Summary

The global leather market, valued at $460 billion, is growing at an expected compound annual growth rate (CAGR) of 5.4% between 2019 and 2025, potentially reaching $620 billion by 2025. Despite a dwindling number of tanneries and megisseries in France, sales in the French leather sector amounted to 3.8 billion euros, maintaining its position as the world's 3rd largest exporter of raw hides, leather and leather goods. Italy, however, dominates the European market, with a production value of 7.1 billion euros.

Demand for leather goods continues to be driven by luxury markets, with handbags occupying the largest segment in terms of sales value - estimated at 2,661 million euros. The industry faces challenges such as environmental concerns and competition from artificial leathers; nevertheless, innovation within the sector and the appeal of luxury brands are keeping the market buoyant.

In particular, France is witnessing a trend towards market concentration, with fewer but larger companies, as is the case in the tanning and finishing sector under NAF code 15.11Z. Regulations such as decree nº2010-29 limit the use of the word "leather" to materials obtained by traditional tanning or impregnation processes, reflecting the sector's adherence to strict standards of quality and authenticity.

Demand trends in the French leather goods market:

A focus on luxury and innovation The French market shows a strong demand for leather, with a strong penchant for high-end and luxury products that use tanned leathers from a variety of origins. French consumers, as well as tourists, contribute significantly to this demand, purchasing finished products such as leather garments, bags and shoes from reputable textile and leather goods manufacturers. Demand is particularly strong for leather goods such as handbags, wallets, clutches and card holders. The largest market share was held by handbags in terms of French leather goods production.

Despite forecasts of falling revenues for leather textile players, the stability of product prices indicates that demand for leather garments may be running out of steam. However, this trend does not seem to be affecting ongoing demand for leather goods, which remains buoyant, mainly due to purchases made by tourists from the major French luxury brands. Foreign trade in leather goods remained relatively stable. France's trade balance shifted, with imports far outstripping exports in the leather segment.

Key figures for French production of leather goods, saddlery and handbags

Production fluctuated between 10,000 and 12,000 pieces, for a turnover excluding VAT of over 2,500 million euros, representing significant growth of around 19% on previous years. Small leather goods followed suit with significant growth of 25%, in parallel with the belts segment, which saw a notable increase of 22%. These figures show that, despite certain challenges, the French leather goods market continues to thrive, driven by luxury and innovation.

Key players shaping the leather market landscape

The global and French leather markets are characterized by a wide range of key players, from luxury fashion houses to specialized tanners and leather manufacturers. These players not only contribute to the luxury aesthetics favored by consumers, but also stimulate innovation and preserve the industry's traditional know-how. Let's take a look at some of these influential companies who are setting the standards in the leather market.

Luxury titans and trendsetters

  • LVMH (Moët Hennessy Louis Vuitton): The world's leading luxury goods group, LVMH is at the pinnacle of the high-end leather goods segment. With its vast portfolio of luxury brands, including the iconic Louis Vuitton, the conglomerate exerts considerable influence on demand for high-end leather goods.
  • Hermès: This high-end luxury brand is synonymous with fine craftsmanship and quality materials. It is renowned not only for its prestigious products, but also for its investments in tanneries, which guarantee a constant supply of high-quality leather for its products.
  • Kering: The parent company of several luxury brands such as Gucci and Saint Laurent, Kering is another major player in the luxury leather goods landscape. Its brands are renowned for the refinement of their leather goods, which are often at the forefront of market trends.
  • Chanel: With its timeless fashion sense and high-quality leather goods, Chanel stands out as a luxury brand with a solid range of leather goods, from handbags to accessories.
  • Dior: As a global luxury brand, Dior is renowned for its contribution to the leather goods market, particularly through its elegant handbags and accessories that often make fashion statements.
  • Prada: Known for its innovative approach to luxury fashion, Prada leather goods represent the brand's avant-garde design philosophy and commitment to luxury.
  • Longchamp: Renowned for its leather handbags, luggage and accessories, Longchamp is a French luxury leather goods company that combines tradition and modernity, appealing to a wide range of consumers.
  • Lancel: Rich in heritage, Lancel creates high-end leather goods, such as handbags and wallets, that are coveted for their elegance and style.

Tanners and leather goods manufacturers

  • Tanneries Haas: This long-established company has earned a reputation as a producer of quality leather, primarily for the luxury and high-end markets.
  • Fortier Beaulieu: Renowned for its expertise in leather processing, this company produces quality leather materials for a variety of uses
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  • Last update : 07/03/2022
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Summary and extracts

1 Market overview

1.1 Definition and scope of the study

The appelation "leather" is governed by Decree 2010-29 of January 8, 2010, called the Leather Decree, which states that "The use of the word leather (...) is prohibited in the designation of any material other than that obtained from animal skin by means of tanning or impregnation that preserves the natural form of the skin fibers."

Mainly used in the fields of clothing and leather goods, it is one of the main materials of the decoration, saddlery and shoe industry. It is also used extensively in the manufacture of furniture and book covers, for example. Leather is usually a luxury material, favored by the major brands in the sector. These skins are processed in tanneries for large animals (cows, bulls, buffaloes, etc.) or in megisseries for smaller animals (lambs, goats).

The world market for leather goods is growing and is expected to continue to do so for the next few years. The production (in m2 products) of bovine leather is dominated by China, Latin America and Europe. China also largely dominates the production of sheep, goat and lamb leather.

The European market is dominated by Italy, which has much higher production levels than the rest of its neighbors.

In France, the turnover of the tanneries and megisseries are growing. They export mainly to Italy and import mainly from the United States. However, their number is decreasing and the sector is increasingly concentrated. It has to face a tough international competition as well as an increase in the price of raw materials.

The market is competing with cheap leather imitations, such as skai (registered trademark) made from plastic, or alcantara. All these imitations can be grouped under the name of artificial leather, or imitation leather.

More than just imitations, alternatives to leather are also more environmentally friendly solutions. The leather industry is indeed facing major environmental challenges, due to its high water consumption at different levels of production (from animal husbandry to tanning), the use of chemicals, and the discharge of greenhouse gases from tanneries, and criticism of the animal condition.

1.2 A growing global market

The leather market is estimated to be worth nearly $*** billion in **** by Grand view research. According to the same organization's estimates, the compound annual growth rate (***) between **** and **** is *.*%, reaching a market size of over $*** billion in ****.

Global Leather Market Size Forecast World, ****-****, $ billion Source: ****

Furthermore, according to the Economic ...

1.3 A European market dominated by Italy

On a European scale, COTANCE (***) estimates that there were more than *,*** companies and more than **,*** jobs related to the leather industry in the European Union in ****. [***]

Italy is the main producer country of the European Union in the leather sector, with a total production valued at *.* billion euros, or **.*% of the ...

1.4 The french market follows the global trend

The Conseil National du Cuir estimates a turnover for the leather sector of *.* billion euros in ****.

Turnover of the leather sector France, ****-****, in billion euros Source: ****

France is the world's *rd largest exporter of raw hides and leather, as well as leather goods in ****.[***] Its main client is Italy (***). Over ...

2 Analysis of the demand

2.1 A demand marked by the influence of foreign players

The demand for leather in France is twofold:

Textile and leather goods players, most of them oriented on premium or luxury products, consume tanned leathers ready to be assembled or raw leather; French consumers and tourists buy finished products (***) from these textile and leather goods players.

There is a strong appetite ...

2.2 Determinants of demand

Leather is mainly used in leather goods and shoemaking. It is also used in the saddlery, glove, decoration and furniture industries

Leather goods, number * in demand

In France, leather goods are the leading market for leather producers. Hermès, for example, owns * of the * largest tanneries in France. Luxury brands are ...

2.3 Demand trend

In terms of value, the handbag segment is largely dominant with estimated sales of €*,*** million in ****. It is also one of the fastest growing segments since ****, preceded by small leather goods (***).

Source: ****

3 Market structure

3.1 An increasingly concentrated sector in France

The number of players in the raw hides and skins sector on the one hand, and that of tanneries-megisseries on the other, has been declining in recent years: from ** companies for the first sector and ** in the second in ****, France has gone from to ** and ** companies respectively in ****. The number of ...

3.2 Structural characteristics of the tanneries

All tanneries and megisseries - consisting of the transformation of raw hides into leather - are grouped under NAF code **.**Z: Tanning and dressing of hides; preparation and dyeing of furs.

Number of companies registered under NAF code **.**Z France, ****-****, in number of units Source: ****

The number of companies specializing ...

3.3 Leather production

The skin of the animals is generally made up of * layers: the epidermis, on the surface, which undergoes the aggressions. The dermis, where hair and nerve endings are born. The hypodermis, layers of fat cells in contact with the muscles.

To preserve the raw skins, but also to eliminate the water ...

3.4 Distribution channels

The production and distribution of leather can be summarized in the following diagram: Leather goods remain the key sector of leather sales. According to the site Je Suis Entrepreneur, it represents **% in value of leather goods sales in France, divided between multi-brand retailers and exclusive distributors. Distribution of leather goods distribution ...

4 Analysis of the offer

4.1 The different varieties of leather

Depending on the origin of the skins used and the different treatments applied, there is a wide variety of different leathers

Origin of the leather

Leather can come from all kinds of animals, from cattle to fish and birds for example. Below is a non-exhaustive list of the main leathers found ...

4.2 Price range

On a global scale, leather prices have risen in recent years, driven up by a growing demand for leather goods, especially in Asia [***]. Indices given by INSEE establish a **% increase in prices between **** and **** for all markets resulting from the production of tanned hides and skins.

There is no official global ...

4.3 Trends and innovations

After a steady decline during the decade ****-****, the leather industry has experienced a slight upturn since the ****s, mainly driven by the luxury industry, which does not hesitate to buy out its suppliers to ensure its supply. The leather market is also subject to strong environmental concerns, prompting tanneries to ...

5 Regulation

5.1 Regulatory aspects

The activities related to the exploitation of leather are framed by several legal texts belonging to the national or European Community law. These texts regulate the various stages of leather processing as well as its marketing.

The decree of November **, ****: the law on the modification of the nomenclature of classified installations ...

6 Positioning of the actors

6.1 Segmentation

The activities of the tanneries and megisseries is listed by the INSEE under the NAF code **.**Z "Finishing and tanning of leather; preparation and dyeing of furs"

The following companies are divided between luxury players, who may also own tanneries and megisseries , and tanners-megissers:

Luxury brands:

LVMH Hermès Kering ...

List of charts

  • Main leather importers
  • Main leather exporters in the world
  • Global leather market size forecast
  • Share of leather production by country in the EU
  • Turnover of the leather sector
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Latest news

Moët Hennessy has global ambitions in fine wines. - 30/06/2022
  • The Insignia wine has repeatedly received top marks from Robert Parker.
  • This is an opportunity for Moët Hennessy to change its game in the wine business, and above all to "achieve critical mass, particularly in the US market", the world's largest and most lucrative
  • Moët Hennessy, the wines and spirits division of LVMH, has acquired 100% of the Joseph Phelps winery
  • A world-renowned winery, known for its red wines from Napa Valley and Sonoma County
  • Since acquiring New Zealand's Cloudy Bay some twenty years ago, the group has achieved critical mass in white wines, with over 3 million bottles produced
  • Château d'Escale is best known for its Whispering Angel rosé, which is said to sell over 10 million bottles a year
Moët Hennessy acquires Joseph Phelps, one of the founding fathers of Napa Valley. - 30/06/2022
  • Best known for its leading champagne and cognac brands, Moët Hennessy continues its wine offensive with the acquisition of the vineyards of Joseph Phelps, one of Napa Valley's great names.
  • Since 2019, LVMH has owned 55% of Château d'Esclans (known for its Whisphering Angel) and Château Galoupet.
  • The company also owns the highly prestigious Colgin and Newton.
  • The group has sold over 60,000 9-liter cases, including 13,000 cases of Insignia, whose great vintages easily cost over 1,500 euros a bottle.
LVMH relaunches Provence rosés. - 16/05/2022
  • Galoupet Nomade is sold exclusively on e-commerce sites.
  • The brand enters the world of mass retailing with the distribution of its products in supermarket stores.
  • Moët Hennessy markets its Château Galoupet cru classé de Provence after its organic conversion, in a lightweight bottle made from 70% recycled glass and a flat bottle made from recycled plastic.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

LVMH Vins et Spiritueux
Longchamp
Chanel
Prada Groupe
Lancel (Piquadro)
Tanneries Haas
Fortier Beaulieu
Tannerie Rémy Carriat
Manufacture de cuir Gustave Degermann
Tannerie Pechdo
Mégisserie Joqueviel & Cathala
France Tanneries

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