Luggage and Leather Goods Market to reach around US$ 418.5 Billion by 2027 - Coherent Market Insights

Luggage and leather goods are products that are produced from animal skins such as sheep, bovine, and goat skins. Leather goods composed of footwear, purses, wallets & belts, handbags, and other leather goods. Leather luggage could be trolley bags and suitcases which are used to carrying personal belongings. These products are highly durable and also offer an aesthetic look to the products. They are dustproof, fireproof, and crack-proof, thus these properties are raising their demand across the consumer. Across military sector leather products are used to produce harness, belts, holsters, saddles, and footwear for soldiers. These products can be available across general retailers, single brand stores, specialty and multi-brand stores, unorganized small stores and online stores.

The global luggage and leather goods market is estimated to account for around US$ 267.0 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 5.2% during the forecast period (2019-2027)

Drivers

Rising demand for leather products for automotive application is expected to fuel the market growth of luggage and leather goods over the forecast period. According to the Colourlock, in 2017, -160,000 leather hides were daily processed for the car industry. 73% were chrome-tanned leather and 27% were chrome-free leather. 34.7% of the car industry's crusts were from South America, 27.8% from Europe, 19.2% from Asia, 14.3% from Central and North America and 4% from Africa.

Market Opportunities

Increasing production of organic leather products which utilizes vegetable and plant tannins due to rising environmental concern is expected to fuel the market growth of luggage and leather goods. Rising demand for organic leather products across consumer will favor the market growth in the near future. For instance, in February 2019, Hidesign has launched a new line of bags and accessories for both men and women made from East India leather. The collection showcases the natural vegetable tanning method used to produce the leather on its natural hued bags

Market Restraints

Strict regulations on the treatment of chemicals and effluents across countries such as 

India, Poland, and Nepal is projected to hamper the market growth of luggage and leather goods. These are hazardous chemicals and effluents which impact the health of flora and fauna, and thus affecting the ecological balance. This factor is expected to restrict market growth.

Key Takeaways:

On the basis of the product type, leather goods segment dominated the global luggage and leather goods market in 2018 with a 91.6% of market share in terms of value, followed by luggage.

Market Trends

Increasing focus of manufacturer on managing the waste released during leather processing is expected to fuel the market growth in the near future. For instance, in October 2017, the Burberry Foundation has announced a five-year partnership with London-based sustainable accessories brand Elvis and Kresse to tackle the waste created by the leather industry. Rising such initiatives by key players are expected to propel the market growth.

Many manufacturers are introducing lightweight luggage to cater to rising demand for lightweight luggage around the globe is expected to accelerate market growth. For instance, in February 2017, the Timberland Company launched Flyroam sneaker in black and beige color, made up of leather and canvas in order to offer lightweight and flexible shoes to its customers. This is expected to fuel the market growth.

Competitive Section:

Key players operating in the global luggage and leather goods market are Knoll, Inc., American Leather, Inc., Aero Leather Clothing Ltd., Samsonite International S.A., VIP Industries Ltd., LVMH Moët Hennessy Louis Vuitton SE, Timberland, Johnston & Murphy, Woodland, and Hermes International SA

Few Recent Developments

Aero Leather Clothing Ltd. 

Key Developments:

• In February 2015, the company launched an Italian vegetable tanned full-grain horsehide called Vicenza. Available in the black, dark seal, seal brown, and russet colors. The product was launched to increase the company’s vintage product portfolio. 
• In February 2017, the company announced that it would add unique leather clothing in their warehouses by importing from Japan, Europe, and the U.S. along with some special pieces of original vintage clothing including rare collector's items from the 1930s and 1940s

Market Taxonomy

By Product Type

• Leather Goods
• Footwear
• Clothing and Apparel
• Clutches and Wallets
• Upholstery (Furniture and Automotive)
• Leather Accessories
• Others
• Luggage
• Rolling Luggage
• Duffle Bags
• Suitcases and Briefcases
• Backpacks
• Totes and Hand-luggage
• Others

By Sales Channel

• General Retailers
• Single Brand Stores
• Specialty and Multi-brand stores
• Unorganized small stores
• Online
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa