Leather Goods Market - By Type (Genuine Leather, Synthetic Leather [Polyurethane (PU), PVC], Vegan Leather), By Product (Handbags [Tote Bag, Clutch], Leather Goods & Accessories [Wallets, Pouches], Apparel, Footwear, Home Décor and Furnishing), By Distri

Leather Goods Market - By Type (Genuine Leather, Synthetic Leather [Polyurethane (PU), PVC], Vegan Leather), By Product (Handbags [Tote Bag, Clutch], Leather Goods & Accessories [Wallets, Pouches], Apparel, Footwear, Home Décor and Furnishing), By Distribution Channel (Hypermarket/Supermarket, Specialty Stores, Online Retailer) & Forecast, 2023 - 2032

Global Leather Goods Market is slated to witness considerable gains through 2032. Consistently improving per capita incomes in developed and developing economies has increased consumer spending on luxury products made of leather, presenting growth pathways to the industry. Moreover, leather goods are perceived as high-end products, and are widely popular amongst the middle and upper-income groups.

Leather goods manufacturers globally have been opting for mergers and acquisition strategies to retain their industry standing. To illustrate, in December 2021, Nike, Inc., an American multinational corporation acquired RTFKT, a prominent brand offering collectibles that merge gaming and culture. It helped the company accelerate its digital transformation and serve sports enthusiasts better.

The overall leather goods industry is divided in terms of type, product, distribution channel, and region.

Based on type, the leather goods market size from vegan leather segment is poised to grow substantially through 2032, owing to the accelerating transition toward sustainable and cruelty-free products. Industry players such as Puma Inc., Nike, Adidas AG, and others are focusing on manufacturing shoes made of vegan leather as part of their sustainability efforts. In fact, in February 2022, Puma Inc., a premium sports company, announced the launch of KING Platinum 21 Vegan, its first-ever vegan leather football boot.

Based on product, the leather goods industry share from the footwear segment is anticipated to record a valuation of more than USD 35 billion by 2032, owing to the availability of a wide range of leather footwear. Leather footwears have high durability and breathability, making them suitable for long-term use. Moreover, many players in this space are focusing on launching high-quality leather footwear, specifically in the shoe segment, which is likely to favor segment expansion.

On the basis of distribution channel, the leather goods market value from the hypermarket/supermarket segment is expected to grow at a considerable CAGR from 2023 to 2032, owing to the availability of expansive product ranges in these stores. These facilities offer goods at lower prices than specialty stores, which makes them popular amongst middle-income groups. Moreover, the growing number of hypermarkets/supermarkets across the globe has increased the footfall of consumers for luxury goods.

From the regional perspective, Asia Pacific leather goods industry is slated to grow at over 11% CAGR from 2023 to 2032. Rising income levels and rapid urbanization has increased consumer spending on high-quality luxury products such as leather goods. In fact, emerging economies such as India and China are major producers and exporters of leather globally. As per India’s IBEF, in 2021-22, the country’s total export of leather and leather products was valued at USD 4.87 billion, indicating a 32% increase from the previous year.