Luxury Leather Goods Market Size, Share, Growth, and Industry Analysis, By Type (Luxury Hospitality & Luxury FMCG), By Application (Individual, Business, & Others) and Regional Forecast to 2032.

Updated On: 04 November 2024

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LUXURY LEATHER GOODS MARKET REPORT OVERVIEW

The global Luxury Leather Goods Market Size was USD 41.45 billion, and the market is projected to touch USD 53.5 billion, exhibiting a CAGR of 2.6% during the forecast period.

The luxury leather goods market has always remained an important sector of the luxury goods market. This market invests into its collection like high-quality leather goods, from handbags to shoes, belts, wallets, and other prime quality leather accessories. This market is driven by affluent consumers possessing an appreciation for quality, exclusiveness, and brand prestige.

COVID-19 Impact: Market Growth Restrained by Pandemic Due to Lockdown

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

 The problems ranged from nationwide lockdowns and reduced expenditure by customers on non-essential products to the closure of physical stores, although only temporarily. However, it revealed its strength after the economy revived and customers regained their confidence. The good change that the pandemic brought about, however, was people beginning to shop more and more for luxury online—which is very likely to stay well after the pandemic.

LATEST TRENDS

"Innovative Alternatives And New Sustainable Materials To Propel Market Growth"

One of the key emerging drivers that have been shaping the new trends of the luxury leather goods market is the increased customer preference for sustainable products, manifested in the growth of eco-friendly luxury leather products. This has emerged from consumer demand for developing new sustainable materials, which include vegetable-tanned leathers and innovative alternatives consisting of plant-based vegan leathers. Luxury brands, in turn, are becoming more sustainable across their supply chains and offer eco-friendly collections.

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LUXURY LEATHER GOODS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into two key segments: Luxury Hospitality and Luxury FMCG.

• Luxury Hospitality: This means leather goods used in high-end hotels, resorts, and other places of that nature. This can be applicable to the leather furniture upholstery and trimmings or things like menus, key holders, and luggage tags made from leather. Growth in this segment might derive impetus from luxury tourism growth and, subsequently, the premium experience their visitors have. Thus, the post-pandemic recovery of the hospitality sector itself would drive this demand.
• Luxury FMCG: The luxury FMCG incorporates leather products used in the fast-moving consumer goods industry, especially in high-end product premium packaging. This is driven by trends such as premiumization and consumers increasing their spending for better quality and brand prestige, which is further fueled by a desire for exclusiveness and high-end experiences.

By Application

Based on application the global market can be categorized into three key categories: Individual, Business, and Others.

• Individual Segment: This includes consumers who purchase their products in handbags, shoes, belts, wallets—things normally bought for the satisfaction of personal style, status, and wealth. In this segment of luxury goods, demand is mostly created through fashion trends, celebrity endorsements, and social media, coupled with strong brand recognition and fine craftsmanship.
• Business Segment: This includes leather goods used for corporate purposes, such as leather portfolios, briefcases, desk accessories, and custom gifts for clients and employees. Growth in this segment is driven by businesses investing in high-end products to help enhance their image by displaying an interest in their clients and, in turn, building closer business relationships. The rise in corporate gifting during festive seasons and special occasions also fuels demand in this category.

DRIVING FACTORS

"Consumer Demand for Luxury Leather Items to Boost the Market"

Demand for luxury leather goods has risen because, in part, of the increased consumer need for exclusive high-end products. The rising preference for leatherware as a product associated with quality, craftsmanship, and brand prestige manifests in people's needs to show off themselves in terms of status and style. This demand is heightened by the high-end and particularly fast-growing markets with increasing disposable income.

"Increase in Luxury Tourism to Expand the Market"

Luxury tourism growth is another influential factor giving boost to luxury leather goods market growth.As affluent travellers go to new places, demand for luxury leather goods rises for self-use while traveling and as luxury souvenirs. Global reach of luxury brands, further consolidated through boutiques at high-end resorts and airports, also accelerates the growth of the market.

RESTRAINING FACTORS

"Growing Concerns Around Animal Welfare and Environmental Sustainability to Potentially Impede Market Growth"

It faces a significant downside with the concerns over animal welfare and environmental sustainability. With people turning more environment-conscious, there is a growing scrutiny taken toward the ethical sourcing and production of leather goods.

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LUXURY LEATHER GOODS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Europe To Dominate the Market Due To History Of Fashion And High Affiliation Towards Luxury Among Consumers"

Europe is the dominating region as it has a rich history of leather production and accommodates some of the most famous brands for luxury goods in the world. Moreover, a strong European tradition in manufacturing quality leather products, coupled with robust domestic and international demand for luxury goods, has greatly enhanced luxury leather goods market share. Iconic fashion capitals like Paris and Milan continue to be the backbones for Europe in being a leader in the luxury leather goods market, setting the tone for constant innovation and consumer interest.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

In the luxury leather goods market, there are some key players in the industry who act as the driving force for innovation and market growth. These luxury brands are at high excellence like Louis Vuitton, Gucci, Hermès, and Prada based on a clear excel leadership due to commitment to craftsmanship, timeless design, and heritage of the brands.

List of Market Players Profiled

• Prada (Italy)
• Michael Kors (US)
• Dior (France)
• LVMH (France)
• Coach (New York)
• Richemont Group (Switzerland)
• Kate Spade (US)
• Burberry (UK)
• Hermes (France)
• Chanel (UK)
• Kering (France)
• Tory Burch (US)
• Septwolves (China)
• Fion (California)
• Goldlion (Hong Kong)
• Wanlima (China)
• Phillip Lim (New York)
• The Chanel (UK)
• Givenchy (France)
• LV (France)
• Proenza (US)
• Alexander (Babylon)
• Stella (US)
• Céline’s Phantom (Paris)
• Charlotte Olympia (UK)
• Valentino (Milan)
• Mulberry (England)
• Longchamp (Paris)
• Hermès Kelly (Paris)
• Gucci (Italy)

INDUSTRIAL DEVELOPMENT

March 2024:  Prada and LVMH are running ahead using eco-friendly materials like Mylo™, the leather substituting mycelium, and investing heavily in e-commerce to enhance the digital footprint. Moreover, the burgeoning disposable income of the mass class and their rapid-growing desire for luxury products is expanding fast in this market in the emerging region of Asia-Pacific, Middle East, and other parts of the world.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.