Global Leather Apparel Market to See Steady Growth with 3.3% CAGR, Reach $17.6B by 2030

IndexBox has just published a new report: World - Apparel Of Leather Or Of Composition Leather - Market Analysis, Forecast, Size, Trends and Insights.

The leather apparel market is set to experience a rise in demand globally, leading to an anticipated growth in market volume to 265M units and market value to $17.6B by the end of 2030. With a projected CAGR of +3.3% in volume and +4.4% in value from 2023 to 2030, the market is expected to see a positive consumption trend in the coming years.

Market Forecast

Driven by rising demand for leather apparel worldwide, the market is expected to start an upward consumption trend over the next seven years. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +3.3% for the period from 2023 to 2030, which is projected to bring the market volume to 265M units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.4% for the period from 2023 to 2030, which is projected to bring the market value to $17.6B (in nominal wholesale prices) by the end of 2030.

Consumption

World Consumption of Apparel Of Leather Of Composition Leather

Global leather apparel consumption fell slightly to 211M units in 2023, leveling off at 2022 figures. Overall, consumption saw a relatively flat trend pattern. As a result, consumption reached the peak volume of 231M units. From 2015 to 2023, the growth of the global consumption failed to regain momentum.

The global leather apparel market value amounted to $13B in 2023, remaining constant against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption recorded a pronounced contraction. As a result, consumption attained the peak level of $20.4B. From 2015 to 2023, the growth of the global market remained at a lower figure.

Consumption By Country

China (112M units) remains the largest leather apparel consuming country worldwide, accounting for 53% of total volume. Moreover, leather apparel consumption in China exceeded the figures recorded by the second-largest consumer, the United States (15M units), sevenfold. The third position in this ranking was taken by India (9.4M units), with a 4.5% share.

In China, leather apparel consumption increased at an average annual rate of +7.5% over the period from 2013-2023. The remaining consuming countries recorded the following average annual rates of consumption growth: the United States (-6.4% per year) and India (-2.9% per year).

In value terms, the largest leather apparel markets worldwide were China ($3.4B), Italy ($2.4B) and the United States ($1.1B), with a combined 53% share of the global market.

Among the main consuming countries, China, with a CAGR of +3.3%, recorded the highest growth rate of market size over the period under review, while market for the other global leaders experienced mixed trends in the market figures.

The countries with the highest levels of leather apparel per capita consumption in 2023 were Italy (132 units per 1000 persons), China (78 units per 1000 persons) and the United States (44 units per 1000 persons).

From 2013 to 2023, the biggest increases were recorded for China (with a CAGR of +6.9%), while consumption for the other global leaders experienced a decline in the per capita consumption figures.

Production

World Production of Apparel Of Leather Of Composition Leather

In 2023, the amount of apparel of leather or of composition leather produced worldwide declined to 217M units, flattening at the previous year. Over the period under review, production, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 when the production volume increased by 7.1% against the previous year. Global production peaked at 226M units in 2014; however, from 2015 to 2023, production remained at a lower figure.

In value terms, leather apparel production stood at $13.1B in 2023 estimated in export price. Overall, production recorded a pronounced shrinkage. The most prominent rate of growth was recorded in 2014 when the production volume increased by 14%. As a result, production reached the peak level of $20.7B. From 2015 to 2023, global production growth failed to regain momentum.

Production By Country

China (123M units) constituted the country with the largest volume of leather apparel production, comprising approx. 57% of total volume. Moreover, leather apparel production in China exceeded the figures recorded by the second-largest producer, India (15M units), eightfold. The third position in this ranking was taken by the United States (14M units), with a 6.5% share.

In China, leather apparel production increased at an average annual rate of +6.4% over the period from 2013-2023. The remaining producing countries recorded the following average annual rates of production growth: India (-3.7% per year) and the United States (-5.7% per year).

Imports

World Imports of Apparel Of Leather Of Composition Leather

After two years of growth, overseas purchases of apparel of leather or of composition leather decreased by -7.3% to 28M units in 2023. In general, imports recorded a noticeable shrinkage. The pace of growth appeared the most rapid in 2021 with an increase of 8.8% against the previous year. Global imports peaked at 44M units in 2014; however, from 2015 to 2023, imports remained at a lower figure.

In value terms, leather apparel imports expanded slightly to $2.5B in 2023. Overall, imports recorded a perceptible decrease. The pace of growth appeared the most rapid in 2021 with an increase of 10%. Over the period under review, global imports attained the maximum at $4B in 2014; however, from 2015 to 2023, imports stood at a somewhat lower figure.

Imports By Country

Germany (4.6M units), the United States (3.1M units), Spain (2.6M units), Italy (1.8M units), France (1.7M units), the Netherlands (1.5M units), the UK (1.3M units), Chile (1.1M units), Russia (0.9M units), South Korea (0.8M units), Poland (0.8M units) and Japan (0.6M units) represented roughly 73% of total imports in 2023. Belgium (518K units) held a relatively small share of total imports.

From 2013 to 2023, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Poland (with a CAGR of +8.8%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest leather apparel importing markets worldwide were the United States ($309M), Germany ($298M) and France ($228M), together accounting for 33% of global imports. Italy, the Netherlands, the UK, Spain, Japan, Russia, South Korea, Poland, Belgium and Chile lagged somewhat behind, together comprising a further 36%.

In terms of the main importing countries, Poland, with a CAGR of +9.7%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average leather apparel import price stood at $88 per unit in 2023, with an increase of 11% against the previous year. In general, the import price, however, recorded a relatively flat trend pattern. Global import price peaked at $92 per unit in 2013; however, from 2014 to 2023, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2023, amid the top importers, the country with the highest price was Japan ($151 per unit), while Chile ($11 per unit) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by the Netherlands (+6.4%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Apparel Of Leather Of Composition Leather

In 2023, after two years of growth, there was decline in overseas shipments of apparel of leather or of composition leather, when their volume decreased by less than 0.1% to 34M units. In general, exports showed a pronounced curtailment. The pace of growth was the most pronounced in 2021 with an increase of 26% against the previous year. The global exports peaked at 43M units in 2013; however, from 2014 to 2023, the exports remained at a lower figure.

In value terms, leather apparel exports shrank slightly to $2.7B in 2023. Overall, exports continue to indicate a perceptible contraction. The pace of growth was the most pronounced in 2021 when exports increased by 11% against the previous year. The global exports peaked at $4.2B in 2014; however, from 2015 to 2023, the exports remained at a lower figure.

Exports By Country

China was the key exporter of apparel of leather or of composition leather in the world, with the volume of exports amounting to 12M units, which was near 35% of total exports in 2023. India (5.2M units) took the second position in the ranking, distantly followed by the United States (2.3M units) and Germany (1.6M units). All these countries together took approx. 27% share of total exports. The following exporters - Pakistan (1.5M units), the Netherlands (1.5M units), Italy (1.4M units), Turkey (1.3M units), Vietnam (1M units), Poland (0.9M units), Spain (0.8M units) and France (0.7M units) - together made up 27% of total exports.

China experienced a relatively flat trend pattern with regard to volume of exports of apparel of leather or of composition leather. At the same time, the United States (+6.6%), Vietnam (+4.1%), Poland (+3.3%) and Turkey (+2.7%) displayed positive paces of growth. Moreover, the United States emerged as the fastest-growing exporter exported in the world, with a CAGR of +6.6% from 2013-2023. By contrast, the Netherlands (-1.8%), France (-2.0%), Germany (-2.9%), Italy (-4.6%), India (-5.1%), Spain (-5.1%) and Pakistan (-7.2%) illustrated a downward trend over the same period. China (+4.9 p.p.) and the United States (+4 p.p.) significantly strengthened its position in terms of the global exports, while Pakistan and India saw its share reduced by -3% and -5.3% from 2013 to 2023, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Italy ($529M), India ($345M) and France ($258M) appeared to be the countries with the highest levels of exports in 2023, together comprising 42% of global exports. Pakistan, Germany, China, Turkey, Spain, the United States, the Netherlands, Poland and Vietnam lagged somewhat behind, together accounting for a further 41%.

In terms of the main exporting countries, Poland, with a CAGR of +23.8%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average leather apparel export price stood at $79 per unit in 2023, therefore, remained relatively stable against the previous year. In general, the export price recorded a noticeable descent. The most prominent rate of growth was recorded in 2014 an increase of 9%. As a result, the export price attained the peak level of $105 per unit. From 2015 to 2023, the average export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Italy ($384 per unit), while China ($13 per unit) was amongst the lowest.

From 2013 to 2023, the most notable rate of growth in terms of prices was attained by Poland (+19.9%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform