Japan Handbag Market

Japan Handbag Market Insights Forecasts to 2035

• The Japan Handbag Market Size Was Estimated at USD 1.5 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 3.96% from 2025 to 2035
• The Japan Handbag Market Size is Expected to Reach USD 2.3 Billion by 2035

According to a research report published by Decision Advisors & Consulting, The Japan Handbag Market Size is Anticipated to reach USD 2.3 Billion by 2035, Growing at a CAGR of 3.96% from 2025 to 2035. The Japan handbag market is driven by rising demand for eco?friendly and sustainable materials, the influence of social media and luxury branding, and a shift toward lightweight, functional, and minimalist designs.

Market Overview

The market in Japan for handbags reflects the Japan market overall as this market is comprised of smaller bag sized products which assist carriers in transporting their daily items. Along with an increasing trend to purchase locally made, high-quality, handcrafted products, Japan consumer demand also exhibits a significant leaning towards purchasing bags from department stores as well as specialty stores. The primary trends which will define the future of the Japan handbag market will be the demand for versatility and functionality in the bags purchased, the demand for sustainable manufacturing processes, and the merging of the use of technology with the handcraft tradition of Japan in the creation of contemporary bag designs. Increase in consumer spending on personal goods as a result of increased celebrity endorsements, social media trends, demand for sustainable/eco-friendly products and increase in online shopping activity.

Retailers improve their return on investment through a more accurate sales forecast for handbags which ultimately lessens stock outs and overstock. Furthermore, handbag product teams focus on consumer preference which leads to a 25% increase in year-over-year handbag sales. On average, leather handbags have a 3:1 proportion compared to synthetic handbags sold as well as in quantity produced.

Report Coverage

This research report categorizes the market for the Japan handbag market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan handbag market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan handbag market.

Driving Factors                                                                     

The handbag markets in Japan are driven by as demand for environmentally-friendly and sustainable merchandise continues to grow among consumers, the handbag industry has found itself faced with issues arising from its method of tanning, and producing leather from PVC (Polyvinyl Chloride). With the negative repercussions of tanning and making leather from PVC on the planet, many businesses now use recycled, sustainable materials to create eco-friendly handbags.

Moreover, there has been a substantial increase in the number of companies that are now growing their use of alternative plant-based raw materials, such as cork, pineapple leaves, and methods which include the use of recycled rubber as substitutes for conventional leather. This enables handbag manufacturers to decrease their carbon footprint, produce biodegradable products, and drastically reduce their water usage. According to research, when companies produce handbags using eco-friendly materials, their total water usage has been reduced by an average of 25%, and also their energy usage in the handbag's manufacturing process has decreased by an average of 30%. With more and more companies making this transition, they not only are helping to protect the environment, but they are also building strong brand loyalty and enhancing their reputation.

Restraining Factors                                                 

The handbag market in Japan is restrained by elevated costs to produce products, many competing domestic and foreign manufacturers; rapidly shifting fashion cycles, global economic conditions remain to be uncertain; the need to locate sustainably produced raw materials.

Market Segmentation

The Japan handbag market share is categorized by product type, material type and distribution channel.                                 

• The tote bag segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.                                                

The Japan handbag market is segmented by product type into satchel, bucket bag, clutch, tote bag, and others. Among these, the tote bag segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is driven by as metropolitan cities increase in population, consumers desire to buy bags, which have a larger capacity yet can also be used for more than one purpose. A large increase in female employment has led to an increase in the amount of women's professional bags.

• The leather segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

The Japan handbag market is segmented by material type into leather, fabric, rubber, and others. Among these, the leather segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is due to urban professionals generally tend to prefer to buy bags that are made out of high-quality materials, are built well and will stand the test of time, and are from reputable luxury brands. The majority of urban professionals purchase their high-end handbag products from established, well known luxury manufacturers.  

• The supermarkets and hypermarkets segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period.                                                  

The Japan handbag market is segmented by distribution channel into supermarkets and hypermarkets, departmental stores, specialty stores, discount stores, online stores, and others. Among these, the supermarkets and hypermarkets segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is driven by Wide product availability, attractive in-store promotions, reliability from strong brand trust, convenience of a one-stop shopping location, competitive prices and the growing trend of customers wanting to see and touch products before they make a purchase are all driving consumers' desires to purchase.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan handbag market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies                                                                                          

• ACE Co. Ltd.
• Burberry Group Plc
• Capri Holdings Ltd.
• Chanel Ltd.
• Coo Co. Ltd.
• Dolce and Gabbana Srl
• Gabiani Design
• IKETEI Co. Ltd.
• ISSEY MIYAKE Inc.
• Kanmi
• Kering SA
• Others

Key Target Audience                              

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In January 2024, luxury fashion brand Chanel announced the opening of its largest flagship store in Tokyo, increasing its retail presence in Japan and showcasing its commitment to the handbag market (Chanel press release). In March 2024, Japanese fashion e-commerce giant, Zozo, collaborated with Italian luxury brand Prada to launch an exclusive online store, expanding Prada's reach in the digital market and offering customers a wider selection of handbags.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. Decision Advisors has segmented the Japan Handbag Market based on the below-mentioned segments:

Japan Handbag Market, By Product Type

• Satchel
• Bucket Bag,
• Clutch,
• Tote Bag,
• Others

Japan Handbag Market, By Material Type

• Leather
• Fabric
• Rubber
• Others

Japan Handbag Market, By Distribution Channel

• Supermarkets and Hypermarkets
• Departmental Stores
• Specialty Stores
• Discount Stores
• Online Stores
• Others

FAQ’s   

Q: What was the size of the Japan handbag market in 2024?

A: The Japan handbag market was valued at USD 1.5 billion in 2024, supported by strong demand for premium, sustainable, and functional handbag products across major consumer segments.

Q: What is the expected market size of the Japan handbag market by 2035?

A: The market is projected to reach USD 2.3 billion by 2035 due to rising fashion awareness, sustainability trends, and increased purchasing power among urban consumers.

Q: What is the CAGR of the Japan handbag market during 2025–2035?

A: The market is forecast to grow at a CAGR of 3.96% from 2025 to 2035, driven by evolving consumer lifestyles, premiumization, and the growth of online retail.

Q: Which product type held the largest market share in 2024?

A: The tote bag segment accounted for the largest revenue share in 2024 due to its versatility, spacious design, popularity among working women, and alignment with modern fashion trends.

Q: Which material type dominated the Japan handbag market in 2024?

A: Leather dominated the market in 2024, as consumers strongly prefer premium-quality, durable, stylish, and long-lasting handbags, especially from luxury and designer brands.

Q: What are the key factors driving the growth of the Japan handbag market?

A: Growth is driven by increasing demand for eco-friendly materials, influence of social media and luxury branding, and a shift toward lightweight, functional, and minimalist handbag designs.