Backpack and Courier Bag Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Backpack and Courier Bag Manufacturing industry suffered revenue losses during the recession. Weakened disposable incomes barred consumers from purchasing bags from retailers, which diminished demand. IBISWorld estimates that revenue will fall at an average annual rate of 0.2% during this period, to a total of $730.3 million. However, from 2011 to 2012, consumer spending power and demand from retailers will pick up, causing revenue to grow 4.6%. Increased competition from imports has posed a threat to the industry. Because production costs (particularly wages) are substantially lower in countries like China and Mexico, downstream wholesalers and retailers have increasingly sourced their products from these suppliers. Fortunately for domestic manufacturers, their focus on high-quality, high-value products has helped sustain profit margins, and revenue is set to grow over the next five years. For this reason, industry research firm IBISWorld has added a report on the Backpack and Courier Bag Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Demand for high-quality backpacks will sustain growth, despite import competition

As is the case with most industries in the United States, the Backpack and Courier Bag Manufacturing industry suffered revenue losses during the recession. According to IBISWorld industry analyst Nikoleta Panteva, “weakened disposable incomes barred consumers from purchasing bags from retailers, which diminished demand at the manufacturing level.” Revenue declined 3.3% in 2008, followed by an additional 5.5% drop in 2009. These decreases limited revenue growth during the five years to 2012. IBISWorld estimates that revenue will fall at an average annual rate of 0.2% during this period, to a total of $730.3 million. However, from 2011 to 2012, consumer spending power and demand from retailers will pick up, causing industry revenue to grow by 4.6%.

Over the five years to 2012, increased competition from imports has posed a threat to the industry. Panteva says, “because production costs (particularly wages) are substantially lower in foreign manufacturing countries like China and Mexico, downstream wholesalers and retailers have increasingly sourced their products from these suppliers.” As a result, imports have expanded their share of domestic demand. Fortunately for domestic manufacturers, their focus on high-quality, high-value products has helped sustain profit margins at about 9.8% of revenue. The industry's market concentration is high, as evidenced by the presence of two large major players (VF Corporation and CamelBak Products), with significant market share. Particularly, VF has grown through rising demand for its products and associated brands and also through peer company acquisition. For example, VF purchased Timberland, an outdoor products company, for $2.0 billion in June of 2011. Timberland makes backpacks and outdoor packs, further increasing VF's market share in the industry. Other players have also gained market share, due to the increasing popularity of outdoor packs among consumers.

The Backpack and Courier Bag Manufacturing industry's performance is set to improve over the next five years. As disposable income rebounds, demand from retailers carrying the industry's products will climb, boding well for revenue. Product innovation and enhancements will help bolster industry growth. Nevertheless, operators that cannot compete in the mature and saturated industry will be forced to exit.

For more information visit IBISWorld’s Backpack and Courier Bag Manufacturing in the US industry page

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This industry manufactures backpacks and courier bags from a variety of materials, including canvas, rubberized fabric and plastic-based materials. Backpacks are typically designed for school or outdoor use; they have two straps that go over each shoulder. Courier bags, which are often called messenger bags, are worn across the body. Manufacturers of these bags are primarily located in low labor-cost countries.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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