Key Insights
Essential data points from our research
The global leather goods market was valued at USD 419.45 billion in 2022
The leather goods market is expected to grow at a CAGR of 6.6% from 2023 to 2030
Asia Pacific dominated the leather goods market with a share of over 40.0% in 2022
Footwear accounted for the largest revenue share of over 40% in the global leather goods market in 2022
The synthetic leather market is projected to reach USD 66.84 billion by 2030
In 2021, North America held approximately 25% of the leather goods market
In 2022, men's segment held the highest share of more than 50% in the global leather goods market
The online distribution channel for leather goods is expected to grow at an annual rate of 8.5% from 2023 to 2030
India’s leather industry accounts for around 13% of the world’s leather production
India ranks second in the world for leather garments production
Over 4 million people are employed in the Indian leather industry
India is the fifth-largest exporter of leather goods globally
India exported leather and leather products worth USD 3.68 billion in 2021–22
Consumer Demographics and Behavior
- In 2022, men's segment held the highest share of more than 50% in the global leather goods market
- Over 4 million people are employed in the Indian leather industry
- The average consumer spends over USD 100 annually on leather accessories in the U.S.
- 72% of consumers prefer genuine leather over synthetic options
- Average lifespan of a genuine leather bag exceeds 10 years
- Over 60% of leather bag buyers cite durability as their top purchasing reason
- Urban consumers are 60% more likely to buy branded leather products
- 87% of U.S. consumers value sustainability in leather purchase decisions
- Leather goods spending by Gen Z rose 15% in 2022
Interpretation
As timeless style meets conscious spending, the leather goods industry is being reshaped by a new generation of urban, sustainability-minded consumers—most of whom still believe that if it’s not genuine, it’s not worth their hundred bucks.
Distribution Channels and Sales Platforms
- The online distribution channel for leather goods is expected to grow at an annual rate of 8.5% from 2023 to 2030
- Online platforms account for 23% of global leather handbag sales
Interpretation
As leather goods go digital at a slick 8.5% annual clip, with nearly a quarter of global handbag sales already online, the industry's future is clearly stitched into the fabric of e-commerce.
Market Size and Growth
- The global leather goods market was valued at USD 419.45 billion in 2022
- The leather goods market is expected to grow at a CAGR of 6.6% from 2023 to 2030
- The synthetic leather market is projected to reach USD 66.84 billion by 2030
- India exported leather and leather products worth USD 3.68 billion in 2021–22
- Leather handbags sales in the U.S. reached USD 10.1 billion in 2022
- Luxury leather goods market is expected to grow at 5.6% CAGR from 2022 to 2030
- Global leather production involves more than 270 million cattle hides annually
- The U.S. imported leather goods worth over USD 27 billion in 2022
- Sustainable leather alternatives market is expected to reach USD 8.15 billion by 2027
- The global vegan leather market is projected to reach USD 85 billion by 2025
- The leather industry is responsible for roughly USD 100 billion of global trade annually
- The U.S. leather tanning and finishing industry had a market size of USD 1.3 billion in 2022
- Leather wallet sales in the U.S. reached USD 2.5 billion in 2021
- Global exports of leather products surpassed USD 50 billion in 2022
- E-commerce leather product sales rose 12% year-over-year in 2022
- The global leather goods market is projected to reach USD 738.61 billion by 2030
- Luxury leather wallet segment is projected to grow by 4.8% CAGR from 2023 to 2028
- Sales of women's leather handbags grew 18% YoY in 2022
- The global demand for eco-leather is rising at 5.1% annually
- Over 200 billion square feet of leather are produced annually worldwide
- Leather sector in Bangladesh earned over USD 1 billion from exports in 2021–22
- The U.S. exports about USD 1.2 billion of hides and skins annually
- South Korea imported over USD 3 billion in leather goods in 2022
- The average luxury leather shoe from Europe saw a 9% price hike in 2022
- Leather goods resale platform market grew 24% in 2022
- Online luxury leather handbag market expected to reach USD 25.4 billion by 2026
- Leather craft tools market is forecasted to reach USD 224 million by 2027
- American leather production dropped 11% from 2021 to 2022
- The U.K. leather industry contributes over GBP 3 billion annually to the economy
- Luxury sneaker leather segment saw a 9.2% CAGR between 2018 to 2022
Interpretation
While the world still craves the timeless allure of leather—now a $419 billion industry galloping toward $738 billion by 2030—demand is increasingly being laced with ethical concerns, sustainability quests, digital sales, and synthetic substitutes, proving that even something as classic as leather must evolve to stay in style.
Product Segmentation
- Footwear accounted for the largest revenue share of over 40% in the global leather goods market in 2022
- 85% of luxury handbags are made from genuine leather
- 30% of all leather produced is used for footwear
- Nearly 14% of leather worldwide is used in the production of handbags
- Cowhide accounts for around 65% of the world’s total hide production
- Full-grain leather is the most durable, representing about 20% of leather goods production
- Leather belts make up approximately 10% of the global leather accessories market
- The average luxury leather bag costs between USD 2,500 and USD 5,000
- Leather car upholstery accounts for 18% of automotive interiors market
- Leather furniture comprises about 30% of the global leather market usage
- 90% of global leather production is chrome-tanned
- Vegetable tanning makes up only 10% of global leather tanning processes
- Leather industry waste accounts for nearly 20% of production by weight
- 40% of global leather is used in the automotive industry
- In France, over 70% of luxury bags sold are made of leather
- The average pair of leather shoes costs between USD 80 and USD 150 globally
- Leather shoes make up 52% of formal footwear sold worldwide
Interpretation
In a world where cowhide reigns and chrome-tanning rules, the leather goods industry struts a paradoxical catwalk—where 40% of hides become shoes, luxury bags can cost the price of a used car, and the planet quietly pays for every polished belt and buttery-soft car seat.
Regional Insights
- Asia Pacific dominated the leather goods market with a share of over 40.0% in 2022
- In 2021, North America held approximately 25% of the leather goods market
- India’s leather industry accounts for around 13% of the world’s leather production
- India ranks second in the world for leather garments production
- India is the fifth-largest exporter of leather goods globally
- China is the largest producer of leather footwear in the world
- Europe held 35% of the luxury leather goods market share in 2022
- Italy is one of the top leather-exporting countries with exports valued over USD 10 billion annually
- 60% of Europe’s leather production occurs in Italy
- China produces over 60% of the world’s leather footwear
- Indonesia is among the top 10 leather producers worldwide
- Over 90% of Italy’s leather production is exported
- Africa contributes about 4% to the global leather trade market
- More than 60% of leather tanneries globally are located in Asia
- Vietnam produced over 230 million pairs of leather shoes in 2021
- Brazil is the third-largest producer of bovine hides used in leather
- 1 in 5 premium leather goods brands manufacture in Europe
- Italy exported leather goods valued at USD 6.94 billion to non-EU countries in 2022
- 35% of all luxury leather goods are sold in Asia
Interpretation
In a world where leather stitches economies as tightly as it does handbags, Asia Pacific leads the charge with over 40% market share, Europe polishes its luxury cachet with Italian exports, and India laces up its status as a global production powerhouse—while the rest of the world scrambles to keep up with the well-heeled race for leather dominance.