Leather Goods Market Outlook for 2025 & Future Opportunities

Leather Goods Market Outlook for 2025 & Future Opportunities

Market Overview:

According to Fortune Business Insights, the global Leather Goods Market was valued at USD 498.57 billion in 2024 and is projected to reach USD 855.36 billion by 2032, growing at a CAGR of 7.05% during the forecast period. Europe led the market with a dominant share of 37.44% in 2024. The U.S. leather goods market is also poised for substantial growth, with a projected value of USD 220.08 billion by 2032. This expansion is fueled by the rising consumer demand for premium, luxury, and long-lasting accessories, which continues to drive market momentum globally.

List of Key Players Mentioned in the Report:

·         Hermes International (France)

·         LVMH Moët Hennessy Louis Vuitton (France)

·         Kering (France)

·         Prada (Italy)

·         Capri Holdings (U.S.)

·         Vf Corporation (U.S.)

·         Kuraray Co., Ltd. (Japan)

·         H.R. Polycoats Pvt. Ltd. (India)

·         Adriano Di Marti (Mexico)

·         Broke Mate (India)

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Segments:

Synthetic Leather to Gain Traction Owing to Increasing Costs

On the basis of source, the market is subdivided into synthetic leather and full-grain leather. The synthetic leather segment is expected to register commendable expansion over the forecast period. The rise can be credited to the rising product demand in the footwear and apparel industry.

Footwear Segment to Record Substantial Growth Driven by Prevalence of Durable Footwear

Based on product, the market for leather goods is segmented into luggage, apparel, footwear, and others. Of these, the footwear segment is slated to register appreciable growth throughout the estimated period. The surge can be attributed to the escalating demand for durable footwear.

Men Segment to Register Commendable Growth Due to Surging Demand for Luxury Footwear

On the basis of end-user, the market is fragmented into women, men, and kids. The men’s segment is poised to record substantial expansion over the forecast period. The escalation is being driven by the higher requirement for formal wear, leather shoes, jackets, and other goods.

Based on geography, the market has been analyzed across Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

Report Coverage:

The report provides a comprehensive analysis of the key factors propelling the business scenario over the forthcoming years. It further gives an insight into the major aspects driving industry growth across various regions. Some of the additional aspects include the vital steps taken by leading market participants for strengthening their business position.

Drivers and Restraints:

Market Value to Surge Owing to Growing Demand for Luxury Goods

One of the major aspects propelling the leather goods market growth is the rising prevalence of natural leather as a luxury product and the escalating product usage in fashion shows. The market expansion is further impelled by the growing demand for handmade and customized goods.

However, the industry expansion may be hindered due to the process of leather production from animal hides and skins.

Regional Insights:

Europe to Lead Driven by Presence of Major Manufacturers

The Europe leather goods market share is expected to register appreciable expansion throughout the study period. The surge can be credited to the increasing footwear demand and the presence of major manufacturers in the region.

North America is estimated to record commendable growth over the estimated period. The rise is being driven by the substantial demand for luxury goods in the region.

Competitive Landscape:

Major Players Enter into Partnership Deals to Enhance Product Reach

Key leather goods companies are focused on the adoption of various initiatives for strengthening their position in the market. These include acquisitions, merger agreements, and the formation of alliances. Besides, several companies are entering into collaborations and partnership deals to increase their geographical footprint.

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Key Industry Development:

March 2025- VF Corporation introduced medium-term financial targets aiming for an adjusted operating margin of at least 10% and an adjusted gross margin of at least 55% by fiscal year 2028. The company also targets net leverage of 2.5x or below.

February 2025- Kering's Kering Eyewear division generated €1.6 billion in revenue in 2024, a 6% increase on a comparable basis. Recurring operating income for the division was €277 million.

January 2025- LVMH reported 2024 revenue of €84.7 billion, a 1% organic growth despite challenging economic conditions. Profit from recurring operations was €19.6 billion, with a 23.1% operating margin. Free cash flow increased by 29% to €10.5 billion.