The global market for leather goods, which includes a wide range of products made from leather such as gloves, garments, bags, footwear, watches, and furniture, is experiencing significant growth and is projected to reach a value of $703.5 billion by 2027. The demand for leather goods is driven by various factors, with the production of leather clothing playing a key role in the industry's expansion.
Market Drivers
Several factors contribute to the growth of the leather goods industry. Rising consumer disposable income, improved living standards, changing fashion trends, and increased domestic and international travel are some of the key drivers. Consumers are seeking comfortable, modern, and stylish leather garments, footwear, and accessories, and are increasingly aware of brands in the market.
Impact of COVID-19 on the Leather Goods Market
The leather goods market has been significantly impacted by the COVID-19 pandemic, particularly in segments such as footwear, clothing, and accessories. In the first two quarters of 2020, retailers experienced significant losses. For example, footwear sales in the United States declined by approximately 32% by the end of the first half of 2020, as reported by World Footwear.
Additionally, the reduced overall demand for footwear is expected to affect the leather goods market, particularly leather shoes. Many manufacturers have traditionally relied on China for finished goods and raw materials used in leather item production. However, the pandemic caused disruptions in the global supply chain, resulting in delays in product shipments and disruptions in the timely delivery of goods, leading to substantial losses.
Despite these challenges, the leather goods industry has shown resilience and adaptability, positioning itself for recovery and future growth. As consumer preferences and behaviors continue to evolve, the industry is anticipated to bounce back and thrive in a changing market landscape.
Source: Research and Markets