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The global leather goods market was valued at USD 342.66 billion, which is expected to cross USD 495.93 billion by the end of the forecast period, and the market is anticipated to grow at a 6.48% CAGR by 2023–28. – Actual Market Research
Apr, 30
2023

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The global leather goods market was valued at USD 342.66 billion, which is expected to cross USD 495.93 billion by the end of the forecast period, and the market is anticipated to grow at a 6.48% CAGR by 2023–28. – Actual Market Research

 

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Leather goods have been a part of human civilization for thousands of years. From clothing and footwear to bags and accessories, leather has been used for a wide range of applications throughout history. Furthermore, as the global economy continues to improve, more consumers are able to afford high-quality leather goods. This has led to an increase in demand for leather goods, particularly in emerging markets. Moreover, as consumers become more conscious of the environmental impact of their purchases, there has been a growing demand for sustainable leather goods. Many companies are now offering eco-friendly leather alternatives, such as vegetable-tanned leather, to meet this demand. In addition, leather goods are known for their durability and longevity. They can withstand wear and tear and last for many years with proper care. This durability makes leather goods a cost-effective option for consumers in the long run. Furthermore, leather goods have been found to have health benefits, such as improved posture and reduced foot odour when wearing leather shoes. This has led to an increase in demand for leather shoes and other leather products among health-conscious consumers. Moreover, with the rise of eco-consciousness among consumers, there is a growing demand for sustainable and eco-friendly leather goods. Many companies in the leather goods industry are now adopting sustainable and ethical practises in their production processes, such as using vegetable-tanned leather or recycled materials.

According to the research report, "Global Leather Goods Market Research Report, 2028," published by Actual Market Research, the market was valued at USD 342.66 Billion, which is expected to cross USD 495.93 Billion by the end of the forecast period. The market is anticipated to grow at 6.48% CAGR by 2023–28. The trend towards minimalism has also impacted the leather goods market, with consumers seeking out simple, classic designs that are timeless and versatile. Furthermore, the growth of digitalization is also impacting the leather goods market, with companies using technologies such as 3D printing, augmented reality, and virtual reality to enhance the shopping experience and create more personalized products. Moreover, social media platforms have become a key marketing tool for leather goods companies, with many brands partnering with influencers to showcase their products to a wider audience. This has resulted in a growing demand for products that are seen as trendy and fashionable, particularly among younger consumers. In addition, another trend in the leather goods market is the integration of technology into products, such as bags and shoes with built-in charging ports, GPS tracking, and other features that make them more functional and convenient for consumers. However, vegan leather has emerged as a popular alternative to traditional animal-based leather on the global market. Vegan leather, also known as faux leather or synthetic leather is a man-made material that imitates the texture and appearance of animal leather but is made from non-animal materials such as plant-based materials, recycled plastic, and microfiber. Moreover, the process of producing animal leather involves the use of harmful chemicals, high water consumption, and often unethical treatment of animals. As a result, many consumers are turning to vegan leather as a more ethical and sustainable alternative.

The global leather goods market is divided into several regions, including North America, Europe, Asia Pacific, South America, the Middle East, and Africa. North America and Europe are currently the major markets, driven by the high demand for luxury goods in these regions. However, the Asia-Pacific region is expected to see the fastest growth in the coming years. In addition, leather goods in India are produced using a variety of materials, including cowhide, sheepskin, and goatskin, among others. Furthermore, India has several leather fairs and exhibitions, including the India International Leather Fair and the Kolkata Leather Fair, which attract buyers and exhibitors from around the world. In addition, the Japanese government has implemented several policies to support the development of the leather industry, including tax incentives for companies that invest in research and development and funding for leather craft schools. Furthermore, Japan has leather museums and exhibitions, including the Leather Industry Museum in Himeji and the Tokyo Leather Fair, which attract visitors from around the world.

The leather goods market can be broadly categorized into two major product types: genuine leather and synthetic leather. The genuine leather segment led the market with a share of around 79.86% in 2022. Genuine leather is made from animal hide, while synthetic leather is made from a combination of plastic and fabric. Both types have their own unique characteristics and advantages. Furthermore, genuine leather has been a popular choice for centuries due to its durability, natural beauty, and luxurious feel. It is often used in high-end products such as designer bags, shoes, and jackets. One of the biggest advantages of genuine leather is its ability to age gracefully and develop a patina over time, making it even more beautiful and valuable with age. However, genuine leather is also more expensive and requires more maintenance than synthetic leather. Moreover, synthetic leather, on the other hand, has gained popularity in recent years due to its affordability, versatility, and eco-friendliness. It can be produced in a variety of colours and textures, making it a popular choice for fashion accessories and furniture. It is also more resistant to water and stains than genuine leather and requires less maintenance. Additionally, synthetic leather is an ethical alternative for those who are concerned about animal welfare. In addition, the leather goods market is experiencing increasing demand for sustainable and eco-friendly materials. This has led to the development of new materials such as vegan leather, which is made from plant-based materials such as pineapple leaves, apple peels, and mushrooms.

According to the report, based on product, the market is divided into footwear, handbags, small leather goods and accessories, apparel, home decor and furnishing, pet accessories, automotive accessories, luggage, and bags. Footwear is the largest segment in the global leather goods market, accounting for a significant share of the market's revenue. Leather is a preferred material for footwear due to its durability, comfort, and style. The demand for premium-quality and high-end leather footwear is driving the growth of the market. The increasing adoption of e-commerce channels for the purchase of footwear is also driving the growth of this segment. In addition, the demand for leather handbags is growing due to their functional and fashionable features. The trend of customization in handbags is gaining popularity, which is driving the growth of this segment. The use of premium leather materials, such as crocodile and snake leather, is also contributing to the growth of this segment. Furthermore, leather is also used in the manufacturing of pet accessories such as collars and leashes. The growing trend of pet ownership and the demand for premium-quality pet accessories are driving the growth of this segment. Moreover, the growth of the global tourism industry is driving the demand for luggage and bags. As more people travel for leisure and business, the demand for high-quality luggage and bags is increasing.

The global leather goods market is distributed through various channels, including specialty stores, supermarkets and hypermarkets, brand outlets, online stores, and others. Specialty stores offer a wide range of leather goods, including footwear, handbags, small leather goods, and accessories. These stores provide a personalized shopping experience to their customers and offer a wide range of high-end and luxury products. They also offer customer services such as customization and repair services, which can attract customers to purchase products from these stores. For instance, specialty stores that offer a wide range of leather goods products globally like Coach, Louis Vuitton, Gucci, Prada, Herm?s, Tumi, Fossil, Longchamp, Bottega Veneta, and more In addition, online stores are e-commerce platforms that sell leather goods through their website or mobile app. Online stores offer consumers the convenience of shopping from their own homes or mobile devices, and they typically offer a wider range of products and brands than brick-and-mortar retailers. Online stores may also offer personalized recommendations based on a consumer's browsing or purchase history. For instance, some online stores that offer leather goods products are Amazon, Zappos, Nordstrom, Etsy, Farfetch, ASOS, Net-a-Porter, SSENSE, Mytheresa, MatchesFashion, and more.

Governments around the world have implemented strict regulations on the production and use of natural leather to ensure environmental sustainability and animal welfare. The European Union (EU) has implemented the Restriction of Hazardous Substances (RoHS) directive, which restricts the use of hazardous substances in the production of leather goods such as shoes, bags, and clothing. The EU also has regulations in place to ensure that leather products do not contain harmful chemicals such as formaldehyde and chromium VI. Furthermore, the United States (US) has regulations in place to ensure that leather products are labelled accurately and that they meet certain environmental standards. The Environmental Protection Agency (EPA) regulates the use of chemicals in the production of leather, and the Consumer Product Safety Commission (CPSC) regulates the labelling and safety of leather goods. Moreover, the Indian government has implemented regulations to ensure that the production of leather goods is environmentally sustainable and does not harm animal welfare. The Indian government has also banned the use of certain chemicals in the production of leather, including azo dyes and formaldehyde. On the other hand, some global leather goods associations like the International Council of Tanners (ICT), The Leather Working Group (LWG), The Leather Goods Manufacturers Association of India (LGMA), The European Leather Goods Association (ELGA), The American Leather Chemists Association (ALCA), The Confederation of National Associations of Tanners and Dressers of the European Community (COTANCE), The Asia Pacific Leather Fair (APLF), The African Leather and Leather Products Institute (ALLPI), The Brazilian Leather Project (BLP), The Australian Leather & Allied Trades Research Association (ALARA), and more.