Leather and Allied Products Market Report 2026

The leather and allied products market size has grown strongly in recent years. It will grow from $418.18 billion in 2025 to $448 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to expansion of footwear and accessories markets, availability of raw hides and tanning infrastructure, growth of fashion and lifestyle industries, rising consumer demand for branded goods, development of organized retail networks.

The leather and allied products market size is expected to see strong growth in the next few years. It will grow to $607.46 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to increasing focus on environmentally friendly tanning processes, rising demand for non-leather substitutes, expansion of global fashion e-commerce, growing investments in advanced manufacturing technologies, increasing emphasis on traceability and compliance. Major trends in the forecast period include increasing adoption of sustainable and ethical leather practices, rising demand for premium and customized leather goods, growing preference for synthetic and vegan alternatives, expansion of online leather product retail channels, enhanced focus on quality and durability standards.

The increasing demand for online shopping is expected to drive the growth of the leather and allied products market. Online shopping involves purchasing goods or services over the internet through digital platforms such as websites or mobile applications, allowing consumers to browse products, compare prices, place orders, and make secure electronic payments without visiting physical stores. Its growth is primarily fueled by widespread smartphone adoption and high-speed internet, making it easier and more convenient for consumers to browse, compare, and purchase products anytime and anywhere. Leather and allied products benefit from online shopping by gaining wider global market access, improving brand visibility, and establishing direct-to-consumer sales channels that reduce dependence on traditional retail networks. For example, in August 2023, the United States Census Bureau reported that, compared to the second quarter of 2022, e-commerce estimates for the second quarter of 2023 increased by 7.5% (or 1.4%), while overall retail sales grew by 0.6% (or 0.4%). Therefore, the growing demand for online shopping is expected to propel the leather and allied products market.

The rising demand for footwear is further driving growth in the leather and allied products market. Footwear includes items designed to be worn on the feet, such as shoes and boots. Leather is widely used in footwear due to its durability, comfort, and stylish appeal. Increasing consumer preference for stylish, comfortable, and high-quality leather footwear is contributing to this growth. For instance, in July 2024, Gitnux, a US-based non-governmental organization, reported that the footwear market grew by 2.8% in 2023 and is projected to expand by 3.5% in 2024. Consequently, the growing demand for footwear is boosting the leather and allied products market.

Companies in the leather and allied products market are increasingly focusing on innovations that combine design and comfort to meet evolving consumer needs. For example, technologies such as AEROREADY enhance moisture-wicking, comfort, durability, and performance in footwear and athletic apparel. In August 2024, Adidas AG, a Germany-based apparel company, launched the FW24 New York Tennis Collection, which integrates insights from motion capture technology to inform design. This technology captures digital images of athletes in motion to identify areas generating heat that require ventilation. The resulting designs incorporate strategically placed materials and cut-outs that follow the body's natural contours, allowing for enhanced flexibility and range of motion during activity.

Major companies operating in the leather and allied products market are LVMH Moët Hennessy Louis Vuitton, Kering SA, Hermès International S.A., Nike Inc, Adidas AG, Rimowa Cz Spol. S R. O, Changge Yixing Leather Co Ltd, Tapestry Inc, ASICS Corporation, Elena Pieles Argentinas Srl, Chemcrown Exports Limited, Eagle Ottawa China Ltd, A V Thomas Leather and Allied Products Limited, Bowron G.L., Christian Dior SE, Acknit Industries Limited, Bhartiya International Limited, Australian Leather Holdings Ltd, Jiangsu Maydiang Leather Goods Co Ltd, Giovanni RawHides, Prada S.p.A, Zatchels, Puma SE, Saudi Leather Industries Company SLIC, Xingye Leather Technology Co Ltd, Packer Leather Pty Ltd, KOZHA AO, Capri Holdings Limited, Skechers USA Inc, Heller-Leder GmbH & Co. KG, Mtms Leather Shoes.

Asia-Pacific was the largest region in the leather and allied products market in 2025. Western Europe was the second largest region in the leather and allied products market. The regions covered in the leather and allied products market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the leather and allied products market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The leather and allied products market consists of sales of full-grain leather, top-grain leather, genuine leather, bonded leather, gloves, handbags, and watches. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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