Leather Goods Market Size & Industry Report, 2033

LEATHER GOODS MARKET OVERVIEW

The global Leather Goods Market size was valued approximately USD 123.45 Billion in 2024 and will touch USD 197.17 Billion by 2033, growing at a compound annual growth rate (CAGR) of 5.34% from 2024 to 2033.

The word "leather goods" refers to a wide range of products made from tanned and treated animal hides for durability and beauty. Bags, wallets, belts, shoes, jackets, and other accessories are among the offerings. Leather is a popular material for both luxury and utilitarian items due to its strength, flexibility, and timeless appearance. The leather industry has four phases: raw material procurement, tanning, design, and manufacture.

COVID-19 IMPACT

“Pandemic-Induced Disruptions and Shifts in Consumer Behavior”

The COVID-19 epidemic has caused substantial supply chain disruptions and a shift in customer behavior in the global leather goods industry. The pandemic-induced global financial crisis put the leather industry at risk of insolvency or near-bankruptcy, resulting in company closures or downsizing. Furthermore, the epidemic's economic turbulence and job losses affected consumer spending power, resulting in lower global demand for leather items. This has resulted in supply shortages, hindered production, postponed delivery, and a drop in consumer trust.

LATEST TREND

”Synthetic and vegan leather product innovation and development continues to grow”

Eco-friendly and cruelty-free products have gained popularity in recent years. As a result, purchasers are becoming more wary about purchasing animal-derived products or those that may have damaged animals throughout the manufacturing process of various commodities. Furthermore, the increased use of synthetic leather in the automotive, textile, and furniture industries is hastening its growth. Vegan leather is produced mechanically from food industry waste, including mushroom leather, apple leather, and others. These alternatives are suitable for footwear and apparel production as they possess a smooth texture and durability due to the combination of PV-based coating.

LEATHER GOODS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Natural Leather Goods, Artificial Leather Goods.

Natural Leather Goods: Natural leather goods are created from the skin or hide of animals, usually cattle, and have been processed to produce a durable and flexible material.
Artificial Leather Goods: Synthetic leather, or artificial leather products, are manufactured from synthetic materials that replicate the texture and appearance of real leather. This kind of leather is frequently utilized in products like furniture, shoes, and car interiors where affordability and longevity are important considerations.

By Application

Based on application, the global market can be categorized into Footwear, Clothing, Automotive Interiors, Luggage and Other.

Footwear: Leather footwear is made of genuine or synthetic leather and includes shoes, boots, and sandals that are attractive, comfortable, and long-lasting. They dominate the leather market and are used for both functional and decorative functions.
Clothing: Leather clothing, such as coats, skirts, and pants, combines durability with a sophisticated appearance. It is noted for its classic design and durability.
Automotive Interiors: Leather automotive interiors complement the interior aesthetics of cars, airplanes, and other vehicles. It is chosen for its first-class experience, durability, and ease of cleaning.
Luggage: Leather luggage includes suitcases, handbags, and backpacks, and is popular for its stylish look and rugged nature. They cater to both the practical and luxury markets.
Others: This category contains belts, wallets, watch straps, and other leather accessories. Widely used for both personal and professional use, these items combine functionality with style.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Rise in Demand for Luxury Goods to Propel Market Growth”

Luxury goods have observed a rise in demand in recent years owing to the industry's rapid digital transformation and the number of new product launches. The emerging market, which includes developing countries such as India, is a significant growth contributor. The growing prevalence of original natural leather as a luxury product and the rise in the use of original leather in fashion shows and by designers are further driving the global market. In addition, companies' efforts, such as omnichannel sales, will further fuel the demand and attract a larger audience. The rise in social media marketing trends by luxury brands has widened its reach by covering a large geographical region.

Restraining Factor

”Leather production has a negative impact on the environment”

Currently, the process of producing leather from animal skins and hides is associated with various sustainability issues such as deforestation, water waste, gas emissions, etc. Deforestation of different forests such as the Amazon for grazing leather production also contributes to climate change. The tanning process during production is one of the important factors causing environmental pollution, as a higher percentage of production units still use chrome tanning. In addition, the carbon footprint of animal leather has triggered criticism from environmentally conscious consumers and businesses. These factors have led to stricter regulations and close scrutiny of production practices, posing severe challenges to traditional leather brands and limiting the market boom.

Opportunity

”Expanding the adoption of vegan leather and technological innovations”

The increasing popularity of vegan leather made from natural plant-based components like pineapple, cactus, and mushrooms presents enormous prospects for the leather goods sector. These environmentally friendly choices satisfy consumer demand for sustainable goods. Modern leather goods, including RFID-enabled attachments, can also be produced thanks to advancements in production technology, such as 3D printing and smart fabrics. Expanding e-commerce sites and unexplored marketplaces in developing nations also give market participants the chance to diversify broadly and make a profit.

Challenge

”High production costs and supply chain disruptions”

The leather goods market faces severe challenges from high production costs associated with sustainable and premium leather products, impacting consumer affordability. Price fluctuations for raw materials can put pressure on margins, particularly for natural leather. Production and delivery timetables have been delayed by supply chain interruptions brought on by trade restrictions, pandemic aftershocks, and geopolitical conflicts. Furthermore, producers find it challenging to balance cost effectiveness and sustainability due to the increasing competition from low-priced synthetic leather products and the requirement to adhere to stringent environmental requirements.

LEATHER GOODS MARKET REGIONAL INSIGHTS

North America

The growth of North America's leather goods market share is driven by high consumer demand for luxury and sustainable products, as well as advancements in manufacturing technology. In order to solve environmental challenges, the region is progressively embracing green leather solutions and enjoys the advantages of a robust retail and e-commerce network. Due to consumers' strong demand for branded, premium goods, the US leads the North American leather goods market. Sustainability trends and breakthroughs in vegan leather are transforming the landscape of leather goods use in the United States.

Europe

With an emphasis on high-end and luxury items, the business is being driven by consumer demand for quality, longevity, and elegance. With over 36,000 enterprises in the leather sector, Europe is a prominent player in the global market. In terms of leather and raw materials, the region is known for producing some of the most expensive calfskins. Because leather purses and travel bags are still in high demand, the leather accessory market in Europe is predicted to grow quickly. High-quality production is ensured by Europe's indigenous manufacturing knowledge, which increases the allure of European workmanship and maintains a high demand for luxury goods.

Asia

Urbanization, altering fashion preferences, and more disposable income are all contributing to a rapid expansion of the Asian leather products sector. With an increasing demand for high-end and moderately priced leather goods, China, India, and Japan are key customers and producers. Asia is a center for the production of leather as well, with reasonable costs and superb craftsmanship. In addition, sustainability concerns are driving innovation in opportunistic leather materials, which are gaining popularity in the Asian market alongside traditional leather products.

KEY INDUSTRY PLAYERS

”Market participants cooperate and compete”

The market is characterized by the presence of various well-established players. The increasing demand for leather footwear & other goods by consumers is primarily driving the competition in the market. These businesses dominate the market through their prestigious portfolios, which characteristic excessive-quit leather-based merchandise ranging from handbags to shoes.

List of Top Leather Goods Companies

Hermes International (France)
LVMH Moët Hennessy Louis Vuitton (France)
Kering (France)
Prada (Italy)
Capri Holdings (U.S.)
Vf Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS

January 2022 - Thrasio-Style Mensa Brands announced the acquisition of Estalon. The acquisition is to fulfill the rising demand for leather products, with the help of expanding the Thraiso-Style Mensa Brands footprint with the expertise of Estalon in data-based insights, digital marketing, and enhancing operational efficiencies.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

Consumers' increasing need for long-lasting, high-quality goods is fueling the leather goods market's current steady growth. Urbanization, growing disposable incomes, and the desire for luxury and high-end products all have an effect on the market. Customers still choose leather products, especially accessories, shoes, and purses. As customers become more aware of environmental issues, sustainable and eco-friendly manufacturing processes gain appeal. The market is expected to expand in the future, with a focus on innovative design and materials, as well as the incorporation of technology into product offerings such as smart leather goods.