Key Insights
Essential data points from our research
The global leather goods market size was valued at USD 420 billion in 2022
The leather goods market is projected to grow from USD 468.49 billion in 2023 to USD 738.61 billion by 2030
The synthetic leather market size was estimated at USD 33.7 billion in 2021
China was the top exporter of leather goods comprising 34.6% of global exports in 2021
Italy exported leather goods worth approximately 10.3 billion euros in 2022
Vietnam is the second largest exporter of leather footwear to the EU market
The tanning industry processes approximately 8 million tons of raw hides and skins per year
Bovine skins account for approximately 65% of global leather production
Approximately 1.7 billion square feet of leather is produced in India annually
Footwear consumes approximately 47-50% of the world’s leather production
The market for leather sneakers has grown by 30% over the last 5 years in urban demographics
89% of luxury handbags sold are made of leather
The leather industry generates approximately 600,000 tons of solid waste annually
Chrome-free tanning methods can reduce chemical oxygen demand (COD) in wastewater by up to 50%
The Higg Materials Sustainability Index gives cow leather a score of 159, indicating high environmental impact
Environmental & Sustainability
- The leather industry generates approximately 600,000 tons of solid waste annually
- Chrome-free tanning methods can reduce chemical oxygen demand (COD) in wastewater by up to 50%
- The Higg Materials Sustainability Index gives cow leather a score of 159, indicating high environmental impact
- Upcycling leather scraps can save approximately 30 million liters of water annually for a medium-sized brand
- Mushroom leather (mycelium) emits roughly 90% less carbon than animal leather production
- Over 85% of standard leather is tanned using Chromium III
- The Leather Working Group (LWG) has certified over 1,300 tanneries worldwide for environmental compliance
- Producing 1kg of leather has a carbon footprint of approximately 17.0 kg CO2e
- Water consumption in conventional tanning is roughly 30-50 liters per kilogram of raw hide
- Zero Discharge of Hazardous Chemicals (ZDHC) guidelines have been adopted by 30 top leather brands
- Vegetable-tanned leather is 100% biodegradable typically within 6 months in soil
- Pineapple leather (Piñatex) production utilizes agricultural waste, reducing burning by 20%
- 80 tanneries in the completion of the SwitchMed programme reduced water consumption by 15%
- Regenerative agriculture leather initiatives aim to sequester 10-20 tons of carbon per hectare
- Recycled bonded leather prevents 14,000 tons of leather scraps from landfills annually in key European plants
- Bio-fabrication of leather in labs can reduce land use by 99% compared to traditional cattle ranching
- Solar drying of hides instead of salt curing can reduce salinity in wastewater by 15%
- The EU's REACH regulation restricts the use of Chromium VI to less than 3 mg/kg in leather articles
- Cactus leather saves 16,000 liters of water per kilogram compared to animal leather
- Laser finishing technology reduces water and chemical usage in the leather finishing stage by 60%
Interpretation
Taken together, these statistics paint a clear picture: the leather industry remains a thirsty, chrome-dependent polluter with high carbon and waste footprints, yet proven tools—chrome-free tanning, upcycling, laser and solar finishing, certifications and regulations, and alternatives like mushroom, cactus, pineapple and lab-grown leathers—can rapidly and dramatically cut water, chemical, land and carbon impacts if scaled and enforced.
Market Overview & Finance
- The global leather goods market size was valued at USD 420 billion in 2022
- The leather goods market is projected to grow from USD 468.49 billion in 2023 to USD 738.61 billion by 2030
- The synthetic leather market size was estimated at USD 33.7 billion in 2021
- The luxury leather goods market is expected to record a CAGR of 6.3% from 2023 to 2030
- Revenue in the Luggage and Bags segment amounts to USD 177.30 billion in 2023
- LVMH’s Fashion and Leather Goods business group recorded organic revenue growth of 20% in 2022
- The automotive leather upholstery market is projected to reach USD 53 billion by 2033
- The global footwear market size was valued at USD 365.5 billion in 2022
- Kering reported that leather goods accounted for 50% of group revenue in 2021
- The Asia Pacific region dominated the leather goods market with a revenue share of over 35% in 2021
- The global vegan leather market is expected to generate USD 16.7 billion by 2031
- Hermes International reported a 23% increase in consolidated revenue reaching 11.6 billion Euros in 2022
- The bio-based leather market is projected to witness a CAGR of 47.5% during 2021-2030
- Europe accounted for a significant market share of 32.1% in the leather goods industry in 2020
- Sales of personal leather goods in the luxury sector reached 80 billion euros globally in 2022
- The global handbag market size is expected to reach USD 67.9 billion by 2025
- The men’s leather goods segment represents approximately 18% of the global market value
- Online distribution channels for leather goods are expected to grow at a CAGR of 7.2% through 2028
- The India leather goods market is expected to grow at a CAGR of 10.38% between 2023 and 2028
- Coach (Tapestry Inc.) reported net sales of USD 6.7 billion for fiscal year 2022
Interpretation
With a foundation already in the hundreds of billions and projections rising toward USD 740 billion by 2030, the leather goods industry is at once a luxury-driven cash cow, with Hermes, LVMH and Kering reaping huge gains, and a rapidly diversifying market where synthetic, vegan and bio-based materials, booming luggage, footwear and automotive segments, strong online channels and Asia-Pacific momentum are reshaping consumer demand.
Product Segments & Consumer
- Footwear consumes approximately 47-50% of the world’s leather production
- The market for leather sneakers has grown by 30% over the last 5 years in urban demographics
- 89% of luxury handbags sold are made of leather
- Demand for men's leather bags is growing at a faster rate (7% CAGR) than women's bags
- 62% of consumers say they are willing to pay more for leather goods that are labelled as sustainable
- Automotive interiors use approximately 17% of all leather produced globally
- The global leather gloves market was valued at USD 12 billion in 2021
- Small leather goods (wallets, belts) constitute 22% of revenue for major fashion houses
- 40% of millennials prefer second-hand or vintage leather over new leather items for sustainability reasons
- The specialized leather saddle and tack market size is USD 3.2 billion globally
- Leather apparel (jackets/coats) holds a 12.5% market share of the leather goods industry
- 73% of luxury shoppers consider the longevity of leather as a primary purchase driver
- The market for leather mobile phone cases is growing at 6.5% annually
- Approximately 30% of work safety footwear is made from heavy-duty leather
- Exotic leathers (crocodile, snake) represent less than 1% of the market volume but significantly higher value margins
- Sales of leather goods via mobile commerce (m-commerce) increased by 15% in 2022
- Private label leather goods have grown to occupy 15% of the retail shelf space in department stores
- Personalized or monogrammed leather goods sales have seen a 50% year-over-year spike on platforms like Etsy
- Leather watch straps constitute a USD 2.5 billion sub-segment of the accessories market
- Smart luggage featuring leather components is a niche growing at 12% CAGR
Interpretation
The leather market reads like a well-worn briefcase: footwear consumes nearly half of the world's leather, leather sneakers and men's bags are the fastest-growing urban niches, luxury handbags and watch straps sustain premium margins, automotive interiors, gloves and saddlery provide steady industrial demand while exotic skins remain tiny but highly lucrative, 62% of consumers say they'll pay more for sustainably labeled leather and 40% of millennials favor vintage which forces brands to marry durability with resale-friendly strategies, and surging m-commerce, private labels and a monogramming craze show this timeless material is briskly adapting to modern commerce.
Production & Supply Chain
- The tanning industry processes approximately 8 million tons of raw hides and skins per year
- Bovine skins account for approximately 65% of global leather production
- Approximately 1.7 billion square feet of leather is produced in India annually
- The global livestock population for leather production includes over 1.68 billion cattle
- China produces more than 25% of the world's total leather supply
- The cost of raw hides and skins constitutes 50-70% of the production cost of finished leather
- There are approximately 9,000 tanneries active globally
- Goat and sheep leather accounts for about 12% of total global leather production volume
- The wet-blue tanning process is used for approximately 80% to 90% of leather produced worldwide
- Brazil processes over 40 million hides annually
- Labor costs in Italian leather manufacturing are approximately 30 euros per hour, compared to lower rates in Asia
- Vegetable tanning accounts for roughly 10-12% of global leather production methods
- The demand for polyurethane (PU) for synthetic leather production was 5 million tons in 2020
- Leather production utilizes only 55-60% of the corium of the hide for the final product
- The global supply of raw hides is expected to shrink by 2% due to changing dietary habits
- Italy hosts over 1,100 tanneries, mostly concentrated in Tuscany, Veneto, and Campania
- The processing time for chrome tanned leather is typically less than 24 hours
- Chemical supply for leather tanning is a USD 7 billion industry globally
- Approximately 20% of global leather is used for furniture and upholstery manufacturing
- Kanpur alone in India accounts for a significant cluster with over 400 tanneries
Interpretation
If leather were a country, it would be a populous, chemically dependent, cost sensitive superpower—processing about eight million tons of hides a year with bovine skins making up roughly 65 percent of output, major production concentrated in China, Brazil, India and clusters like Kanpur and Italy, raw hides consuming 50 to 70 percent of costs while chemicals form a seven billion dollar market, only 55 to 60 percent of each hide becoming usable leather, wet blue and chrome tanning driving most production in under a day as vegetable tanning remains a small artisanal choice, and a shrinking raw supply alongside rising demand for PU pointing to growing economic and environmental pressure.
Trade & Exports
- China was the top exporter of leather goods comprising 34.6% of global exports in 2021
- Italy exported leather goods worth approximately 10.3 billion euros in 2022
- Vietnam is the second largest exporter of leather footwear to the EU market
- The United States imported USD 9.6 billion worth of leather footwear in 2021
- India’s comprehensive leather export reached USD 5.26 billion during 2022-23
- Brazil exported USD 1.2 billion in hides and skins in 2022
- France’s export of leather goods and saddlery rose by 23% in 2022
- Ethiopia exports approximately 56% of its leather products to Europe
- Bangladesh leather sector exports hit a 10-year high of USD 1.25 billion in the 2021-22 fiscal year
- European Union imports of leather and raw materials totaled 21 billion euros in 2020
- Pakistan’s leather exports increased by 6.06% to USD 665 million in the first eight months of FY2022
- Turkey exports leather and leather products to over 180 countries
- 40% of the worldwide trade in raw hides and skins is denominated in US dollars
- Hong Kong remains a key re-export hub handling over USD 3 billion of leather goods annually
- Germany is the largest importer of leather goods within Europe, absorbing 17% of total EU imports
- Footwear accounts for approximately 47% of the total value of global leather trade
- Kenya’s leather industry has the potential to add USD 150-250 million to the GDP through exports
- Indonesia’s footwear exports, mostly leather, reached USD 6.1 billion in 2021
- Spain’s leather goods exports increased by 14.7% in the first half of 2022
- Tariffs on leather goods imported into the US generally range from 8% to 20% depending on the item
Interpretation
China’s 34.6% export dominance and footwear’s nearly 47% share of leather value, alongside billion-euro exporters like Italy, Indonesia and India, re-export hubs such as Hong Kong, strong EU and US demand, rising suppliers in Vietnam, Bangladesh, Pakistan, Ethiopia, Brazil and Kenya, and trade mostly priced in US dollars and subject to 8 to 20 percent tariffs, make the leather goods industry a global relay where manufacturing muscle, market access and currency risk decide who keeps the margins.
References
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