Leather Goods Market Research Report: Information by Product Type (Footwear, Home Décor, Apparel [Jackets & Coats, T Shirts & Shirts, Trousers and Others], Luggage, Accessories [Purses & Handbags, Wallets, Belts, Watches and Others] by Distribution Channel (Store-Based [Supermarkets & Hypermarkets, Specialty Stores, Others] Non-Store-Based), and Region (North America, Asia-Pacific, Europe, and the Rest of the World)—Forecast till 2028

Leather Goods Market Overview

The global leather goods market is projected to reach approximately USD 623.44 billion by 2028, at a CAGR of 5.90%. Leather is a durable and flexible material created by tanning of animal rawhide and skin, often cattle hide. Leather can be produced through manufacturing process ranging from cottage industry to heavy industry. There are several products which are made up of leather such as footwear, home décor, apparel, luggage, accessories. Changing fashion trends, rising consumer disposable income, improved living standards is supporting the growth of the global leather goods market during the forecast period. Rising demand of contemporary designs offered by prominent international brands is further supporting the growth of the global leather goods market. Increasing working women population have further witnessed the demand of leather goods among consumers. However, animal cruelty and environmental effects of leather is expected to hinder the growth of the global leather goods market during the forecast period. Increased awareness about the branded products and growing trends of customized leather bags is expected to create opportunities for the market players of leather goods.

COVID-19 Impact Analysis

The impact of COVID-19 has directly affected the distribution and sales of different products across the industries. Many countries are under lockdown and have sealed their borders to curb the spread of the virus. The impact of COVID-19 on logistics has disrupted the supply of raw materials, which has further reduced production capacity and, thus, product shortages. These factors are expected to cause a price rise in leather goods in the short run. As a measure to limit the spread of the coronavirus, various governments across the world are restricted the gathering of more than ten people in a closed space, and many manufacturers were ordered to shut down their production facilities. Procurement of the raw materials became a cause of concern for the manufacturers owing to the urgent measures taken across the globe to control the spread of the COVID-19, impacting the logistics. The outbreak of the COVID-19 pandemic and subsequent adoption of lockdown strategies in many countries restricted the availability of labor to carry out the production process. To fight the pandemic, the whole world was under lockdown. Thus, there were some urgent measures taken by the government of various countries, such as physical distancing and limitation of transportation to fight surge ability. The worldwide lockdown has certainly affected the production of leather goods. Following state and regional guidelines, manufacturers have implemented extensive measures to protect the health and safety of their employees. Many global manufacturers have temporarily closed their operations or limited the production capacity of their products. This scenario has also affected the manufacturers financially, and they are strategizing their operations to survive the pandemic with minimal losses

Market Synopsis

The demand for leather is increasing in various products such as footwear, home décor, apparel, luggage and accessories. With the rising number of working professionals and growing urbanization, there is an increase in demand for leather goods among consumers. Furthermore, the increasing demand for leather in the customized leather bags is further supporting the growth of the global leather goods market during the forecast period; this creates greater opportunities for the manufacturers operating in the leather goods market. Owing to the wide application range of leather goods, the supply chain of leather goods is witnessing consistent growth over the past few years and is expected to continue during the forecast period.

Market USP

Increasing demand for leather goods in developing countries.

Market Dynamics

The increasing demand for leather goods in various products such as footwear, home décor, apparel, luggage and accessories are expected to drive the growth of the leather goods market. Furthermore, increased per capita disposable income is expected to propel the growth of the global leather goods market. Animal cruelty and environmental effect of leather is likely to hamper the market growth of the global leather goods market. The growth of organized retail sector in Asia Pacific and growing trend of customized leather bags is expected to create lucrative growth opportunities for the manufacturers operating in the leather goods market during the forecast period.

Drivers

• Increased Per Capita Disposable Income: Disposable income is the personal income of households left after the payment of income taxes, which is available for spending and saving. The rising per capita disposable income of people across the globe, especially the emerging economies, is boosting the demand for leather goods in the global market. The standard of living of people is improving due to their rising disposable income, propelling them to opt for luxury leather goods products as a symbol of status. The rising living standard of consumers is increasing their aspiration to enhance their appearance with leather goods products such as clothing, watches, and footwear. Furthermore, the rise in the number of High-Net-Worth Individuals (HNWIs) and affluent consumers drive the growth of the leather goods market. The individuals with a total net worth of more than USD 1 million are categorized as HNWIs. The US had 5.9 million HNWIs in 2019, which is almost 11% higher than in 2018. The US, Japan, Germany, and China are among the major countries with an HNWI population. Moreover, the growing urbanization in emerging countries and increasing working population lead to improved economies for various countries, thereby driving the growth of the global leather goods market.

Restraints

Animal Cruelty and Environmental Effect of Leather: The consumption of leather goods has been increasing rapidly over the last few years. Extensive rearing of the livestock has served environmental impacts such as deforestation, water and land overuse, and gas emissions. Tanning is the most toxic phase used in the leather processing, with 90 percent of production using chromium tanning. It is producing of slush of chemical and gases,  including carcinogenic chromium (IV). Strict government regulations in US and Europe have forced the closure of tanneries. Strict government regulations regarding the use of leather is one of the major restraints of the global leather goods market.

Opportunity

• Growth of Organized Retail Sector in Asia Pacific: Asia-Pacific is considered as the major destination globally as it offers excellent growth prospects for the leather goods market. Rapid economic growth, a rising mid-income population, and high migration rates from rural to urban areas have led to an influx of international retailers in Asia-Pacific. This has encouraged the expansion of existing retail outlets in countries, such as India and China, driving the growth of the leather goods market. Online retailing is also trending across the region. With instant access to catalogs and price lists, customers have a clear idea of the products available, which simplifies purchasing decisions. Online retailers are capturing a large portion of the market than brick-and-mortar retailers as consumers are increasingly inclined toward online shopping to minimize shopping time.

Segment Overview:

By Product Type

Based on product type, the global leather goods market has been divided into footwear, home décor, apparel, luggage and accessories. The footwear segment accounted for the highest market share of the global leather goods market during the forecast period.

By Distribution Channel

Based on distribution channel, the global leather goods market has been segmented into store-based and non-store based. The store-based segment accounted for the highest market share of the global leather goods market during the forecast period.

Segmentation

By Product Type

• Footwear: The footwear segment accounted for the highest market share of the global leather goods market during the forecast period. With the increasing demand of leather footwear by the consumers, majority of footwear manufacturers such as Adidas AG, Nike, Inc., Puma SE and Fila, Inc. have been venturing into leather athletic manufacturing. The rising demand of fashionable, trendy, yet comfortable footwear across all the age groups is the key factor driving the growth of this segment.


• Home Decor:


• Apparel:


• Luggage:


• Accessories:

• Store Based: The store-based segment accounted for the larger market share in 2020 while non-store-based segment is projected to register highest CAGR during the review period. Consumers prefer store-based channels as they provide a one-stop shopping experience. The store-based segment has been divided into supermarkets & hypermarkets, specialty stores, and others. The supermarkets & hypermarkets sub-segment is expected to be the largest in 2020, as these channels account for the maximum sale of leather goods through the convenience of a variety of brands under one roof. The specialty stores sub-segment is projected to register the highest CAGR during the review period. Consumers feel contended on spending highly on these products when bought from their standalone specialty stores.


• Non-Store Based:

Global Leather Goods Market Share, by Region, 2020 (%)

Source: MRFR Analysis

Regional Analysis

The global leather goods market has been divided into geographies into North America, Europe, Asia-Pacific, and the rest of the world. North America accounted for the largest market share of 38.90% in 2020. Asia-Pacific is expected to register the fastest growth rate from 2021 to 2028.

By Region

• North America: North America accounted for the largest market share of the global leather goods market in 2020. The growing popularity of leather goods coupled with increase in online purchases in North America is expected to drive the growth of the North America leather goods market during the forecast period. The rising number of athletes and health fitness individuals in the region is supporting the growth of leather goods market. Footwear is the most prominent segment of leather goods. Increase in demand of leather shoes and leather purses by the consumers has further boosted the leather goods among the consumers.  North Americans rely on brands that share their values in terms of authenticity, transparency, and sustainability. Key manufacturers of leather goods emphasize on promotional activities to create the awareness regarding the product launches. In North America leather goods market, Canada is projected to register the highest CAGR during the forecast period.


• Europe:


• Asia-Pacific: Asia-Pacific is anticipated to grow the fastest growth during the forecast period.  The Asia-Pacific leather goods market is expected to account for the third-largest market share of the global leather goods market during the forecast period. The Leather Goods market in Asia-Pacific is also expected to experience growth due to increasing demand of premium and luxury goods products by the consumers.  The leather goods market in Asia- Pacific is growing due to proliferation of footwear luxury brands, rapidly changing consumer trends and shift from physical stores to digital stores. China accounts for the largest market share of the global leather goods market during the forecast period. China plays a vital role in the production of leather goods and held the largest market share in the Asia-Pacific leather goods market. The Chinese consumer inclination towards leather footwear and their youth population preference for new trends are some of the major drivers of leather goods in the country. The Chinese consumers' inclination towards luxury and their youth population's preference for new trends are some of the major drivers for leather goods in the country.

• Competitive Landscape


• The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Adidas AG (Germany), Nike, Inc. (US), Puma SE (Germany), Fila, Inc. (South Korea) and New Balance Athletics, Inc. (US), dominate the global market due to brand reputation, product differentiation, financial stability, and strong distribution network. The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and mergers to strengthen their market position and capture a large customer base.


• Some of the key players operating in the leather goods business are Adidas AG (Germany), Nike, Inc. (US), Puma SE (Germany), Fila, Inc. (South Korea), New Balance Athletics, Inc. (US), Samsonite International S.A. (Hong Kong), Louis Vuitton (France), Knoll, Inc. (US), American Leather Holdings, LLC (US) and VIP Industries Ltd. (India). These players are expected to positively influence the global leather goods market growth during the forecast period.


• Scope of the Report

• Footwear


• Home Decor


• Apparel
  
  
  
  • Jackets & Coats
  
  
  • T Shirts & Shirts
  
  
  • Trousers
  
  
  • Others
  
  
  
  


• Luggage


• Accessories
  
  
  
  • Purses & Handbags
  
  
  • Wallets
  
  
  • Belts
  
  
  • Watches
  
  
  • Others
  
  
  
  

• Store Based
  
  
  
  • Hypermarkets & Supermarkets
  
  
  • Specialty Stores
  
  
  • Others
  
  
  
  


• Non-Store Based

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa
  
  
  
  

• Leather Goods Producers


• Footwear Manufacturers


• Home Decor Manufacturers


• Apparel Manufacturers


• Luggage Manufacturers


• Leather Accessories Manufacturers


• Raw Material Suppliers


• Retailers, Wholesalers, and Distributors


• Governments, Associations, and Industrial Bodies


• Investors and Trade Experts