The leather goods market is estimated to be valued at US$ 324.69 Bn or Mn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Leather goods include products such as leather apparel, leather footwear, leather luggage, leather gloves, leather handbags, leather wallets, leather jackets and other fashion accessories made using real leather. Leather goods are known for their style, durability and premium quality. Popular leather goods brands offer a wide range of products targeting various consumer segments from value to luxury. Rising consumer incomes especially in developing economies is driving the demand for premium leather goods.
Market Dynamics:
Rising disposable incomes in developing countries is a key driver for the global leather goods market. Consumers in countries like China, India and other Asian markets now have higher spending power which is enabling them to purchase luxury goods including premium leather items. According to World Bank data, the middle class population in developing countries is expected to rise to over 5.3 billion people by 2030 from 2 billion in 2020, thereby opening vast opportunities for leather goods brands.
Another driver is the growing influence of social media and celebrity endorsements. Young population in developing nations is heavily influenced by fashion and lifestyle trends showcased on social media platforms. Luxury brands are actively promoting their products through collaborations with popular celebrities and social media influencers to target young consumers and drive brand awareness as well as sales. This is positively impacting the adoption of premium leather goods.
Segment Analysis
The Global Leather Goods Market is dominated by the luxury segment that accounts for over 60% share. Within the luxury segment, handbags sub-segment leads the market and is expected to continue its dominance over the forecast period. This is because luxury handbags have become a style statement among the high income population and growing preferences for branded products strengthens the growth prospects of luxury handbags sub-segment.
PEST Analysis
Political: Favorable regulations around the world supporting the luxury goods industry promote the growth of leather goods market.
Economic: Rising disposable incomes coupled with growing affinity of high net worth individuals towards luxury products augment the demand for leather goods.
Social: Changing lifestyles and improving living standards increase the acceptance of luxury goods as a symbol of status and success.
Technological: Advancements in material science and manufacturing technologies help leather goods manufacturers in developing innovative and superior quality products.
Key Takeaways
The global leather goods market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing brand consciousness and rising spending on luxury lifestyle products among the affluent population worldwide.
The Asia Pacific region is expected to dominate the market, growing at the fastest CAGR during the forecast period. This can be attributed to factors such as rapid urbanization, growing middle-class population and their rising disposable incomes in the region.
Key regional markets include North America, Europe, Asia Pacific, South America, and Middle East and Africa. Among them, Europe holds the largest market share currently owing to presence of major luxury brands and higher spending power of consumers in the region.
Key players operating in the leather goods market are LVMH Mo«t Hennessy Louis Vuitton SE, Kering S.A., Adidas AG, Hermà ̈s International S.à .r.l., Dolce & Gabbana Luxembourg S.à .r.l., Overseas Leather Goods Company Pvt Ltd, Tata International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren Corporation. These players are focusing on expanding into untapped markets through new product launches and enhancing their omni-channel capabilities.
Read More: https://www.ukwebwire.com/leather-goods-market-is-estimated-to-witness-high-growth/
