Asia-Pacific Leather Goods Market – Industry Trends and Forecast to 2030

Asia-Pacific Leather Goods Market Analysis and Insights

Increasing innovation in leather goods with new features and designs and introducing bio-based leather are expected to provide opportunities in the Asia-Pacific leather goods market. However, rising awareness regarding the detrimental effects of unethical practices in producing leather goods and lack of skills, technology, intermediate inputs, and processing equipment is projected to challenge the market growth. The low availability of raw materials, the availability of synthetic alternatives such as plastic leather, and the availability of leather goods at low cost are some factors restraining the market growth.

The Asia-Pacific leather goods market report provides details of market share, new developments, and the impact of domestic and localized market players, analyzes opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario contact us for an Analyst Brief, our team will help you create a revenue impact solution to achieve your desired goal.

The Asia-Pacific leather goods market is expected to gain significant growth in the forecast period of 2023 to 2030. Data Bridge Market Research analyzes that the market is growing with a CAGR of 7.3% in the forecast period of 2023 to 2030 and is expected to reach USD 164,326.57 million by 2030. The major factor driving the market growth is the rapidly expanding fashion industry which has greatly increased consumer demand for high-quality, premium, and luxury leather products.

Market Definition

Leather goods are articles that are made out of leather. They can come in various products such as clothing, footwear, bags, gloves, and others. Due to the characteristics of leather such as dustproof, fireproof, and durability, leather goods are preferred over other resources. The increasing leather requirement in clothing production is driving market growth.

Asia-Pacific Leather Goods Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:

Drivers

• Increase in the demand for premium and high-quality luxury leather products

The rapidly expanding fashion industry has greatly increased consumer demand for high-quality, premium, and luxury leather products. Customers value aesthetics and seek high-end products to create a fashion statement. Moreover, 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 luxury leather products. Leather goods are exclusive and often premium priced.

• Low-cost and heavy-duty construction of synthetic leather products

Synthetic leather, which is also known as Faux leather, is cheaper than real leather, animal-friendly, can be produced in virtually every color, can be manufactured to feature a high gloss finish, can be easily cleaned with a damp cloth, requires little maintenance, does not crack as easy as real leather, is UV fade resistant and does not have the real leather smell, which is expected to draw its demand in the forecast period. Faux Leather is a man-made product and is very durable. These days Faux Leather is usually stronger than real leather. Artificial leather such as pleather, Naugahyde, vegan leather, barkcloth, cork, glazed cotton, and recycled PET polyester is available in the market. Pleather is commonly used to make artificial leather clothing. It is made from plastic and is less costly and lighter than genuine leather. Products made from pleather are available in a variety of colors. Another material used for leather is Naugahyde which looks similar to animal skin. All these factors and advantages offered by synthetic leather are expected to drive market growth.

• The rise in the demand for comfortable, trendy, fancy leather apparel, footwear, and accessories

Leather goods come in various products like gloves, bags, footwear, watches, furniture, and many others. The increase in the demand for leather in the production of clothing is one of the major driving factors that may positively affect the market growth. Moreover, the special characteristics of leather, such as the fireproof, dustproof, and crack-proof nature and durability of leather goods, are often preferred over other resources and materials, which has helped increase the demand and sales of the market.

Opportunities

• Increase in innovation in leather goods with new features and designs

Consumer behavior has changed substantially over the past decade. As the old technologies have been exploited more, especially in developing and marketing fashion products, companies are getting new possibilities for fulfilling customer needs with product varieties. The development of new surface finishes and embellishments with viable techniques is needed to develop innovative products and add uniqueness and value to the products.

With the fast evolution and changing lifestyle daily, and rising disposable income, consumers are more inclined toward fashionable products. Consumers are improving their living standards based on their disposable income and are consuming more fashionable products. So these kinds of consumer inclinations will create an opportunity for the market players operating in the market.

• Introduction of bio-biased leather

The bio-based leather manufacturing process has no adverse consequences on the ecosystem. Synthetic leather manufactured from natural fibers like flax cotton or cotton fibers coupled with corn, palm, soybean, and others should be the focus of manufacturers to gain a competitive market share in the Asia-Pacific leather goods market with the advent of bio-based leather. Apart from this, leaves of pineapple fruit are indeed being utilized to manufacture "Pinatex," a novel synthetic leather item. These pineapple leaves have an elastic and solid fiber that makes them excellent for usage in the manufacturing procedure.

Restraints/Challenges

• The availability of cheaper leather goods and the shortage of leather goods worldwide

The high cost of natural leather is a factor that has driven the need for natural leather replacements. The low quality of leather and the shortage of leather all over the world are bottlenecks for the leather goods industry. Some kinds of leather goods available in the market have low costs. It will also hamper the supply and demand for good quality leather products and their price. Moreover, the worldwide shortage of leather goods and raw materials, such as genuine leather, is driving up the price of these products. As a result, European buyers are looking for low-cost suppliers who can produce leather from exotic animals like pythons and alligators. These factors are restraining market growth. Also, the low availability of raw materials, the availability of synthetic alternatives such as plastic leather, and the availability of leather goods at low cost are some factors restraining market growth.

• Strict governmental regulations on the production and use of natural leather

Stringent government regulations in regions such as Europe and the U.S., among others, are closing various tanneries and leather processing units. These governments have enforced regulations regarding leather use, which will act as a restraint for market growth in the coming years. Government policies have made new synthetic alternatives, such as plastic leather, available in the market.

• Lack of skills, technology, intermediate inputs and processing equipment

The scarcity of home universities that offers leather technology degrees contributes to this situation. This has created a skill gap that needs to be the priority in the leather sector development. The lack of professionals and inadequate training centers to train technicians and operators required in the sector are the causes of the prevailing situation. The lack of technology, skill, and intermediate is a challenge for the leather goods market as these features help to produce high-quality leather goods. The quality of leather goods is most important for the industry to grow.

Recent Development

• In August 2017, the Swiss luxury brand, Bally, launched its first flagship store in India in a joint-venture partnership with Reliance Brands Limited. This store includes women's and men's shoes, accessories, and premium leather goods.

Asia-Pacific Leather Goods Market Scope

The Asia-Pacific leather goods market is categorized into four notable segments based on leather type, product, grade, and distribution channel. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Leather Type

• Full Grain Leather
• Split Grain Leather
• Faux Leather
• Bonded Leather
• Top Grain Leather

Based on leather type, the market is segmented into full grain leather, split grain leather, top grain leather, genuine leather, faux leather, bonded leather, and others.

Product

• Footwear
• Handbags
• Apparel
• Luggage
• Wallets
• Belts
• Others

Based on product, the market is segmented into footwear, handbags, apparel, luggage, wallets, belts, and others.

Grade

• High-Grade
• Mid-Grade

Based on grade, the market is segmented into high-grade and mid-grade.

Distribution Channel

• Specialty Stores
• Company Franchised Stores
• E-Commerce
• Supermarkets/Hypermarkets
• Others

Based on distribution channel, the market is segmented into specialty stores, company franchised stores, e-commerce, supermarkets/hypermarkets, and others.

Asia-Pacific Leather Goods Market Regional Analysis/Insights

The Asia-Pacific leather goods market is segmented based on leather type, product, grade, and distribution channel.

The countries in the Asia-Pacific leather goods market are Japan, China, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Philippines, Australia & New Zealand, and rest of Asia-Pacific. China is dominating the Asia-Pacific leather goods market in terms of market share and market revenue due to growing awareness of the excellent characteristics and properties of leather goods in the region.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Asia-Pacific brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Asia-Pacific Leather Goods Market Share Analysis

Asia-Pacific leather goods market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, and technology lifeline curve. The above data points provided are only related to the companies’ focus related to the Asia-Pacific leather goods market.

Some of the prominent participants operating in the Asia-Pacific leather goods market are TBL Licensing LLC (A Subsidiary of VF Corporation), CAPRI HOLDINGS LIMITED, Hermès, KERING, PRADA S.P.A., Kiton, American Leather, Aero Leather Clothing, JOHNSTON & MURPHY (A Subsidiary of Genesco), and NAPPA DORI among others.

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