Global Luxury Leather Goods Market - 2022-2029

Global Luxury Leather Goods Market - 2022-2029

Market Overview

The global luxury leather goods market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

Bags, wallets and other leather accessories are considered leather goods, but leather furniture is not. Leather apparel, leather shoes and leather suitcases have no evident differentiation. Consumers like leather items due to inherent qualities such as dustproof, fireproof, crack-proof and durability, which are expected to propel the leather goods market forward. Furthermore, in recent years, the increased demand for stylish handbags, luxury leather wallets and other leather goods has influenced the expansion of the leather goods market.

The leather business benefits from increased government assistance, driving the market forward. For example, in India, 100 percent FDI is permitted through the automatic method and the government reduced the excise duty on leather footwear (footwear with leather uppers) with a retail sale price of more than US$ 14.55 per pair from 12 percent to 6%.

Market Dynamics

The market for luxury leather items is being driven by rising demand for attractive leather products as a status symbol and the tendency of luxury consumers toward diverse international brands. Some buyers assume that higher-priced products are of higher quality; hence, they will spend excessive money to obtain the brand name and tag. Consumers might become so loyal to a brand that they are willing to spend a significant amount of money on luxury goods, resulting in an increase in the market for luxury leather goods.

The increased fashion consciousness in men along with women

Men, like women, are becoming more fashion aware, attracting manufacturers to increase their product offering in the men's category. Aside from established luxury goods, newer, more inexpensive luxury companies are gaining traction in the market. Various startups have created bespoke premium products in response to market demand.

For example, customers can customize the color and hardware of their leather handbags at 1Atelier. The premium leather items market is driven by strong brand recognition and high unit prices. The development of modern technologies such as 3D printing and robots has quickly benefited the production of beautiful leather products.

Rising demand for leather accessories

Leather fashion accessories are leather products used with or complement other clothing. They usually have both a practical and decorative significance. Like clothing and non-leather fashion accessories, leather accessories have a longer life cycle, especially for high-end products that gain value with time. Carrying products, gloves and mitts, belts and other accessories are among the fastest-growing leather fashion accessories.

The growing fashion industry boosted consumer demand for leather handbags and wallets, propelling the global accessories market. Furthermore, customers are increasingly concerned with aesthetics and the demand for high-end goods as a fashion statement has increased. Manufacturers of leather-based accessories include Gucci, Gianni Versace and Louis Vuitton, all based in Europe.

The illegal killing of animals

The inhumane slaughter of various animals to produce leather products has piqued the interest of several animal rights activists. Rising consumer worries about animal slaughter have undoubtedly influenced the market's desire for such products. Because this is a serious barrier for the leather industry, several companies use chemicals and plants to create artificial leather.

Modern Meadow, for example, has raised US$ 53.4 billion to develop animal-free lab-grown leather. The company manufactures collagen using living cells and tans the constructed collagen sheets to make lab-grown leather.

COVID-19 Impact Analysis

The sector is also facing challenges due to the current COVID-19 outbreak, which has caused a global slowdown in raw material commerce. Prices have risen as a result, but quantities have decreased. Fashion and accessories are discretionary sectors by their very nature and most customers consider them non-essential. The COVID-19 epidemic resulted in a dramatic decline in sales of luxury leather items in 2020.

Furthermore, due to the lockdown measures implemented by various governments throughout the world in mid-March 2020, only necessary retail outlets were permitted to remain open, resulting in six-week closures of luxury leather goods stores. On the other hand, consumer demand is expected to increase in the coming years.

Segment Analysis

By distribution channel, the luxury leather goods market is classified online and offline.

The online channel is used to communicate with customers.

Over the projected period, the internet channel is expected to increase at the fastest rate. To communicate with customers, multi-brand e-retailers and own-brand web storefronts are used. Luxury goods aren't widely sold in stores; thus, they're available to a select group of people. People in remote or rural areas can readily purchase such products on the internet.

Furthermore, the multi-brand online platform can reach out to time-crunched consumers who don't have much time to browse through several mono-brand websites, thereby expanding the scope of luxury product online retailing.

Geographical Analysis

The rising demand for leather products in Europe

The significant presence of local and international enterprises, product & technology innovations and the expansion in online shopping & social media platforms are some of the key drivers fueling the growth of Europe's luxury leather goods market. The region's luggage and leather product sales are driven by expanding fashion consciousness, rising disposable incomes and rising demand for attractive bags.

Furthermore, as consumers become more interested in travel and unusual experiences, demand for leather products, such as luggage bags, is expanding, particularly in the luxury market, as buyers seek high-quality things. Furthermore, the area continues to be the market's largest consumer because of the high presence of fashion-driven countries such as France and Italy.

Competitive Landscape

The challenge for small competitors to enter the luxury leather goods market is exacerbated by high entry barriers, as most consumers are loyal to specific brands. The supply of raw materials is particularly limited due to the expanding restriction on animal slaughtering, increasing input costs and a fall in profit margins for various businesses. With a competitive landscape that is somewhat concentrated, fresh product introductions are critical to maintaining consumer interest. As a result, the major players continued to release various new items during the end of the future period.

Major players operating in the global market for luxury leather goods include Hermes, Adidas, Louis Vuitton, VF Corporation, Guccio Gucci S.P.A, Capri Holdings, Alpha Packaging, Inc, Goldlion, Nike and Kering.

Guccio Gucci S.P.A.

Overview: Gucci is reinventing a modern approach to fashion by being influential, original and progressive. Gucci was founded in Florence, Tuscany, in 1921 by Guccio Gucci. Gucci became a global brand, a symbol of the Italian Dolce Vita, under the guidance of Aldo Gucci (son of Guccio). The company has redefined luxury for the 21st century in the new vision, solidifying its place as one of its most desirable fashion houses. Gucci items are eclectic, contemporary & romantic and reflect the pinnacle of Italian craftsmanship in quality and attention to detail. Gucci is a subsidiary of The Kering Group. Gucci had 487 outlets and 17,157 employees in 2019.

Product Portfolio: Gucci is a global luxury conglomerate that oversees the creation of several well-known fashions, leather goods, jewelry and watch brands. Handbags, ready-to-wear, footwear & accessories, makeup, fragrances and home décor are among its product lines.

Key Development: Gucci, the luxury fashion house in Italy, said in June 2021 that it would begin utilizing a new material composed of ""animal-free"" leather and other renewable resources. The material, dubbed ""Demetra,"" is a ground-breaking luxury material that blends quality, softness, durability and scalability with an environmentally conscious mindset.

Demetra provides the industry with a scalable, alternative material that is also more sustainable and meets the criteria of animal-free solutions. The first products manufactured with Demetra are three Gucci sneaker types, with other components like organic cotton, recycled steel and recycled polyester.

Why Purchase the Report?
• Visualize the composition of the luxury leather goods segmentation by product, distribution channel, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in luxury leather goods by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of luxury leather goods - level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global luxury leather goods report would provide access to an approx. 59 market data tables, 51 figures and 212 pages.

Target Audience
• Luxury Leather Providers/ Buyers
• Leather Good Manufacturers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
• Luxury Leather Goods Manufacturers