01

A market worth hundreds of billions, "packed" tens of thousands of "boxes"

In recent years, the luggage industry has been continuously developing and has become a key consumer good that combines fashion and practicality. It is not only an essential tool for daily storage, but also a symbol of personal identity and fashion taste.

According to the monitoring of Yiwu Index, the market size of China's luggage industry is approximately 146.4 billion yuan in 2024, firmly ranking as the second largest luggage market in the world (only after the United States, whose market size in 2024 is about 207 billion yuan).

The market size of China's luggage industry from 2024 to 2029

Data source: Yiwu Index

www.ywindex.com

In recent years, the market size and industrial value of China's luggage industry have increased simultaneously. It is mainly attributed to the following two factors:

First, consumer demand scenarios are becoming increasingly segmented. At present, the universal products that claim to be "one package for all" are no longer able to meet consumers' increasingly diverse demands. Beyond the traditional business travel demands, vertical categories such as multi-functional "mommy bags" specifically designed for the mother and baby group, portable aviation cases for pets, and camera bags for photography have rapidly risen. The differentiated product demands have given rise to a large number of emerging niche markets, and the boundaries of the luggage industry are constantly expanding.

The second is the full recovery of the domestic tourism market. On the one hand, the vitality of the tourism market has been continuously enhanced, effectively stimulating the demand for luggage consumption. In 2024, the total number of domestic tourists reached 5.615 billion, representing a year-on-year growth of 14.8%. The total tourism consumption reached 5.75 trillion yuan, increasing by 17.1% year-on-year. On the other hand, travel methods such as high-speed rail, airplanes and self-driving have become increasingly convenient and popular. "Spontaneous trips" have gradually become the norm, and high-frequency travel methods such as short trips and weekend trips have increased significantly, further driving the consumption demand for luggage products.

Image source of airport travel luggage products: Internet

While the market demand for luggage and bags continues to grow, the competitive landscape of the market shows a significant stratified feature. At present, China's luggage market has long been dominated by white-label products, with brand products accounting for only 36%. In the mid-to-high-end market, especially in the luxury and high-end luggage sectors, overseas brands are the main players. However, as more and more niche domestic mid-to-high-end brands rise and gain market recognition, domestic brands will seize a larger share of the mid-to-high-end luggage market.

The competitive landscape of China's luggage retail market

Source: Research Institute of Founder Securities

02

The luggage industry is booming, and "Made in China" products are selling well all over the world

Nowadays, driven by the dual forces of enhanced residents' consumption capacity and differentiated consumption demands, luggage products are constantly innovating in design, fashion and practicality.

The classification of luggage categories has become increasingly refined along with the changes in consumer demands. According to style, function, material and box body, they can be divided into the following categories:

By style: handbags, shoulder bags, crossbody bags, handbags, wallets, backpacks, etc.

By function: briefcases, computer bags, camera bags, medical bags, travel bags, cosmetic cases, etc.

By material: genuine leather bags, pu bags, pvc bags, canvas bags, fabric bags, etc.

By box type: trolley bags, tool bags, suitcases, carrying cases, etc.

In terms of the scale of subcategories, handbags, suitcases, crossbody bags and backpacks respectively account for 46%, 14%, 11% and 10% of the global retail scale of the luggage industry.

The scale (in billions of US dollars) and proportion of the global luggage market's segmented categories

Data source: Euromonitor, Minsheng Securities Research Institute

www.ywindex.com

The rapid rise of domestic luggage products is not attributed to a low-price strategy, but rather to the gradual upgrading of the industry through innovative design, brand building and quality improvement.

The process of branding has significantly accelerated. Over the past two years, the number of global luxury consumers has decreased by approximately 50 million, and the younger generation has become increasingly cautious about non-essential consumption. Against the backdrop of a consumption polarization dominated by luxury brands and high cost-performance best-selling products, domestic luggage is gradually taking the leading position in the middle tier of brands and products. According to data from Chanmofang, among the top 15 women's bag brands with sales of over 1,000 yuan on Tmall in 2025, 7 are domestic brands. Consumers' recognition of domestic brands is continuously increasing.

Products are accelerating their advancement towards intelligence. Smart luggage is moving from concept products to the mass market. Domestic luggage brands have precisely addressed the core pain points in modern travel such as luggage tracking, safety protection, overweight alerts and mobile charging by launching smart suitcases that integrate GPS positioning, fingerprint unlocking, automatic weighing and USB charging functions.

A list of smart suitcase functions. Image source: Yiwu Index

The e-commerce market for luggage is on the rise, with the coordinated development of online and offline channels. In 2024, the scale of China's luggage e-commerce market is approximately 12.5 billion US dollars, accounting for about 60% of the overall market. Domestic light luxury brands represented by Shanxia Yousong, Guliang Jiji and Qiu Zhen have strengthened user stickiness through marketing methods such as micro-films, product recommendations on Xiaohongshu and live content streaming on Douyin. Meanwhile, offline channels have become an important breakthrough for domestic mid-to-high-end brands to achieve differentiation, establish long-term user relationships and brand recognition.

Image source of domestic brand bag products: Yiwu Index

China is the world's largest manufacturer of luggage. Data shows that the luggage produced in China has accounted for nearly 40% of the global market share. In 2024, China's export value of luggage and similar containers reached 34.5 billion US dollars. The top two export markets were the European Union and the United States.

From the perspective of the global market size of the luggage industry, the overall scale is approximately 190.2 billion US dollars in 2024, and it will continue to grow at an average annual compound rate of 5.5% over the next five years.

The global luggage industry market size from 2024 to 2029 (in billions of US dollars)

Data source: Euromonitor Minsheng Securities Research Institute

www.ywindex.com

From the perspective of consumption preferences, there are obvious differences among different regions.

The market size of the luggage industry in the Asia-Pacific region is approximately 72.3 billion US dollars in 2024, making it the world's largest luggage consumption market, accounting for about 38% of the global luggage market share. Consumers in the Asia-Pacific region, especially those in emerging markets such as China and India, mostly favor multi-functional and cost-effective luggage products.

The market size of the luggage industry in Europe in 2024 is approximately 38.9 billion US dollars, accounting for about 20.5% of the global luggage market share. Consumers in Europe have significantly higher aesthetic requirements for luggage products than those in other regions, with particular emphasis on brand history, craftsmanship inheritance and innovative design. In countries such as Germany, France and Italy, the market demand for luxury goods and customized products is strong.

Suitcases of tourists are being transported at the entrance of overseas hotels. Image source: Internet

The market size of the luggage industry in North America in 2024 is approximately 36 billion US dollars, accounting for about 18.9% of the global luggage market share. Consumers in North America pay more attention to quality and durability, especially having a higher demand for travel bags and business bags. Moreover, North American consumers have a relatively high brand loyalty to luggage and prefer luggage products from well-known brands.

The growth momentum in Latin America is strong. It is estimated that the market size of luggage will reach 25.44 billion US dollars in 2025. Over the next five years, it will grow rapidly at a compound annual growth rate of 9.95%, which is 3.38% higher than the global average growth rate. Consumers in Latin America have a high acceptance of new brands. Business bags with strong functions and casual bags with a strong sense of design are very popular.

03

"Boxes" gather in Yiwu, "packages" reach the world

The luggage industry in Yiwu Market started in 2004. As one of the traditional characteristic industries that developed in the early days of Yiwu Market, after more than two decades of development, it has become an important distribution center for luggage products in the country. Against the backdrop of a highly developed domestic luggage industry chain, with upstream industrial bases represented by Shiling in Guangdong, Pinghu in Zhejiang, and Baigou in Hebei, Yiwu Market, relying on its strong commercial circulation system and sales window advantages, has attracted many enterprises from luggage industry belts such as Baigou in Hebei and Pinghu in Zhejiang to settle in, and has formed an efficient and collaborative supply chain system with these regions. Realize "production and sales linkage, trading globally".

Trend chart of the distribution of industrial belts in China's luggage industry

Image source: Big Data Cross-border Research Report

The merchants related to the luggage industry in Yiwu Market are mainly concentrated on the first and fourth floors of Zone 2 of Yiwu International Trade City. There are currently over 1,600 business stalls and nearly 1,500 business entities within the venue. From the perspective of category structure, the main categories in the market include backpacks, men's bags, women's bags, school bags, trolley cases, bags and other types of luggage. Among them, the backpack category has the largest number of business entities in the Yiwu market, accounting for approximately 31%.

Image source of luggage products in Yiwu Market: Yiwu Media Convergence

In terms of product sales, the ratio of domestic to foreign trade sales is approximately 2:8. Exports are mainly sold to multiple countries and regions such as Africa, the Middle East, South America, and Europe. President Liu of the Yiwu Luggage Industry Chamber of Commerce said, "Our luggage is sold all over the world, especially in the traditional advantageous markets of Yiwu such as the Middle East, Africa and South America." In the future, thanks to the commercial hub advantage of Yiwu Market, there is still a vast space for growth.

According to the monitoring of Yiwu Index, since 2020, the prosperity index of the luggage category has generally shown a steady upward trend. The average prosperity index for the luggage category rose from 1,002.91 points in 2020 to 1,246.33 points in 2024, an increase of 24.27%. The average prosperity index for the first eight months of 2025 was 1,383.34 points. In the future, influenced by the Mid-Autumn Festival and National Day holidays, it is expected that the upward trend will continue.

Yiwu's prosperity Index for Luggage and Bags from 2020 to 2025

Data source: Yiwu Index

www.ywindex.com

As a "must-have" category for travel, the peak season for the purchase and sales of luggage in Yiwu market is generally concentrated before holidays and winter and summer vacations. A luggage vendor in Yiwu Market said, "Recently, orders for suitcases, backpacks and travel bags have increased significantly. Many old customers have stocked up in advance, especially lightweight, durable products suitable for multi-day trips, which are particularly popular." According to the data monitoring of Yiwu Index, the prosperity index of the luggage category among the subcategories of luggage has maintained a rapid upward trend since the beginning of the year. In May, the prosperity index of the luggage category was 1,637.99 points, with an increase of 8.11% compared to January.

The travel bag category prosperity index from November 2024 to May 2025

Data source: Yiwu Index

www.ywindex.com

High-end and intelligent products are constantly emerging. The luggage products in Yiwu market closely follow the consumption trends and launch a variety of smart and innovative products. Among them, the smart cycling box, as a representative bestseller in the luggage industry of Yiwu market, is highly favored by consumers. This product is made of lightweight materials and weighs only 6.8 kilograms. It is equipped with intelligent control functions. According to a business owner in Yiwu Market, "This smart electric suitcase can be controlled through a mobile phone App. You can directly check the battery level, speed and mileage, and easily adjust the lights and lighting effects. Currently, it is the most popular 'means of transportation' in Yiwu Market." As a bestseller in the store, the annual sales of this smart cycling suitcase have exceeded 40 million yuan.

Image source: Yiwu Index. Smart suitcases in Zone 2 of Yiwu Trade City

The demand for personalization and customization is increasing. Nowadays, an increasing number of consumers are no longer satisfied with standardized products and instead pursue exclusive bags that meet their aesthetic and functional needs. A business operator in the luggage industry in Yiwu Market said, "Now, the number of customized orders is significantly higher than before. Many foreign merchants will bring their own design drawings or put forward demands, asking us to design and produce." Meanwhile, the new Chinese-style bags of the national trend have also shone brightly. Traditional elements such as window lattice patterns, ink-wash gradients, and button buttons are ingeniously combined with modern bag shapes, and their market popularity has risen, making them favored by female consumers.

Image source of handbags in Yiwu Market: Yiwu Index