February 15, 2025
Leather Goods Market

Digitalization Is Anticipated To Openup The New Avenue For The Global Leather Goods Market

The Leather Goods Market is estimated to be valued at US$ 324.69 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Leather goods are products that are made from animal hides or skins through tanning process. Common leather goods include belts, wallets, footwear, luggage, purses, jackets and more. Leather goods provide durability, comfort and luxury feel to consumers. Advancements in leather manufacturing technologies have allowed companies to produce innovative and fashionable leather goods. Digital technologies are helping brands in enhancing customer experience by allowing online purchase and customization of leather goods.

Market Dynamics:

Rising disposable income: Growing middle class population and increasing disposable incomes in developing economies is a key factor driving demand for luxury and premium leather goods. Consumers are willing to spend more on high quality and fashionable leather accessories and apparels. According to World Bank data, global middle class population is expected to grow from 3.2 billion in 2017 to 5.3 billion by 2030.

Rise of e-commerce: Growing penetration of internet and smartphones is boosting the growth of e-commerce industry globally. Online platforms are providing consumers with wide range of options to purchase leather goods from international brands at convenient prices and delivery options. Leading leather brands are focusing on strengthening their digital presence and improving online shopping experience. E-commerce sector is expected to provide major growth opportunities for leather goods market over the forecast period.

Segment Analysis:

Leather goods market is dominated by luxury leather goods segment. This segment accounts for over 60% of the total leather goods market owing to high demand for luxury leather bags, wallets and other accessories among the high income population across the world. The luxury segment is driven by high quality and aesthetically designed products by prominent brands and a status symbol attached with them.

PEST Analysis:

Political: There are no significant political risks affecting the global leather goods market. However, policies around animal welfare and greenhouse gas emissions from cattle farming could impact the supply of raw materials.

Economic: The economic growth in major developing countries and expanding middle class is driving demand for premium and luxury leather goods. Rise in disposable incomes is increasing consumer spending on luxury accessories.

Social: Changing fashion trends and increasing brand consciousness among millennials and generation Z is favoring the leather goods industry. Social media is highly influencing purchase decisions towards brands.

Technological: Advancements in leather processing and finishing technologies are allowing manufacturers to develop lightweight and durable products. Use of blockchain for tracing raw material source is gaining traction.

Key Takeaways:

The Global Leather Goods Market Demand is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing brand consciousness and fashion trends among consumers globally. The market size for 2023 is estimated at US$ 324.69 Bn.

Regional analysis: The Asia Pacific region dominates the global leather goods market attributed to large production bases and availability of raw materials in countries like China and India. The region accounts for over 40% of total consumption led by thriving middle class in major economies. Europe is the second largest market for premium and luxury leather accessories anchored by prominent luxury brands from Italy, Germany and France.

Key players: Key players operating in the leather goods market include Kering S.A., Adidas AG, Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation. Strategic partnerships, innovative product launches and expanding into emerging markets through online channels are key strategies adopted by major brands to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →