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.
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.
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.
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.
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.
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.
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.
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. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global leather goods market size was estimated at USD 394.12 billion in 2020 and is expected to reach USD 407.92 billion in 2021.
b. The global leather goods market is expected to grow at a compound annual growth rate of 5.9% from 2021 to 2028 to reach USD 624.08 billion by 2028.
b. North America dominated the global leather goods market in 2020 accounting for a revenue share of over 34%.
b. Some key players operating in the leather goods market include Adidas AG; Nike, Inc.; Puma SE; Fila, Inc.; New Balance Athletics, Inc.; Knoll, Inc.; Timberland LLC; Johnston & Murphy; and Woodland.
b. Key factors that are driving the leather goods market growth include rising consumer spending in Asian markets and the increasing popularity of leather-based casual athletic and running-inspired sneakers.
b. The genuine leather segment led the leather goods market with a share of over 55% in 2020.
b. The footwear segment led the leather goods market in 2020 with a share of over 47%.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure.
"The quality of research they have done for us has been excellent."
The clothing, footwear, & accessories industry is anticipated to witness checkered growth throughout 2020, as a result of the unprecedented supply chain disruptions caused by the COVID-19 outbreak worldwide. The expected decline in the global sales of clothing, footwear, & accessories is attributable to massive supply chain disruptions across significant export markets, including China and India. However, the industry is likely to recover over the forecast timeframe, given the rising popularity of online/e-commerce sales. From a manufacturing standpoint, the sustainable or ethical fashion trend is expected to favor market growth throughout the forecast timeframe. Luxury apparel is another lucrative space for prospective manufacturers to target, given the mushrooming number of affluent and fashion-conscious consumers across the globe. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
We value your investment and offer free customization with every report to fulfil your exact research needs.