Market Research Report
Leather Goods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Leather Goods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: May 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 130 Pages
Delivery time: 2-3 business days
The leather goods market is projected to record a CAGR of 6.2% during the forecast period (2021 - 2026).
The COVID-19 outbreak led to a disruption in the retail sales of leather good products during the year 2020, owing to limitations in spending power, shut stores/outlets of premium apparels, and widespread lockdown globally.
Leather goods are highly popular among consumers as they have inherent qualities, such as dustproof, fireproof, crack-proof, and durability, which are expected to increase the growth of the leather goods market.
Moreover, the growing demand for trendy handbags, premium leather wallets, and other leather products is influencing the growth of the leather goods market in the last few years.
Growing government support for the leather industry is further driving the market growth. For instance, in India, 100% Foreign Direct Investment is permitted through the automatic route and the government has reduced the excise duty to 6% from 12% on leather footwear (footwear with uppers made of leather) with a retail sale price of more than USD 14.55 per pair.
Increased Demand for Leather Accessories
Leather fashion accessories are items made of leather that is generally worn with or supplementary to other clothing items. They typically have a functional as well as an aesthetic value. Leather accessories also typically have a longer life-cycle than garments and non-leather fashion accessories, especially when it comes to high-end products that gain value over time. The growing segments of leather fashion accessories product categories include carrying products, gloves and mitts, belts and other accessories. The thriving fashion industry has majorly uplifted the demand for leather handbags and wallets among the consumers, thereby also driving the accessories market in the global market. Consumers are more inclined toward aesthetic factors, and demand premium range goods as a fashion statement. Europe-based companies, such as Gucci, Gianni Versace, and Louis Vuitton, are the key players involved in the manufacturing of leather-based Accessories.
Europe Emerges as the Largest Consumer of Leather Goods
The strong presence of local and international players, product and technological innovations, rise in online retailing, the use of social medial platforms are some of the major factor driving the growth of the European market. Increasing fashion consciousness, rising disposable incomes, and increasing demand for attractive bags are driving the sales of luggage and leather goods in the region. The growing interest of consumers in travel and unique experiences is boosting the demand for leather goods, such as luggage bags, especially in the luxury segment as consumers increasingly sought high-quality items. Moreover, with the strong prevalence of fashion-driven countries, such as France and Italy, the region remains the largest consumer of the market.
The leather goods market is highly competitive as in the organized sector few key players are holding a major market share whereas, in the unorganized sector, many small players are competing to gain market share. Adidas, Samsonite, and Kering are some prominent players in the global market. Major players are focusing on introducing new product offerings in the market to cater to the interests of the consumers as per the ongoing fashion trend among goods, like footwear, accessories, and luggage bags. Expansion is the next strategy preferred by companies to strengthen their leather goods market dominance. Major players are constantly trying to expand their production facilities or retail outlets to accommodate the growing demand and strengthen their strategies for market development.