The global luxury leather goods market was valued at USD 18.2 billion in 2021 and is projected to expand at a CAGR of 5.3% from 2022 to 2030. Leather goods are considered a symbol of luxury, status, and fashion, and are increasingly being embraced by consumers. The rising disposable income of individuals, coupled with their changing lifestyle, is driving the demand for luxury leather goods. Moreover, the growing trend of gifting luxury leather goods among family members, friends, and colleagues is further pushing the demand.

The increasing demand for handbags and wallets, as a result of changing lifestyle and improved living standards, is expected to drive the market growth. Furthermore, the high penetration of social media platforms, such as Instagram, Facebook, and Pinterest, has enabled the leather goods manufacturers and brands to reach a broad segment of the population. The luxury leather goods manufacturers are increasingly focusing on marketing their products through these channels and are offering discounts and promotional offers to their customers.

Apart from that, the growing trend of personalization is further bolstering the demand for luxury leather goods. As a result, luxury leather goods manufacturers are offering customization options for items such as backpacks, wallets, and purses. This has enabled customers to create a product that is tailored to their needs. For instance, in March 2021, Coach, a renowned luxury leather goods manufacturer, announced the launch of its new customization platform for handbags, wallets, and small leather goods.

The rising popularity of e-commerce platforms is further driving the demand for luxury leather goods. The convenience of shopping from their homes and the availability of a wide variety of products on such platforms is driving the demand. Furthermore, the increasing penetration of internet and smartphones is further bolstering the growth of the market. According to the World Bank, the internet penetration rate in 2021 stood at 57%.

Furthermore, the manufacturers are focusing on incorporating advanced technologies, such as artificial intelligence (AI) and machine learning (ML), in their products. This is enabling them to offer innovative products to their customers. For instance, in December 2021, Prada introduced a new line of luxury leather bags with augmented reality (AR) features. The AR feature allows users to see the bag in different colors and view details such as size, features, and price. This is expected to further boost the demand for luxury leather goods.

The luxury handbags segment held the largest revenue share of around 40.3% in 2022. Growing demand for luxury handbags among the affluent population, especially in emerging countries, is driving the luxury handbags market revenue. Growing demand for fashionable and trendy leather bags among individuals is creating lucrative opportunities for market players. Furthermore, the emergence of various online stores offering luxury leather goods at discounted prices is further driving the growth of the luxury handbags market.

The wallets & purses segment is expected to record the fastest CAGR of 6.2% over the forecast period. Growing demand for wallets and purses among consumers is one of the major factors driving the market revenue. Moreover, increasing demand for premium wallets with features such as RFID card protection and customization is further driving the wallets & purses market growth. According to an article published by the University of Exeter, in April 2020, around 48% of people said that they carry a variety of products in their wallets every day.

The luxury goods stores segment captured a significant share of the market in 2022. Luxury goods stores are the most preferred and preferred distribution channel for purchasing luxury leather goods. These stores provide customers with a wide range of products, including clothing, handbags, wallets, and other accessories made from premium quality leather. These stores also provide customers with personalized services, such as professional advice and tailoring services, to help them select the perfect product for their needs. In addition, the presence of luxury stores in major metropolitan cities, such as New York, London, and Paris, has further augmented the segment’s growth.

The online segment is expected to witness the fastest growth in the coming years. Online stores offer a wide variety of luxury leather goods at competitive prices. The convenience of online shopping has made it a preferred choice among customers, as it allows them to compare prices, check product description, and read reviews before making a purchase decision. In addition, the availability of free delivery and returns, secure payment options, and discounts on bulk orders have further contributed to the segment’s growth.

The luxury leather goods segment accounted for the largest revenue share of 65.1% in the year 2022. The growing demand for luxury leather goods in the fashion industry is the major factor driving the market growth. The growing disposable income of consumers in the middle-class income group is the major factor fueling the demand for luxury leather goods. Furthermore, the increasing trend of gifting luxury leather goods as wedding gifts is also expected to drive the market growth.

The mid-range leather goods segment is estimated to expand at the highest CAGR of 7.4% during the forecast period. This segment is expected to witness the highest growth due to the increasing demand for affordable leather goods. The rising trend of fast fashion and the increasing desire to own luxury leather goods among the middle-class population are expected to drive the market growth. The growing demand from Asian countries such as China, India, and South Korea is likely to contribute to the growth of the mid-range segment. In addition, the increasing number of middle-class citizens in the emerging economies is expected to create a huge demand for mid-range leather goods.

Europe held the largest market share of over 36.0% in 2022. This is attributed to the presence of prominent luxury leather goods brands in the region, such as Louis Vuitton, Gucci, and Prada. Furthermore, the increasing trend of buying fashion and luxury products, such as handbags, wallets, and other leather goods, is augmenting the market growth in the region. For instance, in April 2021, the British fashion house Mulberry launched a new collection of leather goods and accessories, named ‘The Blacksmiths’.

Asia Pacific is expected to witness the fastest growth in the coming years. Increasing disposable incomes, coupled with the rising use of luxury leather goods for gifting purposes, is expected to drive the demand for luxury leather goods in the region. Moreover, the presence of a large population base, along with the rising demand for branded bags, wallets, and other leather goods, is projected to further fuel the market growth in this region. For instance, in April 2022, the Chinese luxury leather goods brand, Longchamp, opened its first flagship store in the Philippines.

In this part of the luxury 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 luxury leather goods products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for a luxury leather goods products business comes from sales of handbags, wallets, belts, and other leather goods. To make sure that the financial projections are accurate, it is important to make realistic assumptions on the expected sales, pricing, and any other factors that will affect the company’s income.

Projecting Expenses
In this section, all the regular expenses related to keeping the luxury leather goods products business running will be described. The list of operating expenses includes material and labour costs, rent, marketing, advertising, and administrative costs. Moreover, it is important to include any other expenses that are related to the production and sale of the leather goods products.

Some of the key companies operating in the luxury 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 July 2022, Hermès launched a new line of leather goods made from sustainable materials.

– In August 2022, Gucci launched a new line of luxury leather bags, wallets and other small leather goods.

– In September 2022, Louis Vuitton launched a collection of luxury leather handbags.

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

– Hermès
– Gucci
– Louis Vuitton
– Prada
– Michael Kors
– Burberry
– Coach
– Ralph Lauren
– Fendi
– Versace

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 luxury leather goods products market based on product type, distribution channel, material, and region:

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

– Handbags
– Wallets
– Shoes
– Belts
– Others

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

– Department Stores
– Supermarkets & Hypermarkets
– Online
– Others

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

– Genuine Leather
– PU Leather
– Others

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

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

[Q]: What are the factors driving the luxury leather goods products market?
[A]: The global luxury leather goods products market is driven by factors such as the increasing demand for premium products and the rising disposable income of the middle class, especially in developing countries. The growing demand for sustainable and eco-friendly products is also driving the market growth.

[Q]: Who are the Key Players in the Luxury Leather Goods Products Market?
[A]: The major players in the luxury leather goods products market are Hermes International, Louis Vuitton, Gucci, Prada, and Burberry.

[Q]: What are the Different Types of Luxury Leather Goods Sold in the Market?
[A]: Different types of luxury leather goods sold in the market include wallets, handbags, purses, belts, gloves, and briefcases.

[Q]: What are the Trends in the Luxury Leather Goods Products Market?
[A]: Major trends in the luxury leather goods products market include the increasing demand for sustainable and eco-friendly products, the rising popularity of online stores and the increasing preference for personalized products.

[Q]: Which Region Offers the Largest Opportunity for Sales of Luxury Leather Goods Products?
[A]: Asia Pacific is expected to be the most lucrative market for luxury leather goods over the forecast period, with an absolute dollar opportunity of $33.1 B (USD).