The leather goods market size was USD 444.78 billion to USD 471.02 billion from 2023 to 2024. Also, it is expected to get around USD 789.05 billion by 2033.
Leather materials come from horses, goats, cattle, camels, sheep, and buffalo skin. That’s why the leather has excellent durability and is enough stretchable. Mainly, leather is used to make furniture, garments, handbags, gloves, footwear, watches, and other things.
As leather is durable and flexible, it is excellent for use in anything. Due to the scratch-resistant and fire-resistant features, leather is a long-lasting product.
The main plus point is leather is a comfortable and repairable product, which makes it suitable for pieces. Leather is a popular product that is used in sports equipment, and its demand is growing daily.
Likewise, the quality of leather products makes it more popular day by day. The growing fashion industry creates new additions of leather products, increasing the demand for leather. Similarly, there is a huge demand for premium quality leather in the North American and European regions. Leather bags, sneakers or shoes, and accessories are trendy in those areas.
On top of that, Europeans consider the leather product to be a sign of high self-esteem. As a result, there is a high demand for leather products. Due to their high-income sources in the U.S., Mexico, and Canada, they can easily bear the high cost of premium leather.
The demand for leather goods is increasing rapidly in the Asia Pacific nations. They also consider leather products to be luxury products. In the Asia Pacific nation, Bangladesh and Pakistan are the leading exporters of leather goods. There are a vast number of fitness-conscious and health-conscious buyers of leather products.
In the Bangladeshi market, leather has an attractive market with lower tariff rates. However, Europe is desired to grow at a CAGR of 6.8% over the forecast years.
Leather Goods Growth Factors
The growth of the leather goods market depends on many factors. Urbanization is increasing, and it has a significant role in developing the leather market. Due to the growing income level, consumers can buy more leather products. At the same time, the demand for the leather market improves the market growth.
Moreover, the people’s standard of living has been developing day by day, and the nation is also growing. Thus, this standard of living has a vital role in increasing the demand for luxury products, like leather goods. Branded and premium products are also in high society’s first demand.
With the growth of tourism, leather goods sales are also growing significantly. Again, the leather product market is also growing with promotions, like fashion shows. Brand awareness is another way to develop the growth of any product.
On top of that, promoting on social media is another effective way to increase the leather market growth. As the demand for automotive upholstery has been growing daily, the demand for leather goods is also increasing.
Leather Goods Market Dynamics
Durable materials
Leather goods are made of durable materials, dust, water, fire, and crack-resistant. Due to the comfortable material, it is mostly used for making footwear and watches. Also, leather bags, clothes, and furniture are trendy.
Demand growth
The demand for leather goods is growing rapidly, even in automotive. Due to the stretchy and comfortable materials, it is of great use in automotive upholstery. Also, anyone can customize this product based on their demand and design the vehicle’s interior. As the automotive industry grows daily, the market is expected to grow in the coming years.
Premium Quality
The leather goods are considered of premium quality. That’s why it is trendy among luxury products. Due to the growing disposable income of people, the demand for premium quality leather goods is also increasing.
Moreover, rich people consider using luxury goods as a sign of their high self-esteem. That’s why North Americans and Europeans purchased leather goods as their luxury product. Most of the affluent products are made of leather materials, such as handbags, shoes, and other luxury products.
Availability
Leather goods have excellent availability around the world. India, Vietnam, and China are the main competitors of these products. These countries deliver a tremendous amount of labor at a lower cost and have a strong global position.
Likewise, the leather business is export-oriented, which will help generate a good amount of revenue in the coming years.
Immense opportunity
Vegan leather comes from apples, fungi, wine, grass, coffee, and other things. As a result, the product has immense opportunity for market growth. Also, vegan leather has extended use in making footwear and purses. Such types of leather have a significant contribution to increasing revenue.
Key Market Challenges of Leather Goods
Various organizations are trying to grow consumer awareness due to its environmental effects. Also, Animal Welfare organizations are suggesting reducing the usage of leather products.
Insufficient knowledge of The Market
Although leather goods have a huge market demand, marketers need more product marketing knowledge. They need to gain knowledge about buying patterns and consumers’ tastes, hampering market growth.
High cost
Leather products are made with high-tech equipment and are costly. Also, there is a need for skilled people to operate the high-tech machines. A skilled person is also needed to make customized designs. That’s why the manufacturing cost of the leather product is high. Hence, it is a big challenge to the leather industry to meet the high cost of the leather.
Constant demand for high-quality products
In European countries, customers constantly seek high-quality products for reasonable costs. Thus, it is a challenge for competitors to provide high-quality products at low costs.
Leather Type Insights
Genuine leather has an excellent impact in the markets, carrying a share of about 54.1% in 2023. Besides, quality leather products are in great demand in the North American and European markets. Due to the high quality of the products, consumers are ready to pay well for them.
The leather goods markets are proliferating, and the demand for the products is also increasing significantly during the forecast period. However, cheap leather options like synthetic leather are available on the market. These types of leather are attractive. That’s why the demand for synthetic leather is also expected to grow in the coming years.
Again, synthetic leather is made of polyvinyl chloride and polyurethane. Polyurethane is an eco-friendly option. That’s why synthetic leather is considered an eco-friendly and durable element. Besides, the material is crack-resistant. Thus, artificial leather is expected to have a great future in the market.
Product Insights
Leather holds about 44% of the footwear segment’s market share. Also, Adidas, Nike, and Reebok are popular shoes as athletic shoes. They use premium leather in their shoes. That’s why the demand for such leather shoes is increasing rapidly.
Again, there are different types of leather sneakers available in the market at an affordable price. Besides the Converse, All Birds, and New Balance, leather sneakers are becoming trustworthy shoes in the market.
The demand for automobile upholstery has increased tremendously, and automobile accessories are made of leather. Moreover, leather is handy in premium car accessories. With the growing sales of automotive products, the demand for leather is also growing.
The home-type car feature of leather contributes significantly to the market’s growth. Besides, leather is used to renovate and furnish houses and helps grow the leather goods market.
Leather Goods Market Companies
The most potential sharers or companies of leather goods market are Adidas AG, Puma SE, Nike, Inc. Fila, Inc. Knoll, Inc, New Balance Athletics, Inc, Lear Corp.Recent Developments, Samsonite International S.A. Hermès International S.A.VIP Industries Ltd.Woodland Worldwide, Timberland LLC, Johnston & Murphy, VF Corp. COLLAR Company, Nappa Dori, LUCRIN Geneva, Saddles India Pvt. Ltd. Lear Corp.
Leather Goods Worldwide Market Shares
Here you can see the Worldwide Leather Goods Market Share from 2018 to 2029.
Recent Developments Of Leather
In 2021, Nike launched vegan leather. Also, it has a great use of sneakers. Besides, SB Dunk Sneakers is a cruelty-free and zero-waste initiative. Three Xetic sneakers are available in Porsche design, and these sneakers were introduced by Puma in 2020.
Also, there is a good collection that comprises performance wear and casual wear sneakers. Mesh material and chrome-free leather are main elements of such sneakers.
In 2021, Adidas launched mushroom leather, which is sustainable and durable. Besides this, Adidas has launched Stella McCartney and Lululemon to make vegan leather, which is a plant-based material.
Global Leather Goods Market Segmentation
The following report forecasts leather revenue growth at global, regional & country levels. It also analyzes the new industry trends and opportunities in various segments from 2017 to 2030. This global leather market report has been created according to the type, type by product, product, and region:
Types Outlook: Genuine Leather,synthetic leather, vegan leather.
Type By Product Outlook : handbags, small leather goods or accessories, footwear, home decor and furnishing, apparel, pet accessories, Synthetic Leather, Polyurethane Leather
Automotive Accessories: PVC Leather, Handbags, Small Leather Goods/ Accessories, Apparel, Footwear, Home Décor and Furnishing, Pet Accessories, Vegan Leather,
Product Outlook: Handbags, Tote Bag, Clutch, Satchel and Others
Small Leather Goods/ Accessories: Wallets, Pouches, Phone Covers or Cases, Watch Straps, Luggage Tags, Pencil Cases, etc.
Apparel: Men, Shirts, Pants, Suits, Coats & Jacket
Overalls: Others (Kilts, Vests, Chaps, etc.),
Women: Skirts, Coats & Jackets, Pants, Others (Vests, Chaps, etc.)
Children: Suits, Coats & Jackets, Vests, Pants, Skirts, Chaps,
Footwear: Athletic, Men, Women, Children
Non-athletic: Men, Women, Children
Home Décor and Furnishing: Decorative Wall Hangings, Tabletop decorative items, Hanging Storage, Leather Furniture and Other
Pet Accessories: Pet Collar and Leads, Leather Pet Toys
Automotive Accessories: Seating Systems, Others
Regional Outlook: North America, U.S., Europe, Germany, U.K., France, Italy, Asia Pacific, China, India, Central and South America, Brazil, Middle East and Africa
The Industry of Leather Goods is Segmented by Region:
- Leather Goods in North America Market
- Leather Goods in Asian Pacific Market
- Leather Goods in the European Market
- Leather Goods in the Middle East and Africa Market
- Leather Goods in Latin America Market
FAQs
How big is the leather goods market?
In 2022, the global leather goods market was about USD 242.85 billion. Likewise, it has crossed over USD 253.82 billion in 2023.
Who are the prominent companies operating in the leather goods market?
The main companies operating in the leather goods market are Nike, Adidas AG, New Balance Athletics, Johnston & Murphy, Puma SE, Fila, Timberland LLC, Samsonite International S.A., COLLAR Company, VIP Industries Ltd., Woodland Worldwide, Hermès International S.A., Louis Vuitton Malletier, VF Corp., LUCRIN Geneva, Nappa Dori, Lear Corp. Knoll, Inc., and Other companies.
What are the factors driving the leather market?
The demand of the Asin market is the primary factor driving the growth of leather products. Also, the popularity of leather products is increasing day by day. There are many consumers of leather-based casual athletic and running-inspired sneakers.
What will the CAGR be in the global leather goods market?
The expected global leather goods market CAGR is 5.9% from 2024 to 2033.
Why is leather products gaining traction in the leather industry?
Due to the comfortability, weather protection facility, and durability, the Genuine leather goods market is expected to reach around USD 320 billion by 2032.
What is the expected Leather Goods Market Size by 2033?
The leather goods market is expected to reach US$ 764.81 billion by 2033.
What is the Leading Type in the Leather Goods Market?
The leading type in the leather market is a synthetic segment.
What are India’s prospects in the leather goods market?
India is estimated to gain a large amount of growth in the leather goods market.
Final Words
In 2022, the global leather goods market was about USD 242.85 billion. Due to the compound annual growth rate, the market growth will increase rapidly. Based on the
The growth level will improve daily by rising consumer disposable income, living standards, newly updated fashion trends, and tourism growth. Due to enough durability, comfort design, and fancy apparel, it is expected to positively impact the leather goods market.
