Leather and Allied Products Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast 2022-2026

The leather and allied products market share is expected to increase by USD 138.82 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.59%.

The market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by product (footwear, luggage, bags, wallets, and purses, and others) and geography (APAC, North America, Europe, South America, and Middle East and Africa). The market report also offers information on several market vendors, including adidas AG, ASICS Corp., Belmarel srl, Capri Holdings Ltd., CHANEL Ltd., Christian Dior SE, Fast Retailing Co. Ltd., Furgamurga, Gap Inc., HandM Group, Hermes International SA, Industria de Diseno Textil SA, Kering SA, Levi Strauss and Co., LVMH Moet Hennessy Louis Vuitton SE, Nike Inc., Nordstrom Inc., Prada SpA, PVH Corp., and Ralph Lauren Corp. among others.

What will the Leather and Allied Products Market Size be During the Forecast Period?

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Leather and Allied Products Market: Key Drivers, Trends, and Challenges

The high influence of celebrity endorsements on the purchase decision is notably driving the market growth, although factors such as rising labor costs and fluctuating raw material prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the leather and allied products industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Leather and Allied Products Market Driver

The high influence of celebrity endorsements on the purchase decision is one of the key drivers supporting the market growth. Manufacturers of handbags and personal luxury goods adopt different marketing campaigns and strategies to expand their consumer base. Celebrity endorsement is a popular marketing tool used by vendors to build their brand image and trigger the sales of luxury brands. Celebrities such as Taylor Swift, Beyonce, Hailey Baldwin, Selena Gomez, and Kendall Jenner often endorse new products and brands. Online advertising is an essential part of marketing strategies. Vendors often sign multi-year endorsement agreements with high-profile celebrities to enhance their brand value. These marketing initiatives are expected to propel the demand for leather and allied products during the forecast period.

Key Leather and Allied Products Market Trend

Advances in manufacturing technology is another factor supporting the market growth. For instance, LANXESS AG, a specialty chemical manufacturer, has developed Levotan, a functionalized silicone-containing microemulsion, to produce waterproof leather. It is used to manufacture lightweight upper leather for boots, which are comfortable and waterproof. The company also disclosed X-Green Crust Technology, which is a new modular system for sustainable crust leather. It involves a process known as X-Zyme for the beam house steps, developed in collaboration with Novozymes. The process includes two microbial enzymes for soaking and liming, which improve the quality of hides, and reduce the amount of waste to a certain extent while significantly improving the efficiency of the entire process. This advancement in manufacturing technology is expected to lower the manufacturing cost, consecutively making leather and allied products affordable, eco-friendly, and innovative. Hence, the market in focus is expected to grow during the forecast period.

Key Leather and Allied Products Market Challenge

The rising labor costs and fluctuating raw material prices are some of the factors hindering the market growth. The leather manufacturing process includes several steps that include procurement of leather, processing, taming, and synthesizing. This process includes several government regulations and the use of various chemicals that further increase the price of leather as a raw material. The price of these materials is also dependent on transportation costs. Transportation costs include the supply of raw materials to factories, the supply of intermediary goods to production sites, transportation of end products to warehouses, and delivery of finished goods to end-users. The major portion of the transportation cost incurred by a vendor consists of the cost of fuel that fluctuates frequently. Thus, an increase in transportation costs increases the cost of the end-products. However, since the market is highly competitive, it restricts vendors from increasing the end-product prices, thereby reducing profit margins. Such factors are hindering the market growth.

The market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global market as a part of the global apparel, accessories, and luxury goods market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.

Who are the Major Leather and Allied Products Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• adidas AG
• ASICS Corp.
• Belmarel srl
• Capri Holdings Ltd.
• CHANEL Ltd.
• Christian Dior SE
• Fast Retailing Co. Ltd.
• Furgamurga
• Gap Inc.
• HandM Group
• Hermes International SA
• Industria de Diseno Textil SA
• Kering SA
• Levi Strauss and Co.
• LVMH Moet Hennessy Louis Vuitton SE
• Nike Inc.
• Nordstrom Inc.
• Prada SpA
• PVH Corp.
• Ralph Lauren Corp.

This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented and the vendors are deploying growth strategies such as quality and offering various quality-driven products to compete in the market.

Product Insights and News

adidas AG

• The company offers leather and allied products such as leather tennis shoes, among other products. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Leather and Allied Products Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Leather and Allied Products Market?

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47% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets in APAC. Market growth in this region will be faster than the growth of the market in other regions.

High awareness about original and branded products will facilitate the market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 adversely affected the production and distribution of leather and allied products in the region. However, with the lifting of lockdown restrictions, the demand for footwear products has increased since 2021. Such factors are expected to boost the growth of the market during the forecast period.

What are the Revenue-generating Product Segments in the Leather and Allied Products Market?

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The market share growth by the footwear segment will be significant during the forecast period. Leather boots are footwear made using leather, a durable material created by tanning the rawhide of animals. Nowadays, leather boots have become one of the most widely used fashion products, especially among the female population. The segment is likely to grow at a strong rate during the forecast period due to increased adoption and wide applicability of ankle boots on different types of apparel. These boots were earlier worn by men for protection during riding but are now adopted by women as a fashion item. Hence, this will boost the market growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on post COVID-19 impact on each segment.

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Coating Agents for Synthetic Leather market - The market share is expected to increase by USD 207.38 million from 2021 to 2026, at a CAGR of 7.12%.

Synthetic Leather market - The market study is a comprehensive report with in-depth qualitative and quantitative research evaluating the current scenario and analyzing the growth of USD 15.64 billion and CAGR of 7.77% by segment End-user, Product and Geography during the forecast period 2022 to 2027

Turkey Leather and Allied Products market - The market share is expected to witness steady growth at a CAGR of close to 4% over the 2016-2020 forecast period. 

Bosnia and Herzegovina Leather and Allied Products market - The market share will witness steady growth and will post a CAGR of close to 4% over the forecast period. 

Bulgaria Leather and Allied Products market - The market share will grow at a slow but moderate CAGR of almost 1% by 2020. 

Romania Leather and Allied Products market - The market share will grow at an impressive CAGR of over 8% by 2020. 

Serbia Leather and Allied Products market - The market share is expected to grow at a modest rate and will post a CAGR of more than 2% over the forecast period. 

Leather and Allied Products Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 5.59%
Market growth 2022-2026	USD 138.82 billion
Market structure	Fragmented
YoY growth (%)	5.18
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 47%
Key consumer countries	US, China, Japan, France, and Italy
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	adidas AG, ASICS Corp., Belmarel srl, Capri Holdings Ltd., CHANEL Ltd., Christian Dior SE, Fast Retailing Co. Ltd., Furgamurga, Gap Inc., HandM Group, Hermes International SA, Industria de Diseno Textil SA, Kering SA, Levi Strauss and Co., LVMH Moet Hennessy Louis Vuitton SE, Nike Inc., Nordstrom Inc., Prada SpA, PVH Corp., and Ralph Lauren Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in the Leather and Allied Products Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive market growth during the next five years
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of market Comapnies

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