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The leather and allied products market size is forecast to increase by USD 119.8 billion at a CAGR of 5.13% between 2023 and 2028. The market is witnessing significant growth due to several key trends and factors. One of the primary drivers is the high influence of celebrity endorsements on purchase decisions, as consumers are increasingly influenced by the fashion choices of their favorite celebrities. Another trend is the advancement in manufacturing technology, which is leading to the production of high-quality leather products at competitive prices. However, the market faces challenges such as rising labor costs and fluctuating raw material prices of leather, which can impact the profitability of manufacturers. To mitigate these challenges, companies are exploring alternative sources of raw materials and implementing cost-effective manufacturing processes.
Overall, the market is expected to experience steady growth in the coming years, driven by these trends and factors.
The global market encompasses footwear, apparel, accessories, upholstery, and other leather goods. Fashion trends significantly influence the demand for leather footwear, apparel, and accessories. Ethically sourced products and non-essential items, such as fashion accessories, are gaining popularity due to increasing social consciousness. However, concerns over animal cruelty and environmental effects are posing challenges to the market. Counterfeit products also pose a threat, affecting inventory levels and market reputation. Domestic and international tourism fuel demand for leather goods, particularly in the footwear and automotive upholstery segments. Social media plays a crucial role in promoting lifestyle changes, driving demand for premium interiors, performance wear, and sportswear.
The artisanal skill and luxury appeal of leather goods continue to attract consumers, with handbags and automotive upholstery being key segments. The footwear segment and automotive upholstery segment are expected to dominate the market due to their wide application base and high demand. Lifestyle changes and the growing preference for premium interiors are expected to drive growth in the automotive upholstery segment.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The footwear segment is estimated to witness significant growth during the forecast period. The global market encompasses a wide range of items, including footwear, apparel, accessories, upholstery, and furniture. Fashion trends continually influence the demand for high-quality leather products, with non-essential items such as fashion accessories being particularly popular. Online shopping platforms and e-commerce giants have significantly impacted market growth, enabling easy access to luxury brands and premium materials. Certification schemes, such as those addressing sustainable fabrics and eco-friendly dyes, are gaining traction in response to regulatory pressures and consumer concerns regarding deforestation, habitat loss, and biodiversity depletion. Split leather and patent leather are popular choices for footwear and accessories, while craftsmanship and iconic designs remain key differentiators for luxury brands.
Manufacturing hubs and leather clusters in countries like India, China, and Brazil contribute significantly to global production. However, challenges such as animal cruelty, counterfeit products, and environmental effects persist. To address these issues, data analytics, artificial intelligence, and personalized marketing are increasingly being employed for product customization and inventory management. Domestic and international tourism continue to drive demand for leather and allied products, particularly in the clothing and accessories sector. Sportswear and performance wear segments are experiencing significant growth due to their focus on functionality and durability. Social media plays a crucial role in marketing and promoting these products, further expanding their reach and appeal.
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The footwear segment was valued at USD 216.80 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The global market encompasses a wide range of sectors, including Footwear, Apparel, Accessories, Upholstery, and Furniture. Fashion trends continually evolve, driving demand for high-quality products in these categories. Non-essential items such as Fashion accessories remain popular, with online shopping platforms enabling easy access to consumers. Certification schemes, such as those related to Split Leather, Patent Leather, and Premium materials, ensure product authenticity and adherence to ethical standards. Manufacturing hubs and leather clusters, particularly in Europe and Asia, contribute significantly to the industry. Luxury brands continue to prioritize craftsmanship and iconic designs, while e-commerce platforms and sustainable fabrics cater to the growing preference for eco-friendly products.
Regulatory pressures against deforestation, habitat loss, and biodiversity depletion impact the market. Animal cruelty concerns and environmental effects lead to increased scrutiny, with regulatory pressures and consumer awareness driving the shift towards eco-friendly dyes and manufacturing processes. Counterfeit products pose a challenge, necessitating inventory management strategies and data analytics. Sustainable tourism, both domestic and international, fuels the demand for leather and allied products. Social media and sportswear trends influence consumer preferences, with performance wear gaining popularity. Artificial intelligence and personalized marketing enable product customization, enhancing customer experience.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high influence of celebrity endorsements on purchase decisions is the key driver of the market. The global market, encompassing leather footwear, non-leather footwear, leather luggage, handbags, and non-leather luggage, has witnessed significant growth in recent years. This expansion can be attributed to the rise in consumer demand for high-quality consumer goods, particularly in regions like APAC, North America, and Europe. Leather tanning techniques, such as full grain and top grain, continue to be popular in the production of luxury footwear and handbags. Meanwhile, the emergence of material technologies like vegan leather, DriTan leather, and smart features, including GPS tracking and RFID technology, have catered to evolving consumer preferences and lifestyle changes. In the automotive upholstery segment, premium interiors and customization options have fueled market growth.
Trade policies and retail strategies, including both offline retail stores and online platforms, have also influenced market dynamics. Ethical sourcing and branded goods have become increasingly important, with artisanal skill and smart technology playing significant roles in differentiating products. The fashion industry's ongoing evolution is driven by consumer trends, material innovations, and marketing strategies, including celebrity endorsements and the integration of wearable tech and the Internet of Things.
The advancement in manufacturing technology is the upcoming trend in the market. The market encompasses a wide range of consumer goods, including leather footwear, handbags, and luggage, as well as non-leather alternatives. The manufacturing process of these products involves various steps, with leather tanning being a significant aspect. Leather tanning utilizes a substantial amount of water, leading to environmental concerns and the need for water conservation. BASF SE, a leading chemical manufacturing company, is addressing this issue through innovations like DryFast, which optimizes tanning efficiency while minimizing water usage. The leather industry also requires investments for plant treatment to meet discharge standards. Other trends in the market include the increasing popularity of vegan leather, DriTan leather, and premium interiors for automotive upholstery.
Lifestyle changes, customization options, and material technology are also driving demand for branded leather goods and smart features such as GPS tracking, RFID technology, and wearable tech in both online and offline retail stores. Ethical sourcing and trade policies are crucial considerations for players in this market.
The rising labor costs and fluctuating raw material prices of leather is a key challenge affecting the market growth. The global market encompasses a wide range of consumer goods, including leather footwear, handbags, and luggage, as well as automotive upholstery and premium interiors. The production of these items involves various raw materials and manufacturing processes, such as leather tanning and material technology. Vendors face challenges in maintaining profitability due to rising labor costs and fluctuations in the price of raw materials. Full grain, top grain, bonded leather, and even vegan leather and DriTan leather are used in the production of these luxury and non-luxury goods. To mitigate the impact of increasing production costs, vendors are investing in automation, innovative collaborations, and material technology.
Consumer preferences for customization options, smart features, and ethical sourcing are also driving market growth. Retail stores and online platforms, including those offering smart technology such as GPS tracking and RFID technology, are key sales channels. Trade policies and branded goods continue to influence market trends.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adidas AG: The company offers leather and allied products such as leather tennis shoes, among other products.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The global market is a significant sector, encompassing footwear, apparel, accessories, upholstery, and furniture. Fashion trends drive demand for leather products, with non-essential items like fashion accessories witnessing high growth. Online shopping platforms and e-commerce giants have transformed sales, enabling global reach. Certification schemes, such as those for split leather, patent leather, and high-quality materials, assure consumers of authenticity and ethical production. Manufacturing hubs and leather clusters, particularly in Europe and Asia, are known for their craftsmanship and premium materials. Luxury brands continue to dominate the market with iconic designs, while eco-friendly dyes and sustainable fabrics cater to growing environmental concerns.
Further, regulatory pressures related to animal cruelty, deforestation, habitat loss, and biodiversity depletion are increasing, leading to stricter regulations and certification requirements. The market faces challenges from counterfeit products, inventory levels, and regulatory compliance. Furthermore, the rise of data analytics, artificial intelligence, personalized marketing, and product customization is transforming the industry. Domestic and international tourism, sportswear, and performance wear segments also contribute to the market's growth. Social media plays a crucial role in marketing and brand awareness. Despite these opportunities, the industry must address environmental effects and ensure ethical production practices.
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Market Scope |
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Report Coverage |
Details |
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Page number |
141 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.13% |
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Market growth 2024-2028 |
USD 119.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.81 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 38% |
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Key countries |
China, US, France, Japan, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adidas AG, ASICS Corp., Belmarel srl, Capri Holdings Ltd., Chanel Ltd., Christian Dior SE, Fast Retailing Co. Ltd., Furgamurga, Hennes and Mauritz AB, Hermes International SA, Industria de Diseno Textil SA, Kering SA, Levi Strauss and Co., LVMH Group., Nike Inc., Nordstrom Inc., Prada Spa, PVH Corp., Ralph Lauren Corp., and The Gap Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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