Leather Goods Market Size, Share & Trends Analysis Report By Leather Type (Full Grain Leather, Split Grain Leather, Genuine Leather, Faux Leather, Bonded Leather), By Product (Footwear, Handbags, Apparel, Luggage, Wallets, Belts, Other Leather Goods), By Grade (High-Grade, Mid-Grade), By Distribution Channel (Specialty Stores, Company Franchised Stores, E-Commerce, Supermarkets and Hypermarkets, Other Distribution Channels), By End-User (Men, Women, Kids) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global leather goods market was valued at USD 247.90 billion in 2023. It is estimated to reach USD 304.19 billion by 2032, growing at a CAGR of 6.2% during the forecast period (2024–2032). In the past few years, consumers' growing demand for high-quality, durable, and stylish leather products has driven the demand for leather accessories, footwear, and apparel, thereby driving the global market growth. Furthermore, technological advancements in product development and leather processing techniques, like the development of eco-friendly tanning methods for the production of leather goods, are estimated to create opportunities for global market expansion.

Key highlights

• Full-grain leather dominates the leather type.
• Footwear dominates the product segment.
• Women dominate the end-user segment.
• Europe is the highest shareholder in the global market.

Leather goods refer to a broad range of products made from animal hides that have been tanned and treated for durability and aesthetic appeal. These products include items such as bags, wallets, belts, shoes, jackets, and various accessories. Leather is prized for its strength, flexibility, and timeless style, making it a preferred material for both functional and luxury items. The leather industry encompasses several stages, from raw material sourcing and tanning to design and manufacturing.

High-quality leather goods are often associated with craftsmanship and can command premium prices in the market. The industry is influenced by fashion trends, consumer preferences, and advancements in tanning and manufacturing technologies. Sustainable and ethical practices are increasingly important in the leather goods market as consumers become more conscious of environmental and animal welfare issues. Thus, leather goods remain a significant segment in the global market, balancing tradition and innovation.

Market Dynamics

Global leather goods market drivers

Rising consumer demand for premium products

The global leather goods market is experiencing significant growth due to increasing consumer demand for premium and luxury products. With rising disposable incomes, particularly in emerging economies, consumers are more inclined to invest in high-quality leather products. According to a report by Deloitte, the global middle class is expected to expand to nearly 5.3 billion people by 2030, with a substantial portion of this growth occurring in Asia.

This burgeoning middle class is driving demand for luxury brands such as Louis Vuitton, Gucci, and Prada. Additionally, leather goods are favored for their durability, aesthetic appeal, and status symbol, further fueling consumer spending. As a result, the leather goods market is anticipated to grow as more consumers seek high-end products that offer both functionality and prestige.

Global leather goods market restraint

Environmental concerns and ethical issues

One of the primary restraints in the global leather goods market is the growing concern over environmental and ethical issues associated with leather production. Traditional leather tanning processes involve the use of hazardous chemicals such as chromium, which can lead to significant environmental pollution if not managed properly. The World Bank reports that the leather tanning industry is one of the most polluting industries, contributing to air and water pollution.

Furthermore, ethical concerns regarding animal cruelty in the leather industry are prompting consumers to seek alternatives. The rise of veganism and increased awareness of animal rights have led to a surge in demand for vegan leather and other sustainable materials. A survey conducted by the Vegan Society found that 42% of UK consumers have reduced their consumption of animal products due to ethical concerns. These environmental and ethical challenges are posing significant obstacles to the traditional leather goods market, pushing companies to adopt more sustainable practices and explore alternative materials.

Global leather goods market opportunities

Innovation in leather processing and product design

Technological advancements and innovations in leather processing and product design are estimated to create opportunities for the growth of the leather goods market. Modern leather processing techniques, such as eco-friendly tanning methods and the development of sustainable synthetic leathers, have made leather products more appealing to environmentally conscious consumers. According to the United Nations Industrial Development Organization (UNIDO), there has been a substantial shift towards sustainable leather production, with new methods reducing water and chemical use by up to 40%.

Additionally, designers are continuously experimenting with new styles, colors, and functionalities, which attract a wide range of consumer preferences. The incorporation of smart technology into leather products, such as RFID tags in handbags for anti-theft purposes, further enhances product value and consumer interest. These innovations are expected to create opportunities for the leather goods market to grow further by meeting evolving consumer demands and preferences.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe dominates the global market

Europe is the most significant global market shareholder and is expected to expand substantially during the forecast period. This growth can be attributed to a rich heritage in leather craftsmanship and a strong demand for high-quality, luxury products. Countries like Italy, France, and Spain are renowned for their premium leather goods, contributing to Europe's reputation as a hub for luxury leather products. According to the European Confederation of the Footwear Industry, Europe accounts for approximately 25% of the global luxury goods market, with leather products being a major segment. Italy, home to world-famous brands like Gucci and Prada, is a key player in the European leather goods market. The Italian leather industry is valued at over €9 billion, making it one of the largest in the world. France also plays a crucial role, with brands such as Louis Vuitton and Hermès leading the market. In 2023, France's luxury goods market, including leather products, was valued at around €33 billion.

The European market is driven by a high demand for sustainable and ethically produced leather goods. The European Commission has introduced stringent regulations to reduce the environmental impact of leather production, pushing manufacturers towards more sustainable practices. For example, the EU's REACH regulation aims to restrict hazardous chemicals in leather tanning, promoting eco-friendly alternatives. Moreover, the region's strong retail network, including high-end boutiques and department stores, supports the market's growth. The rise of e-commerce platforms has also enhanced accessibility to premium leather goods, with online sales in the EU growing by 12% annually. As consumer preferences continue to evolve towards sustainability and luxury, Europe's leather goods market is poised for steady growth.

Asia Pacific is the fastest-growing region during the forecast period. Driven by the rapid expansion of the fashion industry in China, India, and Japan, the Asia-Pacific leather goods market is experiencing significant growth. The region's burgeoning middle class, rapid urbanization, and rising disposable incomes have fueled demand for luxury leather goods. Local brands, including Chinese companies such as TBL Licensing LLC and CAPRI HOLDINGS LIMITED, dominate the market, leveraging their significant regional presence. To stay competitive, these brands invest heavily in new technologies and innovative designs, adapting swiftly to changing market trends.

Moreover, the market is characterized by the strong presence of traditional leather goods manufacturers from Japan and Korea, renowned for their long history of producing high-quality leather products. These companies also invest in new technologies and designs to maintain their competitive edge. The Asia-Pacific leather goods market is expected to grow further, propelled by the region's rapid economic growth and increasing demand for luxury items. The fashion-conscious consumers in the region, coupled with surging disposable incomes, are anticipated to drive the demand for premium leather goods, sustaining market growth in the coming years.

Segmental Analysis

The global market is bifurcated into leather type, product, grade, distribution channel, and end-user.

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

Full-grain leather dominates the leather type. Full-grain leather is favored for luxury handbags, shoes, and belts due to its durability, breathability, and natural beauty. Premium buyers value its unique grain and texture, which contribute to its longevity and wear resistance. Luxury consumption drives demand, as consumers pay more for high-quality leather goods that exude sophistication and style. High-end brands like Hermès and Louis Vuitton extensively use full-grain leather, reinforcing its market dominance. Additionally, the rising popularity of sustainable and eco-friendly products boosts demand as consumers become more aware of leather production's environmental impact. With its exceptional qualities and aesthetic appeal, full-grain leather is poised to dominate the leather goods market in the forecast period.

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

Footwear dominates the product segment. Leather footwear remains a timeless and versatile choice, appealing to consumers seeking style and functionality. Popular for everyday wear, formal occasions, and outdoor activities, leather shoes are valued for their durability, comfort, and style. High-quality and long-lasting, leather withstands daily wear and tear, making it a preferred material for footwear. Its breathability and flexibility further enhance comfort. The fashion industry's focus on trends and style evolution has fueled demand for trendy leather shoes. Consumers seek shoes that are not only durable but also fashionable. Leather footwear brands continuously innovate, introducing new styles, colors, and designs to cater to evolving consumer preferences, driving the growth of this segment in the global leather goods market.

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

The high-grade segment dominates the global leather goods market, distinguished by its superior quality, craftsmanship, and premium pricing. High-Grade leather goods, often made from full-grain or top-grain leather, undergo rigorous manufacturing processes to ensure durability, comfort, and aesthetic appeal. Rising consumer demand for luxury and premium leather goods drives this segment's dominance, as consumers are increasingly willing to pay a premium for high-quality, long-lasting products that convey exclusivity and prestige. Additionally, the growing middle-class population in emerging markets and increasing disposable incomes contribute to the heightened demand for high-grade leather goods. This segment's focus on innovation, sustainability, and ethical production practices further enhances its appeal, solidifying its leading position in the market.

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

E-Commerce dominates the distribution channel segment. This is primarily owing to the growing popularity of online shopping among consumers, which is fueled by factors like convenience, competitive pricing, and a wider product selection. E-commerce in the soft flooring market is enabled by a variety of online platforms, including company-owned websites, online marketplaces, and social media platforms. These platforms enable customers to browse and purchase soft flooring products from the comfort of their own homes, eliminating the need for in-store visits. One of the primary reasons for e-commerce's dominance in the soft flooring market is its ability to provide competitive pricing. Online retailers can frequently offer lower prices than traditional brick-and-mortar stores owing to lower overhead costs, such as rent and staffing. This makes e-commerce a viable option for consumers looking for low-cost leather goods.

Based on end-users, the market is segmented into men, women, and kids.

Women dominate the end-user segment. This dominance can be attributed to women's growing demand for luxury and high-end products, which is fueled by factors like rising disposable incomes, increased fashion consciousness, and a desire for premium quality products. The women's segment is represented in the market through various channels, including retail stores, e-commerce platforms, and direct-to-consumer sales. Luxury brands like Louis Vuitton, Gucci, and Hermès dominate this segment, offering high-end products that appeal to women who value exclusivity, superior quality, and brand prestige.

Recent Developments

• July 2024 - Greenwood Leather, a well-known leader in the full-grain leather business, is excited to introduce its newest collection. The new collection presents a diverse range of inventive patterns, each precisely fashioned to achieve flawlessness.
• February 2024 - Ermenegildo Zegna Group has declared its intention to establish an advanced manufacturing plant in Sala Baganza (Parma) dedicated to the production of high-end footwear and leather goods.