The leather goods market comprises products made from animal skin or hide such as footwear, apparel, luggage, and accessories. Leather goods are considered a symbol of quality, luxury, and style among consumers. Leather footwear and apparel provide comfort along with durability and are a popular choice among professionals and fashion conscious consumers. Growing per capita disposable incomes and changing lifestyle patterns have led to increased spending on luxury goods. This has boosted the demand for premium leather goods worldwide.
The global leather goods market is estimated to be valued at US$ 456.5 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the leather goods market are Mars Inc., CVS Group PLC, Greencross Vets, Ethos Veterinary Health, Idexx Laboratories Inc., Pets at Home Group PLC, CityVet Inc., FirstVet, Kremer Veterinary Services, and Armor Animal Health (Animart), among others. Some of the key players are focusing on product innovation and developing sustainable Leather Goods Market Demand to expand their market share. The growing urban population along with rapid economic growth in developing nations provides lucrative growth opportunities. The increasing disposable incomes and desire of aspirational consumers to own luxury goods have led to strong demand from Asia Pacific and Middle Eastern markets. North America and Western Europe continue to be the leading regions on account of high purchasing power and demand for premium products.
Market Drivers
Rising expenditure on luxury and premium products is a major market driver. Changing customer preferences towards high-quality and stylish products are boosting demand. Growing health awareness and increasing pet ownership has boosted spending on pet care products and accessories. Innovation in material and manufacturing processes to develop sustainable leather goods will open new avenues for market expansion over the forecast period.
PEST Analysis
Political: The Leather Goods Market is influenced by regulations around animal welfare, land usage and transportation costs for raw materials like animal hides. Changes in trade policies and tariffs also impact costs.
Economic: Factors like rising disposable incomes, growth of luxury spending, and cost of raw materials affect demand trends. Economic downturns may negatively impact high-end leather goods purchases.
Social: Growing popularity of sustainable and environment-friendly products is benefiting those using recycled leather. Changing preferences towards status luxury goods also shape trends.
Technological: Adoption of automated production machinery and digital design tools are helping reduce costs and drive innovation. Blockchain is enabling traceability of raw materials.
The European region accounts for over 30% of the global market value, led by major markets of Italy, Germany, UK and France. Artisanal production clusters, wealthy consumer base and strong demand for luxury brands boost the leather goods industry.
The Asia Pacific region is expected to witness the fastest market growth during the forecast period. Emerging economies like China, India and Southeast Asian countries are seeing rising incomes, expansion of middle class, and greater preference for branded fashion accessories driving the demand for leather goods. Internationalization of Chinese luxury brands also makes the region an important global market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
