Leather Goods Market Growth & Trends
The global leather goods market size is anticipated to reach USD 405.28 billion by 2030, registering a CAGR of 6.6% during the forecast period, according to a new report by Grand View Research, Inc. Rising fashion consciousness among consumers has been a key factor boosting the product demand and this has driven various brands to expand their product portfolio. Apart from leading labels and brands, smaller manufacturers have also been gaining importance in the market. Various startups have come up with customized leather products to meet the changing demands of consumers.
For instance, 1 Atelier, a U.S.-based start-up formed in 2015, allows customers to customize the color and hardware of their leather handbags. Strong brand recognition, along with an increasing number of companies entering the market, is driving the sales of leather goods in the market. E-commerce retail channels play a significant role in the distribution of leather goods as a considerable amount of market revenue is generated through these channels. Online sales channels make it easy for consumers to browse through millions of products in one place without having to physically visit retail stores. Millennials have been one of the prominent consumer segments driving the growth of online distribution channels.
According to the Global Online Survey data, the propensity of millennials to purchase leather goods through online platforms was almost twice that of Generation X in 2018. The increasing working population and the rising disposable income also drive market growth. Several companies enforce a corporate dress code, which supports the demand for leather shoes. The rising awareness regarding sustainable products offers a huge growth opportunity for products made from cruelty-free sources. Many celebrities have been opting for vegan fashion products, which influences consumers to conscientiously choose cruelty-free apparel.
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Leather Goods Market Report Highlights
The vegan leather segment was valued at USD 16.61 billion in 2022 and is anticipated to grow at a CAGR of over 8% during the forecast period. Veganism is becoming a prominent lifestyle for many consumers, resulting in a higher demand for fashionable vegan apparel across the globe
Automotive accessories are projected to be the fastest-growing segment over the forecast period. Increasing demand for leather seats, due to the luxurious look it gives, will drive up its demand in the forecast period
The footwear segment was valued at USD 95.48 billion in 2022. Consumers prefer good-quality leather shoes and are willing to pay a higher price for the same to help improve their overall appearance
Various brands, such as Nike, Puma, and Adidas, collaborate with celebrities to come up with new products that are priced higher than other products offered by the brands. For instance, Stella McCartney and Kanye West collaborated with Adidas. These trends are expected to impact the market for footwear over the forecast period
Asia Pacific is projected to remain at the forefront, in terms of CAGR, over the forecast period. Led by countries such as China and India, the growth of the Asia-Pacific leather goods industry is driven by the increasing demand for premium and luxury products
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