Leather accessory market potential in Europe
Leather fashion accessories imports in Europe total 2.9 billion EUR. Recent growth has been slow due to poor non-worn accessory performance. Leather accessory imports are best in France, Germany, Italy, the Netherlands, Spain, and Poland. Poland is noteworthy for its recent progress.
Description of product
Tanning or chemically processing animal skins and hides creates leather, a tough material. Tanning alters skin/hides protein structure to prevent decomposition. Most leather comes from cattle, sheep, goats, buffalo, and pigs. After tanning, leather is stained and finished. Several faux-leathers or ‘vegan leather alternatives’ have joined the market in recent years.
Leather accessories may be worn, carried, or put and must be useful and attractive. They fall under these categories:
- Accessories worn;
- Mittens and gloves;
- Bandoliers and belts
- Non-worn pocket or handbag accessory;
- Accessories not in pockets or handbags.
Accessories and clothing are sometimes offered combined to complement a top or bottom. Fashion catwalks inspire fresh ideas.
Leather sustainability
The leather business harms animals, destroys forests and biodiversity, damages land, releases carbon into the air, and pollutes water and air. Cow skin leather is the third most ecologically damaging material to create, according to the Sustainable Apparel Coalition (formerly Cascale). Therefore, the leather industry prioritizes transparent supply chains, plant-based leather alternatives, and decreasing or eliminating toxic chemicals from manufacturing.
Why is Europe a good leather accessory market?
Europe imported 2.9 billion EUR of leather accessories in 2022, down from 3.0 billion EUR in 2017. European leather accessory importers are among the largest in the world notwithstanding this decline. Worn leather accessories account for 1.57 billion EUR in imports, 53% of the total.
With a 0.3% annual decline, EU leather accessory imports stalled between 2017 and 2022. Leather bags grew 4.9% faster. Bags are typically bought for fashion. Genuine leather conveys quality, whereas plant-based materials convey sustainability. Worn leather accessories grew 4.7% a year between 2017 and 2022, while non-worn leather accessories fell 4.5%.
The biggest sub-category of leather accessories imported is pocket or purse accessories, at 32.6%. This category includes wallets, purses, key pouches, cigarette cases, tobacco pouches, and others. However, this subcategory has fallen 2.9% annually.
Non-worn accessories not carried in pockets or handbags have 14.4% market share and the largest loss (-7.7% each year). Trunks, suitcases, vanity cases, musical instrument cases, shopping bags, insulated bags, map cases, tool bags, jewelry boxes, cutlery cases, binocular cases, camera cases, gun cases, holsters, and similar products fall into EU leather accessory exports are also considerable. It exported 5.1 billion EUR of leather accessories in 2022, up from 4.3 billion in 2017. EU leather accessory exports rose 3.4% annually from 2017 to 2022.
The top EU exporters in 2022 were Italy (2.1 billion EUR) and France (1.5 billion EUR). Over 73% of EU leather accessory exports come from these nations. Poland, Europe’s sixth biggest leather accessory producer, has the fastest export growth at 19.2% per year.
Leather accessories from the EU account for 56% of imports (up from 51.5% in 2017). Leather accessories from outside the EU are 44%. In 2022, developing nations supplied 35.5% of EU leather accessory imports by value, down from 35.9% in 2017. In 2022, EU leather accessory imports from developing nations totaled 1 billion EUR, although they were flat from 2017 to 2022.
International suppliers accounted for 8.5% of import value, down from 12.6% in 2017. Leather accessory imports from developing nations are lower than their 49.5% proportion of EU apparel imports. However, it exceeds the developing nation’s leather bag share of 9.8%. This may be because leather bags need more quality and workmanship than accessories.
India and China brought 22.9% of EU leather accessory imports from outside the EU, worth 680 million EUR. Over five years, exporting nations UK, Switzerland, and China had the steepest declines, while emerging countries Morocco, Pakistan, and Türkiye saw the most rise.
The internal EU leather accessory import market was headed by Italy and France at 723 million EUR. EU leather accessory imports from these two nations total 24.3%. Spain, Italy, France, and Poland experienced the biggest increase from 2017 to 2022, with Italy expanding its EU import market share by 3.2%.
Europe drives leather industry sustainable innovation
The Circular Economy Action Plan targets fashion. The EU’s Green Deal aims to create a circular, sustainable economy.
The EU features some of the most prominent leather accessory manufacturers and designers. The EU hosts Fashion for Good (FFG) and the H&M Foundation’s Global Change Award, the two most significant fashion industry sustainability programs.
Many leather accessory inventions have graduated from FFG and/or H&M GCA programs in recent years. They improved plant-based leather alternatives, leather processing, and eco-friendly coloring.
A leather accessories provider working with European brands and retailers will have access to the latest information, technological innovation, and design insights driving global fashion and sustainability trends.
Which European nations have the greatest leather accessory opportunities?
Eastern European markets are smaller and less established than Western European ones. Brands and retailers have better sourcing, compliance, and innovation procedures.
Italy and France are leather fashion accessory trade and creative centers; their businesses appeal to both traditional and new consumers. Their vast reach inside and beyond Europe makes Germany, Spain, and the Netherlands key marketplaces. Poland’s five-year increase in this area was negative, albeit owing to one sub-category. Poland remains an intriguing market.
Germany, the Netherlands, Poland, Belgium, Sweden, and Czechia import more leather accessories from developing nations than the EU average. Austria imports just 15.5% of leather accessories from poorer nations.
France: A big market across value sectors with rising environmental standards
France imports the most leather accessories in Europe. In 2022, leather accessory imports were 630 million EUR, down from 645 billion EUR in 2017. France’s leather accessory imports have fallen 0.5% annually over the last five years.
France imports 22.8% of leather accessories from poorer nations. This is well below the European average. Between 2017 and 2022, developing country imports climbed 3.4% annually. Accessories not carried in pocket/handbags grew fastest. The top 10 emerging nation exporters, headed by China and India, maintained French market shares between 2017 and 2022.
France is tightening chemical sustainability regulations. French law requires retailers to disclose items containing REACH Substances of Very High Concern (SVHC) at the moment of sale. It is also the first EU nation to regulate MOSH/MOAH. Mineral oils are utilized in packaging and recycled paper inks.
Meeting French buyer criteria will grow tougher, and businesses can anticipate greater demand for ecological goods. Budget/volume price pressure will persist. This may challenge suppliers.
Germany has strong sustainability criteria
Germany imports the second most leather accessories in Europe. In 2022, leather accessory imports were 548 million EUR, down from 578 million EUR in 2017. Germany’s leather accessory imports fell 1% annually during the last five years.
Germany imports 47.5% of its leather accessories from developing nations, the most of the top ten EU importers. However, developing country imports fell 2.1% between 2017 and 2022. China lost 6.4% of its German market share while Pakistan and Indonesia gained more than 1%.
Luxury leather items originated in Italy
Made in Italy is known for its quality and design. Many Italian luxury fashion firms began as leather goods shops. Italy has its own ‘Made in Italy’ standard and certification (UNI 11239/EN 16484) and leather authenticity law that prohibits the use of ‘leather’ when discussing ‘synthetic’ and ‘vegan leather’. The Italian market needs high material and finishing standards.
Italy imports the third most leather accessories in Europe. Its leather accessory imports rose to 491 million EUR in 2022 from 458 million EUR in 2017. Italy’s leather accessory imports climbed 1.4% annually during the last five years.
Italy imports 32.8% of leather accessories from developing nations, below the European average. Between 2017 and 2022, developing-country imports climbed 1.5%, with used accessories growing the most. China’s Italian market share fell (-3.8%) while India and Vietnam gained more than 1%.
The Netherlands: Distribution center and European sustainability hub
The Netherlands imports the fourth most leather accessories in Europe. In 2022, leather accessory imports were 270 million EUR, down from 275 million EUR in 2017. Dutch leather accessory imports have fallen 0.4% annually over the last five years.
The Netherlands imports 47.3% of leather accessories from developing nations, more than the European average. Imports from emerging countries fell 6.4% between 2017 and 2022. Developing nations lost 17.4% of Dutch imports. It was mainly because non-worn accessory sub-segments did poorly. India gained the largest market share (3.6%), while China and Vietnam lost roughly 8%.
Spanish fashion stores are among the biggest in Europe
Spain imports the sixth most leather accessories in Europe. It imported 181 million EUR of leather accessories in 2022, up from 156 million in 2017. Spain’s leather accessory imports climbed 3% annually during the last five years.
Spain imports 31.7% of leather accessories from developing nations, below the European average. The value of developing-country imports stuck. In Spain, developing nations lost 5.4% market share between 2017 and 2022. Pakistan gained 2.4% market share while India lost 6.2%.
Poland: Growing its developing country sourcing as its economy grows.
Poland imports the sixth most leather accessories in Europe. In 2022, leather accessory imports were 121 million EUR, down from 183 million EUR in 2017. Poland’s leather accessory imports fell 7.9% annually during the last five years.
Poland imports 36.2% from developing nations, slightly above the European average. Overall, developing-country imports rose 4.5%. Between 2017 and 2022, developing nations acquired 16.9% market share. Poland is buying more from underdeveloped nations, lowering costs. This partly explains the 2017–2022 import value drop. China, India, and Pakistan gained 4%, 5.9%, and 6.3% market share, respectively.
Which developments threaten or benefit the European leather accessories market?
The European leather accessories market follows garment sector sustainability and circularity trends. These are mostly driven by EU Green Deal laws and programs. The leather industry has unique sustainability issues, prompting sector-specific efforts and laws.
Compliant suppliers benefit from strict EU chemicals laws.
When animal skins are turned into leather, many chemicals are employed (and/or discharged). Many of these compounds are harmful and may harm workers, humans, and the environment. EU law restricts final product limits and reporting for several of these substances:
- EU POP Regulation 2019/1021: limits POPs.
- The rigorous EU REACH rule governs chemical compounds in consumer products, including textiles.
- The AFIRM and ZDHC manufacturing banned substances lists include hazardous compounds not yet limited by law. These 2 are the top brand, retailer, and supplier guidelines.
Biocides, Formaldehyde, Chlorinated Paraffins (POPs), PFAS, VOC-emitting compounds, and heavy metals like Chromium (III), Arsenic, Barium, and Chromium VI are limited by law or best practice.
From 2014 to 2020, chrome-tanned leather fell from 85% to 75%. This trend is expected to continue as the industry works to overcome vegetable tanning’s longer lead times, limited water resistance, initial inflexibility, and limited color options.
Suppliers with good chemical management and process innovation will have several chances.
Vegan leather substitutes made from plants will grow.
In 2022, the worldwide market for vegan leather was valued at 39.5 billion USD. It is used in fashion, automotive, and home textiles and is predicted to reach 74.5 billion USD by 2030. Leather is more expensive than oil-based synthetics like PU or PVC. They dominate the ‘vegan leather’ market, particularly in the cheap and intermediate categories.
As buyers become more conscious of leather’s environmental effect and animal welfare, “vegan” alternatives are gaining favor in premium and luxury markets. New, sustainable plant-based materials from agricultural byproducts and trash are being developed here.
Cow leather industry generates up to 85% of its carbon emissions during cattle ranching. Sustamize reports that cow skin leather has a carbon footprint of 110 kg per square meter, compared to 7 — 15.8 kg for PU leather and 0.8 — 8 kg for plant-based leather.
Success depends on transparency and traceability
The European Commission proposed a Green Claims Directive in March 2023. This new rule prohibits businesses and merchants from making misleading sustainability claims. Companies will need evidence to support their environmental claims. This is important for deforestation-free and ‘vegan’ leather claims in the leather industry.
Vegan leather
Vegan leather implies a sustainable alternative to animal leather. This applies to animal welfare, however synthetic materials are not eco-friendly. Most plant-based leather replacements employ bio-plastics and/or PU coating to mimic leather’s properties and durability. Their sustainability and biodegradability are compromised.
In a 2022 UK consumer study, 74% considered ‘vegan leather’ perplexing and ignorant of its plastic content. The word is also used to designate leather replacements that employ bone glue but not animal skins.
Leather without deforestation
The EU imports the most wet-blue (chrome-tanned) leather from Brazil, where cattle farming causes 80% of Amazon deforestation. Leather products supply chains have not been monitored as much since leather is a byproduct of the meat industry. The situation is shifting.
The new EU Deforestation Regulation (EUDR) will combat leather import-related deforestation in 2025. Rawhide and leather importers to the EU must provide a ‘statement of due diligence’. This proves no woods were taken down for leather. It also links the hider to the animal’s farm. The rule may soon extend to completed leather items.
Textile Exchange, Leather Working Group, and WWF lead the Deforestation-Free Call to Action for Leather. By 2030, signatory businesses will exclusively get bovine leather from non-deforested or converted land supply chains. Brands must reach slaughterhouse-level supply chain mapping requirements and employ a traceability system to certify deforestation- and conversion-free leather sourcing.
Customers want transparency and credible impact data, therefore suppliers who can provide supply chain mapping, product lifetime evaluations, and carbon footprint calculations will have an edge.
