July 24, 2024
Leather Goods Market

Rising Disposable Income To Accelerate The Growth Of The Global Leather Goods Market

The global Leather Goods Market is estimated to be valued at US$ 75.74 Bn in 2023 and is expected to exhibit a CAGR of 4.03% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Leather goods mainly include leather accessories such as bags, purses, backpacks, wallets, belts and footwear. Leather goods provide several advantages such as durability, luxury appeal, breathability and comfort. With rising disposable income, demand for premium and luxury products is increasing. Consumers are willing to spend more on luxury goods that offer better quality and styling. This growing demand acts as a driver for the leather goods market.

Market key trends:

One of the key trends in the leather goods market is adoption of innovative production technologies. Manufacturers are investing in new production techniques such as 3D printing to produce customized and unique design products. For example, Italian brand Mandarina Duck has developed a 3D printing technology for leather that allows for customized designs and patterns. Another trend is increasing focus on sustainability and eco-friendly practices. Various brands are opting for vegetable tanned leather and utilizing leather industry byproducts to reduce environmental impact. Also, rapid advancement of e-commerce sector has boosted the online sale of leather goods worldwide.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is moderate as the leather goods market requires high initial investments, established brand names, and global distribution channels. However, growing e-commerce is lowering entry barriers.

Bargaining power of buyers: The bargaining power of buyers is high due to the availability of numerous brands and product options. Buyers can easily switch to alternatives based on pricing and promotions.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like leather are commoditized. However, maintaining relationships with a few major suppliers is crucial.

Threat of new substitutes: The threat of new substitutes is low as leather goods are considered a luxury with no close substitutes. However, growing vegan and eco-friendly trends pose a minor threat.

Competitive rivalry: The competitive rivalry is high among major brands to gain market share through branding, competitive pricing, and product innovations.

Key Takeaways:

The Global Leather Goods Market Size is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period 2023 to 2030, due to increasing consumer preference for luxury and premium products.

Regionally, Europe dominates the market holding around 30% share due to strong presence of major brands in Italy and other countries. However, Asia Pacific is expected to grow at the fastest pace owing to rising affluence in China and India.

Key players operating in the leather goods market are Kering S.A., Adidas AG, Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation. These major brands are focusing on expanding through e-commerce channels and targeting emerging markets to strengthen their global foothold.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it