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| Global Leather Goods Market |
The global leather goods market is estimated to be valued at US$ 324.69 Bn in 2023 and is expected
to exhibit a CAGR of 5.1% over the
forecast period 2023 to 2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
Leather goods refer to fashion accessories and accessories made from animal skins
and hides through tanning. Some common leather goods include shoes, bags,
wallets, belts, gloves, jackets and clothing. Leather goods are considered a
luxury and are often associated with status symbols due to their durability and
high cost. The leather industry aims to meet evolving consumer demand through
innovation, sustainability and ethical practices.
Market key trends:
One of the key trends in the leather goods market is the growing focus on
sustainability and ethical practices. Consumers are increasingly aware of
environmental and animal welfare issues associated with the leather industry.
Manufacturers are responding by using certified and traceable raw materials
from sources that adhere to high environmental and animal welfare standards. Another
major trend is the increasing demand for customized and personalized leather
goods. Companies are leveraging technologies like 3D printing and customization
tools online to allow buyers to design their own unique leather products
according to their tastes and preferences. This is driving greater customer
engagement and loyalty toward brands. Rapid growth of online retail and
e-commerce is also expanding the reach of leather goods manufacturers globally.
Porter’s Analysis
Threat of new entrants: The Global
Leather Goods Market requires high initial investments in tanneries,
machines, raw materials, and skilled labor. These significant entry barriers
keep the threat of new entrants low.
Bargaining power of buyers: Buyers in the leather goods market have moderate
bargaining power due to the availability of substitutes like artificial
leather. However, quality and brand loyalty factors keep buyer power in check.
Bargaining power of suppliers: Major suppliers of raw hides and skins face
moderate pressure from large leather goods brands that can source from multiple
geographies.
Threat of new substitutes: Alternatives like artificial leather pose threats.
However, the authentic feel and craftsmanship of genuine leather goods continue
to attract brand conscious customers.
Competitive rivalry: The market is highly dominated by major luxury brands that
compete intensely on quality, design innovation, and branding.
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 consumer preference for luxury and premium products.
The Asia Pacific region dominates the global leather goods market, accounting
for around 35% share. China, India, and other Asian countries have emerged as major
producers and consumers of leather goods due to availability of raw materials
and a large consumer base. Europe is another lucrative market, while countries
like the US and Canada showcase high demand for luxury leather accessories and
footwear.
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.A., Dolce &
Gabbana Luxembourg S.Ã .r.l., Overseas Leather Goods Company Pvt Ltd, Tata
International Ltd, Chanel International B.V., Prada S.p.A, and Ralph Lauren
Corporation. These major brands account for over 60% of the global market
share.
Read More: https://www.rapidwebwire.com/leather-goods-market-analysis/