The leather goods market is estimated to be valued at US$ 324.69 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The leather goods market manufactures and sells products made from animal skin or hide. Some key products include bags, wallets, belts, footwear and clothing. Leather goods are durable and develop a beautiful patina with age, making them a fashionable yet sustainable choice. Increasing discretionary spending on luxury and fashion accessories is driving the demand for leather goods across the world.
Market Dynamics:
The growth of the leather goods market is primarily driven by increasing consumer spending on luxury and fashion accessories. Rising incomes and improving lifestyles in developing countries are enabling more consumers to spend on premium leather goods from top brands. Additionally, increasing product innovation in terms of design, color and textures is expanding the appeal of leather goods among younger consumers. For instance, companies are incorporating vibrant colors and unique finishes to leather bags and wallets. Furthermore, growth of online retail is positively impacting the market by making premium leather goods more accessible to customers globally. However, volatility in raw material prices remain a key challenge for leather goods manufacturers. Fluctuations in cattle hide supply and costs can squeeze profit margins.
SWOT Analysis
Strength: The Global Leather Goods Market has strong brand recognition of top players globally. The established distribution network of major brands ensures wide reach. Rapid urbanization and rising disposable incomes have fueled demand for leather goods.
Weakness: Fluctuations in raw material prices poses challenges for manufacturers. Certain regions have policies restricting animal farming and leather production.
Opportunity: Emerging markets like India and China are expected to drive future growth. Rising spending on fashion and accessories across age groups presents new avenues.
Threats: Growing popularity of vegan and eco-friendly alternatives reduces need for leather goods. Trade policies and agreements impact supply chains and competitive landscape.
Key Takeaways
The global leather goods market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing preference for branded luxury goods coupled with rising disposable incomes. North America dominates the market currently owing to heavy demand from countries like the United States.
Regional analysis
Europe is the second largest leather goods market globally, majorly driven by countries such as Italy, France and Germany. The Asia Pacific region is anticipated to be the fastest growing market over the next few years led by China, South Korea and India. Increasing fashion consciousness and improving standards of living in developing Asian economies offer immense potential for market expansion in the region.
Key players
Key players operating in the leather goods market are LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermès International S.A., Dolce & Gabbana Luxembourg S.à r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation. Major players are focusing on expanding into fast growing Asian markets through partnerships and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.