The target market for KSA bags and luggage industry includes people from all income categories and comprises of 33.4 mn domestic population as well as 19.7 mn international tourist arrivals demanding different types of bags such as handbags backpacks and laptop or business bags.
Increase in number of expats from 9.7 Million in 2015 to 10.7 Million in 20201. requiring business bags (including Laptop Bags) for their daily activities has positively impacted the bag sales in the Kingdom.
Despite the ups and downs that the sector had experienced during the COVID-19 pandemic, KSA bags and luggage market will revive due to the pilgrim visits to Mecca and Medina in the coming year along with FIFA 2022 to take place in Qatar which might increase the tourists in KSA as well.
Growth beyond Luggage:Luggage Category is expected to grow @11.8% CAGR in the future period in the KSA market but its share of the overall bags and luggage market is still dwarfed by that of bags with handbags leading the charge with majority revenue share in the overall bags market in 2025F.
Less Popular Formats Gaining Ground:Because consumers are likely to opt for domestic destinations in the next few months along with focus on keeping a healthy lifestyle, a shift in preference towards smaller and convenient bags such as duffles, backpacks, and weekenders would be in demand. The company are also focusing on smaller products that can carry items like hand sanitizer and extra masks which can be folded up into a tiny square when not in use and other accessories such as iPhones and sunglasses.
Smart Luggage: Technology is the major boosting factor for bags and luggage market largely driven by increasing global tourism coupled with growing trend of integrating luggage with technology. Increase in Internet penetration may lead to adoption of smart luggage in KSA. However, leading manufacturers have yet to officially launch any significant attempts at "smart luggage" in the country.
Philippines bags and Luggage Market is at the growing stage. All major international players have their presence in the market and are competing aggressively to dominate. Bags are in very high demand as compared to luggage and the global leader LVMH dominated the market. There is no major domestic designer brand in the luxury segment. The market has grown in terms of revenue due to the growth of domestic and outbound tourism, an increase in the young and working population and an increasing presence of bags and luggage retailers in the Philippines.
India luggage and bags market grew at a double digit growth rate over the review period 2013-2019 and was further supported by expanding travelling based expenditure for both leisure and corporate tourism, increasing proliferation of online portals, introduction of affordable pricing products and consumer shift from unbranded to branded quality products. The entry of several inter
national players has also contributed towards the same. Strong growth was observed in Indian luggage and bags industry majorly due to high consumer demand but a depreciating USD ($) affected profitability of multiple manufacturers in India. However, stabilization of GST rate at 18% (previously 28%) created a positive impact on the consumer demand.
KSA Online Grocery Delivery service gained traction among consumers as it allows customers to avoid the hassle of crowds, payment & parking queues and offers convenience as one doesn't need to be at home to pick up the order. Major grocery delivery companies entered the market between 2016 and 2018. Smartphone users aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit growth rate close to 44% between 2017 and 2019. Changing consumer preferences, high smartphone penetration, and regional expansion of local and international players led to the growth of online grocery services in the Kingdom. Companies have expanded their product portfolios from food & beverages to household supplies, baby food, fresh food, fish & meat, and other product categories.