Leather Goods Market by Product, Distribution Channel and Geography - Forecast and Analysis 2023-2027

Leather Goods Market Forecast 2023-2027

The leather goods market is forecast to increase by USD 90.98 billion, at a CAGR of 6.24% between 2022 and 2027. Market expansion relies on diverse factors, notably innovative marketing tactics, product premiumization driven by advancements in design and materials, and the significant impact of celebrity endorsements on consumer purchasing behavior. Innovative marketing strategies not only enhance brand visibility but also attract new customers, fueling market growth. Moreover, the emphasis on design and material innovation adds value to products, leading to premiumization and increased consumer interest. Additionally, celebrity endorsements play a pivotal role in influencing consumer preferences and driving sales. Furthermore, the growing demand for designer collections underscores consumers' evolving tastes and preferences, contributing to the overall growth trajectory of the market. This confluence of factors underscores a dynamic market landscape shaped by innovation, branding, and consumer influence.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by product (footwear, LBWP, and others), distribution channel (offline and online), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The market encompasses a wide range of products, including apparel, footwear, accessories, and more. Living standards have been on the rise, leading to an increasing demand for fancy leather apparel and high-quality footwear. Brands have capitalized on this trend, with many investing in automated machinery and advanced processing techniques to produce complex designs. Digital cutting technology has revolutionized the industry, allowing for greater precision and versatility in creating intricate patterns. Leather manufacturers have responded to this popularity by offering a variety of leather materials, such as Saddles and Mushroom leather. Designers continue to push the boundaries of what is possible with leather, creating everything from Saddles and Furniture to Wallets, Belts, and Handbags. Brand awareness has become a crucial factor in the market, with consumers seeking out trusted names for their leather goods. World Footwear and Sage-ONF are just a few of the many companies leading the charge in this dynamic industry. The future of the market looks bright, with continued innovation and a strong consumer base driving growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Innovative marketing strategies are a major factor driving the market share growth. The market has witnessed significant growth over the past two decades, driven by an increasing consumer base, particularly in developing regions. Instead of relying on television advertising, luxury mentors like LVMH, Hermes, and CHANH opt for newspapers and fashion magazines. Innovative marketing strategies include celebrity endorsements, such as those from Jennifer Lopez, Kate Moss, Scarlett Johansson, and Uma Thurman. In addition, the industry explores alternative materials, like mushroom and apple leather, and technological advancements, such as PV-based coatings, to expand their offerings. VitroLabs, for instance, is a leading company in the development of high-performance coatings for such goods. These marketing initiatives increase the demand for and drive the market growth during the forecast period. 

Significant Market Trend

The introduction of different leather varieties is another factor supporting the market share growth. The market has witnessed significant growth in recent years, driven by the increasing demand for unique textures, qualities, and feels in leather products. Traditional leather sources have become insufficient, leading companies to explore alternatives such as Mushroom and Apple leather. To cater to this demand, manufacturers have adopted advanced technologies like PV-based coatings to create leather-like textures from non-animal sources. Additionally, there is a surge in the production and sale of luggage made from exotic animal skins, including those from calves, lambs, snakes, crocodiles, and alligators. Innovative companies like VitroLabs are also contributing to the market by developing new leather alternatives, further expanding the product offerings.

Major Market Challenge

The fluctuating operational costs will be a major challenge for the market growth. In the market, international vendors, including Prada, Tapestry, Giorgio Armani, Mulberry, and Dolce & Gabbana, have outsourced production to Asian countries like China, Indonesia, Bangladesh, and Vietnam due to lower labor costs. However, the rapid increase and continuous fluctuation of labor costs in these countries are posing challenges for vendors, increasing production expenses and decreasing profit margins. To mitigate these rising costs, some companies are exploring alternative materials, such as Mushroom leather and Apple leather, which offer sustainability benefits and reduced production costs. Additionally, advancements in technology, like PV-based coating, are being adopted to enhance the durability and quality of goods, while reducing the reliance on traditional leather sources. VitroLabs, for instance, is a leading provider of innovative solutions, offering companies cost-effective and high-performance alternatives to traditional leather. Due to such reasons, the growth of the market will continue to be hindered during the forecast period.

Customer Landscape

The report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

What is the Fastest-Growing Segment in the Market?

The market share growth by the footwear segment will be significant during the forecast period. Leather footwear includes products that have upper surfaces made of leather. Companies are constantly innovating and introducing new patterns and designs due to market competition and evolving customer demand because of continuous changes in the fashion industry. Innovations in footwear are in terms of designs and the type of animal skin used. For instance, Hermes offers Valois ankle boots made of smoked-brown calfskin suede. They are equipped with straps, saddle nails, and saddle-style stitching on the diagonal side. 

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The footwear segment was valued at USD 129.59 billion in 2017 and continue to grow by 2021. In the premium segment, leading vendors offer customized products which have an aesthetic appeal. For instance, Nike, one of the key vendors, offers customized shoes under its Nike By You segment. This allows customers to customize their shoes in terms of color, design of shoe soles, and the printing of custom text. The concept of monogramming and embroidery is also trending in the segment, especially among women, due to the availability of personalization services such as the Louis Vuitton monogramming service. Such services allow customers to personalize products that are popular. Hence, the products are unique and expensive. They also help distinguish original products from counterfeits. The customization of footwear complements market growth through new purchases. The customization of footwear is expected to increase the revenue generated by footwear manufacturers during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. The business in APAC experiences continuous growth due to economic expansion, a burgeoning middle class, and the presence of numerous vendors. Key countries include China, Japan, and South Korea. International goods manufacturers, such as PRADA, Tapestry, and Giorgio Armani, have factories or OEMs in countries like China, Indonesia, Bangladesh, and Vietnam. The market is further fueled by increasing fashion consciousness, replacement of budget-focused consumers with fashion-focused ones, and the growing fashion industry. Leather garments, including handbags, footwear, belts, and apparel, offer lightness, all-season versatility, and a classic, status symbol appeal.

However, the leather industry faces challenges such as negative environmental impacts and animal welfare concerns. Industrial constraints necessitate the exploration of plant-based materials as alternatives to animal-based leather. The goods market caters to both luxury and everyday needs, with extensive usage in shoes, luggage, saddles, furniture, wallets, belts, and handbags. Meghan Roach, an industry expert, emphasizes the importance of appropriate care for leather products to maintain their luxurious appeal, weather protection, breathability, and temperature-controlling properties. Sage-ONF, a leading leather material supplier, emphasizes the importance of balancing fashion trends with environmental and ethical considerations. Marketing and promotional activities, along with the expansion of distribution channels, are the other factors that are driving the growth of the market in the region.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Adidas AG - The company offers leather goods such as Copa Pure.1 and Firm Ground Boots.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Bata India Ltd.
• Burberry Group Plc
• Capri Holdings Ltd.
• CHANEL Ltd.
• Dolce and Gabbana S.r.l.
• Giorgio Armani S.p.A.
• GLobalLeathers
• Hermes International SA
• Kering SA
• LVMH Moet Hennessy Louis Vuitton SE
• Mulberry Group Plc
• Nike Inc.
• Prada S.p.A
• PUMA SE

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Footwear
  • LBWP
  • Others

• Distribution Channel Outlook 
  • Offline
  • Online

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

In the dynamic and ever-evolving world of consumer goods, the market stands out as a significant player. Brands and manufacturers alike strive to appeal to consumers' desires for durability, style, and sophistication. Leather trends are influenced by factors such as fashion, culture, and consumer preferences. Fashion trends often dictate the types of leather goods in demand. For instance, the current trend towards sustainability has led to an increased interest in vegan leather. On the other hand, classic leather items like briefcases, wallets, and handbags remain popular due to their timeless appeal. Accessories like belts, shoes, and jackets are also essential components of the market. Brands use various marketing strategies to differentiate themselves, such as unique designs, high-quality materials, and innovative production methods.

Moreover, the market for leather goods is global, with major players in countries like China, India, and Italy. DesigneRs and manufacturers must keep up with the latest trends and consumer preferences to remain competitive. The use of digital marketing, social media, and influencer partnerships has become essential for reaching and engaging consumers. In conclusion, the market is a dynamic and competitive industry that requires a deep understanding of fashion trends, consumer preferences, and marketing strategies. Brands that can effectively meet the demands of consumers while staying innovative and sustainable will thrive in this market.
 

Market Scope
Report Coverage	Details
Page number	168
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.24%
Market growth 2023-2027	USD 90.98 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.82
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 46%
Key countries	US, China, Japan, France, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Adidas AG, Bata India Ltd., Burberry Group Plc, Capri Holdings Ltd., CHANEL Ltd., Dolce and Gabbana S.r.l., Giorgio Armani S.p.A., GLobalLeathers, Hermes International SA, Kering SA, LVMH Moet Hennessy Louis Vuitton SE, Mulberry Group Plc, Nike Inc., Prada S.p.A, PUMA SE, Ralph Lauren Corp., Samsonite International S.A., Tapestry Inc., VF Corp., and Compagnie Financiere Richemont SA
Market dynamics	Parent market growth analysis, Market Forecasting,  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 this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market players

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