Budget Airlines Fuel Explosive Growth in $6 Billion Carry-On Luggage Market

The surge in popularity of budget airlines has dramatically reshaped the U.S. air travel landscape, sparking a $6 billion boom in the carry-on luggage market. As more travelers seek affordable flights, the demand for compact, stylish, and functional luggage has skyrocketed, driving innovation in both design and functionality.

A Booming Market

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According to Verified Market Research, the carry-on luggage market, valued at approximately $5.57 billion in 2023, is projected to grow to $8.36 billion by 2030. This significant rise reflects a growing preference for smaller, more efficient luggage, mainly driven by budget airline passengers eager to avoid rising baggage fees.

“Budget airlines have significantly shaped our approach to product design,” said Mahendra Singh, CEO of Classy Leather Bags. “There’s a clear demand for minimalist, multi-functional bags that meet airline size restrictions without compromising quality or style.”

Budget Airlines and Changing Travel Habits

Budget airlines like Frontier and Spirit have long attracted cost-conscious travelers by offering no-frills services. These airlines dominate U.S. domestic travel, where affordability is the top priority for nearly half of all flyers. According to a 2024 Skyscanner report, 45% of American travelers cite price as their top consideration, with many opting for short-haul flights to save money.

However, budget airlines have begun shifting strategies by imposing higher fees for checked luggage, compelling passengers to reconsider how they pack. For instance, JetBlue raised its first checked bag fee to $45 at the airport, while United Airlines increased its fees to $40 for the first bag, as reported by Condé Nast Traveler.

Escaping Baggage Fees with Carry-Ons

With checked luggage fees rising, more travelers are turning to carry-on bags as a cost-saving measure. Airlines like Southwest, which famously allows two free checked bags, are outliers, while most others, including American Airlines and Alaska Airlines, have steadily increased their baggage fees. These higher costs drive demand for smaller, more practical carry-on luggage options.

“The increase in fees has pushed customers to seek out bags that fit within airline size limits,” noted Singh. “Travelers want versatility without the extra cost, which has led to a spike in sales for our compact, modular designs.”

The Minimalist Travel Trend

A growing movement toward minimalist travel is transforming the luggage industry. Consumers are now gravitating toward sleek, multi-functional bags that can transition from a business trip to a weekend getaway. These bags, often equipped with features like USB charging ports and modular compartments, offer travelers convenience without sacrificing style. A quick search on Amazon even led to the discovery of some carry-ons with cup holders.

“Today’s travelers are drawn to bags that do more with less,” Singh added. “They’re not just looking for carry-ons that meet airline regulations; they want smart features that cater to their tech-driven lifestyles.”

Sustainability and Innovation Driving Growth

Broader consumer trends, such as sustainability, also influence the shift to carry-on luggage. Eco-conscious travelers increasingly opt for lighter, more sustainable options to minimize their environmental footprint. According to a report from Technavio, luggage manufacturers are responding by designing products that use recycled materials and reduce waste.

The rise of carry-on luggage is reshaping more than just packing habits. It’s influencing airport infrastructure, as facilities are being redesigned to accommodate the growing number of passengers opting to bypass checked baggage. As travel continues to evolve, the carry-on market is expected to remain a driving force in the industry’s future growth.

The Future of Travel Luggage

The continued rise of budget airlines and changes in consumer behavior will likely lead to further innovations in carry-on luggage. The market is set to grow at a compound annual growth rate of 7.34%, with manufacturers competing to offer more functional, stylish, and eco-friendly options.

As the industry adapts, travelers will increasingly embrace a “less is more” approach to packing, changing how they navigate everything from check-in to their final destination.

Sources:

• “Luggage Market Size Growth Forecast 2024-2028” – Verified Market Research
• “US Travel Trends 2024” – Skyscanner
• “These US Airlines Have Raised Their Checked Baggage Fees” – Condé Nast Traveler
• “Carry-On Luggage Market Size & Share | Industry Trends [2030]” – Technavio