Logo
Nowadays, growth in the travel and tourism industry across the globe is creating higher demand for diverse bag types. - Bonafide Research
Sep, 23
2022

2046 view

Nowadays, growth in the travel and tourism industry across the globe is creating higher demand for diverse bag types. - Bonafide Research

 

180219971_Global_Luggage_(Casual_Business_Travel)_Market_Outlook_2023.jpg

Luggage is progressively turning into a fashion adornment. Voyagers are progressively coordinating luggage with the garments they wear. Subsequently, luggage makers are continually adjusting value proposition to meet developing ways of life and patterns for supportability. They are grabbing significant portion in the luggage industry by innovating and satisfying individuals' preferences whether it is USB port, charging devices, mini-radio, Bluetooth etc.

According report on 'Global Luggage (Casual, Business, Travel) Market Outlook, 2027' published by Bonafide Research, Overall luggage market has witnessed Compounded annual growth rate less than 5% from 2022 to 2027 which is extremely streamlined and is looking at a good next few years. Travel bags is the major market share holder due to the substantial boom in the travel and tourism sector fosters the demand for various types of travel bags. Business bags in APAC region has grown with half of the CAGR of other regions during 2022 to 2027.

Shoppers are concentrating on experiences like travelling and seeing the world quite a lot more so than procuring material belonging. Luggage is really the one product category that is an important part of that shift. The definition of luggage is now completely different from what it was in past time. Luggage maker has always come up with the latest and trendy luggage which everyone need from different material to different purpose to different usage and more. All these lead overall luggage industry to colossal rate of growth of luggage industry.

Giant of luggage industry are maturing by acquisition and merger due to competitive situation. Louis Vuitton is known for combining quality fabrication with innovative designs to reflect the needs of customers and the ever-changing modes of world travel. Starting from merger between Moët Hennessy and Louis Vuitton in 1987 to latest acquisition of Christian Dior in 2017 LVHM has become colossus. It owns brand like Céline, Berluti, Kenzo, Loewe, Sephora, Marc Jacobs, DKNY, Rimowa, Christian Dior and many more. Another Mammoth Samsonite has also proven that merger and acquisition has led luggage maker to reach their destination. It has acquired Rolling Luggage, Speck Products, eBags.com, Hartmann, High Sierra Sport Company, Tumi Holdings etc. Lastly, Mid-market luggage leader TravelPro was acquired by private equity firm MidOcean Partners. This consolidation comes as the incumbent players attempt to gobble up competition.

Technological advancements by market players is expected to boost demand for smart luggage across the globe. According to the International Journal for Research in Applied Science & Engineering Technology (IJRASET) published in November 2017, a luggage bag features a kick scooter, which is attached to the luggage bag to provide ease and comfort to the traveller. For instance, OLAF, a manufacturer of scooters with backpacks in Slovenia, provides a 4-in-1 solution, which incorporates removable ergonomically-designed backpack, sturdy trolley, a steerable kick-scooter, and a wooden skateboard.

Moreover, companies such as G-RO and Scoocase have equipped their luggage with power banks. Furthermore, Antler USA's Titus and the Delsey Paris Pilot 4.0 offer a built-in USB port with cables, which is connected to a power bank compartment. Another smart luggage feature is a bag with an in-built weighing scale, which displays exact weight of the luggage as soon as the user lifts the bag. For instance, Airo smart luggage trolley bags consist of an inbuilt weighing scale, which has helped the company to gain competitive edge over other brands. These factors are expected to boost growth of the luggage market during the forecast period.

Furthermore, cope up with innovation has also remained key factor to contribute in luggage makers' growth. The reason behind is that Beyond durability, travelers now have high-tech expectations for their travel companions. Functionalities like fingerprint locking, built-in global tracking, bluetooth speakers, self-weighing scales, and Wi-Fi hotspots are an important growth segment. Luggage makers have been hoping to take advantage of worldwide development in cell phone and application use. For e.g. Paris-based Delsey have been developing a smart travel bag, Pluggage. With the Pluggage app, one can stay updated on any flight changes, when the bag has been loaded or if it’s bag been opened. Toronto-based Heys launched a line of “smart luggage.” Each bag has a built-in weight scale. There’s also a mini-radio signal that is broadcast to Apple and Android smartphones.  There are numerous start-ups like 'Away' and 'Raden' also in the space that are trying to gain significant pie in luggage industry.

Thus at recent times as well as in future time, Luggage maker will develop themselves if they stick to product innovation and development with tapping untapped luggage market. Developing nations would be their hot destination due to increasing disposable income, increasing expenditure on travelling items, establishing tourist destination etc. which mainly affect the purchase of luggage by any individual.