The leather goods market can anticipate touching a valuation of approximately USD 623.44 billion by 2028, reveals Market Research Future (MRFR). From 2021 to 2028, the market size shall be expanding at a rate of 5.90%, estimates MRFR.
Market Boosters and Restraints
Leather has been experiencing rampant demand from the global footwear industry, which is touted to be a key growth rendering factor in the global market. Comprising a cloth base that is coated completely with a synthetic resin, synthetic or artificial leather is deemed to be the perfect alternative for use in footwear, fabrics, upholstery, clothing, and others that require leather-like finish.
Furthermore, rapidly expanding application scope of leather across diverse segments, including apparel, home décor, and luggage should also leave a positive impact on the global industry. Manufacturers are constantly working on boosting their sourcing their manufacturing bases to Asian countries and forming bonds with local suppliers in Vietnam and China, in view of the abundant raw materials and low-cost labor found in these countries.
Emerging markets like China, Brazil, India, Thailand, Vietnam, and Malaysia will present highly lucrative opportunities to international firms in the years ahead. With extensive product deployment in the footwear sector across these countries, the global market is bound to see significant gains in the forthcoming years.
Bio-based leather goods with no harmful characteristics have emerged as the most exciting opportunity in the market. Manufacturers are focusing on commercializing leather manufacturing by using natural fibers like flax or cotton fibers blended with corn, soybean, palm, and various other plants. Considering the surge in strict environmental and government regulations pertaining to the use of toxic chemicals in North America and European Union, the demand for bio-based leather is expected to soar rapidly among top manufacturers over the ensuing years.
Major product types considered in the MRFR study are apparel, home décor, footwear, luggage along with accessories. The footwear segment with the highest share, is in the lead in the leather goods market.
Depending on the distribution channel, the leather goods industry caters to store-based coupled with non-store-based. The store-based segment forms the biggest share in the market, while the non-store-based distribution channels will achieve the highest growth rate in the near future.
North America is the market leader and will capture a higher leather goods market share in the coming years, thanks to the mounting popularity of a variety of leather goods, especially as online shopping becomes more prevalent. The huge population of athletes as well as fitness conscious individuals in the US, the demand for leather goods will continue to mount. Heightened sales of leather shoes as well as leather purses will further boost the market size in the region.
MRFR identifies Asia Pacific as the fastest developing market, as the region houses some of the rapidly developing countries like India and China, two countries witnessing significant advances in their industrial bases. The leather goods market in the region should, therefore, offer attractive opportunities to international manufacturers over the following years. The APAC market for synthetic leather is headed by China, given the surging disposable incomes along with increasing living standards. The booming population in the region and the advances in products, as well as technologies, also make the region a prime hub for leather goods manufacturers. The stunning expansion rate of automotive and footwear sectors in the region adds significantly to the market strength.
The top active participants of the leather goods market include Fila, Inc. (South Korea), Adidas AG (Germany), Louis Vuitton (France), Knoll, Inc. (US), American Leather Holdings, LLC (US), Samsonite International S.A. (Hong Kong), Nike, Inc. (US), New Balance Athletics, Inc. (US), Puma SE (Germany), VIP Industries Ltd. (India), and more.
The global market is headed by a handful of companies that have huge production capacities, with the majority of them located in Asia Pacific. These firms use competitive strategies including mergers & acquisitions, joint ventures, product development, and production capacity expansions to foster their revenues and bolster shares in the global market.
Estilos, a reputed fashion brand, has introduced its e-stores across the globe. With the aim to make fashion accessible to everyone, the brand has launched a series of premium globally acclaimed fashion goods with a traditional touch. Boasting of a diverse range spread across 5 categories, the brand offers Denimite, which is an impressive denim collection while 100 mile has a line of Biker leather jackets with relevant accessories.
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