IFLPS DUBAI 2022 HIGHLIGHTS
IFLPS MADRID 2023 HIGHLIGHTS
Leather apparels and accessories has gained traction as the market for luxury goods has grown. According to a report released by market advisory firm, IMARC Group, the worldwide leather products market was valued at US$ 350.2 billion in 2021. It is expected to grow at a CAGR of 6.1% from 2022 to 2027 to reach US$ 490.2 billion in 2027. This implies a healthy global growth for leather goods.
The Indian leather products holds a specialised position in the global market with 10% of the raw materials and 2% of the world's trade.
The Indian leather goods market segment
The country's leather and footwear exports are expected cross USD 6 billion in 2022-23 on account of increasing demand in the US and new markets such as Middle East, Africa and Latin America.
During April-January this fiscal, leather and leather products exports rose by 33 % to $3.6 billion. The exports stood at $3.3 billion in FY2020-21 and $4.7 billion in FY2019-20.
India is the 2nd largest exporter of leather garments, 3rd largest exporter of saddlery & harness and 4th largest exporter of leather goods in the world. The garments sector accounted for 7.03 % of the country's total leather export in FY2021-22.
The Indian leather product market segment has established its reputation as a genuine, trustworthy, and affordable producer and trader of completed goods.
India has 1.8 billion square foot yearly output capability for leather. Products like clothing, footwear, and accessories are in high demand across the world.
India produces 13%, or 16 billion pairs of the world’s footwear: 2,065 million pairs of several types of footwear overall.
The Indian leather industry is constantly adopting technology to optimise efficiency and designs.
The Indian leather products have gained momentum and are the most sought-after products in the international market. This is because of:
Innovative and Creative designs
High-value leather products and footwear
Variety of leather
Environment friendly tanning base
Volumetric delivery capability
Adherence to global standards
Additionally, the Indian leather industry has the requisite infrastructure to ensure seamless delivery of high-end, best-quality goods worldwide. These include:
Own source for raw material
State-of-the-art modern units
Tannery: 3 billion sq. ft of leather/annum
Workforce: Skilled workforce at competitive wages
Allied industries: Leather chemicals & finishing auxiliaries
Innovation: R&D labs, faster prototype development
Opportunity for joint ventures/technical collaborations
Council of Leather Exports (CLE)
The Council for Leather Exports (CLE), Indian leather industry's governing body has taken a lead to promote Indian leather goods in the global market. It has undertaken several initiatives to assure product quality, upskill the workforce, and introduce advanced technologies and processes at all levels.
Buoyed by the government support, increased demand for Indian leather products, the apex body has signed a slew of trade agreements globally and is tapping business opportunities worldwide.
CLE expects India’s leather goods exports to exceed $6 billion in the 2023 in lieu of rising demand from global markets and increased export opportunities.