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RetailBackpack sales

The backpack business could be about to see some big changes

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
Down Arrow Button Icon
September 3, 2015, 11:01 AM ET
Garden Place Academy Advocates
DENVER, CO - AUGUST 12: Andrea Renteria, the assistant principal at Garden Place Academy, helps Alicia Valenzuela, 7, center, and her cousin, Danna Valenzuela, 5, left, pick out what color backpack each wants at the school cafeteria on August 12, 2015, in Denver, Colorado. The Garden Place Academy Advocates, a community group in Globeville, are working to raise money for improvements at the school, first and foremost for an HVAC system. They collected over 400 backpacks from Catholic Charities to provide to each student at the school. (Photo by Anya Semenoff/The Denver Post via Getty Images)Photograph by Anya Semenoff — Denver Post via Getty Images

The backpack business in the U.S. is a $2.7 billion behemoth of an industry, but there are signs that it may be in danger.

The New York Times reported Wednesday that a rise in digital forms of learning, and fewer textbooks, are forcing backpack makers scramble to innovate.

Backpack creators have played with new designs in recent years to engage consumers looking to keep their electronics safe on the go. Laptop pockets have appeared in recent years, and there are even pricier models that come equipped with chargers for students (and others) in need of juice for their dying smartphones.

There appears to be room for more innovation. The industry still typically sees older models of backpacks bought the most, such as those created by VF, which has 55% of the market and owns brands such as Eastpak, Timberland, and North Face.

The Times says backpack sales may be up just 3.9% this year—a smaller increase than prior years. The back-to-school market, too, appears to be set to struggle this year, with 9% less expected to be spent versus last year, when consumers spent $68 billion.

“The market for backpacks is becoming saturated and is nearing its peak,” Ayako Homma, a Euromonitor research analyst, told the publication. She added that shoppers are “looking for something new and different.”

Read more at the New York Times website.

About the Author
By Benjamin SnyderManaging Editor
LinkedIn iconTwitter icon

Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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