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Luggage and Leather Goods Market Segmented By Leather Goods, Luggage Product for Duffel Bags, Suitcases and Briefcases, Backpacks, Totes and Hand Luggage as Rolling Luggage
The leather goods product type segment is estimated to be valued in excess of US$ 200 Bn by the end of 2017 and is expected to reach more than US$ 300 Bn in value by the end of 2024, registering a CAGR of 5.1% over the projected period. This segment is estimated to represent incremental opportunity of more than US$ 100 Bn between 2016 and 2024.
Among the sub-segments of the leather goods segment, the most important sub-segment – Footwear – is estimated to be valued at more than US$ 120 Bn in 2017 and is expected to increase at a CAGR of 5.4% over the forecast period. The Leather Accessories sub-segment is likely to expand at a CAGR of 5.3% over the forecast period.
Increasing innovation in leather goods with new features and designs is the main factor responsible for a growing consumer base of leather products. The inherent qualities of leather – being fireproof, dustproof, crack-proof, and durability are driving the growth of the leather goods segment. Increasing per capita expenditure is another factor that is fueling revenue growth of the leather goods segment. Increasing per capita income and rising urbanization are likely to lead to increased consumer spending on luxurious items.
The craze of buying branded commodities has also increased among people which is further likely to propel the growth of the leather goods segment in the global luggage and leather goods market during the forecast period. Consumers are aware of the latest fashion trends due to increasing adoption of social media and this is anticipated to increase consumer inclination towards branded leather goods.
This trend is expected to drive revenue growth of the leather goods segment during the projected period. With economies growing rapidly, the retail chain is also expected to show substantial growth, thereby augmenting the growth of the leather goods segment. Further, an increase in tourism activities around the globe has promoted the growth of various industries including the leather industry. This factor is also likely to boost segmental growth over the forecast period.
Demand for leather products is increasing from the military segment. Various products such as saddles, harness, belts, holsters, and footwear used in the military are made from high quality leather. Footwear and gloves are made from full-grain leather, thus there is a rise in the overall growth of the leather goods segment.
Changing fashion trends impel consumers to prefer leather goods which are compact and stylish. This also encourages leading market players to introduce trendy and innovative products. This factor is creating a robust development in the leather goods segment.
In North America, the leather goods segment is expected to account for more than 90% value share by 2024 end. In terms of value, the leather goods segment is estimated to register a CAGR of 4.8%, while in terms of volume, the leather goods segment is projected to register a CAGR of 4.0% in the North America luggage and leather goods market.
In Europe, the leather goods segment is expected to register a CAGR of 4.7%. The APAC region is estimated to hold maximum value share of close to 95% in the global luggage and leather goods market by the end of 2024, expanding at a CAGR of nearly 6%.
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