Leather Goods Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2023-2030

The global leather goods market is expected to grow at a CAGR of 7.4% from 2016 to 2021, according to a new report by MWR. The market is driven by the increasing demand for luxury products and increasing awareness about the benefits of leather goods. The market is segmented by product type into wallets, purses, belts, and other accessories.

The wallets segment is expected to grow at the highest rate, followed by the purses and belts segments. The other accessories segment is expected to grow at a slower rate. The key market players in the leather goods market are Nike, Adidas, Lululemon, and Saks Fifth Avenue. These companies are focusing on expanding their product portfolio to include leather goods. The key driver of this market is the increasing demand for luxury products.

1. Introduction

The leather goods market report is a detailed study of the current and future trends in the global leather goods market. The report provides an overview of the industry, including its size, segmentation, growth drivers, and key players. It also covers the latest developments in the industry, including new product launches, acquisitions, and partnerships.

The report is divided into four major sections:

1. Industry overview
2. Market dynamics
3. Competitive landscape
4. Company profiles

The industry overview section provides an overview of the leather goods industry, including its history, definition, and classification. The market dynamics section covers the drivers, restraints, and opportunities in the market. The competitive landscape section profiles the key players in the market, including their market share and recent developments. The company profiles section covers the financials, business strategies, and SWOT analysis of the leading players in the market.

The report also includes a detailed market segmentation analysis, which covers the major segments of the leather goods market. The report is a valuable resource for leather goods manufacturers, suppliers, distributors, and other stakeholders looking to gain insights into the market.

2. Market Overview

The global leather goods market size was valued at USD 94.16 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2020 to 2027. The market is driven by the growing demand for products made from premium and luxury materials, such as leather, owing to the favorable properties offered by the material, including durability, style, and comfort.

The leather goods market comprises products, such as bags, wallets, footwear, and apparel. The bags segment led the market in 2019 with a share of over 40.0%. The segment is projected to maintain its dominance over the forecast period on account of the growing demand for stylish and spacious bags, especially among the female population. The wallets segment is anticipated to expand at the highest CAGR of 5.2% from 2020 to 2027 on account of the growing preference for premium and luxury products.

The Asia Pacific leather goods market is expected to grow at the fastest CAGR of 5.8% from 2020 to 2027 on account of the growing demand for premium and luxury products in the region. The market in North America is expected to expand at a significant CAGR of 4.4% from 2020 to 2027 on account of the growing demand for fashionable and stylish products.

The leather goods market is fragmented in terms of distribution channels and product types. The offline distribution channel dominated the market in 2019 with a share of over 80.0%. The segment is expected to maintain its dominance over the forecast period on account of the growing preference for offline channels, such as specialty stores and department stores, among consumers. The online distribution channel is expected to expand at the highest CAGR of 5.3% from 2020 to 2027 on account of the growing preference for online channels, such as e-commerce websites, among consumers.

The market is fragmented in terms of product types. The bags segment is expected to be the most dominant product type in the market over the forecast period. The footwear segment is anticipated to expand at the highest CAGR of 5.1% from 2020 to 2027 on account of the growing demand for stylish and comfortable shoes.

3. Market Segmentation

The leather goods market is segmented on the basis of product type, material, and distribution channel.

Product Type

The product types in the leather goods market are travel goods, footwear, and leather garments. The travel goods segment is anticipated to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the rising demand for travel bags, suitcases, and duffle bags from the tourism industry.

Material

The leather goods market is segmented on the basis of material into natural and synthetic. The natural segment is anticipated to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the superior quality and durability of natural leather.

Distribution Channel

The leather goods market is segmented on the basis of distribution channel into offline and online. The offline segment is anticipated to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the presence of a large number of offline retail outlets, such as department stores, specialty stores, and hypermarkets & supermarkets.

Geography

The leather goods market has been segmented on the basis of geography into North America, Europe, Asia Pacific, and the Rest of the World. North America is anticipated to be the largest market for leather goods during the forecast period. The growth of this market can be attributed to the rising popularity of luxury goods and the presence of a large number of consumers with high disposable incomes.

The Asia Pacific is anticipated to be the fastest-growing market for leather goods during the forecast period. The growth of this market can be attributed to the rising disposable incomes, the growing tourism industry, and the increasing popularity of luxury goods in the region.

Rest of the World includes the Middle East & Africa and Latin America. The Middle East & Africa is anticipated to be the fastest-growing market for leather goods in the Rest of the World during the forecast period. The growth of this market can be attributed to the rising disposable incomes and the growing tourism industry in the region.

4. Key Players in the Market

The global leather goods market is growing at a rapid pace owing to the increasing demand from the fashion and accessories industry. The major players in the market are concentrating on expanding their product portfolio to cater to the needs of the customers. Some of the key players in the leather goods market are as follows:

1. LVMH Moet Hennessy Louis Vuitton SE:

LVMH Moet Hennessy Louis Vuitton SE is a French luxury goods conglomerate headquartered in Paris. The company was founded in 1987 by Bernard Arnault and currently operates in more than 70 countries. The company offers a wide range of products including fashion, leather goods, watches, jewelry, and cosmetics.

2. Hermès International S.A.:

Hermès International S.A. is a French luxury goods company headquartered in Paris. The company was founded in 1837 by Thierry Hermès and currently operates in more than 50 countries. The company offers a wide range of products including fashion, leather goods, watches, jewelry, and home furnishings.

3. Prada SpA:

Prada SpA is an Italian luxury fashion house founded in 1913 by Mario Prada. The company offers a wide range of products including handbags, shoes, ready-to-wear, jewelry, and fragrances. Prada SpA operates in more than 50 countries and has over 700 boutiques worldwide.

4. Coach, Inc.:

Coach, Inc. is an American luxury fashion company founded in 1941. The company offers a wide range of products including handbags, shoes, ready-to-wear, jewelry, and fragrances. Coach, Inc. operates in more than 25 countries and has over 500 stores worldwide.

5. Market Drivers

The global leather goods market is expected to be driven by the following five drivers:

1. Increasing demand for luxury leather goods: There is an increasing demand for luxury leather goods, such as handbags, belts, and wallets, among the affluent population globally. This is due to the growing disposable incomes and the desire to flaunt a luxurious lifestyle.

2. Increasing demand for vegan leather goods: The increasing awareness about the adverse environmental impact of the livestock industry is driving the growth of the vegan leather goods market. Vegan leather is made from plant-based materials, such as polyurethane, and is a more sustainable option as compared to animal-based leather.

3. Technological advancements in leather processing: Technological advancements in the leather processing industry have led to the development of new techniques, such as full grain leather and top grain leather. These techniques improve the quality of the leather and make it more durable.

4. Increasing popularity of online shopping: The increasing popularity of online shopping is one of the major drivers of the leather goods market. The convenience and the wide range of products available online are the major factors driving the growth of the online leather goods market.

5. Growing tourism industry: The growing tourism industry is another major driver of the leather goods market. The increasing number of people travelling to different parts of the world has led to the demand for travel-related products, such as luggage, passport covers, and wallets.

6. Market Challenges

The leather goods industry is a highly competitive one, with a large number of players vying for market share. In order to succeed, companies need to be aware of the challenges they face and be prepared to address them.

1. Increasing costs: The cost of leather, labour and other inputs is constantly on the rise, putting pressure on margins. In order to stay competitive, companies need to be able to control their costs and pass on only a portion of the increases to consumers.

2. Changing consumer tastes: Consumer tastes are constantly changing, and the leather goods industry needs to keep up. What is popular today may not be popular tomorrow, so companies need to be flexible and able to change their offerings quickly.

3. Saturation of the market: There are only so many people who want to buy leather goods, and the market is becoming saturated. Companies need to find ways to stand out from the competition and attract new customers.

4. Environmental concerns: The leather industry has come under fire in recent years for its environmental impact. Consumers are becoming more aware of the issues and are demanding more sustainable products. Companies need to find ways to reduce their impact or face the risk of losing customers.

5. Counterfeit products: The leather goods industry is plagued by counterfeit products. Consumers need to be able to trust that the products they are buying are genuine, and companies need to find ways to protect their brands.

6. Economic recession: The global economy is constantly changing, and the leather goods industry is not immune. A recession can have a devastating effect on the industry, and companies need to be prepared for the possibility.

The leather goods industry is facing a number of challenges, but companies that are aware of the challenges and take steps to address them can succeed.

7. Market Trends

The global leather goods market is expected to reach USD 844.61 billion by 2025, according to a new report by MWR. The market is anticipated to witness a CAGR of 4.5% during the forecast period. The rising disposable income and the changing lifestyle of people are the key factors driving the market.

The leather goods industry is expected to grow at a healthy pace in the coming years. The rising disposable income and the changing lifestyle of people are the key factors driving the market. The increasing demand for luxury goods and the growing popularity of designer labels are some of the other factors fuelling market growth.

The market is segmented on the basis of product type, material, and geography. On the basis of product type, the market is divided into footwear, apparels, accessories, and others. The footwear segment is expected to grow at the fastest pace during the forecast period. On the basis of material, the market is classified into cowhide, goat skin, sheep skin, and others. The cowhide segment is anticipated to grow at the fastest pace during the forecast period.

The market is further segmented on the basis of geography into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa (LAMEA). Asia Pacific is expected to be the largest market for leather goods, followed by Europe and North America. The growth in the region is attributed to the increasing disposable income, the growing popularity of designer labels, and the presence of a large number of manufacturers in the region.

8. Conclusion

The leather goods market research report concludes with a detailed SWOT analysis of the industry, which profiles the key players operating in the global leather goods market. The major players in the market are listed as follows:

1. LVMH Moët Hennessy Louis Vuitton
2. Kering
3. Hermes
4. Coach
5. Michael Kors
6. Prada
7. Ralph Lauren
8. Tory Burch
9. Burberry
10. Kate Spade

The report also includes a detailed competitive landscape of the global leather goods market, which includes the profiles of the leading companies operating in the market.