US Travel Goods Focus
US Travel Goods Focus - retail and category development
The US travel goods industry is undergoing a structural shift, shaped by both channel evolution and changing consumer expectations. While physical retail still accounts for the majority of sales (roughly 60-70% of sales), where consumers can touch test and feel potential purchases, online has nearly doubled its share since 2019 and is now the fastest-growing channel, driven by improved e-commerce tools, broader selection and a more seamless buying experience. The omnichannel dynamic influences not just how products are sold, but which types of products are growing fastest.
Ranked in order of growth, the most notable growth is concentrated in a handful of emerging and evolving subcategories:
Smart luggage and smart backpacks are the fastest-growing segment, with projected CAGR in the low-to-mid teens and in some forecasts exceeding 20%. The definition of smart in this category means features like outside pockets, pass throughs for cables and pockets for trackers, like Find My or Tile. Although still small in overall share, their growth is being driven by a broader consumer shift in the USA toward connected, functional products by tech-forward travellers.
Sustainable and eco-friendly products are another high-growth area, expanding at around 9–10% annually. This reflects rising demand for recycled materials and repairable designs, particularly among Millennial and Gen Z consumers. Sustainability is moving from a niche feature to a mainstream purchase driver, influencing both product design and brand positioning.
Travel and adventure backpacks continue to perform strongly, with growth near 9.5% and already accounting for a large share of the backpack category. Their momentum is tied to lifestyle changes - more digital nomads, increased “carry-on only” travel and demand for ergonomic, tech-enabled designs that support flexible travel patterns.
Convertible and modular products are also gaining traction (8–9% CAGR), reflecting a desire for versatility. Hybrid formats, e.g duffel-to-backpack designs appeal to consumers looking to consolidate items and adapt to different trip types without buying multiple products.
Meanwhile, lightweight hard-sided luggage remains a large and steadily growing segment (around 7–8% CAGR), driven by ongoing improvements in materials like polycarbonate and the continued dominance of spinner wheels. Here, innovation is incremental but impactful, focused on durability and weight reduction.
Finally, business and corporate travel goods are rebounding at a more moderate pace (6.5–7.5%), supported by the return of work travel and the rise of “bleisure.” Demand is centered on organization, professional aesthetics and laptop-friendly features - there could be some crossover here with the smart luggage and smart backpacks mentioned earlier on, given that most business travelers are likely to travel with a laptop computer.
Across all these segments, a common thread is the blending of functionality, lifestyle alignment and digital influence. Social media and creator-led discovery are increasingly shaping demand - particularly in fast-growing segments like smart, sustainable, and adventure products - while omnichannel retail ensures that online research and in-store experience work hand in hand.
In short, growth in the US travel goods market is delivered through products adapted to modern travel behaviours: connected, flexible, sustainability-conscious and increasingly influenced by digital ecosystems with online and social research being pivotal to product purchase, whether that happens online or offline.
Sources: Travel Goods Association, Circana, Global Business Travel Association, American Apparel Footwear Association