Leather Goods Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

Leather Goods Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

The leather goods market is projected to record a CAGR of 6.2% during the forecast period (2021 - 2026).

The COVID-19 outbreak led to a disruption in the retail sales of leather good products during 2020, owing to the limitations in spending power, shut stores/outlets of premium apparels, and widespread lockdown globally.

Leather goods are highly popular among consumers, as they have inherent qualities, such as dustproof, fireproof, crack-proof, and durability, which are expected to increase the growth of the leather goods market.

Moreover, the growing demand for trendy handbags, premium leather wallets, and other leather products is influencing the growth of the leather goods market in the last few years.

The growing government support for the leather industry is further driving the market growth. For instance, in India, 100% Foreign Direct Investment is permitted through the automatic route, and the government reduced the excise duty to 6% from 12% on leather footwear (footwear with uppers made of leather), with a retail sale price of more than USD 14.55 per pair.

Key Market TrendsIncreased Demand for Leather Accessories

Leather fashion accessories are items made of leather generally worn with or are supplementary to other clothing items. They typically have a functional and aesthetic value. Leather accessories also typically have a longer life-cycle than garments and non-leather fashion accessories, especially when it comes to high-end products that gain value over time. The growing segments of leather fashion accessories products include carrying products, gloves and mitts, belts, and other accessories. The thriving fashion industry majorly uplifted the demand for leather handbags and wallets among consumers, thereby driving the global accessories market. Moreover, consumers are more inclined toward aesthetic factors, and the demand for premium range goods as a fashion statement has increased. Europe-based companies, such as Gucci, Gianni Versace, and Louis Vuitton, are the key players involved in manufacturing leather-based accessories.

Europe Emerges as the Largest Consumer of Leather Goods

The strong presence of local and international players, product and technological innovations, rise in online retailing, and the use of social media platforms are some of the major factors driving the growth of the European market.​ The increasing fashion consciousness, rising disposable incomes, and increasing demand for attractive bags drive the sales of luggage and leather goods in the region. Moreover, the growing interest in travel and unique experiences among consumers is boosting the demand for leather goods, such as luggage bags, especially in the luxury segment, as consumers increasingly look for high-quality items. Moreover, with the strong prevalence of fashion-driven countries, such as France and Italy, the region remains the largest consumer of the market.

Competitive Landscape

The leather goods market is highly competitive. In the organized sector, a few key players are holding a major market share, whereas, in the unorganized sector, many small players are competing to gain a market share. Adidas, Samsonite, and Kering are some prominent players in the global market. Major players are focusing on introducing new product offerings in the market to cater to the interests of the consumers as per the ongoing fashion trend among goods like footwear, accessories, and luggage bags. Expansion is the next strategy preferred by companies to strengthen their dominance in the leather goods market. Major players are constantly trying to expand their production facilities or retail outlets to accommodate the growing demand and strengthen their strategies for market development.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Kering SA
Hermes
Samsonite IP Holdings S.AR.L.
Tapestry Inc.
Adidas AG
Prada
LVMH
Capri Holdings Limited

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