The leather goods market - Spain

Since 2020, the leather goods market has faced significant challenges due to the Covid-19 pandemic, particularly in Spain where sales dropped by roughly 10.49%, disrupting a previously positive growth trend. Despite this setback, the global leather goods market is projected to expand significantly, with an anticipated annual growth rate of 6.6%, potentially reaching a valuation of US$405 billion by 2030. Asia is poised to lead this growth, particularly China, due to the surge in High Net Worth Individuals (HNWI) within the region. In the luxury segment, key players such as LVMH, Kering, and Tapestry dominate, controlling substantial market shares.

The Spanish market has shown resilience, as indicated by a slow but recovering domestic market, notable export activities (€840 million in 2020), and a positive trade balance buoyed by a shift towards high-end and mid-range products, led by the handbag category which constitutes 61% of sectoral revenues. Despite global disruptions, the Spanish leather goods sector maintains its competitiveness, underpinned by artisanal craftsmanship and a steadily growing interest in eco-consciousness and second-hand markets. Regulations such as EU Regulation 1007/2011 ensure the industry's compliance with standards concerning labeling and compositions, with Spain standing out for its expertise and tradition, especially in regions like Andalusia.

Evolving Consumer Preferences in the Spanish Leather Goods Market

The leather goods market in Spain has experienced a significant transformation, influenced by both global trends and the local impact of the Covid-19 pandemic. The Spanish sector, renowned for its high-quality craftsmanship, has been integrating new consumer patterns such as sustainability, online shopping, and the second-hand market while stabilizing amid recent economic challenges. Historically, Spain's leather goods industry has catered to a mix of high-end and mid-range products, with luxury items being less prominent except for a few exceptions like the globally recognized brand Loewe. The country's expertise in leather craftsmanship makes it an attractive hub for many international brands seeking quality production. The market contraction was directly linked to reduced consumer spending on non-essential items during the Covid-19 pandemic and restrictions on physical retail operations from March to May 2020. Notwithstanding, the sector demonstrated resilience, maintaining employment levels relatively stable compared to the previous year.

As the market rebounded in 2021 with the lifting of restrictions and the return of tourists, the outlook for 2022 and beyond looked promising, anticipating a recovery in consumption. With an increased awareness of fashion's environmental impact, consumer demand for sustainability has shaped the market, with approximately 20% of consumers pivoting away from animal leather products. However, the longevity and aesthetic qualities of authentic leather continue to support its popularity. The second-hand market has seen a surge, particularly in the case of high-end leather items such as Louis Vuitton luggage and bags, which have witnessed demand spikes between 70% and 101%, respectively. The expansion of the second-hand market reflects a growing Spanish commitment to reduce the carbon footprint and supports a circular economy. The Spanish leather goods industry, predominantly consisting of small businesses employing between one and ten people, has shown adaptability through digitization and a shift toward e-commerce. The international reputation of Spanish craftsmanship, especially from the town of Ubrique in Andalusia, has bolstered Spain's standing. The allure of traditional and modern luxury continues to thrive, propelled by the market appeal of influential social media platforms. In conclusion, the Spanish leather goods market is robust, with an anticipated growth and a diverse structure poised to meet the evolving demand for quality, aesthetics, sustainability, and digital engagement.

A Glimpse into the Pantheon of Leather Luxury: Prominent Market Players

In the illustrious realm of leather goods, a select few companies have risen to the zenith of luxury, dominating the market with their unparalleled craftsmanship, iconic designs, and enduring appeal. These market titans not only epitomize the essence of opulence but also influence trends and set standards for quality and aesthetics across the globe.

• LVMH (Moët Hennessy Louis Vuitton) : Leading the luxury leather goods industry is LVMH, a conglomerate that is synonymous with high fashion and premium quality. Louis Vuitton, one of its prominent brands, is renowned for its signature monogrammed handbags and luggage, with a history steeped in Parisian elegance and innovation.
• Kering Close on LVMH's heels, Kering stands tall with a diverse brand portfolio that includes names like Gucci and Saint Laurent. Kering is celebrated for blending contemporary artistry with timeless Italian craftsmanship, thereby creating pieces that are desired by aficionados of luxury across the world.
• Tapestry : Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, is a name that resonates with accessible luxury. These brands have carved their own niches within the Tapestry umbrella, offering a mix of classic American style, playful sophistication, and bold footwear.
• Prada : Prada, the Italian fashion powerhouse, has long been associated with avant-garde style and minimalist chic. Its leather goods epitomize the confluence of forward-thinking design with the legacy of Italian leather artisanship.
• Hermès Hermès, another stalwart in the luxury sector, is the epitome of exclusive craftsmanship. Best known for its iconic Birkin and Kelly bags, Hermès represents a legacy of meticulous handcrafting and exquisite detail that stands the test of time.
• Loewe Representing Spain's vaunted position in the global leather goods market, Loewe, owned by LVMH, is a testament to the country's rich heritage of leather artisanship. Its innovative approach to design and commitment to quality has positioned Loewe as a sought-after brand for those in the know.

The above players, among others, form an elite circle of influential brands that drive the global luxury leather goods industry. Each entity, with its own unique philosophy and aesthetic, contributes to the ever-evolving tapestry of this high-end market.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 30/03/2023

Summary and extracts

List of charts presented in this market study

• Sales trends in the leather goods market
• Sales trends in the leather goods market
• Destination of leather goods exports by country
• Breakdown of exports by product type
• Origin of leather goods imports by country
• Trends in the leather goods market driven by Covid-19
• Key buying factors for high-end craft customers
• Digitizing the consumer experience in the luxury goods market
• Consumer perception of the leather industry
• Why do you continue to buy leather?
• Increase in aftermarket demand by product
• Market share of leading luxury leather brands
• Industrial structure by Autonomous Community
• Breakdown of leather goods companies by size
• Breakdown of leather goods by quality
• Breakdown of production by product type