The global leather goods market size was valued at USD 419.5 billion in 2021 and is expected to expand at a CAGR of 6.2% from 2022 to 2030 and reach around USD 720.8 billion. Consumers prefer leather goods because of inherent qualities such as dustproof, fireproof, crack-proof, and durability, which are expected to drive the leather goods market forward.
Furthermore, for the past few years, the growing demand for trendy handbags, premium leather wallets, and other leather products has influenced the growth of the leather goods market. Government support for the leather industry is further driving the growth of the market. For example, in India, 100% FDI is allowed in the automated manufacturing of leather products.
Consumers nowadays are well-informed about current fashion trends around the world. Consumers have been exposed to a variety of international brands thanks to the presence of social media. Consumers are buying international leather brand bags and accessories to complement their outfits and improve their living standards as their disposable income rises. As a result, increased awareness of branded products will help the leather luggage and goods market grow.
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Market players have been encouraged to introduce innovative and trendy products in order to meet consumer demands and maintain a loyal customer base as global fashion trends change. Furthermore, leather goods and luggage that are both compact and stylish are preferred by consumers. Leather bracelets, necklaces, and gloves for men have become increasingly popular as fashion trends shift. As a result, the market will grow in the coming years as fashion trends change.
Consumer demand for leather handbags and wallets has increased significantly as a result of the booming fashion industry, boosting the global accessories market. In order to make a fashion statement, consumers prioritize aesthetic aspects and demand a high-quality range of goods. Furthermore, the overall leather market would continue to evolve in various emerging and newly industrialized economies, meeting the growing demand in the industrialized world as well as the needs of the rising middle classes in their respective markets. To accomplish this, the market must provide quality, avoid commoditization, be more creative, and effectively manage various types of environmental concerns.
Many new eco-friendly leather alternatives are available. Piatex is a natural and sustainable product made from pineapple leaf fibers. The wax used in Waxed Canvas and (Organic) Cotton is environmentally friendly. Leaf "leather" is created by preserving leaves in fiber sheets using a polymer rather than toxic treatments or dyes. Mushroom leather is made from fungus and is biodegradable and environmentally friendly. Apple "leather" is made from the discarded skin and cores of apples and coconut "leather" is made from waste products of the coconut industry and can be composted.
Cork, which is renewable and recyclable, and tree bark "leather" made from sustainable timber and treated only with non-toxic chemicals are two other eco-friendly materials. Wine "leather" is created using a non-toxic and solvent-free process from discarded grape skins, stalks, and seeds. Corn "leather" is a chemical-free and sustainable leather alternative made from cotton fabric with a corn-based coating. Cactus "leather," recycled rubber, mulberry tree paper, and waste from orange processing are among the other options.
The largest product category is Carrying products, followed by belts. Within the carrying products segment, handbags and wallets are the biggest categories and travel bags are the fastest-growing products in the leather goods market. As we know that lifestyle is changing day by day, and consumers’ disposable income is increasing, so they are more inclined toward fashionable products. Consumers are improving their living standards on the basis of their disposable income they are consuming more fashionable and trendy products. So these kinds of inclinations of the consumer will create an opportunity for the market players.
Because of the growing influence of digital media and marketing on consumers, the online channel is expected to grow during the forecast period. Walmart, Amazon, and Alibaba, among other well-known online retailers, provide a wide range of options. Although hypermarkets, supermarkets, and other specialty and exclusive stores have an advantage over the online store, given the dire situation in which walking down a store and purchasing leather products has become nearly impossible, the online platform has risen to the top of the curve. During the forecast period, the fastest-growing segment is expected to be online retail. Some high-end leather goods are hard to come by and thus only available to a select group of customers. People who live in far-flung locations can easily purchase such items via the internet. Furthermore, the multi-brand online platform has the ability to reach out to time-crunched consumers who do not have the time to visit multiple mono-brand websites.
The market is divided into three types: genuine leather, synthetic leather, and vegan leather. Synthetic leather goods are less expensive than genuine leather goods and have a similar aesthetic appeal, which will increase consumer demand. Synthetic leather is primarily made from synthetic materials such as Polyvinyl Chloride and Polyurethane.
The genuine Leather segment is the highest one and it will dominate the market and is expected to grow at 5.8%. By 2030 it will reach around USD 370.4 billion.
Footwear, Automotive Accessories, Home Décor & Furnishing, Small Leather Goods & Accessories, Apparel, Handbags, and Others are the product segments of the market. The fastest-growing segment would be home décor and furnishing. The rising costs of home furnishings and renovations are driving this segment's growth.
The footwear Leather segment has the highest market share and is expected to grow at a CAGR of 5.9%. By 2030 it will reach around USD 327 billion.
The market is divided into four regions: North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
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North America is the largest region for the leather goods market. It will predominate the market and is expected to reach a market size of around USD 227 billion by 2030.
Europe is the second-largest region for the leather goods market. It is expected to grow at a CAGR of 5.6% during the forecast period.
The Asia Pacific is the fastest-growing regional market. The Asia Pacific regional market, led by countries like China and India, is driven by rising demand for premium and luxury goods. In Asia, Bangladesh and Pakistan are major suppliers of primary leather (raw material). Bangladesh is an attractive market for foreign leather goods brands due to its low tariff rates on exported leather products.
Europe surpassed Asia as the leading region in the global leather goods market, with the highest revenue share.
The regional market's growth would be aided by the product's growing popularity as well as the region's growing online sales.
Central and South America and the Caribbean
The Middle East and Africa
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|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Product (Footwear, Luggage, Accessories, Clothing, Apparel), Distribution Channel (Store-Based Retail)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||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|
|Key Market Opportunities||The Consumer Products Industry'S Substantial Growth Fuels The Leather Goods Market|