Leather Goods Market (By Type: Genuine Leather, Synthetic Leather, Vegan Leather; By Product: Handbags, Small Leather Goods/Accessories, Apparel, Footwear, Home Décor and Furnishing, Pet Accessories, Automotive Accessories) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global leather goods market size was evaluated at USD 444.17 billion in 2022 and it is expected to hit around USD 735 billion by 2032 with a noteworthy CAGR of 5.76% from 2023 to 2032.

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Leather is a durable and stretchable material derived from the skin of animals like goats, horses, camels, Buffalo, sheep, cattle, and hogs. It is used in the manufacturing of furniture, clothes, bags, gloves, footwear, watches, harnesses, and other articles, due to its flexibility, durability, and strength. It is scratch-resistant and fire-resistant, which makes it a long-lasting product. It is comfortable and repairable which is preferred in the manufacturing of various articles. The use of leather in apparel and sports equipment has increased in recent times.

Key Takeaways

• North America led the global market with the highest market share of 37% in 2022.
• Asia Pacific region is estimated to expand the fastest CAGR between 2023 and 2032.
• By Type, the genuine leather segment has held the largest market share of 54.1% in 2022.
• By Type, the synthetic leather segment is anticipated to grow at a remarkable CAGR of 7.5% between 2023 and 2032.
• By Product, the footwear segment captured the biggest revenue share of 44% in 2022.
• By Product, the automotive accessories segment is expected to expand at a notable CAGR of 7.4% over the projected period.

Leather Goods Market in the U.S. 2023 To 2032

The U.S. leather goods market size was valued at USD 114.22 billion in 2023 and is expected to reach USD 184.93 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032.

37% of the market share was held by the North American region in the past and this shall continue in the coming years. Online purchases available for the North American region and other nations of the world will play a significant role in the growth of the market. The popularity of premium leather products has taken the industry by storm. The constantly evolving fashion industry creates more demand for leather. Premium quality bags, shoes, accessories, and other products are purchased on a large scale in the North American and European regions. 

High self-esteem is associated with these products due to which the consumption of these products in the high-income groups is more. The consumption of leather goods is maximum in the U.S., Mexico, and Canada.

The fastest growth will be registered in the Asia Pacific nations, especially India and China. Luxury products and premium products have a good demand in the Asia Pacific region. Pakistan and Bangladesh are the major exporters of leather in the Asian region. Fitness-conscious and health-conscious consumers are also expected to fuel market growth in the coming years. 

One of the attractive markets in the Asia Pacific region is Bangladesh which has fewer tariff rates for the export of leather goods. In recent times every year, about 15 to 20 manufacturing plants for leather goods were opened in Bangladesh.

Europe is expected to grow at a CAGR of 6.8% over the forecast period.

Growth Factors

• Rapid urbanization is playing a significant role in the growth of the market.
• Income levels of various consumer groups are inflating which is creating more demand for leather goods. 
• The standard of living of the people in developed, as well as developing nations, will play a significant role in catalyzing the need for leather products. 
• The demand for branded and premium products has grown significantly. 
• As the tourism industry is booming, the sales of customized leather goods have increased. 
• Growth opportunities will be provided due to the promotion of leather products through various fashion shows. 
• Brand awareness is expected to play a significant role in the growth of the market. 
• Celebrity endorsements and social media are also expected to play a significant role in the growth of the market. 
• The need for automotive upholstery which is customized according to the needs of the consumers for commercial vehicles and passenger vehicles has increased.

Leather Goods Market Scope 

Leather Goods Market Dynamics

Key Market Drivers

The durability and resistance offered by this product.

• Leather is used in the manufacturing of various articles as this material is dust, water, fire, and crack resistant. Leather is comfortable and it is used in the manufacturing of footwear, watches, bags, clothes, and furniture.

Growing demand for leather upholstery in automotive

• As this material is comfortable and stretchable, it is used in automotive upholstery. These products can be customized according to the need of the consumers for the interiors of commercial or passenger vehicles. As the automotive industry across the globe is booming, the market for leather goods is also expected to grow significantly in the coming years.

Key Market Restraints

Strict regulation imposed by the government

• Natural leather is being controlled by the prevailing strict regulations enacted by the government of various nations and these regulations will hamper the production of various goods that make use of leather.

Key Market Opportunities

Growing demand for luxury products

• As the disposable income of people across the globe is increasing, the demand for leather goods of premium quality has also increased. High self-esteem is associated with the use of luxury goods. Most of the luxury goods purchased by the North Americans and the Europeans consist of leather goods. Affluent individuals make maximum purchases of leather accessories, handbags, shoes, and other exclusive products.

Availability of competitive workforce in Asia Pacific nations

• India, Vietnam, and China are some of the major competitors that provide labor at a lower cost and hold a strong position across the globe. As this is an export-oriented industry, it will provide a strong advantage for these nations and generate a good amount of revenue in the coming years.

Vegan leather products introduced in the market.

• Leather can be derived from apples, fungi, grass, wine, coffee, and other things. This is expected to provide immense opportunity for the growth of the leather market in the coming years. As many organizations are engaged in making use of vegan leather for the production of footwear and purses, the revenue of these organizations has increased significantly.

Key Market Challenges

Growing awareness among the consumers

• Various organizations are engaged in conducting awareness drives to reduce the usage of leather products. Animal welfare associations are constantly taking efforts to increase awareness among the European and North American regions where the use of premium leather products is maximum.

Constantly evolving fashion industry and inadequate knowledge of the market

• Even though a large number of products are imported from various nations in North America and in European regions, inadequate information about the buying patterns and the taste of the consumers will hamper the market growth. The constant change in fashion will make changes to the material and the design required in the market.

High cost associated with high-tech equipment used in the manufacturing of leather products.

• Skilled personnel is required for operating the high-tech machinery which is used by the designers for customizing the leather products and this becomes an expensive task due to which the market growth will be hampered to a great extent during the forecast period.

The constant demand for high-quality products

• In the European and North American nations, consumers constantly seek high-quality products for affordable costs due to the presence of various competitors in the market and this is also expected to pose a major challenge to the growth of the market.

Type Insights

The genuine leather segment has contributed extensively to the market, and it has held a share of about 54.1% in 2022. Premium leather products have great demand in the North American and the European market and consumers readily pay well for these products. Genuine leather is used extensively in the fashion industry, and it is imported by prominent market players that are present in the North American region. 

As the disposable income of consumers across the globe has increased, the demand for genuine leather is also expected to grow significantly during the forecast period. Less expensive options are available in the market and synthetic leather goods are quite attractive, due to which the demand for these synthetic leather goods is also expected to grow in the coming years. 

Polyvinyl chloride and polyurethane are the sources of synthetic leather. Polyurethane is considered an eco-friendly option due to which the use of this product in the manufacturing of leather goods will be more in the long run.

The synthetic leather segment will show significant growth during the forecast period and register a compound annual growth rate of 7.5%. Other sustainable options are also available in the market. Such materials are flexible, and they can be used for heavy-duty products. These products can be crack resistant. All of these factors will drive market growth.

Product Insights

About 44% of the market share was held by the footwear segment. Major competitors like Reebok, Adidas, and Nike, are engaged in the manufacturing of athletic shoes as the demand for such footwear has grown to a great extent. Different types of sneakers are launched by these market players and this serves to be an affordable option available in the market. These brands are considered the most reliable brands available in the market apart from Converse, All Birds, and New Balance. 

In recent times, the demand for automobile upholstery has grown tremendously and the use of leather for the manufacturing of these accessories has also increased. Premium cars available in the market are customized according to the need of the consumers and premium quality leather is used for this purpose. As the sales of automotive have grown significantly in developed as well as in developing nations, the need for automotive upholstery is also expected to grow.

The home-type car segment contributes significantly to the growth of the market. Expenditure made on renovating the house and furnishing the house is another prime factor contributing to the growth of the leather goods market. The housing market across the globe is showing steady growth due to which the need for leather products is also expected to grow.

The automotive accessories segment is poised to reach at a CAGR of 7.4% from 2023 to 2032.

Key Market Developments

• Vegan leather was used for the manufacturing of sneakers by Nike Inc. and in 2021, this product was launched. SB Dunk Sneakers are cruelty-free, and they were introduced as a part of the zero-waste initiative taken by Nike.
• Three Xetic sneakers were introduced by Puma in 2020 and this is the first of its kind sneakers available in Porsche design. The collection comprises performance wear and casual wear sneakers. The material used for the manufacturing of these sneakers is recycled mesh material and chrome-free leather.
• In 2021, mushroom leather was used by Adidas to launch trainers as a part of the sustainability drive incorporated by this company. Adidas has collaborated with Stella McCartney and lululemon to make vegan leather that is plant-based for its use in the manufacturing of trainers.

Leather Goods Market Companies

• Adidas AG
• Nike, Inc.
• Puma SE
• Fila, Inc.
• New Balance Athletics, Inc.
• Knoll, Inc.
• Samsonite International S.A.
• VIP Industries Ltd.
• Timberland LLC
• Johnston & Murphy
• Woodland Worldwide
• Hermès International S.A.
• Louis Vuitton Malletier
• VF Corp.
• COLLAR Company
• LUCRIN Geneva
• Nappa Dori
• Saddles India Pvt. Ltd.
• Lear Corp.

Segments Covered in the Report

By Type

• Genuine Leather
• Synthetic Leather
• Vegan Leather

By Product

• Handbags
  • Tote Bag
  • Clutch
  • Satchel
  • Others
• Small Leather Goods/ Accessories
  • Wallets
  • Pouches
  • Card Holders
  • Phone Covers/Cases
  • Watch Straps
  • Others (Luggage Tags, Pencil Cases, etc.)
• Apparel
  • Men
    • Shirts
    • Pants
    • Suits, Coats & Jacket
    • Overalls
    • Others (Kilts, Vests, Chaps, etc.)
  • Women
    • Skirts
    • Coats & Jackets
    • Pants
    • Others (Vests, Chaps, etc.)
  • Children
    • Suits, Coats & Jackets
    • Vests
    • Pants
    • Skirts
    • Chaps
• Footwear
  • Athletic
    • Men
    • Women
    • Children
  • Non-athletic
    • Men
    • Women
    • Children
• Home Décor and Furnishing
  • Decorative Wall Hangings’
  • Tabletop decorative items
  • Hanging Storage
  • Leather Furniture
  • Other
• Pet Accessories
  • Pet Collar and Leads
  • Leather Pet Toys
• Automotive Accessories
  • Seating Systems
  • Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa