Leather Goods Market Report
Leather Goods Market by Type (Genuine Leather, Synthetic Leather, and Vegan Leather), Product (Handbags, Small Leather Goods/ Accessories, Apparel, Footwear, Home Décor and Furnishing, Pet Accessories, and Automotive Accessories), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Leather Goods Overview
Leather goods encompass a wide range of products crafted from animal hides, such as bags, wallets, belts, shoes, and accessories. These items are valued for their durability, timeless appeal, and luxurious aesthetic. Leather goods find their place in both high-end luxury and affordable fashion markets, offering options for a diverse range of consumers. With sustainability concerns on the rise, there's a growing demand for ethically sourced and environmentally friendly leather products.
Global Leather Goods Market Analysis
The global leather goods market size was $251.1 billion in 2022 and is predicted to grow with a CAGR of 9.4%, by generating a revenue of $6161.2 billion by 2032.
COVID-19 Impact on Global Leather Goods Market
Lockdowns and restrictions during the pandemic led to the closure of retail stores, causing a decline in consumer demand for leather goods. Manufacturing and supply chain disruptions also contributed to challenges faced by the industry. Leather goods, such as bags, shoes, and accessories, often considered discretionary purchases, saw reduced consumer spending due to economic uncertainty. Many people focused on essential items instead. As travel restrictions were imposed, the demand for travel-related leather products like luggage decreased. The market adapted by emphasizing online sales channels, as e-commerce gained prominence during the pandemic. Brands invested in their online presence to reach customers virtually. Health concerns also prompted a shift towards touchless and antimicrobial materials in leather products.
Increasing Demand for Luxury Goods to Drive the Market Growth
Leather goods offer a blend of durability and style, making them highly sought after by consumers worldwide. Their rich texture and timeless appeal make them stand out in the fashion and accessory industries. Such items encompass a wide range of products, from bags to footwear, belts to wallets, that cater to diverse preferences. The demand for luxury goods is increasing among consumers due to their rising disposable income. Besides, the improved living standards, changing fashion trends, and growing domestic and international tourism are other factors projected to boost the leather goods market growth during the forecast period. The rising demand for comfortable, trendy, and fancy leather apparel, footwear, and accessories, along with growing brand awareness, is expected to have a positive impact on the market.
Adverse Effect of Leather Production on the Environment to Restrain the Market Growth
Leather goods raise ethical concerns due to their association with animal cruelty and environmental impact. Additionally, leather production demands significant water and energy resources, contributing to ecological strain. From a practical standpoint, leather goods are often high-maintenance and susceptible to wear and tear over time. Their durability is influenced by factors like climate, care routines, and exposure to sunlight. Furthermore, leather products can be expensive, limiting accessibility for some consumers. Health-wise, leather tanning involves hazardous chemicals that can negatively impact both workers and nearby communities.
Continuous Innovation in Leather Goods to Drive Excellent Opportunities
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 leather goods market during the forecast period.
Global Leather Goods Market Share, by Type, 2022
The genuine leather sub-segment accounted for the highest market share in 2022. This is mainly because genuine leather has a comfy feel to it and also provides weather protection. In addition, genuine leather is temperature-controlling and breathable, making it both appropriate for cold and hot weather situations without losing comfort. All these factors are predicted to impel the the sub-segment's growth over the forecast period.
Global Leather Goods Market Share, by Product, 2022
The home decor and furnishing sub-segment accounted for the highest market share in 2022. Home decor and furnishings have risen to dominance within the leather goods market due to their unique blend of style & durability and functionality. Leather with its timeless appeal and versatility and naturally lends itself to these products enhancing their visual and tactile appeal. The inherent qualities of leather such as its texture & richness and patina contribute to the elevated aesthetic of home decor items like sofas & chairs and ottomans as well as furnishings like cushions & rugs and table runners. The popularity of leather home decor and furnishings is also rooted in the material's ability to age gracefully, developing a distinctive character over time. This characteristic resonates with consumers seeking products that tell a story and possess an enduring charm. The tactile experience of leather adds a tactile dimension to living spaces, enhancing comfort and luxury. Moreover, leather's durability ensures that leather-based home products have a longer lifespan, providing good value for the investment. This durability is particularly valuable for items that experience regular wear and tear.
Global Leather Goods Market Share, by Region, 2022
The North America leather goods market generated the largest revenue in 2022. The region benefits from a rich history of craftsmanship and trade, with a legacy of skilled artisans perfecting leatherworking techniques over generations. This tradition has fostered a reputation for quality and luxury that draws consumers to North American leather products. In addition, the region's vast and diverse consumer base, along with its strong economy, fuels the demand for such goods. The purchasing power of individuals allows for higher adoption of leather products in various sectors, from fashion to interiors. Moreover, North America's fashion and entertainment industries have significantly influenced global trends, with celebrities and media often showcasing leather items, further driving their popularity. The region's emphasis on innovation and design has also propelled its leather industry forward. Continuous exploration of new styles, functions, and sustainability practices keeps North American leather goods relevant and appealing.
Competitive Scenario in the Global Leather Goods Market
Product development and geographical expansion are the common strategies followed by the major market players. Some of the top leading leather goods market players are Adidas AG, Nike, Inc, Puma SE, Fila, Inc., New Balance Athletics, Inc., Knoll, Inc., Samsonite International S.A., VIP Industries Ltd, Timberland LLC, and Johnston & Murphy.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Type
Segmentation by Product
Key Companies Profiled
Q1. What is the size of the leather goods market?
A. The size of the global leather goods market was over $251.1 billion in 2022 and is projected to reach $616.2 billion by 2032.
Q2. Which are the major companies in the Leather Goods market?
A. Adidas AG, Nike, Inc, Puma SE, Fila, Inc., New Balance Athletics, Inc., Knoll, Inc., and Samsonite International S.A.
Q3. What are the strategies opted by the leading players in this market?
A. Product development and investment are the two key strategies opted by the operating companies in this market.
Q4. Which companies are investing more on R&D practices?
A. Samsonite International S.A., VIP Industries Ltd, Timberland LLC, and Johnston & Murphy are the companies investing more on R&D activities.