The global leather goods market was valued at US$ 220.71 billion in 2016 and is expected to reach US$ 336.71 billion by 2025, witnessing a CAGR of 5.02% over the forecast period (2017 - 2025), according to Leather Goods Market Report, by Product Type (Footwear, Luggage, Wallets & Purses, Apparel and Others), by Distribution Channel (Hypermarkets, Supermarkets, Convenience Stores, Online Stores, and Others).
The advantageous properties of leather such as high tensile strength, permeability to water vapor, resistance to tear, and others makes leather unique and a valuable material for upholstery purposes, results in increasing demand for leather goods, which in turn is fueling market growth. Increasing inclination of consumers towards aesthetic appeal coupled with increasing per capita expenditure are driving growth of the leather goods market. According to United States Department Labor, Bureau of Labor Statistics, in U.S., the average per capita expenditure was US$ 57,311 in 2016, with a 2.4% increase from 2015.
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Browse 250 pages, 110 market data tables* and 90 figures* on "Leather Goods Market” - Global forecast to 2025.
Key Trends and Analysis of the Leather Goods Market:
- Among product types, the footwear segment accounted for highest market share of 55.30%, in 2016. The footwear segment accounts for the largest share in leather goods market. According to European Union, in 2015, around 40% of the leather shoes were made in China, followed by Italy, Mexico, Brazil, and India.
- Among distribution channel, the specialty stores accounted for the largest market share in global leather goods market in 2016, over the forecast period owing to growing manufacturers focus on advertising, marketing, and promotional activities. Chanel and Adidas Group are some of the specialty stores offering leather products. For instance, in 2015, Net-a-Porter, launched Prada’s, one of the market player, fall runway pieces along with leather goods.
Key Takeaways of the Market:
- According to ’ analysis, Asia Pacific held a largest market share both in terms of value and volume in the global leather goods market in 2016. The market is driven by increasing leather footwear production in this region. According to India Brand Equity Foundation (IBEF), India ranks second in terms of leather garments and footwear production and the country accounted for 9% of the world’s footwear production. Also, China and India are the major leather producing economies in world. According to United States Department of Agriculture (USDA), China is leading the leather goods market in terms of production and export volume of leather accessories, luggage, footwear, and handbags, producing 7.75 billion each year. Furthermore, the market is also driven by increasing innovations and new technologies in leather goods. For instance, in March 2017, Radio Frequency Identification (RFI) technology wallets were launched by Hidesign, which is designed to prevent electronic pick pocket and to protect information on debit and credit cards.
- The Government of India has taken various initiatives to support leather industry sector. For instance, in December 2017, the Union Cabinet approved US$ 0.4 million incentive to labor incentive leather and footwear sector with a view to boost exports and manufacturing. Furthermore, the government has also allowed 100% Foreign Direct Investment (FDI) in leather industry sector and repatriation of profits and dividends, hence incentivizing foreign players to invest in the leather industry sector.
- Most of the manufacturers are focusing towards adopting various organic and inorganic growth strategies such as merger and acquisitions in order to extend their global position. For instance, in November 2016, Piquardo company, an Italian leather goods company acquired The Bridge S.p.A., owned by Florentine Leather Goods Company, to start a process of combining accessories brands.
- The key players operating in leather goods market include are 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, Will Leather Goods, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation.