Global Leather Goods Market By Type (Genuine Leather, Synthetic Leather and Vegan Leather), By Product (Footwear, Automotive Accessories, Home Décor & Furnishing, Small Leather Goods & Accessories, Apparel, Handbags, and Others), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Leather Goods Market
Market Report Description
The Global Leather Goods Market size is expected to reach $560.5 billion by 2027, rising at a market growth of 9.9% CAGR during the forecast period. Leather goods refer to products that are prepared from material from tanning hides and skin of animals, majorly from cattle. Products such as luggage, footwear, and accessories are some of the prominent products of the leather goods market and these products are sold with the help of offline and online retail stores.
Factors such as increasing disposable income, emerging fashion trends, enhanced living standards, and rising domestic & international tourism has contributed to the growth of this market. Moreover, the growth of the global leather goods market would witness bright prospects due to the aspects like growing demand for convenient, fancy, and fashionable leather apparel, accessories, and footwear, combined with the increasing brand awareness.
In modern times, one of the main symbols of style statement and status is the appealing & luxurious leather products. Additionally, the contemporary designs created by renowned global brands such as Dolce & Gabbana, Burberry, Giorgio Armani, and Prada are currently witnessing massive demand, which would eventually augment the demand for different types of leather goods including footwear, apparel, and accessories.
The booming fashion industry has significantly augmented the demand for leather handbags and wallets among the consumers, hence boosting the accessories market around the world. Consumers highly prefer aesthetic aspects, and demand high-quality range goods in order to make a fashion statement.
Moreover, the overall leather market would continue to evolve in various emerging and newly industrialized economies, fulfilling the ever-increasing demand in the industrialized world and requirements of the rising middle classes in their own markets. In order to achieve this, the market should provide quality, prevent commoditization, be more creative and manage the different kinds of environmental concerns in a positive manner.
COVID-19 Impact Analysis
The outbreak of COVID-19 outbreak resulted in disturbances in the retail sales of leather goods products throughout the year 2020, due to limitations in spending power, closure stores/outlets of exclusive apparel, and prevalent lockdown across the world. The COVID-19 outbreak has adversely impacted the global leather sector which includes apparel, footwear, and accessories segments. Retailers suffered severe losses during the first two quarters of 2020. As per the report by World Footwear, the sales of footwear were decreased by around 32% in the U.S. at the end of the first two quarters of 2020.
Moreover, the sales of leather shoes would be reduced by the decreased demand for footwear. The majority of the makers in the market have for many years dependent on China for final goods and raw materials utilized in the manufacturing of several leather goods. However, the pandemic disturbed the supply chain, thereby bringing massive losses regarding product shipment.
Based on Type, the market is segmented into Genuine Leather, Synthetic Leather and Vegan Leather. In 2020, the genuine leather segment procured the maximum revenue share of the global leather goods market. Synthetic leather goods are less costly as compared to genuine leather products and are similarly appealing regarding design, which would boost their demand among consumers. Synthetic leather is majorly extracted from artificial sources, like Polyvinyl Chloride (PVC) and Polyurethane (PU).
Based on Product, the market is segmented into Footwear, Automotive Accessories, Home Décor & Furnishing, Small Leather Goods & Accessories, Apparel, Handbags, and Others. The home décor & furnishing segment would be the fastest-growing segment during the forecast period. The growth of this segment is driven by the rising expenses on home furnishing and renovation. International Monetary Fund revealed that the global housing market has been rising gradually in the last few years. Another crucial element is the housing index, which shows the varying prices of residential properties.
|Market size value in 2020||USD 218.9 Billion|
|Market size forecast in 2027||USD 560.5 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 9.9% from 2021 to 2027|
|Number of Pages||196|
|Number of Tables||304|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, Product, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America emerged as the leading region of the global leather goods market by acquiring the highest revenue share of the market. The growth of the regional market would be boosted by the increasing prominence of the product along with the growing online sales in this region.
KBV Cardinal Matrix - Leather Goods Market Competition Analysis
Free Valuable Insights: Global Leather Goods Market size to reach USD 560.5 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Hermes International S.A. and Nike, Inc. are the forerunners in the Leather Goods Market. Companies such as Adidas AG, PUMA SE, and VF Corporation are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Adidas AG, Nike, Inc., PUMA SE, Tapestry, Inc., New Balance, Inc. (New Balance Aesthetics, Inc.), Herman Miller, Inc., American Leather Operations, LLC, Lear Corporation, VF Corporation, and Hermes International S.A.
Recent Strategies Deployed in Leather Goods Market
» Partnerships, Collaborations, and Agreements:
- Apr-2021: Timberland with its parent company, VF Corporation came into partnership with Terra Genesis International (TGI). This partnership aims to expand Timberland and VF Corporation its growing Regenerative Leather footwear portfolio for spring. In addition, the companies also focus on developing the world’s first regenerative rubber supply system for footwear, with intend to introduce a collection in 2023.
- Oct-2020: Adidas came into partnership with Bolt Threads, along with Kering, lululemon, and Stella McCartney. This partnership focused on introducing Mylo, a material made from infinitely renewable mycelium. This material, Mylo, looks and feels like leather, which became a milestone in the industry since global brands come together to heavily invest in material innovation and better & creative solutions to decrease the environmental impact.
» Acquisition and Mergers:
- Nov-2020: VF Corporation acquired Supreme, a privately-owned global streetwear brand. Under this acquisition, both the companies signed a merger agreement. This acquisition aimed to support VF Corporation’s strategy to further expand its portfolio of brands to support the overall addressable market opportunities that drive the apparel and footwear sector.
- Jul-2020: Hermes took over J3L Company, manufacturer of metal parts. This acquisition aimed to develop and manufacture high-end metal parts for various luxury companies and majorly leather goods manufacturers to be scale on handbags, wallets, briefcases, and shoes.
» Product Launches and Product Expansions:
- Jun-2021: Nike introduced a new sustainable Happy Pineapple trainer collection in collaboration with Piñatex. This collection features five colorful sneakers with classic Nike designs that include the Air Max 95, Air Max 90, and the Air-Zoom Type. In addition, the leather components on the trainers include the new plant-based leather substitute from Pinatex made by Ananas Anam.
- Jun-2021: New Balance introduced the most wearable sneakers for the summer. The New Balance CRT300 v2 is a casual court-style sneaker from the Boston-based sportswear giant. The footwear is made with suede & leather uppers in white & tonal gray shades that position on top of the brand’s comfort-focused REVlite midsoles and durable rubber outsoles, both delivered in white.
- Apr-2021: Adidas launched Mylo, a material made from mycelium. Mycelium is a substance that is found in the roots of mushrooms. The Stan Smith Mylo shoes contain a natural rubber midsole, where the body of the sneaker is carved by using mushroom leather.
- Mar-2021: Hermes introduced the latest version of its Victoria handbag made by utilizing Sylvania. This collaboration would result in the first commercially accessible product utilizing Sylvania, or Fine Mycelium, which is leather made from fast-growing mushroom root systems.
» Geographical Expansions:
- Jun-2021: Hermes expanded its global footprint by establishing a new production site. This leather goods workshop is located in Seine-et-Marne in Montereau, France, near to the tannery, which the brand bought in 1966. This new production site is the brand’s 18th workshop specified to leather, it also showcases the expertise & proximity of the group’s Ile-de-France craft center, which has 670 artisans.
- Mar-2021: Adidas expanded its global footprint by opening a store in Chandigarh, India. This store contains the local flavor of Chandigarh by using its distinctive art-form named Phulkari, which has been used to develop an interesting installation of the brand’s Trefoil logo that becomes the most Instagram’d corner at the store.
Scope of the Study
Market Segments Covered in the Report:
- Genuine Leather
- Synthetic Leather
- Vegan Leather
By End User
- Automotive Accessories
- Home Décor & Furnishing
- Small Leather Goods & Accessories
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Adidas AG
- Nike, Inc.
- PUMA SE
- Tapestry, Inc.
- New Balance, Inc. (New Balance Aesthetics, Inc.)
- Herman Miller, Inc.
- American Leather Operations, LLC
- Lear Corporation
- VF Corporation
- Hermes International S.A.
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What would be the value of the global leather goods market by 2027?
The leather goods market size is projected to reach USD 560.5 billion by 2027.
What are the key driving factors and challenges in the leather goods market?
Higher awareness regarding branded products are driving the market in coming years, however, Issues faced by manufacturers limited the growth of the market.
Who are the top market players in the leather goods industry?
Adidas AG, Nike, Inc., PUMA SE, Tapestry, Inc., New Balance, Inc. (New Balance Aesthetics, Inc.), Herman Miller, Inc., American Leather Operations, LLC, Lear Corporation, VF Corporation, and Hermes International S.A.
At what CAGR is the leather goods market estimate to grow in the forecast period?
The expected CAGR of the leather goods market is 9.9% from 2021 to 2027.
What has been the impact of COVID-19 on the global leather goods market?
Retailers suffered severe losses during the first two quarters of 2020. As per the report by World Footwear, the sales of footwear were decreased by around 32% in the U.S. at the end of the first two quarters of 2020.
Which region shows the faster growth rate of the leather goods market over the projection period?
The Asia-Pacific would showcase the faster growth rate in the leather goods market throughout the analysis period.