Leather Goods Market Snapshot

According to the recent report by Future Market Insights (FMI), the leather goods market size is estimated to stand at US$ 764.81 billion by 2033. Over the forecast period, the market is assessed to trail at a CAGR of 5.6%. In 2023, the market is expected to reach US$ 443.52 billion.

Growth-inducing Drivers

·       Numerous advantages of synthetic leather products, especially their heavy-duty and low-cost construction, are pushing the demand for leather goods.

·       Growing cognizance of cruelty-free and eco-friendly products is influencing customers across the world to invest in leather products made ethically and responsibly.

·       Surging application of synthetic leather in the clothing, automotive, and furniture industry is propelling the market growth.

·       Surging brand awareness is increasing the demand for trendy, comfortable, and fancy footwear, apparel, and accessories.

·       Heightened demand for high-quality, premium luxury leather products.

·       Emerging utilization of vegan leather, which is made from the food industry’s disposal, like apple leather, mushroom leather, and others, in apparel and footwear production is facilitating the market growth.

·       Rapid increase in the number of launches for leather goods is anticipated to propel the market in the years to come.

Key Opportunities in the Market

·       Robust digitalization in the market is expanding the manufacturers’ reach to the masses, thereby enhancing the sales revenue generated via online sales platforms.

·       Companies providing leather goods are recognizing the market potential present in emerging economies.

·       Rise in fashion shows across the globe is expected to favor market growth in the forecast period.

Market Restraint: Negative Impact of Leather Production on the Environment

·       Sustainability issues caused by leather made of animal skins and hides, such as water wastage, deforestation, gas emissions, and others, lead to reduced demand for such products.

·       Inadequate knowledge about purchasing patterns and consumers’ tastes.

·       Rising demand for high-quality leather goods at an affordable rate is becoming a hindrance for high-value leather products.

Segmentation Division

Synthetic Leather Segment to Observe Vigorous Growth

High proliferation of synthetic leather, variably known as faux leather, is bolstering the segment growth. Over the forecast period, the segment is predicted to show 7.5% CAGR. The category growth can be ascribed to the increasing cost of full-grain leather and enhanced awareness regarding animal cruelty.

Synthetic leather finds extensive applications in aviation, accessories, automotive, and others. Moreover, the cost-effectiveness of synthetic leather has led to its surging demand in the footwear and apparel industry. As a result, catalyzing the overall market Key players are zeroing in on acquisitions to catch up with the robust growing demand from consumers. In April 2022, for instance:

Coronet Spa, a synthetic leather manufacturer, declared that it has acquired Synt3. With the help of this deal, the company aims to incorporate three elements of Synt3, which are now expected to cover the large market and help construct a wide manufacturing process.

Footwear to Acquire Notable Market Share

The footwear section is expected to account for a notable market share in the years to come. In the historical period, the segment registered for 44% of the overall market share. Growing demand for durable footwear among consumers is pushing the segment’s growth.

Market players are focusing on introducing new products and are actively engaged in innovating their product line-up. In July 2022, for instance, Nike unveiled five fresh models of sneakers, such as Air Force 1 Low ‘07’ Fresh, Air Trainer 1 ‘Midnight Navy’, and Air Max 97 Coconut Milk, and Black. This lineup is composed of various types of leather like premium and the upper leather.

Escalating demand for custom-made and luxury footwear heavily supports the market growth. In this context, one of the dominating brands in India, La Marca, introduced its store in Chennai.

The apparel segment, another product segment, has been exhibiting robust developments in new designs. In addition to this, the increasing preference for leather apparel like leather-based pants, jackets, and skirts, among others, in fashion shows, is further propelling market development.

Read more: https://www.futuremarketinsights.com/reports/leather-goods-market