Market research and development prospects of China’s luggage industry from 2023 to 2028

The overall market size of the global luggage industry shows a slow upward trend in single digits. The data in the chart below shows that the global luggage industry’s compound annual growth rate from 2006 to 2019 was 4.24%, reaching its highest global scale of US$153.576 billion in 2019. After 2020, the downward pressure on the economy has increased, and travel consumption scenarios have been severely restricted, resulting in a decline in the market size of the luggage industry. In 2020, the market size fell by 20.02% year-on-year. As the global political and economic environment stabilizes and the international tourism market gradually recovers, the global luggage market is expected to continue to recover.

China is the world's largest luggage manufacturing country, and its leading concentration is low, far from the era of stock competition. From the perspective of business model, the luggage industry is mainly divided into three categories: processing manufacturers OEM, professional manufacturers ODM, and brand operators. The Chinese market is mainly dominated by ODM/OEM, with production capacity distributed in Guangdong, Zhejiang, Baigou Town in Hebei Province, and Nantai Town in Liaoning Province. China's luggage manufacturing output has accounted for more than 70% of the world's share. Luggage OEM manufacturing companies are generally small in scale and large in number. Market competition is fierce, independent research and development technology is weak, and differentiated competition has not yet formed.

The market size of China's luggage industry ranks first in the world in terms of market growth. Data shows that China's luggage market has a compound annual growth rate of 11.06% from 2006 to 2019, which is nearly three times the global growth rate. In 2019, the domestic market reached its maximum size of US$34.701 billion. In 2020, it fell by 9.88% year-on-year due to the impact of the world economy.

China is the world's largest luggage consumer market. According to statistics, the total retail sales of China's luggage industry reached 220 billion yuan in 2019, with the United States ranking second at 209.5 billion yuan. From the perspective of luggage consumer categories, according to the GMV data statistics of China's Tmall and Taobao luggage products in 2020, the transaction volume of women's bags is significantly prominent, followed by backpacks and suitcases. According to statistics, the global sales forecast of various categories from 2021 to 2025 found that the luggage category has the fastest growth rate. The retail sales of luggage in the domestic market have maintained nearly double-digit rapid growth in recent years, with a compound annual growth rate of 11.28% from 2015 to 2019.

One of the factors related to the luggage market is travel. The growth rate of China’s luggage market is basically consistent with the growth rate of domestic travelers. With the long-term steady growth of per capita disposable income, people's consumption awareness has undergone great changes. Basic consumption demand has declined, while conscious consumption demand has increased rapidly. The new consumption era has promoted the rapid development of the tourism industry. The number of domestic tourists has continued to maintain double-digit rapid growth since 2007. In 2020, affected by global public health events, the number of tourists showed a cliff-like decline, down 52.05% year-on-year. The performance of luggage sales data precedes the tourism market sentiment data. It is expected that as the domestic and foreign economic environment improves, the release of tourism consumption demand will bring a certain recovery to the luggage market.

Consumption consciousness has changed, scene demands have increased, and subdivided categories have developed. As consumers' pursuit of quality of life improves, the luggage industry has broader development space, and customized, personalized and functional luggage will be the mainstream trend in the future. Scenario-based demand has promoted the development of subdivided categories in the luggage industry. The consumption scenarios of the luggage industry include not only travel, but also home luggage, computer luggage, and even the world-wide public health events in 2020 gave birth to the subdivision of medical kits. By category, the luggage market will gradually subdivide and change with the needs of the scene, and will become a consumer product with rigid growth. Young consumers pay more attention to the tonality and fashion of brands. Their pursuit of international brands has declined, and their acceptance of national fashion products has increased significantly. This change in consumption trends has brought development opportunities for domestic luggage products. It is expected that The local luggage market has large room for development, and it will also promote the development of the apparel accessories industry market.