Leather Goods Global Market Report 2024

The leather goods market size has grown strongly in recent years. It will grow from $378.26 billion in 2023 to $407.37 billion in 2024 at a compound annual growth rate (CAGR) of 7.7%. The growth observed in the historical period can be attributed to various factors, including evolving fashion trends, the impact of industrialization, historical export demands, the influence of celebrity endorsements, and shifts in lifestyles.

The leather goods market size is expected to see strong growth in the next few years. It will grow to $541.69 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period can be attributed to factors such as increased health and environmental awareness, the growth of emerging markets, penetration into the luxury market, the expansion of e-commerce, and ongoing innovation in material alternatives. Key trends expected in the forecast period include the influence of cultural factors, the rise of rental and second-hand markets, the integration of augmented reality (AR) in retail, a focus on transparency in supply chains, and an emphasis on customization and personalization in the leather goods industry.

The anticipated growth in the demand for premium and high-quality luxury leather products is set to propel the expansion of the leather goods market. These luxury leather items, distinguished by their exceptional quality, smooth surfaces, and minimal flaws, attract customers seeking to showcase their wealth, reputation, and social status. Notably, in the first quarter of 2022, Hermès International, a French luxury goods company, experienced a 16% increase in sales for its Leather Products and Saddlery business compared to the same period in 2021. This growth was attributed to expanded manufacturing capacity and sustained demand, emphasizing the increasing preference for premium luxury leather products and driving the overall leather goods market.

The upward trajectory of consumer spending is poised to be a significant driver for the leather goods market. Consumer spending, encompassing the total expenditures by individuals or households on goods and services within a specific period, has seen a notable rise. In the third quarter of 2023, consumer spending in the United States increased to $15,494.21 billion from $15,343.60 billion in the second quarter of the same year. This heightened consumer spending contributes to the purchase of premium products, including leather goods, indicating a positive influence on the growth of the leather goods market.

A key trend gaining prominence in the leather goods market is product innovation, with major companies striving to develop innovative solutions to fortify their market position. For example, in March 2021, Hermes International S.A. introduced the Victoria bag, a mushroom-based leather bag, showcasing the world's first use of Fine Mycelium technology. Fine Mycelium enhances mycelium growth, creating amber-colored panels with a filament structure derived from fungi. Crafted from Sylvania-based leather material, this bag exhibits strength, durability, and convenience in carrying, highlighting the innovative strides made in the leather goods market.

Major companies in the leather goods sector are engaging in strategic partnerships to introduce innovative leather products. In April 2023, Rashki, an India-based fashion brand, collaborated with Banofi Leather, an India-based leather company, to launch India's first-ever range of handbags made from banana leather. Utilizing an innovative process developed by Banofi, these handbags are created from banana crop waste, providing a robust leather alternative. Such partnerships contribute to the evolution of the leather goods market through the introduction of sustainable and innovative products.

In June 2021, Compagnie Financière Richemont S.A., a Switzerland-based luxury goods company, acquired Delvaux for an undisclosed amount. This strategic move positions Delvaux, a Belgium-based luxury leather goods manufacturer, to leverage Richemont's global footprint and digital expertise for expanded omnichannel potential and enhanced consumer engagement, marking a significant development for Delvaux in its next stage of growth.

Major companies operating in the leather goods market report are Kering SA, Adidas AG, Hermes International S.A., Louis Vuitton SE, Samsonite IP Holdings S.AR.L., New Balance Athletics Inc., Knoll Inc., Timberland LLC, Johnston And Murphy, Woodland, PRADA Spa, VIP Industries Ltd., VF Corp., COLLAR Company, 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.

Europe was the largest region in the leather goods market in 2023. 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. The countries covered in the leather goods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of leather used in bulk leather goods include full-grain leather, split-grain leather, genuine leather, faux leather, and bonded leather. Full-grain leather is a smooth leather derived from the top layer of the hide, retaining all of the natural grain. These leather goods comprise a diverse range of products, including footwear, handbags, apparel, luggage, wallets, belts, and more. These products are categorized into high-grade and mid-grade, and they are distributed through channels such as specialty stores, company-franchised stores, e-commerce platforms, supermarkets, hypermarkets, and other distribution channels. Leather goods cater to various applications for men, women, and children.

The leather goods market research report is one of a series of new reports that provides leather goods market statistics, including leather goods industry global market size, regional shares, competitors with a leather goods market share, detailed leather goods market segments, market trends and opportunities, and any further data you may need to thrive in the leather goods industry. This leather goods market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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