Europe Leather Goods Market Size, Share & Trends Analysis Report By Type (Genuine Leather, Synthetic Leather, Vegan Leather), By Type-by-Product, By Product, By Region, And Segment Forecasts, 2024 - 2030

Europe Leather Goods Market Size & Trends

The Europe leather goods market size was estimated at USD 81.12 billion in 2023 and is expected to grow at a CAGR of 7.3% from 2024 to 2030. The market growth is attributed to changing fashion trends, increase in consumer disposable income, growing domestic and international tourism, and improved living standards. The increasing demand for trendy, comfortable, and fancy leather footwear, apparel, and accessories, coupled with rising brand awareness, is anticipated to have a positive impact on the leather goods industry over the forecast period.

Rising fashion consciousness among consumers has been a key factor driving product demand and this has driven various brands to expand their product portfolio. Apart from leading labels and brands, affordable and smaller manufacturers have also been gaining importance in the leather goods market. Various startups have come up with customized leather products as per the demands of consumers. Attractive and luxurious leather products are often viewed as a style statement and status symbol. The rising inclination for contemporary designs offered by prominent international brands such as Gucci, Burberry, Prada, and Dolce & Gabbana is anticipated to propel market growth.

Over the past few years, e-commerce has grown by leaps and bounds owing to the increased internet penetration in various economies, mainly in European countries. The emergence of non-banking players in the payment industry has further facilitated this growth. Retailers worldwide are venturing into online retail as numerous consumers in both emerging and developed countries prefer virtual marketplaces to purchase a wide range of products. These trends are expected to positively impact the leather goods market during the forecast period.

The rising disposable income and increasing working population is also initiative the market growth. Several companies impose a corporate dress code, which supports the demand for leather shoes. Consumers prefer high-quality leather shoes which helps in enhancing their overall appearance. Thus, consumers are ready to pay higher price for comfort and look.

The rise in demand for leather goods is likely to offer lucrative business opportunities to the manufacturers in the sustainable space. The rising awareness regarding sustainable and cruelty-free products offers a huge growth opportunity to the industry. Vegan leather and accessories made from cruelty-free sources has been gaining popularity, especially among the millennial population in this region. Many renowned personalities, such as Christy Turlington, Pamela Anderson, Joaquin Phoenix, Alicia Silverstone, and Pink, have been opting for vegan fashion products, which influences people to conscientiously choose cruelty-free apparel.

Market Concentration & Characteristics

The Europe leather goods market is characterized by high degree of innovation, with businesses continuously focusing on differentiating themselves through unique experiences and offerings.New product development and manufacturing products that fulfill evolving consumer needs are some of the key entry strategies observed in the leather goods market. Key players in the market are targeting various consumer categories, primarily millennials as this consumer group is up-to-date with the changing trends in the industry. Many new players have been opting to manufacture a wide range of non-toxic and low chemical formula ingredients-based leather goods.

The industry is also characterized by a high level of merger and acquisition (M&A) activity by the leading players. This is due to several factors such as collaboration with regional boutiques and retailers is a key entry strategy adopted by many companies. These partnerships allow companies to actively promote their products through professionals in the apparel and footwear industry.

End-user concentration is a significant factor in the Europe leather goods market. Leather goods manufacturers focus on making efforts to promote the latest industry trends among consumers. Growing demand for fashionable clothes coupled with rise in celebrity endorsement branding is boosting the demand for leather goods market. Furthermore, leather goods offer several benefits such as comfort, warmth, aesthetic appearance which influence consumers to purchase.

Type Insights

The polyurethane leather good market held a revenue share of 62.34% in 2023. Rising demand from various developing as well as developed economies in the region is anticipated to boost the segment growth. Polyurethane leather is derived from synthetic leather. It is considered as eco-friendly and less expensive than genuine leather products. Furthermore, polyurethane leather doesn’t emit dioxins, which is expected to attract more consumers.

The vegan leather goods market is projected to grow at a CAGR of 7.8% from 2024 to 2030. Veganism is becoming a prominent lifestyle for many consumers, resulting in a higher demand for fashionable vegan apparel in this region.High-quality clothes made from animal-free leather utilize different raw materials, including non-animal microfibers, recycled nylon, and even mushrooms or fruits. Thus, market participants are likely to prefer faux fur and other animal-free materials including pineapple leather, bio-fabricated leather, cork, paper leather, mushroom leather, waxed canvas, micro suede, and faux suede to manufacture fashionable apparel and footwear to meet the consumer demand.

Type By Product Insights

The synthetic leather footwear market accounted for a revenue share of over 38.22% in 2023.The inclination of men toward outdoor activities has been majorly driving this segment. Sports such as golf and hockey as well as outdoor activities such as hiking, cycling, and gymming have always been popular among men, which has spurred the demand for men’s leather athletic footwear. This type of footwear offers high breathability, durability, and comfort to the feet while performing agile movements during exercising. In addition, the increasing number of product launches catering to specific sports categories will help boost this segment’s growth.

The genuine leather automotive accessories market is expected to grow at a CAGR of 6.8% from 2024 to 2030. Increasing expenditure on luxury cars, the ability of leather to be stain resistant, and the luxury look it imparts are major factors leading to the demand for leather automotive accessories, especially in the elite class.Leather-based interior accessories in automotive are witnessing high acceptance in medium, and moving down further into lower-priced vehicles, which is driving the segment growth. This segment includes various types of automotive accessories, including steering brands, storage bags and seat organizers. A leather or leather-trimmed interior adds comfort and style to any car, which has spurred the product demand.

Product Insights

The leather handbag market is expected to grow at a CAGR of 6.4% from 2024 to 2030. Leather handbags are gaining popularity owing to the increasing demand from the millennial population. Brands such as Gucci, Prada, and Louis Vuitton are popular among both men and women across the globe. Evolving trends such as the introduction of new colorful leather handbags available in different shapes and sizes are expected to boost this segment’s growth.

The home décor and furnishing segment is anticipated to grow at a significant CAGR over the forecast period.Increasing expenditure of people on home furnishing and renovation has been a factor driving the segment growth. Rising consumer inclination towards luxury decorative products, along with an increasing number of houses being purchased or rented every year, is influencing the growth of the segment. Similarly, the demand for leather top products such as desk organizers, remote holders, and stackable holders that are used often has also been influencing the market positively.

Country Insights

The rising demand from various developing as well as developed economies in Europe is favoring growth of this market. Growing demand for trendy clothes and footwear among the population coupled with increased disposable income is boosting the product demand.

Germany Leather Goods Market Trends

The German leather goods market accounted for a revenue share of 15.75% in 2023 owing to technological advancements in manufacturing processes of leather goods, coupled with the development & introduction of innovative products, which are expected to have a positive impact on the market over the forecast period.

UK Leather Goods Market Trends

The leather goods market in the UK accounted for a revenue share of 13% in 2023. Increasing research & development activities undertaken by various leather manufacturers have been a major factor driving the product demand over the past few years. These manufacturers are trying to reduce the environmental impact caused by genuine leather and come up with sustainable manufacturing methods. In addition, constant focus on widening the application scope of leather in various end-use sectors is expected to have a positive impact on the leather goods industry over the forecast period.

Key Europe Leather Goods Company Insights

Some of the key players operating in the market include Adidas, Hermès International S.A., and Chanel HA.

• Adidas is the largest athletic apparel and footwear manufacturer in Europe. The company sells and distributes the product through retail stores, own stores, lifestyle retail chains, e-retailers,wholesale stores,department stores, and franchise stores.The company’s product portfolio includes apparel, footwear, and accessories such as fitness equipment, sun glasses, bags, and balls.

• Chanel HA is a luxury beauty and fashion brand. The product line includes accessories, haute couture, and ready-to-wear.

Monte Capri, Portugal, and Feralex are some of the emerging market participants in the Europe leather goods market.

• Monte Capri is a manufacturer of leather products. The main products of the company are handbags, duffle bags, wallets, and jewelry organizers.

• Feralex specializes in manufacturing of leather gloves. Its product lines cover driving gloves, horse riding gloves, and other types of fashion gloves or functional gloves.

Recent Developments

• In February 2024, Adidas AG launched SUPERNOVA franchise. The new collection offers fresh vibrant colors and comfort cushioning and easy purchase options.

• In August 2020, PUMA SE announced the release of its first three Xetic sneakers with Porsche design. The collection would include both casual as well as performance wear made with 100% recycled mesh material, 100% chrome-free leather, and liners with 30% algae.

Europe Leather Goods Market Report Scope

Europe Leather Goods Market Segmentation

This report forecasts revenue growth at regional & country levels and analyzes the latest industry trends and opportunities in each sub-segment from 2018 to 2030. For this study, Grand View Research has segmented the Europe leather goods market report based on type, type by product, product, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Genuine Leather

  • Synthetic Leather

    • Polyurethane

    • PVC

  • Vegan Leather

• Type By Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Genuine Leather

    • Handbags

    • Small Leather Goods/ Accessories

    • Apparel

    • Footwear

    • Home Décor and Furnishing

    • Pet Accessories

    • Automotive Accessories

  • Synthetic Leather

    • Polyurethane Leather

      • Handbags

      • Small Leather Goods/ Accessories

      • Apparel

      • Footwear

      • Home Décor and Furnishing

      • Pet Accessories

      • Automotive Accessories

    • PVC Leather

      • Handbags

      • Small Leather Goods/ Accessories

      • Apparel

      • Footwear

      • Home Décor and Furnishing

      • Pet Accessories

      • Automotive Accessories

    • Vegan Leather

      • Handbags

      • Small Leather Goods/ Accessories

      • Apparel

      • Footwear

      • Home Décor and Furnishing

      • Pet Accessories

      • Automotive Accessories

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Handbags

    • Tote Bag

    • Clutch

    • Satchel

    • Others

  • Small Leather Goods/ Accessories

    • Wallets

    • Pouches

    • Card Holders

    • Phone Covers/Cases

    • Watch Straps

    • Others (Luggage Tags, Pencil Cases, etc.)

  • Apparel

    • Men

      • Shirts

      • Pants

      • Suits, Coats & Jacket

      • Overalls

      • Others (Kilts, Vests, Chaps, etc.)

    • Women

      • Skirts

      • Coats & Jackets

      • Pants

      • Others (Vests, Chaps, etc.)

    • Children

      • Suits, Coats & Jackets

      • Vests

      • Pants

      • Skirts

      • Chaps

  • Footwear

    • Athletic

      • Men

      • Women

      • Children

    • Non-athletic

      • Men

      • Women

      • Children

  • Home Décor and Furnishing

    • Decorative Wall Hangings’

    • top decorative items

    • Hanging Storage

    • Leather Furniture

    • Other

  • Pet Accessories

    • Pet Collar and Leads

    • Leather Pet Toys

  • Automotive Accessories

    • Seating Systems

    • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain