Leather Goods Market: Information by Product (Footwear, Luggage, Accessories, Clothing, Apparel), Distribution Channel (Store-Based Retail), and Region — Forecast till 2029

Dec 01, 2020   Market Overview Leather is a durable and flexible material produced by tanning animal rawhide and skin, most often cattle hide. It is produced at manufacturing scales that range from cottage industry to heavy industry. People use leather to make several goods, including clothing, bookbinding, leather wallpaper, and furniture covering.   Several bovine animals are used for their skin to make leather products across the globe. The global bovine import stood at USD 8,230 million in the year ...
Request Free Sample Report

Report Description

Market Overview

Leather is a durable and flexible material produced by tanning animal rawhide and skin, most often cattle hide. It is produced at manufacturing scales that range from cottage industry to heavy industry. People use leather to make several goods, including clothing, bookbinding, leather wallpaper, and furniture covering.  

Several bovine animals are used for their skin to make leather products across the globe. The global bovine import stood at USD 8,230 million in the year 2017, which is an increase of around USD 410 million as compared to bovine trade in 2016. Bovine animals consist of buffalo, cow, bison, and bull.

Rising Popularity of Veganism to Hamper the Demand for Leather Goods

The rising popularity of veganism has decelerated the demand for animal-based leather goods.  As per the reports of the Food Standards Agency (FSA), the number of vegans in Great Britain increased almost four times between 2014 and 2019. In the year 2019, there were 600,000 vegans in Great Britain, which is a significant rise as compared to 276,000 in 2016 and 150,000 in 2014.   Consumers have started to become aware and conscious of products that do not harm animals. It is projected that the increased number of alternatives, considering synthetic leather, has been propelling the market off late, the demand for leather goods may get impeded soon.

Burgeoning Textile Industry Globally to Drive the Leather Goods Market

Apart from the luggage industry, leather is witnessing significant demand from textile manufacturers. There is a growing need for protective and warm jackets during winter, which is anticipated to drive demand for leather in the textile industry. As leather is back in fad in contemporary times, the manufacturers in the textile industry are producing leather products, including belts, jackets, pants, and other accessories. Furthermore, the demand for water-proof and warm footwear in cold countries has urged the manufacturers to produce leather footwear products.    

The textile industry is a billion-dollar industry and has huge market demand for leather. The U.S. textile and apparel industry is worth almost USD 70 billion in sectors, calculated by the value of industry shipments. India, the European Union, and China were the world’s top three exporters of textiles in the year 2018. Together they accounted for 66.9% of world textile exports in 2018. Notably, the U.S. bagged the world’s fourth top textile exporter in 2018.  

Figure 1: Top Ten Exporters of Textile, 2018 (USD billion)

Top-Ten-Exporters-of-Textile-2018-USD-billion

Source: World Trade Organization

Leather Industry to Be a Significant Contributor to the Indian Economy

In contemporary times, the growing demand for premium leather wallets and handbag and government support for the leather industry provides an impetus to the leather goods market growth. For instance, in India, 100% FDI is permitted through the automatic route, and the government has mitigated the excise duty to 6% from 12% on leather footwear, with a retail sale price of almost more than USD 14.55 per pair.

Today the Leather Industry holds a notable and distinguished place in the Indian economy. The leather industry is well known for its uniformity in high export earnings, and it comes under the top ten foreign exchange earners for the country. During the fiscal year, 2018–19, the export of footwear, leather, and leather products from India reached a value of USD 5.69 billion.  The leather industry is conferred with an abundance of raw materials as India is home to 20% of world cattle and buffalo and 11% of the world goat and sheep population. Apart from that, there is an additional added strength of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the steadfast and devoted support of the allied industries.

Figure 2: Bovine Trade Revenue (2012–2017)

Bovine-Trade-Revenue-2012-2017

Source: Observatory of Economic Complexity

Growing Domestic and International Tourism Is Expected to Bring about Upsurge in Demand for Leather Goods

An increase in domestic and international tours has fostered the growth of various industries. People are opting for easy-to-handle leather luggage bags. Extensive traveling needs leather luggage that can resist harsh handling at any point in time. Thus, consumers opt for premium and better quality leather luggage for convenient traveling.

Over the past five years, the hospitality industry has showcased great dynamism in Latin America. Although tourism growth in Central and South America has seen a hike due to the region’s diversity and natural resources, most of its popularity can be attributed to the government’s commitment to promoting the hospitality and tourism sector. Costa Rica, Chile, Argentina, Brazil, and Panama have become surprisingly competitive in this sector. Chile experienced a 6.3% increase in European tourists and a 33.8% rise in Chinese tourist’s arrival in 2017. This surging rise in tourist footfall in Latin America has led to an increase in leather goods and bags, further driving the market growth.

Leather Goods Market: Segmentation

Ease of Use of Online Retail to Drive the Segment Growth

Although the online channel is bound to increase during the forecast period, owing to the rising influence of digital media and marketing on consumers. The prominent online retailers, such as Walmart, Amazon, and Alibaba, are offering a plethora of options to choose from. Although the hypermarkets, supermarkets, and other specialty and exclusive stores do enjoy an edge over the online store, given the situation of the desperate time, where it has become almost impossible to walk down a store and purchase leather products, the online platform has taken a peak up the curve.

The online retail segment is expected to witness the fastest growth during the forecast period. Some of the luxury leather products are not readily available at a lot of shops and therefore are accessible only to limited consumers. People living in distant and remote places can easily purchase such products through online channels. Moreover, the multi-brand online platform has the accessibility to reach out to time-pressed consumers that do not have much time to browse through different mono-brand sites.

Regional Overview

Saudi-Arabia to Hold Lion’s Share in the Leather Goods Market

In Saudi Arabia, a specialized company such as Saudi Leather Industries Company offers a wide range of leather footwear and other safety shoes that uses vamp leather to ensure protection. Consumers in this region mostly prefer luxury goods over conventional ones, as they have high purchasing power, and buying such products also has an association with their social status. Such passion and desire for high-end premium products have compelled the companies such as MCM (Mode Creation Munich) to open their first boutique in Saudi Arabia to tap the market potential. The boutique offers a wide variety of luxury leather goods and accessories. Apart from the presence of a large number of tanneries, such as Al-Ahli Leather Factory Company Ltd., the country also exports many leather products globally.

Figure 3: Revenue from Leather and related products in Saudi Arabia (USD million)

Revenue-from-Leather-and-related-products-in-Saudi-Arabia-USD-million

Source: General Authority for Statistics (Saudi Arabia)

Key Players

  • Adidas AG
  • Nike, Inc.
  • Puma SE
  • Louis Vuitton SE
  • Fila, Inc.
  • New Balance Athletics, Inc.
  • Knoll, Inc.
  • Timberland LLC
  • Johnston and Murphy
  • Woodland
  • PRADA Spa
  • Hermès International SCA

Leather Goods Market: Segmentation

By Product

  • Footwear
  • Luggage
  • Accessories
  • Clothing and Apparel

By Distribution Channel

  • Store-Based Retail
    • Hypermarket and Supermarket
    • Specialty Store
    • Exclusive Store
  • Online Retail

By Region

North America

  • The U.S.
  • Canada

Europe

  • Germany
  • France
  • Italy
  • The U.K.
  • The Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • The Rest of APAC

Central and South America and the Caribbean

  • Brazil
  • Argentina
  • The Rest of Central and South America and the Caribbean

The Middle East and Africa

  • Saudi Arabia
  • The UAE
  • Iran
  • Kuwait
  • The Rest of MEA

Frequently Asked Questions (FAQs)

Online Retail Segment is expected to be the leading segment in Leather Goods Market during the forecast period.
Adidas AG, Nike, Inc., Puma SE, Louis Vuitton SE, Fila, Inc., New Balance Athletics, Inc., Knoll, Inc., Timberland LLC, Johnston and Murphy, Woodland, PRADA Spa are the top players in Leather Goods Market.
Saudi-Arabia is expected to hold the highest market share in Leather Goods Market.
The rising popularity of veganism, burgeoning textile industry globally, growing demand for premium leather wallets and handbag, and government support for the leather industry are the key factors expected to drive Leather Goods Market during the forecast period.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.

Market Overview

Leather is a durable and flexible material produced by tanning animal rawhide and skin, most often cattle hide. It is produced at manufacturing scales that range from cottage industry to heavy industry. People use leather to make several goods, including clothing, bookbinding, leather wallpaper, and furniture covering.  

Several bovine animals are used for their skin to make leather products across the globe. The global bovine import stood at USD 8,230 million in the year 2017, which is an increase of around USD 410 million as compared to bovine trade in 2016. Bovine animals consist of buffalo, cow, bison, and bull.

Rising Popularity of Veganism to Hamper the Demand for Leather Goods

The rising popularity of veganism has decelerated the demand for animal-based leather goods.  As per the reports of the Food Standards Agency (FSA), the number of vegans in Great Britain increased almost four times between 2014 and 2019. In the year 2019, there were 600,000 vegans in Great Britain, which is a significant rise as compared to 276,000 in 2016 and 150,000 in 2014.   Consumers have started to become aware and conscious of products that do not harm animals. It is projected that the increased number of alternatives, considering synthetic leather, has been propelling the market off late, the demand for leather goods may get impeded soon.

Burgeoning Textile Industry Globally to Drive the Leather Goods Market

Apart from the luggage industry, leather is witnessing significant demand from textile manufacturers. There is a growing need for protective and warm jackets during winter, which is anticipated to drive demand for leather in the textile industry. As leather is back in fad in contemporary times, the manufacturers in the textile industry are producing leather products, including belts, jackets, pants, and other accessories. Furthermore, the demand for water-proof and warm footwear in cold countries has urged the manufacturers to produce leather footwear products.    

The textile industry is a billion-dollar industry and has huge market demand for leather. The U.S. textile and apparel industry is worth almost USD 70 billion in sectors, calculated by the value of industry shipments. India, the European Union, and China were the world’s top three exporters of textiles in the year 2018. Together they accounted for 66.9% of world textile exports in 2018. Notably, the U.S. bagged the world’s fourth top textile exporter in 2018.  

Figure 1: Top Ten Exporters of Textile, 2018 (USD billion)

Top-Ten-Exporters-of-Textile-2018-USD-billion

Source: World Trade Organization

Leather Industry to Be a Significant Contributor to the Indian Economy

In contemporary times, the growing demand for premium leather wallets and handbag and government support for the leather industry provides an impetus to the leather goods market growth. For instance, in India, 100% FDI is permitted through the automatic route, and the government has mitigated the excise duty to 6% from 12% on leather footwear, with a retail sale price of almost more than USD 14.55 per pair.

Today the Leather Industry holds a notable and distinguished place in the Indian economy. The leather industry is well known for its uniformity in high export earnings, and it comes under the top ten foreign exchange earners for the country. During the fiscal year, 2018–19, the export of footwear, leather, and leather products from India reached a value of USD 5.69 billion.  The leather industry is conferred with an abundance of raw materials as India is home to 20% of world cattle and buffalo and 11% of the world goat and sheep population. Apart from that, there is an additional added strength of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the steadfast and devoted support of the allied industries.

Figure 2: Bovine Trade Revenue (2012–2017)

Bovine-Trade-Revenue-2012-2017

Source: Observatory of Economic Complexity

Growing Domestic and International Tourism Is Expected to Bring about Upsurge in Demand for Leather Goods

An increase in domestic and international tours has fostered the growth of various industries. People are opting for easy-to-handle leather luggage bags. Extensive traveling needs leather luggage that can resist harsh handling at any point in time. Thus, consumers opt for premium and better quality leather luggage for convenient traveling.

Over the past five years, the hospitality industry has showcased great dynamism in Latin America. Although tourism growth in Central and South America has seen a hike due to the region’s diversity and natural resources, most of its popularity can be attributed to the government’s commitment to promoting the hospitality and tourism sector. Costa Rica, Chile, Argentina, Brazil, and Panama have become surprisingly competitive in this sector. Chile experienced a 6.3% increase in European tourists and a 33.8% rise in Chinese tourist’s arrival in 2017. This surging rise in tourist footfall in Latin America has led to an increase in leather goods and bags, further driving the market growth.

Leather Goods Market: Segmentation

Ease of Use of Online Retail to Drive the Segment Growth

Although the online channel is bound to increase during the forecast period, owing to the rising influence of digital media and marketing on consumers. The prominent online retailers, such as Walmart, Amazon, and Alibaba, are offering a plethora of options to choose from. Although the hypermarkets, supermarkets, and other specialty and exclusive stores do enjoy an edge over the online store, given the situation of the desperate time, where it has become almost impossible to walk down a store and purchase leather products, the online platform has taken a peak up the curve.

The online retail segment is expected to witness the fastest growth during the forecast period. Some of the luxury leather products are not readily available at a lot of shops and therefore are accessible only to limited consumers. People living in distant and remote places can easily purchase such products through online channels. Moreover, the multi-brand online platform has the accessibility to reach out to time-pressed consumers that do not have much time to browse through different mono-brand sites.

Regional Overview

Saudi-Arabia to Hold Lion’s Share in the Leather Goods Market

In Saudi Arabia, a specialized company such as Saudi Leather Industries Company offers a wide range of leather footwear and other safety shoes that uses vamp leather to ensure protection. Consumers in this region mostly prefer luxury goods over conventional ones, as they have high purchasing power, and buying such products also has an association with their social status. Such passion and desire for high-end premium products have compelled the companies such as MCM (Mode Creation Munich) to open their first boutique in Saudi Arabia to tap the market potential. The boutique offers a wide variety of luxury leather goods and accessories. Apart from the presence of a large number of tanneries, such as Al-Ahli Leather Factory Company Ltd., the country also exports many leather products globally.

Figure 3: Revenue from Leather and related products in Saudi Arabia (USD million)

Revenue-from-Leather-and-related-products-in-Saudi-Arabia-USD-million

Source: General Authority for Statistics (Saudi Arabia)

Key Players

  • Adidas AG
  • Nike, Inc.
  • Puma SE
  • Louis Vuitton SE
  • Fila, Inc.
  • New Balance Athletics, Inc.
  • Knoll, Inc.
  • Timberland LLC
  • Johnston and Murphy
  • Woodland
  • PRADA Spa
  • Hermès International SCA

Leather Goods Market: Segmentation

By Product

  • Footwear
  • Luggage
  • Accessories
  • Clothing and Apparel

By Distribution Channel

  • Store-Based Retail
    • Hypermarket and Supermarket
    • Specialty Store
    • Exclusive Store
  • Online Retail

By Region

North America

  • The U.S.
  • Canada

Europe

  • Germany
  • France
  • Italy
  • The U.K.
  • The Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • The Rest of APAC

Central and South America and the Caribbean

  • Brazil
  • Argentina
  • The Rest of Central and South America and the Caribbean

The Middle East and Africa

  • Saudi Arabia
  • The UAE
  • Iran
  • Kuwait
  • The Rest of MEA

Frequently Asked Questions (FAQs)

Online Retail Segment is expected to be the leading segment in Leather Goods Market during the forecast period.
Adidas AG, Nike, Inc., Puma SE, Louis Vuitton SE, Fila, Inc., New Balance Athletics, Inc., Knoll, Inc., Timberland LLC, Johnston and Murphy, Woodland, PRADA Spa are the top players in Leather Goods Market.
Saudi-Arabia is expected to hold the highest market share in Leather Goods Market.
The rising popularity of veganism, burgeoning textile industry globally, growing demand for premium leather wallets and handbag, and government support for the leather industry are the key factors expected to drive Leather Goods Market during the forecast period.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.