Market Trends of Leather Goods Industry
Increased Demand for Luxury Goods
As people's spending money has gone up, the demand for luxury goods has also gone up.These goods often symbolize a sense of accomplishment within individuals, giving them higher self-esteem. Europeans and North Americans are known to spend most on luxury goods, owing to their higher household incomes. An upward thrust can be seen in this matter in the Asian region as well. Leather goods form a major part of luxury goods. Luxury leather products include exclusive handbags, accessories, and shoes, which appeal to affluent individuals.
Hence, the companies are expanding their product portfolios with new product launches to attract extravagant customers. For instance, in August 2022, luxury brand Aman Essentials launched the first collection of leather products in its extensive range. In addition to passport cases, handbags, wallets, and more, the brand's new Leather Collection includes 19 items. Using authentic leathers sourced from artisanal calf, lamb, and goat skins, each of the leather items in the new collection is handcrafted in Italy and France using a process that is inspired by traditional artisanal processes.
Furthermore, various brands are expanding their product portfolios in the men's segment as fashion consciousness grows among men and women. There is also a growing segment of the market for affordable luxury brands in addition to traditional luxury brands. As a result, a number of startups have created customized luxurious products that cater to the needs of consumers. A leather handbag from 1 Atelier, for example, can be customized in both color and hardware. Sales of these products are driven by their strong brand recognition and high unit price.
Europe Emerges as the Largest Consumer of Leather Goods
Some of the main things that are making the European market grow are the large number of local and international players, new products and technologies, the rise of online shopping, and the use of social media platforms.The increasing fashion consciousness, rising disposable incomes, and increasing demand for attractive bags drive the sales of luggage and leather goods in the region. Moreover, the growing interest in travel and unique experiences among consumers is boosting the demand for leather goods, such as luggage bags, especially in the luxury segment, as consumers increasingly look for high-quality items. Furthermore, with the strong presence of fashion-driven countries such as France and Italy, the region remains the market's largest consumer.
In the international leather trade, Europe plays an important role. According to the UN Comrade database, in 2021, the number of leather goods imported into France increased significantly, reaching approximately USD 5.22 billion, up from USD 4.2 billion in the previous year. Additionally, leather is the world's largest international export from the EU industry. Among the leather goods exported by Europe in 2021, approximately USD 31.9 billion, compared to USD 24.8 billion the previous year, was reported by the International Trade Centre. In terms of raw materials and leather, the European Union produces some of the highest-valued calfskins. A majority of tanners in the European Union are family-owned, small- and medium-sized enterprises with strong regional concentrations. The availability of raw materials and export markets is crucial for tanners in the European Union.
