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The leather and allied products market size is forecast to increase by USD 119.8 billion and is estimated to grow at a CAGR of 5.13% between 2023 and 2028. Leather products have experienced a significant surge in demand, driven by several key factors. Firstly, the influence of celebrity endorsements on purchase decisions has been substantial. High-profile individuals frequently showcase their leather goods in public, creating a desirable trend among consumers. Secondly, the increase in online retail sales has made leather products more accessible than ever before. Consumers can now browse and purchase a wide range of leather items from the comfort of their homes. Lastly, design and material innovation have led to product premiumization, making leather goods a desirable investment for both fashion and functionality. With these trends continuing to shape the market, the future looks bright for the leather industry.
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The Market encompasses a range of items including Footwear, Apparel, Accessories, Upholstery, and more. Fashion trends play a significant role in driving demand for Leather goods such as Handbags, Shoes, and Fashion accessories. Ethically sourced products are gaining popularity as consumers become more conscious of animal cruelty and environmental effects. Non-essential items like Luxury goods and Artisanal skill intensive products continue to be in demand, especially in the Automotive upholstery segment for Premium interiors. The Footwear segment dominates the market due to its wide application across various industries and lifestyle changes. The Apparel segment also holds a substantial share due to the versatility of Leather in creating durable and stylish clothing. Upholstery, particularly in the Automotive sector, is expected to witness significant growth due to the increasing demand for Performance wear and Sportswear. Counterfeit products pose a challenge to market growth, while Inventory levels are closely monitored to maintain profitability. Domestic and International tourism contribute to the demand for Leather and Allied Products, with Social media playing a crucial role in promoting sales. The market is expected to continue its growth trajectory, with the Automotive upholstery segment poised for significant expansion. Our researchers analyzed the data with 2023 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.
High influence of celebrity endorsements on purchase decisions is notably driving market growth. The market encompasses a wide range of consumer goods, including leather footwear, handbags, and luggage, as well as non-leather alternatives. This industry has witnessed significant growth in recent years due to increasing consumer preferences for premium interiors, lifestyle changes, and the rise of luxury goods.
Moreover, leather tanning techniques, such as full grain and top grain, continue to be popular, while new materials like vegan leather, DriTan leather, and bonded leather are gaining traction. Marketing strategies for leather goods, such as handbags and automotive upholstery, often incorporate artisanal skill, customization options, and material technology to attract consumers. Thus, such factors are driving the growth of the market during the forecast period.
Advancement in manufacturing technology is the key trend in the market. The market encompasses a range of consumer goods, including leather footwear, handbags, and luggage, as well as non-leather alternatives. The manufacturing process of these items involves various stages, including leather tanning, which can consume large quantities of water.
Moreover, to mitigate this environmental concern, companies like BASF SE are innovating with solutions such as DryFast, a beam house technology that enhances efficiency while minimizing water usage. Thus, such trends will shape the growth of the market during the forecast period.
Rising labor costs and fluctuating raw material prices of leather is the major challenge that affects the growth of the market. The global market encompasses a wide range of consumer goods, including leather footwear, handbags, and luggage, as well as automotive upholstery and premium interiors. The production of these items involves various raw materials and processes, such as leather tanning and material technology.
However, the market faces challenges, including rising labor costs, which can increase production expenses and decrease profit margins for vendors. Additionally, fluctuations in the cost of raw materials, particularly for luxury leather and allied products, can pose significant challenges. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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 and allied products such as leather tennis shoes, among other products.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The footwear segment is estimated to witness significant growth during the forecast period. The Market encompasses a wide range of items, including Footwear, Apparel, Accessories, Upholstery, and Furniture. Fashion trends significantly influence the demand for these products, with non-essential items like Fashion accessories witnessing increasing popularity.
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The footwear segment was the largest segment and valued at USD 216.80 billion in 2018. Online shopping platforms have made these products more accessible, leading to a surge in sales. Certification schemes, such as those for Split Leather, Patent Leather, and Premium materials, ensure product quality and ethical production. However, concerns over deforestation, habitat loss, and biodiversity depletion have led to regulatory pressures. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Market encompasses a wide range of items, including Footwear, Apparel, Accessories, Upholstery, and Furniture. Fashion trends significantly influence the demand for these products, with non-essential items like Fashion accessories experiencing notable popularity. Online shopping platforms have made these products more accessible, enabling consumers to purchase High quality products from Luxury brands and local manufacturers. Certification schemes, such as those addressing Split Leather, Patent Leather, and Premium materials, are increasingly important in addressing regulatory pressures and consumer concerns. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market encompasses a wide range of items including Footwear, Apparel, Accessories, Upholstery, and Fashion trends. High-quality products made from premium materials such as Split Leather, Patent Leather, and Furniture are in high demand. Fashion trends continue to drive the market for Clothing and Accessories, with Non-essential items like Fashion accessories also seeing growth. Online shopping has become a significant channel for sales, with Ecommerce platforms offering a vast selection of Leather and Allied Products. Certification schemes ensure the ethical production of Leather, addressing concerns over Animal cruelty and Environmental effects. Regulatory pressures and manufacturing hubs in countries like India and China form Leather clusters, where Craftsmanship and Iconic designs are showcased. Luxury brands emphasize the importance of sustainability, using Eco-friendly dyes and Sustainable fabrics in their products. Data analytics and Artificial intelligence are used for Personalized marketing and Product customization. However, challenges such as Deforestation, Habitat loss, Biodiversity depletion, Domestic tourism, and Counterfeit products persist. Inventory levels are managed through efficient supply chain management and collaboration with Domestic and International tourism industries. Social media plays a crucial role in marketing and consumer engagement, with Sportswear and Performance wear gaining popularity.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.13% |
Market growth 2024-2028 |
USD 119.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.81 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
China, US, France, Japan, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adidas AG, ASICS Corp., Belmarel srl, Capri Holdings Ltd., Chanel Ltd., Christian Dior SE, Fast Retailing Co. Ltd., Furgamurga, Hennes and Mauritz AB, Hermes International SA, Industria de Diseno Textil SA, Kering SA, Levi Strauss and Co., LVMH Group., Nike Inc., Nordstrom Inc., Prada Spa, PVH Corp., Ralph Lauren Corp., and The Gap Inc. |
Market dynamics |
Parent market analysis, market report, market forecast, 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 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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