The U.S. Leather Goods Market size was valued at USD 52.32 billion in 2023 and is projected to reach USD 81.30 billion by 2032, exhibiting a CAGR of 6.5 % during the forecasts period. Recent developments include: In October 2022, Dior unveiled its Cruize 2023 collection, which comprised leather accessories and products restructuring the traditional Andalusian spirit paired with latest and chic designs by Dior. , In July 2022, Nike introduced five novel sneakers, which includes the Air Force 1 Low '07' 'Fresh, Air Max 97 Coconut Milk and Black, and Air Trainer 1 'Midnight Navy, which are manufactured from various kinds of leather such as premium leather. , In April 2021, Adidas Ag declared the introduction of its new shoes, Stan Smith sneakers, which are manufactured from vegan leather. A mushroom-based material was used to produce these shoes. This new unveiling is a crucial plan of the company’s wider sustainability objectives to fulfill the surging demand for sustainable items in the market. . Key drivers for this market are: Increasing consumer awareness of fashion trends. Potential restraints include: Rising raw material costs. Notable trends are: Rising disposable income.

The U.S. offline retail market of luxury leather goods was valued at approximately **** billion U.S. dollars in 2018. In comparison, the luxury leather goods online retail market amounted to around **** billion U.S. dollars. Bags, hand bags, shoes, and wallets are some examples of products within the luxury leather goods market.

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Leather Goods Market Size 2024-2028

The leather goods market size is forecast to increase by USD 105.8 billion at a CAGR of 6.78% between 2023 and 2028.

The market encompasses a range of products including handbags, wallets, footwear, luggage, and furniture. Key market trends include the adoption of innovative marketing strategies and the introduction of different leather varieties. Apple's influence on the industry is notable, with consumers increasingly seeking high-quality, durable, and sustainable leather goods. 
Operational costs continue to fluctuate due to factors such as outsourcing production to countries like China and Vietnam, as well as the rising cost of raw materials like mushroom leather. Digital marketing and influencer partnerships are also driving growth In the sector. In the US market, apparel categories like handbags and sneakers are experiencing significant demand, with consumers prioritizing functionality, style, and affordability.
The use of plastic alternatives is gaining traction due to environmental concerns, but leather remains a preferred material for many consumers due to its durability and classic appeal.

What will be the Size of the Leather Goods Market During the Forecast Period?

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The market encompasses a wide range of products, including apparel, footwear, and accessories. Driven by rising living standards and evolving fashion trends, the market has experienced significant growth in recent years. Fancy leather apparel and intricately designed handbags, belts, wallets, footwear, and other accessories continue to gain popularity due to their versatility and durability. 
Leather manufacturers employ advanced automated machinery and processing techniques to create complex designs, such as digital cutting and mushroom leather, enhancing the appeal of these products. Brand awareness plays a crucial role In the market, with designers and world-renowned labels driving demand for high-quality leather goods.
The leather material is used not only for fashion items but also for saddles, furniture, and various industrial applications. The market is expected to maintain its momentum, reflecting the enduring appeal of this versatile material.

How is this Leather Goods Industry segmented and which is the largest segment?

The leather goods industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Product

  Footwear
  LBWP
  Others


Distribution Channel

  Offline
  Online


Geography

  APAC

    China
    Japan


  North America

    US


  Europe

    UK
    France


  South America



  Middle East and Africa

By Product Insights

The footwear segment is estimated to witness significant growth during the forecast period.

The market encompasses a wide range of consumer products, including footwear, apparel, accessories, and leather-covered furniture. This industry is driven by factors such as rising demand for fashionable and durable leather consumer goods, as well as the versatility and luxurious appeal of genuine leather. Brands and designers continue to innovate, introducing complex designs and sustainable alternatives like synthetic type materials such as polyurethane and polyvinyl chloride. Consumers, particularly UHNWIs, seek out high-end, branded goods from companies who offer a variety of leather footwear, luggage, apparel, and accessories. Leather manufacturers utilize automated machinery and advanced processing techniques to create intricate designs and digital cutting patterns.

Despite the popularity of leather goods, there are concerns regarding the environmental impact and animal welfare issues associated with animal-based leather production. As a result, there is a growing trend towards sustainable plant-based materials like PLA corn plastic, PET, and PV-based coatings. In conclusion, the market continues to thrive due to its durability, versatility, and luxury appeal, with a focus on sustainable and ethical production methods.

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The Footwear segment was valued at USD 135.50 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 49% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is experiencing significant growth due to increasing living standards, fashion trends, and a rising consumer base. Key countries, including China, Japan, and South Korea, contribute subs

US Leather Goods market growth is driven by the luxury market's expansion plays a crucial role in the expansion of the market.

The Global Leather Goods Market is Segmented by Product Type (Footwear, Handbags, Luggage, Clothing, and More), by End-User (Male, and Female), by Category (Mass, and Premium), by Distribution Channel (Offline Retail Stores and Online Retail Stores), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

The global leather goods market size was USD 263.27 billion in 2024 & is projected to grow from USD 279.59 billion in 2025 to USD 452.4 billion by 2033.
Report Scope:

Report Metric	Details
Market Size in 2024	USD 263.27 Billion
Market Size in 2025	USD 279.59 Billion
Market Size in 2033	USD 452.4 Billion
CAGR	6.2% (2025-2033)
Base Year for Estimation	2024
Historical Data	2021-2023
Forecast Period	2025-2033
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered	By Leather Type,By Product,By Grade,By Distribution Channel,By End-User,By Region.
Geographies Covered	North America, Europe, APAC, Middle East and Africa, LATAM,
Countries Covered	U.S., Canada, U.K., Germany, France, Spain, Italy, Russia, Nordic, Benelux, China, Korea, Japan, India, Australia, Singapore, Taiwan, South East Asia, UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Brazil, Mexico, Argentina, Chile, Colombia,

The leather goods industry is expected to expand from its estimated value of USD 493.58 billion in 2025 to USD 904.41 billion in 2035, at a CAGR of 5.6%. Factors such as growth in demand for high-quality accessories, rising disposable income, and changing fashion demands are fueling the growth.

Metric	Value
Industry Size (2025E)	USD 493.58 billion
Industry Value (2035F)	USD 904.41 billion
CAGR (2025 to 2035)	5.6%

Country-wise Analysis of the Leather Goods Market 2025 to 2035

Countries	Estimated CAGR (2025 to 2035)
The USA	5.5%
UK	4.8%
France	4.5%
Germany	4.3%
Italy	4.0%
South Korea	6.0%
Japan	3.8%
China	7.5%
Australia	5.0%
New Zealand	4.5%

Competitive Outlook

Company Name	Estimated Market Share (%)
Adidas AG	15%
Nike, Inc.	14%
Hermès International S.A.	12%
Louis Vuitton Malletier	11%
Puma SE	10%
Other Companies	38%

USD 109.06 Billion in 2024; projected USD 193.21 Billion by 2033; CAGR 6.52%.

The Leather Goods and Luggage Manufacturing industry has been shaped by growing consumer demand for sustainability, personalization and durable travel products. A significant trend this period has been the rise of eco-conscious consumer preferences, which have prompted manufacturers to integrate sustainable materials like vegan leather and adopt leaner, more ethical production practices. At the same time, increased international travel and remote work flexibility have boosted demand for premium luggage and accessories. Despite heightened import competition and volatile input costs, steady demand for utility-based items like belts and travel gear has helped stabilize performance. Industry profit has remained moderate but constrained by global competition and rising material costs, with domestic firms struggling to match the pricing advantage of overseas manufacturers. Over past five years, industry revenue grew at CAGR of 2.4% reaching $3.6 billion. Automation and digital tools have also supported profit preservation by improving operational efficiency and reducing labor dependency. Firms increasingly leverage AI and machine learning to forecast demand, streamline design and optimize inventory, while e-commerce adoption has enabled direct-to-consumer growth without proportional increases in staffing. Although employment has declined slightly, enterprise and establishment counts have risen, reflecting niche market growth in areas such as customized goods and small-batch production. These trends have allowed agile manufacturers to remain competitive even as large-scale production remains concentrated overseas. The combination of tech adoption and stable consumer segments has provided the industry with a measure of resilience during fluctuating input costs and fashion cycles. Looking ahead, the industry is projected to experience slower, yet steady, growth driven by rising travel demand, growing interest in lifestyle mobility and continued adoption of advanced manufacturing systems. Manufacturers are expected to deepen investments in personalized offerings and sustainability-focused innovation to differentiate their products from low-cost imports. Additionally, a weakening US dollar may support domestic competitiveness by narrowing the import price gap. Demand for high-quality, durable and ethically made goods will likely sustain revenue, particularly in niche and luxury segments. Over the next five years industry revenue is forecast to grow at CAGR of 1.9%, reaching $4.0 billion.

This statistic shows the market value of the leather goods market worldwide from 2016 to 2021. In 2016, the global market value of leather goods was worth approximately ****** billion U.S. dollars.

USA leather goods market is projected to reach a market size of above USD 106 Billion by 2028, due to increase in fashion trends

Market Size statistics on the Leather Good & Luggage Manufacturing industry in the US

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Leather Handbags Market Size 2024-2028

The leather handbags market size is forecast to increase by USD 9.3 billion at a CAGR of 5.05% between 2023 and 2028.

The market's growth hinges on various factors such as the personalization and customization options available for leather handbags, the impact of celebrity endorsements on consumer purchasing choices, and the durability of leather goods, which enhances product value for customers. The use of advanced technologies like automation and digital marketing can help them streamline the industry operations and reach a wider audience. The offline distribution channel generates revenue from the sale of products through specialty stores, including exclusive brand stores, multi-brand stores, apparel stores, factory outlets, airport retail stores, and personal goods stores; hypermarkets, supermarkets, convenience stores, and clubhouse stores; and department stores. These elements collectively contribute to shaping consumer preferences and driving demand within the leather handbags market. It also includes an in-depth analysis of drivers, trends, and challenges. 

What will be the Size of the Market During the Forecast Period?

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In the dynamic world of fashion, leather handbags continue to be a popular choice among consumers. The raw materials used in the production of these handbags are essential, with hides and skins being the primary source. The leather is then processed through various stages, including tanning, dyeing, and finishing, to create high-quality handbags.



The market is significant, with a growing number of consumers showing a preference for these accessories. The segment is competitive, with numerous consumers seeking out the latest fashion trends and affordable prices. Brands and manufacturers use various marketing strategies, such as social media campaigns and influencer partnerships, to reach their target audience. The handbag industry is also subject to various regulations, including design rights and intellectual property laws. Quality and durability are crucial factors in the success of leather handbags, making it essential for brands to maintain high production standards. 

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Offline
  Online


Type

  Shoulder bags
  Satchel bags
  Tote bags
  Sling bags


Geography

  APAC

    China


  North America

    US


  Europe

    Germany
    UK
    France


  South America



  Middle East and Africa

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period. Companies operating in the organized retail sector are based on factors such as geographical presence, ease of production and inventory management, and goods transportation. Supermarkets and hypermarkets have dedicated aisles for luxury goods, including leather handbags, which increase the visibility of the latest leather products and trendy fashions. 

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The Offline segment was valued at USD 20.50 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region, specifically China, South Korea, Japan, and India, is experiencing substantial growth in the market. Factors contributing to this expansion include rising fashion consciousness, the replacement of price-focused consumers with fashion-focused ones, and the flourishing fashion industry. Notably, casual leather handbags are in high demand among youngsters aged 15-24 years, driven by fashion events, celebrity endorsements, and a growing population with increased disposable income.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the Leather Handbags Market?

Personalization and customization of leather handbags are the key driver of the market.

The leather handbags market is witnessing a rise in customization and personalization trends, particularly among young adults in developed and emerging countries. Rapid globalization

USD 41.25 Billion in 2024; projected USD 67.83 Billion by 2033; CAGR 5.61%.

Snapshot img

Leather And Allied Products Market Size 2024-2028

The leather and allied products market size is forecast to increase by USD 119.8 billion at a CAGR of 5.13% between 2023 and 2028.

The market is experiencing significant growth, driven by several key trends and challenges. One notable trend is the increasing influence of celebrity endorsements on consumer purchase decisions. This trend is particularly prevalent in the fashion industry, where celebrities often serve as brand ambassadors for leather goods. 
Another trend is the advancement in manufacturing technology, which is leading to the production of high-quality leather products at more affordable prices. However, the market is also facing challenges such as rising labor costs and fluctuating raw material prices of leather, including bio-based leather. These factors are putting pressure on manufacturers to find ways to reduce costs while maintaining product quality.

What will be the Size of the Leather And Allied Products Market During the Forecast Period?

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The market encompasses a diverse range of industries, including footwear, apparel, accessories, upholstery, and fashion trends. This market experiences dynamic fluctuations due to various factors, such as consumer preferences for ethically sourced products and increasing awareness of animal cruelty and environmental effects. Non-essential items, like fashion accessories, remain popular, particularly in footwear and handbag segments. 
The automotive upholstery segment also contributes significantly to market growth, driven by demand for premium interiors and lifestyle changes. Counterfeit products pose a challenge, requiring vigilant inventory management. Domestic and international tourism, social media trends, and the rise of sportswear and performance wear further influence market dynamics.
Artisanal skill continues to be a key differentiator in the luxury goods sector. Overall, the market exhibits resilience and adaptability, reflecting evolving consumer preferences and industry trends.

How is this Leather And Allied Products Industry segmented and which is the largest segment?

The leather and allied products industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Product

  Footwear
  Luggage, bags, wallets and purses
  Others


Geography

  APAC

    China
    Japan


  North America

    US


  Europe

    France
    Italy


  South America



  Middle East and Africa

By Product Insights

The footwear segment is estimated to witness significant growth during the forecast period.

Leather boots, crafted from tanned animal hide, have gained significant popularity as fashion items, particularly among women. Ankle boots and booties, two common sub-segments, are widely adopted due to their versatility and compatibility with various apparel. These footwear styles are favored for their casual appeal and are available in numerous ranges and designs for both genders. The leather boot market is expected to expand steadily due to the increasing preference for ankle boots. Sustainability concerns, including deforestation, habitat loss, and biodiversity depletion, have led to regulatory pressures and certification schemes. Manufacturing hubs, such as Italy, India, and China, house numerous leather clusters and artisanal skills, producing high-quality leather goods.

Fashion trends lean towards premium materials, iconic designs, and eco-friendly alternatives, such as vegan leather and DriTan leather. Online shopping platforms, e-commerce giants, and ethical sourcing practices have influenced consumer behavior. Technological advancements, including data analytics, artificial intelligence, and personalized marketing, offer customization options and smart features. However, concerns regarding animal cruelty, environmental effects, and counterfeit products necessitate stringent regulations and industry standards. Inventory levels, cultural tourism, social media, and lifestyle changes continue to impact market dynamics.

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The Footwear segment was valued at USD 216.80 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 38% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in 2023 is significantly driven by the APAC region, which holds the largest market share. This growth is attributed to the increasi

Snapshot img { margin: 10px !important; } The global leather goods market has the potential to grow by USD 72.36 billion during 2019-2023. The growth momentum will accelerate throughout the forecast period, and the market will grow at a CAGR of over 5%.

The growing demand for luxury handbags made of eco-friendly materials and the increased spending on personal goods are some of the major factors driving market growth. The US, China, and Japan are currently significant markets for leather goods.

Leather Goods Market Report - Key Insights

Scope of this Report

The report provides a detailed analysis of the market by distribution channel, product, and geography. Also, the report analyzes the market’s competitive landscape and offers information on several market vendors.

Browse TOC and LoE with selected illustrations and example pages from leather goods market report

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Market Segmentation

Leather Goods Market by Distribution channel

Offline
Online

Leather Goods Market by Product

Footwear
Luggage, bags, wallets, and purses
Others

Leather Goods Market by Region

APAC
Europe
North America
South America
MEA

Market Competitive Analysis

The leather goods market is fragmented, and the degree of fragmentation will increase during the forecast period. To enhance their customer base, vendors are adopting various marketing strategies, including celebrity endorsements. Moreover, vendors are also focusing on providing a personalizes shopping experience to customers and are adopting AI and AR technologies. Adidas AG, Capri Holdings Ltd., and Compagnie Financière Richemont SA are some of the major market participants. Though the accelerating growth momentum will offer immense growth opportunities, the fluctuating operational costs will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The report provides information on the production, sustainability, and prospects of several companies, including:

adidas AG
Capri Holdings Ltd.
Compagnie Financière Richemont SA
Hermès
Kering SA
LVMH Moët Hennessy - Louis Vuitton
Nike Inc.
PRADA Spa
Tapestry Inc.
VF Corp.

Leather Goods Market: Key Drivers and Trends

With the growing fashion consciousness, there is an increasing customer spending on personal goods. The evolving lifestyle and the penetration of smartphones have increased customer awareness about the availability of unique leather goods designs. The growing number of working women and their increasing spending power are driving the demand for personal goods like footwear and handbags, especially in the luxury segment.

As a result, vendors in the personal goods industry are focusing on offering a wide assortment of products in different styles, designs, and colors. Fashion designers are also concentrating on introducing trending designs, particularly in the luxury goods segments. Such factors, coupled with the popularity of online shopping platforms, will increase the demand for leather goods over the next few years.

Leather goods market trends, such as the increase in demand for luxury handbags made of eco-friendly materials, will also influence market growth.
There is a growing importance of using eco-friendly materials for luxury handbags, especially in countries such as China, US, and Japan.
To cater to the growing demand, companies are phasing out harmful PVC from their products to raise the demand and supply of organic leather goods.
For instance, one of the critical companies Kering SA has already started using eco-friendly and organic leather for its finished products.
Such factors will drive leather goods market growth at a CAGR of over 5% during 2019-2023.

Leather Goods Market: Segmentation by Region

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APAC is one of the significant markets for leather goods. The rising fashion awareness among consumers and the increasing demand for unique designs in luxury handbags are driving market growth in the region. The increase in spending by millennials on personal luxury leather goods and the economic growth in the region will also fuel the growth of the market.

During the forecast period, over 39% of the overall market growth will originate from APAC, and market growth in this region will be faster than the growth of the market in other regions.

Leather Goods Market: Segmentation by Distribution Channel

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The offline segment includes specialty stores such as exclusive brand stores; apparel stores; and -personal goods stores, hypermarkets and supermarkets, and department stores, witnessing a decline in sales because of the

USD 145.65 Billion in 2024; projected USD 258.45 Billion by 2033; CAGR 6.57%.

Latin America Leather goods Market is expected to grow during 2025-2031

The South America Leather Goods Market is anticipated to add USD 11.61 Billion as the economy continues to grow, there is an increasing demand for luxury goods.

United States (US) Leather Luggage & Goods Market is expected to grow during 2025-2031