The global leather goods market was valued at USD 164.9 billion in 2022 and is estimated to expand at a CAGR of 6.1% from 2023 to 2030. The increasing demand for luxury products and the growth of the fashion industry are the major factors driving the market. Furthermore, rising awareness about the benefits of leather products and increasing disposable incomes of consumers are further contributing to the market growth.

Leather products are gaining traction among consumers, which is leading to an increase in the demand for leather products. For instance, in November 2021, Burberry introduced its new collection of leather goods, made with sustainable materials, such as mushroom leather, recycled nylon, and cactus leather. The company also aimed to reduce its carbon footprint by using sustainable materials in the production of its leather goods.

Furthermore, the increasing demand for designer leather goods is driving the market. For instance, Louis Vuitton, one of the leading luxury brands, launched its new collection of leather goods in January 2021. The company focused on creating products that are stylish, timeless, and luxurious. This collection includes new bags, wallets, and purses that are perfect for any occasion.

The rising trend of personalization is also driving the market. The increasing demand for unique and customized leather products is encouraging manufacturers to offer personalized products to cater to the needs of consumers. For instance, in August 2021, Coach launched its new collection of leather goods that come with the option of personalization. Consumers can customize their bags and wallets with their initials and favorite colors.

The market is further driven by the growing demand for online shopping. The increasing internet penetration and the availability of various e-commerce platforms are driving the demand for leather goods online. Furthermore, the availability of various discounts and offers on e-commerce platforms is further boosting the market. For instance, in July 2021, Amazon launched the Prime Day sale, offering discounts of up to 70% on leather goods.

Moreover, the increasing demand for vegan leather products is also driving the market. The growing demand for eco-friendly and sustainable products is propelling the demand for vegan leather products. In addition, the availability of various textures and colors in vegan leather is further contributing to the market growth. For instance, in June 2021, Apple launched a new collection of vegan leather cases for its iPhones and iPads. The collection was made using recycled leather and was available in a variety of colors.

The handbags segment is expected to hold the largest share of the leather goods market during the forecast period. The rising disposable income of individuals, increasing demand for luxury handbags, and the emergence of several online platforms are some of the factors driving the growth of the segment. According to an article published by Forbes in January 2020, the global luxury handbag market was estimated to expand at an impressive rate of 10.5% between 2020 and 2024. Furthermore, the emergence of smart handbags with connected technologies, such as Bluetooth and Wi-Fi, is projected to bolster the growth of the handbags segment during the forecast period.

The wallets and belts segment is expected to expand at the fastest CAGR during the forecast period. The increasing demand for wallets and belts from millennials, the rising trend of gender-neutral fashion, the emergence of smart wallets, and the introduction of digital payment solutions are some of the factors driving the growth of the wallets and belts segment. According to a survey conducted by Crafty, in June 2020, 66% of millennials prefer to buy leather wallets and belts. In addition, rising fashion trends and growing awareness about the availability of various fashionable leather goods are expected to bolster the growth of the segment during the forecast period.

The specialty stores segment accounted for the largest market share in 2022 and is anticipated to remain the dominant segment over the forecast period. Specialty stores offer a wide range of leather goods products such as bags, wallets, belts, and gloves. The growth of this segment is attributed to the fact that these stores are well known for the quality of their product offerings and the fact that they have a wide variety of products from multiple brands. Moreover, since these stores focus on a particular product or category, customers can easily find what they are looking for.

The online segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The growth of this segment is attributed to the increasing popularity of e-commerce platforms and the convenience associated with shopping for leather goods products online. Furthermore, manufacturers are launching their own websites and apps to increase their visibility and reach to customers. For instance, in 2020, Coach Inc. launched its website and mobile app to cater to consumers in the U.S. and Canada.

The finished leather goods products accounted for the largest revenue share of 72.3% in the year 2022. The growing demand for luxurious products among the middle and upper-class population, along with the rising fashion consciousness among the younger generations, is driving the growth of the market. For instance, in April 2021, Hermes, a French luxury goods manufacturer, launched a new collection, “The Garden Party”, which includes leather bags, silk scarves, and Sterling Silver jewelry. Also, the increasing preference for online shopping, especially during the COVID-19 pandemic, has augmented the demand for finished leather products.

The leather components segment is anticipated to expand at the highest CAGR of 8.3% over the forecast period. The increasing demand for leather components from the automotive, apparel, and accessories industries is driving the market. Furthermore, the growing popularity of fashion accessories such as wallets and purses, along with the increasing demand for luxury leather goods, is expected to fuel the demand for leather components.

Europe is expected to hold the largest share in the leather goods market and is estimated to account for the largest share throughout the forecast period. This is owing to the presence of a large number of leather good manufacturers in the region. In addition, increased demand for luxury leather goods in countries such as Germany, France, and the UK, has led to an increase in the production of such products.

The Asia-Pacific region is anticipated to witness the highest growth rate during the forecast period. Increasing disposable incomes and changing lifestyle patterns are some of the key factors driving the growth of the market in the region. In addition, the presence of key players such as Coach, Gucci, and Prada in the region is further expected to propel the growth of the market. In April 2021, India-based luxury leather goods manufacturer, Hidesign launched a new collection for the spring-summer season.

In this part of the leather goods products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your leather goods business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a leather goods products business comes from sales of the products, retail and wholesale. Here you will find a list with a description of each of them and other possible sources of profit such as ecommerce, direct mail campaigns, and advertising.

Projecting Expenses

In this section, all the regular expenses related to keeping the leather goods products business running will be described. The list of operating expenses includes cost of goods sold, wages, shipping, advertising, rent or lease payments, insurance policies, taxes, and others.

Some of the key companies operating in the leather goods market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In April 2022, Coach Inc. launched a new collection of leather goods featuring premium leather, vibrant colors, and intricate stitching.

– In June 2022, Louis Vuitton launched a new collection of leather handbags and accessories inspired by classic designs.

– In August 2022, Hermes launched a new collection of leather goods featuring contemporary designs and patterns.

Some of the prominent players in the leather goods market include:

– Coach Inc.
– Louis Vuitton
– Gucci
– Hermes
– Prada
– Burberry Group plc
– Salvatore Ferragamo
– Ralph Lauren Corporation
– Michael Kors Holdings Limited
– Zara

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global leather goods products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Clothing
– Footwear
– Accessories
– Bags & Purses
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Potential of Leather Goods Products?
[A]: The potential for leather goods products is strong. The market is driven by the increasing demand for luxury leather goods as a result of improved disposable incomes, rising fashion consciousness, and changing lifestyles. In addition, advancements in technology are contributing to the growth of the market. Leather goods manufacturers are now able to produce leather goods with novel features such as waterproofing and UV protection, making them more attractive to consumers.

[Q]: Who are the Key Players in the Leather Goods Products Market?
[A]: Key players in the leather goods products market include LVMH Moët Hennessy Louis Vuitton SE, Hermes International, Compagnie Financiere Richemont SA, Kering, Prada S.p.A., Chanel SA, Michael Kors Holdings Limited, Gucci, Salvatore Ferragamo S.p.A., and Coach, Inc.

[Q]: What are the Factors Driving the Leather Goods Products Market?
[A]: Factors driving the leather goods products market include the increasing demand for luxury leather goods, the growing trend of customizing leather goods products, the increasing popularity of e-commerce platforms, and the emergence of new product categories.

[Q]: Which Region Offers the Largest Opportunity for Sales of Leather Goods Products?
[A]: According to the Global Leather Goods Products Market Size, Share, & Trends Analysis Report, Asia Pacific is expected to be the largest and fastest-growing market for leather goods products, due to the rising demand from countries such as India, China, and Japan.

[Q]: What Types of Leather Goods Products Are Available?
[A]: Leather goods products are available in a variety of categories, including handbags, briefcases, wallets, belts, suitcases, and other accessories. The products are also available in a variety of colors, textures, and designs, allowing for customization according to customer preferences.