Summary of our market study

The global leather market, valued at $566 billion in 2023, is growing at a 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 are estimated at between 4 and 4.5 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 over 7.5 billion euros.

Demand for leather goods continues to be driven by luxury markets, with handbags occupying the largest segment, with a market estimated at 3 billion 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:Luxury and Innovation

The French market shows a strong demand for leather, with a strong penchant for high-end and luxury products. French consumers, as well as tourists, contribute significantly to this demand.

Demand is particularly strong for handbags, wallets, clutches and cardholders. Handbags lead the way for French leather goods production.

Stable prices for leather garments indicate that this demand for clothing may be running out of steam. However, this trend does not seem to be affecting demand for leather goods, which remains buoyant, mainly due to tourist purchases from France's leading luxury brands.

France's trade balance is heavily in deficit.

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

Production fluctuates between 10,000 and 12,000 pieces, for a turnover excluding VAT of over 2.5 billion euros. The small leather goods and belts segments are experiencing very significant growth.

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.

Luxury giants and trendsetters

  • LVMH (Louis Vuitton): World's leading luxury goods group
  • Hermès
  • Kering: Parent company of luxury brands such as Gucci and Saint Laurent
  • Chanel
  • Dior
  • Prada
  • Longchamp: French luxury leather goods company combining tradition and modernity
  • Lancel: creates high-end leather goods

Tanners and leather goods manufacturers

  • Tanneries Haas nde leather producer for the luxury and high-end markets.
  • Fortier Beaulieu
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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 ...

  • 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
  • Rioland Groupe
  • Alcantara (Toray Group)
  • Norki Décoration

List of charts presented in this market study

  • 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

Chanel investe ancora in Italia: nuova giunteria per Gensi Group - 29/02/2024

1. **Investimento Chanel nel Calzaturificio Gensi Group**: - Inaugurazione di un nuovo reparto di giunteria di 3.000 metri quadrati nel sito produttivo di Mosciano Sant'Angelo (Teramo). - Attivazione di 4 nuove linee di produzione da 70 metri ciascuna. - Attualmente, 6 linee di produzione sono in funzione, con un piano di raddoppio nei prossimi 3 anni attraverso l'inserimento di nuove risorse professionali. 2. **Iniziative Aziendali per la Sostenibilità**: - Formazione di 3 gruppi di lavoro dedicati alla sostenibilità ambientale dell'azienda un anno fa. - Riduzione dei consumi energetici e degli scarti di lavorazione. - Avanzamenti nel riciclo e riuso. - Avvio dell'istituto interno di formazione "M'Astri Nascenti" in collaborazione con Arsutoria School, con 60 persone formate fino ad oggi. 3. **Forza Lavoro e Piani di Assunzione**: - Attualmente, l'azienda ha oltre 660 collaboratori, dei quali oltre 120 sono orlatrici. - Sono previste nuove assunzioni per aumentare ulteriormente la forza lavoro. 4. **Produzione Chanel e Supply Chain Italiana**: - Le calzature Chanel sono progettate in Francia ma prodotte in Italia. - Aziende italiane controllate da Chanel implicate nella produzione: Roveda di Parabiago (acquisita nel 1999), Gensi di Giulianova (acquisita nel 2015), e Ballin Shoes (acquisita nel 2020).

Fashion: how Prada reinvents itself - 13/01/2024
  • Prada was founded in 1913 by brothers Mario and Martino Prada.
  • By 2023, Prada's retail sales have increased by 13% compared to 2022.
  • The luxury goods market is expected to see around 40% of its global sales absorbed by China by 2030, according to Bain & Company.
  • Prada created its own foundation in 1995, which is located in Milan.
Chanel creates "La Parcelle", a new green and artistic space - 14/09/2023
  • Le 19M, the space dedicated to Chanel's métiers d'arts, was inaugurated in 2021.
  • Le 19M brings together 600 craftsmen and experts in eleven Maisons d'arts.
Massive recruitment at Longchamp - 28/06/2023
  • Longchamp plans to hire 450 new staff this year, including 200 in its French factories
  • Double-digit growth for Longchamp, outstripping that of the leather goods market
  • Percentage of Longchamp sales in France: 30% (a third of which are generated by foreign visitors)
  • Longchamp's online sales have tripled between 2019 and 2022 and represent almost 5% of sales
  • Longchamp has 800 employees in France out of a total of 1,100 emplyees
  • Longchamp has 330 directly-operated and concession stores worldwide, and 900 other points of sale
  • Longchamp aims to expand from 40 to 60 stores in China over the next 5 years
  • The Segré-en-Anjou Bleu site (Maine-et-Loire) employs 420 people
Prada, Milanese realism that keeps pace with the luxury giants - 13/03/2023
  • Sales up 25% to €4.2 billion
  • Above-market growth
  • The Italian brand saw its profits soar by 58% last year, to €465 million - strong sales growth in Europe and the United States more than offsetting a slowdown in China
Leather goods workshops thrive, thanks to the luxury industry - 10/02/2023
  • Leather goods are a trump card for French industry
  • Manufacturers see business rebounding by 25% in 2021
  • Cumulative factory gate sales of €4.2 billion
  • Exports up 27% in 2021 (€10 billion)
  • 33.600 employees in 983 sites
  • La maison Longchamp, 700 employees, factories

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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