Leather goods market

Leather Goods Market, By Product Type (Footwear, Luggage, Wallets & Purses, Apparel, and Others), By Distribution Channel (Hypermarkets, Supermarkets, Convenience Stores, Online Stores, and Others), and By Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2022 - 2030

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Jan 2023
CMI1439
152 Pages
Excel & Pdf
Consumer Goods

Summary

The products made from animal hide by means of tanning, are referred to as leather goods. The process of tanning animal hide makes it suitable for various applications such as wallets, clothing, footwear, and others. The inherent qualities of leather such as dustproof, fireproof, crack-proof, and durability are expected to increase the growth of the Global leather goods market.

Global leather goods market was valued at US$ 2932.5 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.18% during the forecast period (2022 to 2030).

Drivers

Designers worldwide showcase new apparel through fashion shows and events, thereby attracting more consumers toward leather clothing For instance, in September 2020, the Forever Leather Fashion show was organized in Shanghai, China. The show displayed a variety of leather products, including a range of modern-style jackets, cross-stitched trench coats, travel bags, leather sneakers, duffel bags, and ankle boots. Such instances bring together hundreds of thousands of leather buyers, manufacturers, and designers from different provinces.

An increasing number of High-Net-Worth Individuals (HNWIs), coupled with the growing trend of designer and branded clothes in major markets, such as the U.S., France, and China, is boosting the demand for leather products. Leather goods are exclusive and often premium priced. The demand for leather products is significantly growing in China owing to the increasing number of High Net worth Individuals (HNWIs) and Ultra-High Net worth Individuals (UHNWIs) in the country. According to the Global Wealth Report 2019, published in October 2019, by Credit Suisse Group AG, in 2018, China had 10% of the world’s total HNWIs.

The COVID-19 pandemic has had a negative impact on the overall leather industry, including footwear, apparel, and accessories. Retailers faced severe losses during the first two quarters of 2020. According to a report by World Footwear in 2021, the sales of footwear declined by close to 32% in the U.S. at the end of 2020. Low demand for footwear, in general, is subsequently expected to decrease the sales of leather shoes. Many manufacturers in the industry have historically relied on China for finished products as well as raw materials used in the manufacturing of various leather goods. The pandemic has, however, disrupted the supply chain, causing severe losses in terms of product shipment and on-time delivery.

Figure 1. Global Leather Goods Market Value Share (%), By Region, 2021

Market Restraints

Low availability of raw materials, availability of synthetic alternatives such as plastic leather, and availability of leather goods at low cost are some of the factors restraining the growth of the global leather goods market.

Leather Goods Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 293.5 Bn
Historical Data for:	2017-2020	Estimated Year:	2022
Forecast Period 2022 to 2030 CAGR:	5.18%	Forecast Period:	2022-2030
Geographies covered:	By Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Segments covered:	By Product type: Footwear, Luggage, Wallets & Purses, Apparel, Others By Distribution Channel: Hypermarkets, Supermarkets, Convenience Stores, Online Stores, Others
Companies covered:	LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermès International S.A., Dolce & Gabbana Luxembourg S.à.r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation.
Growth Drivers:	Increasing number of High-Net-Worth Individuals (HNWIs) Growing trend of designer and branded clothes
Restraints & Challenges:	Low availability of raw materials Availability of synthetic alternatives

Market Trends

With the increase in disposable income of individuals, the demand for luxury goods has also increased. These goods often symbolize a sense of accomplishment within individuals, giving them higher self-esteem. Europeans and North Americans are known to spend most on luxury goods, owing to higher household income. An upward thrust can be seen in this matter in the Asian region as well. Leather goods form a major part of luxury goods. Luxury leather products include exclusive handbags, accessories, and shoes, which appeal to affluent individuals. In the case of the personal luxury segment, leather goods are the fastest-growing segment that attracts extravagant customers.

The growing government support for the leather industry is further driving the market growth. For instance, in India in 2020, foreign direct investment allowed for the manufacturing of leather products through an automatic route. Between April 2000 and September 2021, the cumulative Foreign Direct Investment (FDI) equality inflow in the case of the Leather, Leather Goods, and Pickers Industry was US$ 218.69 million.

Figure 2. Global Leather Goods Market Value Share (%), By Product Type, 2021

Recent Developments

In January 2021, Adidas AG, a Germany-based multinational corporation that designs and manufactures shoes, clothing, and accessories, announced the launch of a new line of trainers made from mushroom leather as a part of its sustainability drive
In January 2021, Nike, Inc., a U.S.-based multinational corporation engaged in design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services, launched its first SB Dunk sneakers made from vegan leather. The sneakers are cruelty-free and are part of the Zero Waste Initiative 2019 by Nike.
In August 2020, PUMA SE, a Germany-based multinational corporation that designs and manufactures athletic and casual footwear, apparel, and accessories, announced the release of its first three Xetic sneakers with Porsche design. The collection included both casual as well as performance wear made with 100% recycled mesh material, 100% chrome-free leather, and liners with 30% algae.

Competitive Section

Major players operating in the global leather goods market include LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermès International S.A., Dolce & Gabbana Luxembourg S.à.r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation.

Table of Content

Table of Contents

* Browse 50 market data tables* and 40 figures* on “Global Leather Goods Market” - forecast to 2030.

Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What was the global leather goods market size in 2021?

Global leather goods market was valued at around US$ 293.5 Billion in 2021.

What are the major factors that are expected to drive the growth of the market during the forecast period?

Increasing number of High-Net-Worth Individuals (HNWIs), coupled with the growing trend of designer and branded clothes in major markets, such as the U.S., France, and China, are expected to propel the growth of the market over the forecast period

What are the trends in the market?

Increase in disposable income of individuals and growing government support for the leather industry are some of the main trends in the market.

What are the key factors hampering the growth of the market?

Low availability of raw material act as restraint to the market growth.

Which are the key players in the market?

Major players operating in the market include LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermès International S.A., Dolce & Gabbana Luxembourg S.à.r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation.

What is the estimated CAGR for the market?

The market is estimated to exhibit a CAGR of 5.18 % during the forecast period (2022-2030).