NEW YORK, Dec. 15, 2022 (GLOBE NEWSWIRE) -- A new report on the global leather market has just been published by the market intelligence platform IndexBox. Here are some of the most interesting insights.
Leather Market Outlook
The leather market size was valued at USD 39.6 billion in 2022 and is expected to grow at a CAGR of 3.6% from 2022 to 2030 to 52.5 billion by 2030.
The global leather market is expected to be driven by the growing demand for luxury goods and accessories. Leather is a premium material that is often used in high-end products such as handbags, shoes, belts, wallets, and other fashion accessories. The increasing disposable income of people in developed countries has resulted in a higher demand for luxury goods, which is projected to drive the growth of the global leather market.
The natural fiber content of leather makes it a preferred choice over synthetic fibers such as polyester and nylon. Leather is biodegradable, durable, breathable, and has a unique appearance that synthetic fibers cannot replicate. These factors are expected to fuel the growth of the global leather market during the forecast period.
Leather Market Segmentation
The global leather market is segmented into four major types: bovine, sheep, goat, and pigskin. Bovine leather is the most widely used type of leather and is made from the hides of cows. Sheepskin is the second most popular type of leather and is made from the skins of sheep.
Goatskin and pigskin are less popular types of leather but are still used in a variety of products. Goatskin is made from the skin of goats and pigskin is made from the skin of pigs. Each type of leather has unique properties that make it suitable for different applications.
Bovine leather is strong and durable, making it ideal for products that require a lot of wear and tear such as shoes, belts, and luggage. Sheepskin is softer than bovine leather and has a more natural grain pattern, making it ideal for clothing and upholstery.
Goatskin is the softest type of leather and has a pebbled surface texture, making it suitable for gloves, bags, and other accessories. Pigskin is the strongest type of Leather but has a rough surface texture that makes it unsuitable for many applications.
Leather Market Consumption
The Asia-Pacific region is the largest consumer of leather, accounting for over 38% of the global total in 2021. This is followed by Europe (31%), North America (8%), and the rest of the world (23%).
Within Asia-Pacific, China is by far the largest market, consuming around 18% of all leather produced globally. Italy is the second largest market in the region, with a share of around 16%. Other important markets include Turkey, India, and the USA.
The European Union is the leading consumer of leather in Europe. Italy is the largest market within Europe, followed by Spain, Germany, and France. Other important markets include Estonia, the Netherlands, and Portugal.
North America is led by the United States, which consumes around 4% of all leather produced in the globe or 95% of the region. Canada is the second largest market with a share of 5%.
Leather Market Challenges
The global leather market is currently facing several challenges, which are likely to impact its future growth. These challenges include:
1. Increasing raw material costs: The cost of raw materials used in the production of leather goods has been rising steadily in recent years, due to factors such as the increasing cost of livestock feed and transportation. This has made it difficult for leather manufacturers to maintain their profit margins.
2. Sustainability concerns: There is growing concern among consumers about the sustainability of the leather industry. The tanning process uses harmful chemicals that can pollute waterways, and there is also a concern about the welfare of animals used for their skins. As a result, some consumers are choosing to buy vegan alternatives to leather products.
3. Changing fashion trends: The fashion industry is constantly changing, and this can have a big impact on the demand for leather goods. For example, the current trend for athleisure wear has led to a decline in demand for traditional leather footwear such as dress shoes and boots.
4. Trade barriers: Increasing trade barriers between countries can make it difficult for leather manufacturers to source raw materials and sell their products on international markets. For instance, the United States recently imposed tariffs on imported hides from China, which will make it more expensive for American companies to purchase Chinese-made leather goods.
5. Economic recession: A global economic recession can lead to a decrease in consumer spending on luxury items such as leather goods. This can have a big impact on the leather industry, as it is reliant on consumer demand.
Global Leather Market Drivers
The global leather market is driven by a number of factors, including population growth, economic development, and the rising middle class in emerging markets.
Population growth is one of the most important drivers of the leather market. As the world population continues to grow, so does the demand for leather products. This is especially true in emerging markets where population growth is rapid and there is a growing middle class with disposable income.
Economic development is another major driver of the leather market. As countries develop economically, their citizens have more disposable income and are able to purchase more luxury goods, including leather products. In addition, as economies develop, there is typically an increase in industrial production, which results in a need for more leather products for use in manufacturing.
The rising middle class in emerging markets is also driving the leather market. As incomes rise and people move into the middle class, they have more disposable income and are able to purchase luxury goods, including leather products.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Alba Spa, American tanning Company, ECCO Sko A/S, Gebruder Mannheim GmbH & Co., KG., Lorenzo SPA, LVMH Moet Hennessy Louis Vuitton SE, Hermes International SCA, Prada SpA, and Salvatore Ferragamo SpA
Sources
World - Leather - Market Analysis, Forecast, Size, Trends and Insights
EU - Leather - Market Analysis, Forecast, Size, Trends and Insights
Asia - Leather - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Leather - Market Analysis, Forecast, Size, Trends and Insights
