GVR Report cover Leather Goods Market Size, Share & Trends Report

Leather Goods Market Size, Share & Trends Analysis Report By Product (Footwear, Home Decor, Apparel), By Type (Genuine, Synthetic), By Region (North America, Asia Pacific), And Segment Forecasts, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-3-68038-061-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 80

Report Overview

The global leather goods market size was valued at USD 394.12 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. The market is mainly driven by rising consumer disposable income, improved living standards, changing fashion trends, and growing domestic and international tourism. The rising demand for comfortable, trendy, and fancy leather apparel, footwear, and accessories, along with growing brand awareness, is expected to have a positive impact on the market. Attractive and luxurious leather products are often viewed as a style statement and status symbol. The rising demand for contemporary designs offered by prominent international brands, such as Giorgio Armani, Burberry, Prada, and Dolce & Gabbana, is driving the demand for various leather goods, including apparel, footwear, and accessories.

U.S. leather goods market size, by product, 2016 - 2028 (USD Billion)

The COVID-19 pandemic has had a negative impact on the overall leather industry, including the footwear, apparel, and accessories categories. Retailers faced severe losses during the first two quarters of 2020. According to a report by World Footwear, the sales of footwear declined by close to 32% in the U.S. at the end of the first two quarters of 2020. Low demand for footwear, in general, is subsequently expected to decrease the sales of leather shoes.  Many manufacturers in the market have historically relied on China for finished products as well as raw materials used in the manufacturing of various leather goods. The pandemic has, however, disrupted the supply chain, causing severe losses in terms of product shipment and on-time delivery.

Designers worldwide showcase new apparel through fashion shows & events, thereby attracting more consumers toward leather clothing. Various design techniques, such as brocade, Lamé, and applique, are widely used on leather apparel and other elegant dresses. For instance, in September 2020, the Forever Leather Fashion show was organized in Shanghai, China. The show displayed a variety of leather products, including a range of modern style jackets, cross-stitched trench coats, travel bags, leather sneakers, duffel bags, and ankle boots. Such instances bring together hundreds of thousands of leather buyers, manufacturers, and designers from different provinces.

An increasing number of High-Net-Worth Individuals (HNWIs), coupled with the growing trend of designer & branded clothes in major markets, such as the U.S., France, and China, is boosting the demand for leather products. Leather goods are exclusive and often premium priced. The demand for leather products is significantly growing in China owing to the increasing number of HNWIs and Ultra-High Net Worth Individuals (UHNWIs) in the country. According to the Global Wealth Report 2019, published in October 2019, by Credit Suisse Group AG, in 2018, China had 10% of the world’s total HNWIs.

Rising awareness regarding the detrimental effects of unethical practices in the production of apparel and footwear has boosted the demand for sustainable products. Sustainable fashion is steadily attracting consumers as many renowned designers have been promoting the concept of sustainability. For instance, designers, such as Stella McCartney, have been promoting sustainable fashion products, including footwear, in affordable stores, such as Top Shop and Zara.

Type Insights

The genuine leather segment led the market with a share of over 55% in 2020. Synthetic leather goods are less expensive than genuine leather products and are equally attractive in terms of design, which is driving their demand among consumers. Synthetic leather is primarily derived from artificial sources, such as Polyurethane (PU) and Polyvinyl Chloride (PVC). PU leather is considered to be more eco-friendly as compared to its vinyl-based counterpart, as it does not emit dioxins.

The synthetic type segment is projected to register a CAGR of 6.5% from 2021 to 2028. The growth is attributed to the low cost and heavy-duty construction of these product types. Like paper, plastic leather goods are also available in a variety of eco-friendly options. For example, leather goods made of PLA corn plastic are compostable and offer complete product visibility for enhanced marketability. Products made from materials, such as PET, are heavy-duty, flexible, and have a medium wall construction that flexes but remains crack-resistant. These factors are projected to drive the segment growth in the coming years.

Product Insights

The footwear segment led the market in 2020 with a share of over 47%. Major players in the athletic footwear segment, such as Nike, New Balance, Adidas, Puma, Reebok, All birds, and Converse, have been venturing into leather athletic manufacturing, taking into consideration the increasing consumer demand for leather athletic footwear. For instance, in 2017, Nike, Inc. launched sneakers made from fly leather, a new material made from combining leftover leather scraps from tanneries and a polyester blend.

Global leather goods market share, by product, 2020 (%)

The home décor & furnishing segment is expected to grow at the fastest CAGR of 6.7% from 2021 to 2028. Increasing expenditure on home furnishing and renovation has been a major factor driving the segment growth. It was stated by the International Monetary Fund that the global housing market has been growing steadily over the past few years. Another important factor is the housing index, which reflects changing prices of residential properties.

Regional Insights

North America dominated the global market in 2020 accounting for a revenue share of over 34%. The growing product popularity coupled with increasing online purchases in North America is expected to drive the regional market in the future. The rising number of athletes and health &fitness-conscious individuals are also anticipated to fuel the market growth. The U.S. was the largest market in the region in 2019, followed by Canada and Mexico. Leather goods in North America are mainly distributed through department stores, discount stores, factory outlets, and e-commerce platforms among other distribution channels.

Asia Pacific is projected to be the fastest-growing regional market over the forecast period. Led by countries, such as China and India, the Asia Pacific regional market is driven by the increasing demand for premium and luxury products. Bangladesh and Pakistan are important sources for primary leather (raw material) in Asia. According to Mohammed Nazmul Hassan, the Managing Director of Leatherex Footwear Industries Ltd., 15 to 20 new leather products & footwear manufacturing plants open in Bangladesh every year. Considerably low tariff rates on the exported leather products make Bangladesh an attractive market for foreign leather goods brands.

Key Companies & Market Share Insights

The market is characterized by the presence of various well-established players. The increasing demand for leather footwear & other goods by consumers is primarily driving the competition in the market. Major players manufacture products that cater to specific consumer needs, such as bags of various sizes, including backpacks, tote bags, messenger bags, suitcases, briefcases, pouches, and duffel bags.

The increasing demand for such products, particularly in the emerging economies of North America, Europe, Asia Pacific, and Central & South America, offers growth opportunities to manufacturers. The research & development initiatives undertaken by some companies to enhance their product specifications and market reach are expected to further intensify the competition over the forecast period. Some of the key companies in the global leather goods market include:

  • Adidas AG

  • Nike, Inc.

  • Puma SE

  • Fila, Inc.

  • New Balance Athletics, Inc.

  • Knoll, Inc.

  • Samsonite International S.A.

  • VIP Industries Ltd.

  • Timberland LLC

  • Johnston & Murphy

  • Woodland Worldwide

  • Hermès International S.A.

  • Louis Vuitton Malletier

  • VF Corp.

  • COLLAR Company

  • LUCRIN Geneva

  • Nappa Dori

  • Saddles India Pvt. Ltd.

  • Lear Corp.

Leather Goods Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 407.92 billion

Revenue forecast in 2028

USD 624.08 billion

Growth rate

CAGR of 5.9% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, type, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; France; Italy; China; India; Brazil; South Africa

Key companies profiled

Adidas AG; Nike, Inc.; Puma SE; American Leather Holdings, LLC; Samsonite International S.A.; New Balance Athletics, Inc.; Timberland LLC; Louis Vuitton Malletier; Hermès International S.A.; VF Corp.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global leather goods market report on the basis of product, type, and region:

  • Product Outlook (Revenue, USD Billion 2016 - 2028)

    • Handbag

    • Small Leather Goods & Accessories

    • Apparel

    • Footwear

    • Home Décor & Furnishing

    • Pet Accessories

    • Automotive Accessories

  • Type Outlook (Revenue, USD Billion, 2016 - 2028)

    • Genuine

    • Synthetic

    • Vegan

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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