Indonesia Luggage & Bags Market Outlook to 2028

Indonesia Luggage & Bags Market Overview

• The Indonesia luggage and bags market was valued at USD 3.3 billion. This growth is driven by the post-pandemic surge in travel, particularly referred to as "revenge travel," as Indonesian consumers resumed vacation plans and international trips that were postponed during the pandemic. Another key driver of growth is the increased domestic and international air travel within Southeast Asia.

• The dominant regions in this market include Jakarta and Surabaya. Jakarta, being the economic hub of Indonesia, leads the market due to its large consumer base with higher disposable income, making it the primary market for both domestic and international brands. Surabaya, on the other hand, is emerging as a crucial market for luxury bags and luggage, driven by its growing middle class and the increasing demand for premium and branded products.
• The Indonesian government has launched the "Wonderful Indonesia" campaign, aiming to attract over 20 million international tourists by the end of 2024. This initiative is expected to boost the demand for travel-related goods, including luggage and bags. By enhancing infrastructure, improving airport capacities, and promoting new travel destinations, the government seeks to bolster the tourism industry's contribution to the economy, which will directly benefit the luggage and bags market.

Indonesia Luggage & Bags Market Segmentation

By Product Type: The market is segmented by product type into hard-side luggage, soft-side luggage, backpacks, laptop bags, and messenger bags. Soft-side luggage dominates the market under the product type segmentation due to its lightweight, flexibility, and growing preference among frequent travelers. Soft-side luggage offers more space and flexibility, making it easier for users to pack extra items. This trend is especially strong among backpackers and casual travelers who prefer practical and durable solutions.

By Material Type: The material type segmentation of the Indonesia luggage and bags market includes leather, fabric, and polycarbonate. Polycarbonate materials are currently leading this segment due to their durability and lightweight characteristics. Consumers increasingly prefer polycarbonate luggage as it provides strong protection for belongings, making it particularly useful for air travel where baggage handling is often rough. Polycarbonate bags also offer a sleek, modern appearance, which appeals to a growing number of younger consumers looking for aesthetic yet functional luggage.

Indonesia Luggage & Bags Market Competitive Landscape

The market is dominated by both international and domestic players. These brands cater to a wide range of consumers, from budget-conscious buyers to luxury-seeking travelers. The market is characterized by strong competition, with companies constantly innovating through material technology and design.

Indonesia Luggage & Bags Market Analysis

Market Growth Drivers

• Tourism Growth: The increase in tourism within Indonesia is a key driver for the luggage and bags market. In 2024, it is expected that over 20 million international tourists will visit Indonesia, contributing to a heightened demand for travel luggage and accessories. Domestic travel is also projected to see substantial growth, with more than 350 million domestic trips expected throughout the country. This demand for travel-related goods directly impacts the sales of luggage and bags, bolstering the market growth.
• E-commerce Expansion: The rise of e-commerce platforms in Indonesia is pushing the demand for luggage and bags. In 2024, online sales of travel accessories, including luggage, are projected to reach over IDR 15 trillion. The growing use of online shopping platforms like Tokopedia and Shopee has made it easier for consumers to purchase bags and luggage. The convenience, price comparisons, and wider product ranges available online are increasing the adoption of these products among Indonesians.
• Growth of Indonesia's Retail Sector: Indonesia's retail sector is on track to grow robustly in 2024, with projections of surpassing IDR 5 quadrillion in total retail sales. A large portion of these sales will be driven by consumer goods, including fashion items and luggage. Increased investments in retail infrastructure, the opening of new shopping malls, and the rise of specialty stores in major cities like Jakarta, Surabaya, and Bali will foster higher demand for luggage and bags.

Market Challenges

• Counterfeit Products: Counterfeit luggage and bag products are a persistent issue in Indonesia, contributing to substantial market losses. In 2024, it is estimated that over IDR 1 trillion worth of counterfeit luggage and bags will be sold in the black market. The proliferation of fake goods dilutes brand value and consumer trust in premium brands, making it difficult for legitimate companies to compete.
• Logistical Inefficiencies: Indonesias vast archipelagic geography presents logistical challenges for the distribution of luggage and bags. In 2024, shipping costs within the country are expected to remain high, with estimates of IDR 100,000 per kilogram for inter-island transport. This increases distribution costs for manufacturers and retailers, especially when supplying products to remote islands.

Indonesia Luggage & Bags Market Future Outlook

Over the next five years, the Indonesia luggage and bags industry is projected to experience strong growth, driven by factors such as rising consumer purchasing power, the growing tourism industry, and the increasing penetration of e-commerce.

Future Market Opportunities

• Increased Demand for Lightweight and Compact Luggage: Over the next five years, consumers in Indonesia are projected to increasingly prefer lightweight and compact luggage due to changing airline regulations on baggage weight limits. By 2029, luggage brands will focus on offering ultra-lightweight materials to meet the growing demand for compact and easily portable options. =
• Growth in Luxury Luggage Segment: The luxury luggage segment is expected to experience growth by 2029, driven by a rising middle class and affluent consumers. With an estimated increase of over 5 million new middle-income households by 2029, demand for high-end brands like Louis Vuitton and Tumi will rise.