Global Leather Goods Market Outlook, 2028

Global Leather Goods Market Outlook, 2028

Leather and its derivatives are among the most traded commodities on a global scale. Rising demand for premium leather items is expected to drive market growth. Paper, cork, recycled rubber, waxed cotton, tree bark, apple waste, pineapple waste, and mushrooms are also being used as leather substitutes by businesses. Furthermore, rising investments in the development of leather substitute materials are expected to drive industry growth. Furthermore, the growing demand for trendy handbags, premium leather wallets, and other leather products has influenced the leather goods market's growth. Government support for the leather industry is propelling the market forward. In India, for instance, 100% FDI is permitted in the automated manufacturing of leather products. Consumers nowadays are well-informed about current global fashion trends. Due to the prevalence of social media, consumers have been exposed to a wide range of international brands. As disposable income increases, consumers are purchasing international leather brand bags and accessories to complement their outfits and improve their living standards. As a result, increased awareness of branded products will aid in the expansion of the leather luggage and goods market. In addition, as global fashion trends shift, market participants have been urged to launch cutting-edge and popular items to meet consumer demand and maintain a loyal customer base. Buyers also want leather accessories and luggage that are both small and fashionable. Men's leather gloves, bracelets, and necklaces are becoming increasingly popular as fashion trends shift. The industry will grow in the coming years as a result of shifting fashion trends.

According to the research report, ""Global Leather Goods Market Outlook, 2028,"" published by Bonafide 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 awareness of eco-friendly and cruelty-free products has increased exponentially in recent years. Thus, consumers are gaining more consciousness while purchasing products that are animal-based or that may have caused harm to animals during the production process of different goods. In addition, the number of synthetic leather applications in the automotive, clothing, and furniture industries is driving the growth of synthetic leather. Furthermore, demand for vegan leather is on the rise, driven by growing concerns about animal welfare and environmental issues associated with traditional leather production. Moreover, companies are collaborating with each other to develop new and innovative vegan leather products. For instance, Adidas has partnered with the biotech company Bolt Threads to create a new type of vegan leather made from mycelium, the root structure of mushrooms. In addition, the fashion industry is one of the primary sectors driving the demand for vegan leather. Major fashion brands, such as Stella McCartney and H&M, have introduced vegan leather lines, and many others are expected to follow suit.

According to the report, the genuine leather segment led the market with a share of around 79.86% in 2022. Genuine leather is known for its durability and longevity, which makes it a popular choice for high-end leather goods. Leather products made from genuine leather can last for years with proper care, making them a worthwhile investment for consumers. In addition, the synthetic type segment is expected to grow at the highest CAGR during the forecast period. Synthetic leather is often more affordable than genuine leather, making it a popular choice for consumers who want the look and feel of leather without the high cost. Furthermore, with the rise of smart technology, there is a growing demand for synthetic leathers that incorporate features such as water resistance, anti-microbial properties, and temperature control. In addition, the popularity of different types of synthetic leather varies depending on the application and the specific needs of the end-users. However, here are a few types of synthetic leather that are currently popular in the market, like polyurethane (PU) leather, polyvinyl chloride (PVC) leather, microfiber leather, bio-based leather, recycled leather, hybrid leather, and more.

The North American leather goods market is one of the world's largest and most profitable. Macroeconomic factors such as GDP growth, inflation, and exchange rates also have an impact on the North American leather goods market. These factors can affect consumer spending and demand for luxury products, which in turn can impact the market. Furthermore, the United States is the largest market for leather goods in North America. Moreover, the market is highly competitive, with a large number of domestic and international players offering a wide range of products. In addition, one of the unique features of European leather goods is their use of vegetable-tanned leather. This traditional method of tanning involves using natural tannins found in plant matter, such as oak bark, instead of chemicals. Vegetable-tanned leather is prized for its durability, natural appearance, and eco-friendliness. In addition, in Asia-Pacific, China is one of the largest markets for leather goods in the region. The country has a well-established leather industry that produces a wide range of leather products, including shoes, bags, belts, and accessories. In addition, China is a major exporter of leather goods, with many international brands manufacturing their products in the country.

Based on product the market is divided into Footwear, Handbags, Small Leather Goods/ Accessories, Apparel, Home Decor and Furnishing, pet accessories, automotive accessories, Luggage & bags. In 2022, the footwear segment will have the largest market share. Major competitors such as Reebok, Adidas, and Nike are producing athletic shoes as the demand for such footwear has increased significantly. These market players release various types of trainers, which serve as an affordable option in the market. Apart from Converse, All Birds, and New Balance, these are the most trustworthy brands on the market. In addition, the handbags segment is expected to grow at a CAGR of 8.21% during the forecast period. The handbags segment is largely driven by fashion trends, with consumers seeking products that are both stylish and functional. The popularity of social media and e-commerce has made it easier for consumers to access the latest fashion trends, which has further boosted demand for handbags in the region. The fashion industry is constantly evolving, and the demand for new and trendy accessories is high. The small leather goods and accessories segment is particularly sensitive to changing fashion trends, and manufacturers are constantly developing new designs to keep up with consumer preferences. Furthermore, the fashion industry is constantly evolving, and the demand for new and trendy accessories is high. The small leather goods and accessories segment is particularly sensitive to changing fashion trends, and manufacturers are constantly developing new designs to keep up with consumer preferences.

The distribution channels, the market are divided into specialty stores, supermarkets and hypermarkets, brand outlets, online stores, and others. Specialty stores are retail outlets that specialize in a particular category of products, such as leather goods. These stores typically offer a wide range of leather products, including bags, wallets, belts, and other accessories. Specialty stores offer a personalized shopping experience with knowledgeable staff that can help customers choose the right products. These stores are typically located in shopping malls or standalone locations. For instance, specialty stores that specialize in leather goods include Coach, Louis Vuitton, Gucci, Michael Kors, Fossil, Kate Spade, and more. In addition, online stores are becoming increasingly popular in the leather goods market. These stores offer convenience to customers, as they can shop from the comfort of their own homes. Online stores typically offer a wide range of products at competitive prices. These stores offer easy payment options and quick delivery of products. For instance, popular online stores that specialize in leather goods include Amazon, Zara, Nordstrom, Macy's, Farfetch, Net-A-Porter, and more.

The high cost of natural leather is a factor that has driven the need for natural leather replacements. The low quality of leather and the shortage of leather all over the world are bottlenecks for the leather goods industry. Some kinds of leather goods available on the market have low costs. It will also hamper the supply and demand for good-quality leather products and their prices. Moreover, the worldwide shortage of leather goods and raw materials, such as genuine leather, is driving up the price of these products. Furthermore, natural leather is being controlled by the prevailing strict regulations enacted by the governments of various nations, and these regulations will hamper the production of various goods that make use of leather. Sustainability issues caused by leather made of animal skins and hides, such as water wastage, deforestation, gas emissions, and others, lead to reduced demand for such products. Inadequate knowledge about purchasing patterns and consumers’ tastes. Moreover, rising demand for high-quality leather goods at an affordable rate is becoming a hindrance for high-value leather products.

Major Companies present in the market:
Adidas AG, Nike, Inc, Puma SE, FILA Holdings Corporation, MillerKnoll Inc ( Formerly Herman Miller Inc), VF Corporation, Hermès International S.A., LVMH Moët Hennessy Louis Vuitton, Samsonite International S.A., New Balance Athletics, Inc., Prada S.p.A., Genesco Inc., Giorgio Armani S.p.A., Kering SA , Skechers Inc., Capri Holdings Limited, Tapestry, Inc., Ralph Lauren Corporation, LUCRIN Geneva, Compagnie Financière Richemont S.A.

Considered in this report
• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Global Leather Goods market with its value and forecast along with its segments
• Region-wise Leather Goods market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Type
• Genuine Leather goods
• Synthetic Leather goods

By Product Type
• Footwear
• Handbags
• Small Leather Goods/ Accessories
• Apparel
• Home Décor and Furnishing
• Pet Accessories
• Automotive Accessories
• Luggage & bags

By Distribution Channel
• Speciality Store
• Supermarkets and Hypermarkets
• Brand Outlets
• Online Stores
• Others (General retail, B2B, discount stores, flea markets, and specialty boutiques)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Leather Goods industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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