Global Leather Goods Market – Industry Trends and Forecast to 2031

Leather Goods Market Analysis and Insights

In the automotive industry, the leather goods market plays a crucial role in enhancing the interior aesthetics and comfort of vehicles. Leather upholstery sourced from renowned leather goods companies is often preferred in luxury and high-end cars for its premium look, luxurious feel, and durability. Seats, steering wheels, and door panels are commonly upholstered with leather from these companies, offering a sophisticated and refined driving experience. Leather is valued for its ability to withstand wear and tear, making it an ideal choice for frequent use in vehicles.

The global leather goods market size was valued at USD 708.40 million in 2023 and is projected to reach USD 1,078.95 million by 2031, with a CAGR of 5.40% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and consumer behaviour.

Report Scope and Market Segmentation

Market Definition

Leather goods encompass a wide range of products crafted primarily from leather, a durable and versatile material derived from animal hides. These goods typically include items such as bags, wallets, belts, shoes, apparel, and accessories such as watch straps and phone cases. Renowned for their durability, timeless appeal, and luxurious feel, leather goods often command premium prices and are prized by fashion enthusiasts and connoisseurs alike.

Leather Goods Market Dynamics

Drivers

• Rising Disposable Income

Consumers allocate more of their spending towards luxury and high-quality products. With higher disposable incomes, individuals have greater purchasing power to afford premium leather goods, including handbags, shoes, wallets, and accessories. This increased affordability expands the potential customer base for leather goods, driving demand and sales. Moreover, rising incomes often correlate with aspirations for status and style, leading consumers to invest in leather goods as symbols of prestige and fashion. As a result, the growth of disposable incomes worldwide continues to fuel the expansion of the leather goods market, especially in emerging economies where income levels are rapidly increasing.

• Growing Technological Advancements

Innovations in leather products manufacturing processes lead to enhanced efficiency, quality, and customization capabilities. Advanced techniques such as laser cutting, digital printing, and computer-aided design (CAD) enable manufacturers to create intricate designs and patterns, meeting diverse consumer preferences. Additionally, advancements in tanning technologies result in the development of eco-friendly and sustainable leather alternatives, appealing to environmentally conscious consumers. Furthermore, automation and robotics streamline production processes in leather product manufacturing, reducing lead times and production costs and ultimately benefiting both manufacturers and consumers.

Opportunities

• Retail Expansion of Leather Goods

The proliferation of retail outlets, both physical stores and online platforms, expands the market reach, allowing leather goods companies to tap into new demographics and geographic regions. Retail expansion also facilitates brand exposure and enhances consumer engagement through personalized shopping experiences and marketing initiatives. Furthermore, strategic retail expansion enables companies to strengthen their distribution networks, improve product availability, and capture a larger market share. Overall, retail expansion plays a pivotal role in driving sales and stimulating demand for leather goods, contributing to the sustained growth of the market.

• Increasing Awareness of Environmental Concerns

Consumers are increasingly seeking sustainable and eco-friendly alternatives, prompting leather goods manufacturers to adopt environmentally responsible practices. This includes utilizing eco-friendly leather production processes, such as vegetable tanning, and sourcing leather from suppliers committed to ethical and sustainable practices. Brands that prioritize environmental sustainability in their leather goods production appeal to environmentally conscious consumers and differentiate themselves in the market.

Restraints/Challenges

• Fluctuations in Raw Material Prices

The unpredictability of raw material costs can disrupt supply chains and affect profit margins for manufacturers and retailers. Leather prices are subject to various factors, such as changes in demand, currency fluctuations, and supply chain disruptions, making it challenging for businesses to forecast and manage costs effectively. Moreover, sudden spikes in leather prices can lead to higher retail prices, potentially deterring price-sensitive consumers and impacting overall demand for leather goods.

• High Competition from Synthetic Alternatives

Advances in technology have led to the development of high-quality synthetic materials that closely mimic the look and feel of genuine leather. These synthetic alternatives often come at a lower cost and may be perceived as more environmentally friendly or cruelty-free, appealing to a growing segment of consumers. As a result, traditional leather goods manufacturers face intensified competition, potentially impacting sales and market share.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Development

• In October 2022, LVMH expanded its presence in Italy with the opening of new Fendi and Bulgari production facilities. Despite rising costs, LVMH continues to invest heavily in its Italian production line, showcasing a commitment to quality and craftsmanship in one of the world's leading fashion capitals
• In October 2022, Prada, renowned for its high-end fashion, inaugurated a factory near Sibiu, Romania, dedicated to manufacturing parts of its leather products. Operated by Hipic Prod Impex, now part of the Prada group, the 31,000-square-foot facility in Sibiu's West Industrial Zone underscores Prada's strategic expansion to optimize production capabilities
• In April 2022, Tapestry, Inc., the New York-based luxury accessories and lifestyle brand house encompassing Coach, Kate Spade, and Stuart Weitzman, partnered with the World Wildlife Fund (WWF) through a USD 3 million philanthropic grant from the Tapestry Foundation. Focused on fostering a sustainable future for Brazil's leather industry, the initiative aims to develop an innovative traceability system, promoting social and environmental justice within the sector

Leather Goods Market Scope

The market is segmented on the basis of 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

Product

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

Grade

• High-Grade
• Mid-Grade

Distribution Channel

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

Leather Goods Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, leather type, product, grade, and distribution channel.

The countries in the market are the U.S., Canada, Mexico, U.K., Russia, France, Spain, Italy, Germany, Turkey, Netherlands, Switzerland, Belgium, rest of Europe, Japan, China, South Korea, India, Singapore, Thailand, Indonesia, Malaysia, Philippines, Australia & New Zealand, rest of Asia-Pacific, Brazil, Argentina, rest of South America, Egypt, Saudi Arabia, U.A.E., South Africa, Israel, and rest of Middle East and Africa.

The U.S. is expected to dominate the market due to rising awareness among consumers about the unique properties and desirability of leather products. This awareness has fueled a robust demand for leather goods across various industries, including fashion, automotive, and furniture. In addition, the U.S. boasts a well-established leather manufacturing infrastructure, advanced technological capabilities, and a strong tradition of craftsmanship, further solidifying its position as a key player in the region. As a result, American companies continue to lead innovation, production, and distribution efforts, driving the growth and prominence of the North American leather industry.

Germany is expected to grow in the market due to increasing demand within the region. This growth is fueled by factors such as rising consumer purchasing power, evolving fashion trends, and a penchant for high-quality leather products. Germany's renowned craftsmanship and reputation for producing top-tier leather goods further solidify its position as a dominant player in the market. With a strong infrastructure supporting manufacturing and distribution, Germany is well-positioned to capitalize on the expanding demand for leather goods across Europe.

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 points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.  

Competitive Landscape and Leather Goods Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to cold plunge pools market.

Some of the major players operating in the market are

• TBL Licensing LLC (A Subsidiary of VF Corporation) (U.S.)
• CAPRI HOLDINGS LIMITED (U.S.)
• Hermès (France)
• KERING (France)
• PRADA S.P.A. (Italy)
• Kiton (Italy)
• Woodland Leathers (U.K.)
• American Leather (U.S.)
• Aero Leather Clothing (U.K.)
• JOHNSTON & MURPHY (A Subsidiary of Genesco) (U.S.)
• NAPPA DORI (India)

SKU-69545