Leather Goods Market - Growth, Trends, and Forecasts (2023- 2028)

The Global Leather Goods Market is segmented by Product Type (Footwear, Luggage, and Accessories), Distribution Channel (Offline and Online Retail Stores), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers the market size and forecast of leather goods in value (in USD million) for all the above-mentioned segments.

Leather Goods Industry Overview

Leather Goods Market Summary
Study Period: 2017-2027
Fastest Growing Market: Asia-Pacific
Largest Market: Europe
CAGR: 6.2 %

Major Players

Leather Goods Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Leather Goods Market Analysis

The global leather goods market is projected to record a CAGR of 6.2% in the upcoming five years.

In the clothing industry, there is an increased use of leather due to its durable nature and premium appearance, which make it an excellent choice for clothing production. This is one of the major factors driving the uptake of leather in the market at the moment. Furthermore, leather goods are becoming increasingly popular as a result of fashion shows that showcase leather goods like jackets, shoes, bags, and other accessories that are promoting leather goods in the forecast period. The market players are introducing innovative and trendy products to meet the demands of the consumers and to maintain a loyal customer base, which is contributing to the growth of the market.

Additionally, consumers prefer compact and stylish leather goods and luggage. With changing fashion trends, men's accessories like leather bracelets, necklaces, and gloves are becoming increasingly popular. Thus, in the coming years, fashion trends are likely to change significantly, which will help to grow the industry. Furthermore, the growing government support for the leather industry is further driving market growth. For instance, in India, 100% FDI is allowed for the manufacturing of leather products through an automatic route. Between April 2000 and September 2021, the cumulative foreign direct investment (FDI) inflow in the case of the leather, leather goods, and pickers industries was USD 218.69 million.

Leather Goods Industry Segments

Leather goods are products made out of material from tanning hides and the skin of animals, mainly cattle. The process of tanning helps prevent the leather from being damaged while also smoothing its texture. The leather goods market is segmented on the basis of product type, distribution channel, and geography. Based on product type, the market is segmented into footwear, luggage, and accessories. The market is segmented by distribution channel into offline and online retail stores. The research also includes a global level analysis of the major regions, which include North America, Europe, Asia-Pacific, South America, the Middle East, and Africa. The market sizing and forecasts for each segment are based on value (in USD million).

By Product Type
Footwear
Luggage
Accessories
By Distribution Channel
Offline Retail Stores
Online Retail Stores
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Spain
United Kingdom
Germany
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
South Africa
United Arab Emirates
Rest of Middle-East and Africa

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Leather Goods Market Trends

Increased Demand for Luxury Goods

As people's spending money has gone up, the demand for luxury goods has also gone up.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 their higher household incomes. 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.

Hence, the companies are expanding their product portfolios with new product launches to attract extravagant customers. For instance, in August 2022, luxury brand Aman Essentials launched the first collection of leather products in its extensive range. In addition to passport cases, handbags, wallets, and more, the brand's new Leather Collection includes 19 items. Using authentic leathers sourced from artisanal calf, lamb, and goat skins, each of the leather items in the new collection is handcrafted in Italy and France using a process that is inspired by traditional artisanal processes.

Furthermore, various brands are expanding their product portfolios in the men's segment as fashion consciousness grows among men and women. There is also a growing segment of the market for affordable luxury brands in addition to traditional luxury brands. As a result, a number of startups have created customized luxurious products that cater to the needs of consumers. A leather handbag from 1 Atelier, for example, can be customized in both color and hardware. Sales of these products are driven by their strong brand recognition and high unit price.

Leather Goods Market : Net sales of the Prada Group (in million euros), by Prada brand, 2016-2021

Europe Emerges as the Largest Consumer of Leather Goods

Some of the main things that are making the European market grow are the large number of local and international players, new products and technologies, the rise of online shopping, and the use of social media platforms.The increasing fashion consciousness, rising disposable incomes, and increasing demand for attractive bags drive the sales of luggage and leather goods in the region. Moreover, the growing interest in travel and unique experiences among consumers is boosting the demand for leather goods, such as luggage bags, especially in the luxury segment, as consumers increasingly look for high-quality items. Furthermore, with the strong presence of fashion-driven countries such as France and Italy, the region remains the market's largest consumer.

In the international leather trade, Europe plays an important role. According to the UN Comrade database, in 2021, the number of leather goods imported into France increased significantly, reaching approximately USD 5.22 billion, up from USD 4.2 billion in the previous year. Additionally, leather is the world's largest international export from the EU industry. Among the leather goods exported by Europe in 2021, approximately USD 31.9 billion, compared to USD 24.8 billion the previous year, was reported by the International Trade Centre. In terms of raw materials and leather, the European Union produces some of the highest-valued calfskins. A majority of tanners in the European Union are family-owned, small- and medium-sized enterprises with strong regional concentrations. The availability of raw materials and export markets is crucial for tanners in the European Union.

Leather Goods Market : Market Size (%), by Geography, Global, 2021

Leather Goods Market Competitor Analysis

The leather goods market is highly competitive. In the organized sector, a few key players hold a major market share, whereas in the unorganized sector, many small players are competing to gain market share. Adidas, Samsonite, and Kering are some prominent players in the global market. Major players are focusing on introducing new product offerings in the market to cater to the interests of consumers as per the ongoing fashion trend among goods like footwear, accessories, and luggage bags. Expansion is the next strategy preferred by companies to strengthen their dominance in the leather goods market. Major players are constantly trying to expand their production facilities or retail outlets to accommodate the growing demand and strengthen their strategies for market development. ​

Leather Goods Market Top Players

  1. Kering SA

  2. Samsonite IP Holdings S.ÀR.L.

  3. Tapestry, Inc.

  4. Adidas AG

  5. Hermès International S.A.

*Disclaimer: Major Players sorted in no particular order

Leather Goods Market Concentration

Leather Goods Market Recent Developments

  • October 2022: LVMH expanded its presence in Italy with the opening of new Fendi and Bulgari production facilities. Even though costs are going up, LVMH keeps putting a lot of money into its Italian production line.
  • October 2022: Prada, a high-end fashion brand, recently opened a factory near Sibiu, Romania. In the new factory, Prada will manufacture parts of its leather products. Hipic Prod Impex, now part of the Prada group, operates the factory in Sibiu's West Industrial Zone, measuring 31,000 square feet.
  • April 2022: In conjunction with a USD 3 million philanthropic grant from the Tapestry Foundation, which promotes social and environmental justice, Tapestry, Inc., a New York-based luxury accessories and lifestyle brand house including Coach, Kate Spade, and Stuart Weitzman, announced a partnership with the World Wildlife Fund (WWF). In order to encourage a more sustainable future for the leather industry in Brazil, this grant will be used to develop an innovative system for enhancing traceability within the leather value chain.

Leather Goods Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Defintion

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Footwear

      2. 5.1.2 Luggage

      3. 5.1.3 Accessories

    2. 5.2 By Distribution Channel

      1. 5.2.1 Offline Retail Stores

      2. 5.2.2 Online Retail Stores

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Spain

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Germany

        4. 5.3.2.4 France

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Russia

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 South Africa

        2. 5.3.5.2 United Arab Emirates

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Position Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Kering SA

      2. 6.3.2 Hermes

      3. 6.3.3 Samsonite IP Holdings S.AR.L.

      4. 6.3.4 Tapestry Inc.

      5. 6.3.5 Adidas AG

      6. 6.3.6 Prada

      7. 6.3.7 LVMH

      8. 6.3.8 Capri Holdings Limited

      9. 6.3.9 Moncler SpA

      10. 6.3.10 Compagnie Financiere Richemont SA

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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Leather Goods Market Research FAQs

The Leather Goods Market market is studied from 2017 - 2027.

The Leather Goods Market is growing at a CAGR of 6.2% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

Kering SA, Samsonite IP Holdings S.ÀR.L., Tapestry, Inc., Adidas AG, Hermès International S.A. are the major companies operating in Leather Goods Market.

Leather Goods Industry Reports

In-depth industry statistics and market share insights of the Leather Goods sector for 2020, 2021, and 2022. The Leather Goods research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Leather Goods report PDF.

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