Leather Goods Market Size is anticipated to reach USD 623.44 Billion by 2028, registering a CAGR of 5.90% during 2021-2028
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
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.
Increasing demand for leather goods in developing countries.
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.
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.
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.
By Product Type
Global Leather Goods Market Share, by Region, 2020 (%)Source: MRFR 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.
|Market Size||USD 623.44 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product Type, By Distribution Channel, and By Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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), VIP Industries Ltd. (India)|
|Key Market Opportunities||Demand for leather is increasing in various products|
|Key Market Drivers||Increased per capita disposable income is expected to propel the growth of the global leather goods market|
Leather Goods Industry Size is estimated to reach USD 623.44 Billion by 2028
Leather Goods Market is anticipated to grow at 5.90% during the forecast period of 2021–2028
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), VIP Industries Ltd. (India)
North America will lead the Leather Goods Market