Leather is a flexible and durable material manufactured by tanning animal skin or raw hide. Globally, it is one of the most widely traded commodities. Leather is mostly produced from cattle skin; however, lamb and deer skin are also used for the creation of soft leather which is fairly expensive. Deer skin is used for the production of indoor shoes and work gloves; but, the production of such leather is minimal owing to the restriction imposed by governments regarding use of deer skin. Skins of many other animals such as snake, buffalo goat, kangaroo, alligator, and yak are used for the production of leather. The production of leather has noticeable environmental impact due to the usage and release of chemicals from the leather to water bodies, increasing biological oxygen demand, and endangering the lives of humans and animals dependent on the source. During the transformation process, huge amounts of pollutants are released into the atmosphere. These include gases such as hydrogen sulfide, which increase global warming levels across the globe. Production of leather is responsible for the increase in global carbon footprint, which is defined as the total set of greenhouse emission created by an event expressed as carbon dioxide equivalent. Finished leather is used in production of various products such as furniture covers, shoes, jackets, belts, wallets, trousers, wallpaper, and for bookbinding.

The market for finished leather is anticipated to witness moderate growth during the forecast period. Recent developments and innovations in terms of design and use of different types of animal skin are the prime factors augmenting the growth of this market.

Based on application, the market for finished leather products can be broadly segmented into the following categories: consumer goods, commercial goods, and others. Consumer goods segment is further segregated into footwear, luggage, wallets, belts, jackets, and accessories. In terms of application, the consumer goods segment held significant share of the market in 2016 and is anticipated to continue its position during the forecast period. Increasing competition among retailers and continuous fragmentation of the market are factors likely to boost the growth of the consumer goods segment during the forecast period. In consumer goods, the footwear segment accounted for prime share of the market in 2016 followed by the luggage and accessories segment.

Efforts undertaken by manufacturers in terms of innovation and new product design are the factors accelerating the growth of the footwear segment that will inadvertently drive the growth of the finished leather market. Rising population coupled with the increasing disposable income are potential drivers for growth of this market. However, stringent government regulations regarding the usage of certain animal skin (such as deer) for production of leather can hinder the growth of this market during the forecast period.

Geographically, Asia Pacific held significant share of the market in 2016 and is anticipated to retain its position during the forecast period. Robust leather manufacturing industry in emerging economies of Asia Pacific such as India and China is the prime reason for the growth of the finished leather market in this region. The Indian leather industry accounts for 13% of the world’s leather production. It ranks second in terms of footwear and leather garments production in the world and accounts for 9% of the world’s footwear production according to IBEF (India Brand Equity Foundation). Latin America accounts for major share of the finished leather market, with the Brazil leather industry having produced 1832 mn sq ft of leather in 2015. It is the second largest leather producer after China. North America and Europe are mature markets and accounted for a small share of the global finished leather market in 2016.

Key players operating in the finished leather market are LANXESS, American Leather, Inc., and APLF Limited.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Finished Leather Market