What Transformation Has the Leather Goods Market Undergone?
The leather goods market has seen considerable growth due to a variety of factors.
• The size of the leather goods market has expanded significantly in the past few years. Its growth is projected to rise from $404.81 billion in 2024 to $435.96 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 7.7%. Factors such as fashion trends, industrialization, past export demand, celebrity endorsements, and shifting lifestyle trends have contributed to the growth experienced in the historical period.
What Is The Forecast For The Leather Goods Market?
The Leather Goods market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of leather goods is projected to have solid expansion in the upcoming years, swelling to $590.48 billion by 2029 with a compound annual growth rate (CAGR) of 7.9%.
The acceleration during this forecast period is due to factors like health and environmental consciousness, growth in emerging markets, luxury market infiltration, the expansion of e-commerce, and innovative alternative materials. Prominent trends expected during this forecast timeframe include influences of culture, the markets for rental and secondhand products, augmented reality (AR) in retail, transparency in the supply chains, and customization and personalization.
What Are The Essential Drivers Behind The Growth Of The Leather Goods Market?
The growth of the leather goods market is projected to be driven by the escalating demand for premium and upscale luxury leather products. Featuring a luxurious, sleek surface with minimal imperfections, luxury leather goods are highly coveted for their high-quality leather and exceptional craftsmanship. Their exorbitant price tag appeals to customers who view these goods as a symbol of wealth, prestige, and societal standing. Consequently, consumers are ready to pay a steep price and devote significant time to indulge in their affinity for such opulent items, like leather. To illustrate, as per a report released by World Footwear, a Portuguese provider of global footwear sector insights, events, news, and statistics, in August 2022, sales for the Leather Products and Saddlery division of Hermès International, a French purveyor of luxury goods, witnessed a 16% upsurge in the first quarter of 2022 against the same timeframe in 2021. This was credited to an increase in its manufacturing capacity and steady demand. Hence, the mounting demand for premium and top-notch luxury leather products augments the expansion of the leather goods market.
How Is The Global Leather Goods Market Divided Into Key Segments?
The leather goods market covered in this report is segmented –
1) By Leather Type: Full Grain Leather, Split Grain Leather, Genuine Leather, Faux Leather, Bonded Leather
2) By Product: Footwear, Handbags, Apparel, Luggage, Wallet, Belts, Other Products
3) By Grade: High-Grade, Mid-Grade
4) By Distribution Channel: Specialty Stores, Company Franchised Stores, E-Commerce, Super markets And Hyper markets, Other Distribution Channels
5) By End- User: Men, Women, Kids
Subsegments:
1) By Full Grain Leather: Aniline Leather, Semi-Aniline Leather, Natural Grain Leather
2) By Split Grain Leather: Suede, Nubuck
3) By Genuine Leather: Corrected Grain Leather, Top-Grain Leather
4) By Faux Leather: Polyurethane (PU) Leather, Polyvinyl Chloride (PVC) Leather
5) By Bonded Leather: Reconstituted Leather, Leather Fiber Composite
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What Trends Are Reshaping The Future Of The Leather Goods Market?
There's a rising trend towards product innovation in the leather goods market. To solidify their market dominance, major firms in this sector are focusing on the creation of innovative solutions. For instance, Tata International, the international trade and distribution component of the Tata Group, introduced Phoenix Leather in July 2024. This eco-friendly product is a part of their Earthcare Leather collection. The development of Phoenix Leather, a breakthrough in sustainable leather technology, was made possible through a patented partnership with the Central Leather Research Institute (CLRI) based in Chennai. The objective of the new range is to address the exponentially increasing demand for earth-friendly materials in the fashion and manufacturing sectors.
Who Are the Key Players In The Leather Goods Market?
Major companies operating in the leather goods market include:
• Kering SA
• Hermes International S.A.
• Louis Vuitton SE
• Samsonite IP Holdings S.AR.L.
• Timberland LLC
• Johnston And Murphy
• Woodland
• PRADA Spa
• VIP Industries Ltd.
• VF Corp.
• LUCRIN Geneva
• Nappa Dori
• Saddles India Pvt. Ltd.
• Alma Leather
• American Leather Operations LLC
• Belstaff
• Bottega Veneta
• Brunello Cucinelli
• Burberry
• Capri Holdings Limited
• Chanel
• Coach
• Fendi
• Giorgio Armani
• Gucci
• Jack Georges
What Are The Regional Insights Into The Leather Goods Market?
Europe was the largest region in the leather goods market in 2024. Asia-Pacific is expected to be the fastest-growing region in the leather goods market report during the forecast period. The regions covered in the leather goods market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
