Leather Goods Market Share, Size, Trends, Industry Analysis Report, By Type (Genuine Leather, Synthetic Leather, Vegan Leather); By Product; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 118
- Format: PDF
- Report ID: PM3235
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global leather goods market was valued at USD 255.45 billion in 2023 and is expected to grow at a CAGR of 6.7% during the forecast period. Rising consumer disposable income, higher living standards, shifting fashion trends, and expanding domestic and international tourism are the main market drivers. The market for leather goods is anticipated to benefit from expanding consumer demand for stylish, trendy, and comfortable leather clothing, accessories, and footwear.
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Designers from all over the world present their newest outfits at fashion shows and other events in order to increase consumer interest in leather clothing. On leather clothing and other fine outfits, numerous design techniques, such as brocade, Lamé, and applique, are frequently utilized. For instance, the Forever Leather Fashion show was held in Shanghai, China, in September 2020. Many modern-style jackets, cross-stitched trench coats, travel bags, leather shoes, duffel bags, and ankle boots were among the leather goods on display during the show. Several thousands of leather customers, producers, and designers from many provinces come together in such situations.
The demand for leather goods is rising as more High-Net-Worth Individuals (HNWIs) become wealthy and designer and branded clothing become more popular in important markets like the U.S., France, and China. Exclusive and frequently expensive, leather items are a luxury. Due to the country's growing population of HNWIs and Ultra-High Net Worth Individuals (UHNWIs), the demand for leather goods is rising dramatically in China. China accounted for 10% of all HNWIs worldwide in 2018, according to Credit Suisse Group AG's World Wealth Report 2019, which was released in October 2019.
The demand for sustainable items has increased as people are becoming more aware of the negative effects of unethical activities in the creation of clothing and footwear. Due to the promotion of sustainability by numerous well-known designers, sustainable fashion is progressively drawing consumers. Designers like Stella McCartney have been promoting sustainable fashion items, including footwear, in cost-effective retailers like Top Shop and Zara, which is anticipated to fuel the market for leather goods throughout the forecast period.
The COVID-19 pandemic has harmed the leather industry, including the sectors of footwear, clothing, and accessories. Throughout the first two quarters of 2020, retailers suffered significant losses. At the end of the first two quarters of 2020, World Footwear reported that footwear sales had decreased by almost 32% in the United States. As a result, it is anticipated that sales of leather shoes would decline due to the general lack of demand for footwear. China has historically been a major source of raw materials and finished goods for many firms in the market who produce different leather goods. Yet, the pandemic has seriously hurt on-time deliveries and product shipments by disrupting the supply chain.
Industry Dynamics
Growth Drivers
Due to the industry's rapid digital transition and the quantity of new product launches, demand for luxury products has increased recently. A major driver of growth is the rising leather goods market, which includes growing nations like India. The global market is also being driven by the rising demand for original natural leather as a luxury good and the increased usage of original leather in runway displays and by fashion designers.
Due to its convenience, the luxury goods e-commerce sales channel has made a substantial contribution to revenue development. Also, businesses' initiatives, like omnichannel commerce, will increase demand and draw in a bigger audience. Luxury businesses' increased use of social media marketing trends has increased its geographic reach.
Internationally shifting fashion trends have compelled industry participants to launch cutting-edge and popular products in order to satisfy consumer demand and preserve a devoted customer base. Also, shoppers choose attractive, portable leather products and baggage. When fashion trends alter, men's accessories like leather gloves, bracelets, and necklaces have gained popularity. As a result, the market will expand over the next few years as fashion trends change.
The expansion of local and worldwide tours has contributed to the expansion of numerous industries. Easy-to-handle leather baggage bags are more popular. Leather baggage that can withstand hard handling at any moment is required for lengthy travel. As a result, buyers select more expensive, higher-quality leather bags for easier travel.
Report Segmentation
The market is primarily segmented based on type, product, and region.
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By Type |
By Product |
By Region |
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In 2022, the footwear segment dominated the market, accounting for the largest market share.
The footwear segment held the largest market share. Given the rising customer demand for leather athletic footwear, major athletic footwear manufacturers like Nike, New Balance, Adidas, Puma, Reebok, Allbirds, and Converse have entered the leather athletic footwear production market. As an illustration, Nike, Inc. introduced sneakers made of fly leather in 2017; this novel material was created by fusing discarded leather scraps from tanneries with a polyester blend.
The automotive accessories is anticipated to expand at the quickest CAGR. The market for leather vehicle accessories, especially in the elite class, is mostly driven by rising spending on luxury cars, leather's stain-resistance, and the luxurious appearance it offers.
The demand in Asia Pacific is expected to witness significant growth.
Asia Pacific dominated the world market. The market for premium and luxury goods in the Asia Pacific area is growing, with nations like China and India leading the way. In Asia, Bangladesh and Pakistan are significant raw material (primary) leather suppliers. The managing director of Leatherex Footwear Industries Ltd., Mohammed Nazmul Hassan, claims that 15 to 20 new factories producing leather goods and footwear are established in Bangladesh each year. Bangladesh is a desirable market for foreign leather goods brands due to the country's relatively cheap tariff rates on exported leather goods.
During the forecast period, Europe is anticipated to expand at a high CAGR. Belts, handbags, and other related categories hold the potential to be profitable leather products that will increase demand for leather goods in the area. Europe is a major role in the worldwide leather trade. The European leather and allied goods industry has more than 36,000 companies. The region produces some of the most expensive calfskins in terms of leather and other raw materials. The market for leather accessories will grow quickly in Europe as a result of the persistently high demand for purses and travel bags made of leather.
Competitive Insight
Some of the major players operating in the global leather goods market include Adidas AG, Nike, Inc., Puma SE, Fila, Inc, New Balance Athletics, Inc, Knoll, Inc, Samsonite International S.A, VIP Industries Ltd, Timberland LLC and Johnston & Murphy.
Recent Developments
- In October 2022: Prada recently opened a factory near Sibiu, Romania. In the new factory, Prada will manufacture parts of its leather products. Hipic Prod Impex operates the factory in Sibiu's West Industrial Zone.
Leather Goods Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 271.83 billion |
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Revenue forecast in 2032 |
USD 457.53 billion |
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CAGR |
6.7% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Type, By Product, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Key companies |
Some of the major players operating in the global market include Adidas AG, Nike, Inc., Puma SE, Fila, Inc, New Balance Athletics, Inc, Knoll, Inc, Samsonite International S.A, VIP Industries Ltd, Timberland LLC and Johnston & Murphy. |
FAQ's
key companies in leather goods market are Adidas AG, Nike, Inc., Puma SE, Fila, Inc, New Balance Athletics, Inc, Knoll, Inc, Samsonite International S.A, VIP Industries Ltd, Timberland LLC and Johnston & Murphy.
The global leather goods market expected to grow at a CAGR of 6.7% during the forecast period.
The leather goods market report covering key segments are type, product, and region.
key driving factors in leather goods market are rising demand for comfortable, trendy, and fancy footwear.
The global leather goods market size is expected to reach USD 457.53 billion by 2032.
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