 2016, Away, an American manufacturer and retailer of luggage launched new stores in New York, U.S. and London, U.K. Also, it announced launch of new stores in Berlin, Germany and Los Angeles, U.S. to expand retail footprint.
The global luggage market was valued at $33.28 billion in 2016 and is anticipated to register a CAGR of 8.45% in terms of revenue, over the forecast period (2017 – 2025) to reach $67.19 billion by 2025.
Manufacturers operating in the global luggage market are adopting different strategies including merger and acquisition and collaborations among others for business expansion. For instance, in April 2017, Samsonite International S.A. acquired travel bag retailer eBags Inc. for $105 million. In November 2014, Perry Ellis International, Inc. entered into a partnership with UGA Fashion S.A. de C.V. for designing, manufacturing and marketing luggage, back packs, travel bags and travel accessories under the brand Perry Ellis in Mexico.
Key manufacturers operating in the luggage market include Louis Vuitton Malletier, S.A., Rimowa GmbH, Victorinox Swiss Army, Inc., Coach Inc, Samsonite International S.A., VF Corporation, Antler Limited, Delsey S.A., Bric’s Industria Valigeria Fine SpA, Etienne Aigner AG, and VIP Industries Limited.