Global Leather Goods Market is estimated to grow at a CAGR of 6.6% during the forecast period 2023-2030.
The outbreak of the COVID-19 pandemic substantially impacted the global leather goods market. The pandemic caused disruptions in supply chains and distribution of goods and services, which highly affected the production and distribution of leather goods. Moreover, the pandemic resulted in economic uncertainty and reduced consumer spending power due to lockdowns, travel restrictions, and financial constraints, which declined the demand for leather goods. These factors negatively impacted the growth of the global leather goods market. Despite these challenges, the global leather goods market is projected to recover and grow in the coming years.
The increasing demand for luxury goods is fueling the growth of the global leather goods market. The luxury goods industry has witnessed increased demand owing to digital transformation, product innovation, and emerging markets like China and India. The incorporation of original natural leather in luxury products and its presence in fashion shows have further stimulated global market growth. Notably, Dior's Cruize 2023 collection showcased leather accessories blending traditional Andalusian essence with modern designs. E-commerce has been pivotal, providing convenience and contributing to revenue growth. Omnichannel sales strategies are projected to attract a larger audience. Social media marketing has extended luxury brands' reach globally. Online distribution channels have expanded customer access, boosting sales for businesses of all sizes. Customized and handmade luxury goods are also in high demand, exemplified by the launch of By The Namesake's flagship store in Toronto, offering customizable leather goods and a custom leather studio. Additionally, the growing domestic and international travel is another factor contributing to the growth of the global leather goods market. As the number of domestic and international travelers grows, the market for leather luggage that is both reliable and convenient has grown exponentially. Individuals are now seeking out premium, high-quality leather bags that can bear the wear and tear from their adventures. Not only do these bags offer sturdiness and protection, but they also incorporate intricate designs and features to make traveling that much easier. With the rising demand for these stylish luggage pieces, travelers can rest assured knowing their journey is backed by quality leather that can stand the test of time.
The global leather goods market is encountering challenges, primarily in terms of the environmentally harmful effects of leather production. The production of leather from animal skins and hides present sustainability challenges such as deforestation, water waste, and greenhouse gas emissions. Clearing forests, including the Amazon, for cattle ranching to meet the demand for leather contributes to climate change. The tanning process, particularly the prevalent use of chromium tanning, causes significant environmental pollution. It releases harmful chemicals and gases, including carcinogenic chromium (IV), leading to the closure of tanneries in Europe and the U.S. due to regulations. Factory farms, responsible for 70% of water pollution in the U.S., aggravate the environmental impact. Moreover, tannery workers are at risk of severe health issues like skin reactions, digestive problems, liver damage, and cancer. Thus, these challenges inhibit the growth of the global leather goods market.
Based on the type, the global leather goods market is segmented into genuine leather, synthetic leather, and vegan leather. In 2022, the genuine leather segment held the highest market share. The growth can be attributed to the advantages that genuine leather offers in contrast to other leather types. Genuine leather is a natural, durable, and versatile material that can last for years without losing its quality. It can be recycled and repurposed, making it a sustainable choice. The leather develops a unique patina over time, adding character and individuality to items. It is easy to care for with simple cleaning methods and can be restored with leather conditioners. Genuine leather provides comfort, protection, and breathability, making it suitable for various climates. It is environmentally friendly as a renewable resource that minimizes waste and reduces energy consumption. Genuine leather offers convenience, luxury, and style in products such as bags, wallets, shoes, portfolios, and jackets.
Based on the product, the global leather goods market is segmented into apparel, automotive accessories, footwear, handbags, home decor and finishing, pet accessories, and small leather goods/accessories. In 2022, the footwear segment held the highest market share. The growth can be attributed to footwear being a necessity for individuals of all ages and demographics. Leather shoes are favored for their durability, comfort, and style, influencing consumer preferences. Leather footwear offers a wide range of options, catering to various consumer preferences and occasions. Leather is valued for its breathability, flexibility, and ability to mold to the foot over time, ensuring a comfortable fit. The perception of leather as a premium material associated with luxury and craftsmanship further boosts its popularity.
Based on the region, the global leather goods market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. In 2022, the region of Europe held the largest market share. The growth can be attributed to the increasing desire for superior leather items, evolving fashion styles, progress in materials, production techniques, and machinery, and the strong presence of major market players.
LVMH Moët Hennessy Louis Vuitton, Hermès International S.A., Prada S.p.A., Capri Holdings Limited, Kering SA, Samsonite IP Holdings S.ÀR.L., Timberland LLC, Burberry Plc, Tapestry, Inc., and Mulberry Group PLC are among the major players in the global leather goods market. The leather goods market is estimated to become more competitive as new players enter the industry. Due to their innovation and new product development in the leather goods market, LVMH Moët Hennessy Louis Vuitton, Hermès International S.A., and Prada S.p.A. currently dominate the market.
Genuine Leather
Synthetic Leather
Vegan Leather
Apparel
Automotive Accessories
Footwear
Handbags
Home Decor and Finishing
Pet Accessories
Small Leather Goods/Accessories
North America
Europe
Asia Pacific
South America
Middle East & Africa
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