Luxury Leather Goods Market Size, Share & Trends Report

Luxury Leather Goods Market Size, Share & Trends Analysis Report By Product (Footwear, Bags), By Distribution Channel (Offline Retail, Online Retail), And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-165-8
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 80

Industry Insights

The global luxury leather goods market size was valued at USD 48.0 billion in 2018 and is expected to expand at a healthy CAGR over the forecast period. Rising demand for attractive leather products as a symbol for status as well as inclination of luxury consumers towards various international brands are driving the demand for luxury leather products. Some consumers believe that high priced products are of better quality and hence they spend limitless to buy the brand name and tag.

Buying of luxury products is a game of psychology. Many users buy expensive leather products to reward themselves for their hard work, which they typically can’t afford. Majority of the purchasing is done by rich class people but it is also popular among those who are not financially comfortable. The reason being to show off to others and maintain their popularity in a group. Sometimes consumers are so attached to any brand that they are ready to spend a huge amount on the purchase of luxury products, hence increasing the sales of luxury leather products in the market.

U.S. luxury leather goods market

Rising fashion consciousness among men, along with women, is attracting various brands to expand their product portfolio in the men’s segment. Apart from the traditional luxury brand, recent affordable luxury brands are also gaining importance in the market. Various startups have come up with customized luxury products as per the demand of consumers. For instance, 1Atelier allows customers to customize the color and hardware of their leather hand bags. Strong brand recognition, along with high unit price, is driving the sales of luxury leather products in the market.

Emergence of latest technologies such as 3D printing and robotics helps in producing trendy leather products in minimum time. However, unethical killing of various animals for producing leather products is attracting the attention of various animal lover consumers. Rising concerns over animal killing among luxury consumers have certainly affected the demand for such products in the market.

Considering this as a major constraint for the leather industries, some companies are producing artificial leather with the help of certain chemicals and plants. For instance, the Modern Meadow has raised USD 53.4 billion to produce animal free lab grown leather. The startup grows collagen using living cells and tans the assembled collagen sheets to produce lab-grown leather.

Distribution Channel Insights

On the basis of distribution channel, the market has been divided as offline retail and online retail. The offline retail was the largest contributor to the market growth in 2018 owing to the high pricing and quality factor of luxury products. Consumers prefer to do physical check before spending such a huge amount on such products, thereby driving the offline channel segment.

The online channel is anticipated to witness the fastest growth over the forecast period. Both multi brand e-retailers and own branded online stores are used to interact with the consumers. The luxury products are not readily available at various shops and hence are accessible to limited consumers. People living at distant and rural places can easily purchase such items through online channels. Moreover, the multi brand online platform can reach out to time pressed consumers, who do not have much time to browse through different mono brand sites, thereby giving a wider opportunity for online retailing of luxury products.  

Product Insights

By product, the market is divided as footwear, bags, accessories, and others. Footwear accounted for the largest share of 34.8% in the year 2018. The leather shoes are popular among both the genders for its status symbol and demand in formal outfit. It is not only used in casual dresses but also for the formal attire. Luxury footwear are more of a fashion statement and footwear shoppers spend more and buy more frequently as compared to other leather products, thereby making it one of the largest markets.

Global luxury leather goods market

Hand bags are anticipated to witness the fastest growth over the forecast period. All kind of travel bags, office bags, and protective leather handbags for electronic items, small purse, and fashionable handbags and wallets are covered in this segment. Increasing domestic and international travels, growing demand for designer leather goods, and considering female hand bags as a status symbol for women are driving the segment. A number of woman consider the purchase to be an investment in their style and personality and hence they prefer to buy it more frequently.

Regional Insights

Europe emerged as the largest market in 2018. In Europe, U.K. held the major market share, followed by Germany, Italy, and France. Some of the prominent luxury brands such as Gucci, Versace, and Louis Vuitton have their manufacturing plant based in Europe. Europe being one of the most attractive tourist destinations always attracts millions of travelers from the world. Business tycoons to high class women travelers prefer to buy expensive leather shoes to handbags during their visits, thereby increasing the market share of luxury products.

Asia Pacific has witnessed significant growth over the past few years on account of increasing buying pattern of luxury goods. India, China, and Japan are some of the leading markets in Asia Pacific, responsible for triggering the market growth in this region. China is one of the biggest markets for luxury leather products. As per a survey, a lot of Chinese people who travel to overseas countries save on food and hotels but spend on purchasing luxury products. Moreover, the luxury consumers of China are younger than the world average, thereby making it one of the largest markets for luxury leather products in the world.

Luxury Leather Goods Market Share Insights

Some of the key players in this market are Georgia Armani, Burberry, Prada, Dolce & Gabbana. The manufacturers of such products are mainly concentrated in Europe and North America. High entry barriers, since most of the consumers are loyal to certain brands, increase the difficulty for the small players to enter this market.  

Due to increasing ban on animal slaughtering, the supply of raw materials is very limited, thereby leading to an increase in the input cost and reduction in profit margin of various companies. With a relatively concentrated competitive landscape, new product launches is key in order to retain the interest of consumers. As a result, the key players continued to introduce various new products at the end of the review period. For instance, Hidesign has launched two products called Champagne and Caviar, which made from ostrich leather and deer leather respectively.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Report coverage      

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

Country scope

U.S., U.K., Germany, China, Japan, Colombia, and Turkey

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global luxury leather goods market report on the basis of product, distribution channel, and region:

  • Product Outlook (Revenue, USD Billion, 2015 - 2025)

    • Footwear

    • Bags

    • Accessories

    • Others

  • Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)

    • Offline Retail

    • Online Retail

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Colombia

    • Middle East & Africa

      • Turkey

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