Seattle, WA -- (SBWIRE) -- 11/12/2019 -- Global Leather Goods Market – Insights
Leather goods are products made from animal hide. Tanning is the most common process used in production of leather goods. Tanning of animal hide stabilizes proteins and makes the hide ideal for producing footwear, clothing, wallets, and other products.
Global Leather Goods Market – Drivers
Leather is fireproof, dustproof, crack proof, and is highly durable. These characteristics of leather are expected to increase demand for leather goods, thereby aiding in growth of the global leather goods market over the forecast period. Increasing disposable income has led to high demand for trendy hand bags, premium wallets, and other leather products. This in turn is expected to propel growth of the global leather goods market.
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Global Leather Goods Market – Restraints
However, increasing concerns regarding animal killing for hide and scarcity of leather is expected to hinder growth of the global leather goods market over the forecast period. Moreover, use of substitutes such as plastic leather is also expected to hamper the market growth.
Global Leather Goods Market – Outlook
On the basis of product type, the global leather goods market is segmented into footwear, accessories, luggage, and others. The footwear segment is expected to hold dominant position in the global leather goods market among product type over the forecast period. This is owing to increasing demand for comfortable and high quality footwear. For instance, according to the India Brand Equity Foundation (IBEF), per capita footwear consumption is expected to increase up to four pairs by 2020, whereas domestic footwear consumption is expected to reach five billion pairs.
Increasing sales of luggage and travel bags is expected to boost growth of the luggage segment. For instance, according to the Travel Goods Association, retail sales of luggage in 2015 was 59.74 million units, which increased to 76.023 million units in 2016 in the U.S.
Global Leather Goods Market – Regional Analysis
On the basis of region, the global leather goods market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. The market in Asia Pacific accounted for the largest market share in 2016, accounting for US$ 70.82 billion in the same year. The market growth in Asia Pacific is driven by high demand for leather goods, especially footwear, from the fashion industry and significant growth in the leather goods sector. For instance, according to India Brand Equity Foundation (IBEF), India ranked second in terms of leather goods and footwear production in 2017 and accounted for 12.93% of leather production of hides or skins worldwide.
Significant growth in the tanning industry is expected to boost growth of the leather goods market in Europe in terms of revenue. According to European Union, the tanning industry in Europe was one of the largest suppliers of leather in 2015. Moreover, Europe accounted for one third of the world's leather goods market, as it is one of the largest traded region in world. According to CBI Ministry of Foreign Affairs, Italy accounted for 18% of the global leather exports in 2016.
Increasing demand for leather goods from the fashion industry is also expected to boost growth of the market in Europe. For example, LVMH, one of the key player based in Paris, engaged in fashion and leather goods business, recorded sales of US$ 15.93 bn in 2016, which increased to US$ 19.291 bn in 2017.
Scarcity of leather has led to high cost of leather goods worldwide. Therefore, market players in Europe are focused collaborating with low cost suppliers and manufacturing leather made of exotic animals such as pythons and alligators. For instance, according to Humane Society International, the fashion industry in Europe accounted for 96% of the python skin market, with Italy, Spain, and France being the major importers in 2016.
The leather goods market was valued at US$ 220.71 billion in 2016 and is expected to expand at a CAGR of 5.02%, in terms of revenue, over the forecast period (2017 – 2025).
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North America accounted for largest market share of 23.24% in the global leather goods market in 2016, owing to high import of raw skin and hides and the discovery of chrome tanning process. For instance, according to the U.S. Hide, Skin and Leather Association, hides and skins companies in U.S. regularly import nearly 90% of total production of these products.
Key players in the market are focused on product launch to expand their product portfolio. For instance, in July 2017, Rugged Material launched The Ultimate Leather EDC Belt, which is highly durable and has a hidden pocket.
Global Leather Goods Market – Competitive Landscape
Major players operating in the global leather goods market include, Overseas Leather Goods Company Pvt Ltd., Tata International Ltd., LVMH Moët Hennessy Louis Vuitton SE, Kering S.A., Dolce & Gabbana Luxembourg S.à.r.l., Chanel International B.V., Adidas AG, Hermès International S.A., Prada S.p.A, Ralph Lauren Corporation, and others.
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