o a US$20,000 handbag was the clearest sign yet that bag charms, whimsical trinkets once relegated to tween fashion, have broken into the global luxury business. And business is booming. “We’ve seen explosive growth in sales of bag charms in the first half of 2025, with the number of fashion brands offering them increasing threefold,” said Amanda McCormick Bacal, SVP of marketing at Joor.  “Given the current climate of rising luxury handbag prices and more cautious consumer spending, brands and retailers are turning to bag charms as a playful way to expand their entry-level offerings. And consumers are clearly responding, embracing these whimsical accessories as a fun way to personalise their style.” According to wholesale platform Joor’s latest report, global sales of bag charms surged twelvefold in the first half of this year compared with the same period last year. Unit sales rose 17 times, while the number of brands selling bag charms on its platform tripled. Google Trends reports search interest is up 168 per cent over the past year, and Pinterest queries have skyrocketed 700 per cent.  “You’d have to be living under a rock to not be aware of the charm movement happening,” Lindsay Holden, co-founder of Odele, told WWD.  The US haircare company recently introduced the ‘Touch-ups to go bag’ charm set, which includes a mini dry shampoo in a beaded holder.  Meanwhile, the beauty industry is also getting in on the act. Space NK recently partnered with famous plush label Jellycat to offer an exclusive bag charm dubbed ‘the Amusables Space NK Bag Charm’. In Asia, AS Watson is also giving out bag charms as gifts to its customers.  What’s the charm? According to Joor, bag charms tap into the current trend toward maximalism and personalisation, offering fashion lovers a playful, statement-making accessory to customise their look. If handbags are investment pieces, charms are emotional purchases. Their success hinges on the psychology of play and self-expression. The charm craze also dovetails with the broader “dopamine dressing” movement, in which consumers seek joy through playful, colourful fashion. Amid global economic uncertainty, small luxuries like charms provide an affordable form of escapism.  Hot product in a cooling market Hermes has been quietly building a cult following around its bag accessories. The French maison’s Rodeo Horse charm, introduced over a decade ago, remains one of its most sought-after accessories, often selling for hundreds on resale platforms.  However, in the past year, charms have become an ecosystem expander to re-energise consumer engagement. Coach, for example, recently reported quarterly growth of 13 per cent despite muted consumer demand, crediting part of its performance to its signature Cherry bag charm. “Our bag charms and straps also contributed to our momentum, providing consumers with further opportunities for personalisation and customisation with the Cherry Bag charm remaining a particular Gen Z favourite as a way to enhance self-expression,” Todd Kahn, CEO and brand president of Coach, said in the company’s earnings call.  “A customer might buy a bag, then come back a few weeks later for a charm, a strap or a piece of jewellery,” Kahn told Glossy. “It’s the charm economy, and the economics of that are really compelling.” Luxury houses are now experimenting with limited-edition charms released in tandem with seasonal collections, creating miniature versions of the exclusivity long associated with handbags. Last year, Balenciaga introduced the Charms Bar collection, including micro bag charms inspired by its Le City and Rodeo bags and colourful keyrings like the Heart, Le City and customisable Qwerty charms. Several designs incorporate functional elements such as a lipstick holder, clochette, coin pouch, or AirPods case. Even Louis Vuitton has expanded its offerings beyond its signature bag tags and luggage charms, introducing collectible character charms tied to seasonal collections, including Louis Vuitton’s ‘Vivienne Fashionista’ and ‘Louis Bear’ bag charms.  According to Neil Saunders, MD and retail analyst at GlobalData, luxury firms have leaned into this as a way of generating incremental revenue.  “And while their charms can cost a small fortune, they’re still more of an entry point into the brand than buying a new bag, so it widens the audience,” he said.