The global leather goods market is USD 95.4 billion in 2018 and will reach USD 128.61 billion by 2022 at a CAGR of 4.36% during the forecasted period.
Retail stores hold the major share in this market that is over 90%, however, the online sales will increase during the period due to the growing popularity of e-commerce.
Important drivers for this industry are increasing domestic and international travel, global economic power and higher disposable income of consumers. Customers are now more aware and wish for designer leather products which is pushing this industry.
The input costs for leather products have increased, hence due to the large price of raw materials the profit margin for the companies has reduced. The prices in this market can be high, especially for the luxury leather products, which does not target on a huge consumer base, which can sometimes cause a hindrance in this market.
Asia Pacific in the last few years has generated the highest revenue in the world for leather goods. The developing countries of Asia-Pacific and LAMEA, such as India, China and Dubai will continue to grow in demand in the near future as well due to the rising disposable income and rising inclination towards designer leather bags and accessories.
North America also holds one of the biggest markets for this industry. China, Taiwan. Korea, Mexico and the European countries have been some of the biggest importers of leather products during the previous decade.