Indian Leather Market Report 2025 | Size, Trends & Growth drivers
Introduction
The Indian leather industry plays a vital role in the
country’s economy, contributing nearly 2% to India’s GDP and ranking as the 4th
largest producer of leather globally. With an annual output of around 3 billion
square feet of finished leather, India stands among the top 5 exporters of
leather products worldwide, supplying nearly 10% of global raw hides and skins.
Leather in India is primarily prepared from animal hides. The country’s
geographic diversity and large livestock population provide a unique raw
material advantage. According to the Council for Leather Exports, India is home
to 20% of the world’s cattle and buffalo population and 11% of the world’s goat
and sheep population. This abundance of hides and skins makes India one of the
most reliable suppliers of leather globally. India’s strong production base is supported
by major leather clusters in Uttar Pradesh, Tamil Nadu, West Bengal,
Maharashtra, and Punjab. Each of these hubs is renowned for manufacturing
diverse products—ranging from footwear, handbags, wallets, and fashion
accessories to automotive leather and saddlery.
Europe: The Key Market
Europe continues to be the largest importer of Indian
leather products, with countries like Germany, the UK, Italy, and France
showing strong demand for premium quality leather accessories. Driven by their
affinity for luxury handbags, high-end footwear, and finely crafted goods,
European markets account for nearly one-fourth of India’s total leather
exports. With rising demand for luxury leather goods in Europe, favorable trade
relations, and India’s continuous efforts to enhance quality, sustainability, and
production capacity, the country is set to strengthen its position in the
global leather trade.
Products
India produces and exports a wide variety of leather
products for personal and commercial purposes:
1.
Finished leather: This includes leather that has
undergone all stages of processing and can be used in manufacturing of the
final products. It is the base material used for manufacture of footwear,
jackets, garments, goods, etc. ex: Dyed, polished hide/ skins used for preparation
of shoes, bags, accessories
2.
Leather footwear: Genuine leather footwear where
the upper, sole or both layers are made of leather. Ex: Leather boots,
Kolhapuris, Sandals, formal shoes
3.
Footwear components: These are parts of the
footwear such as soles, heels, linings, vamps, etc. These different parts are
assembled for the preparation of footwear
4.
Leather garments: Clothing made of leather such
as jackets, pants, skirts, vests, etc.
5.
Leather goods: A general term to cover fashion
accessories made of leather such as handbags, belts, wallets, gloves, purses,
travel bags, office bags.
6.
Saddlery and Harness: Leather products made for horses,
horse riding and related activities such as saddles, bridles, harnesses,
stirrup leather, decorative products.
7.
Automotive products: Car seats of luxury sedans (Mercedes,
BMW) made of leather, steering wheel wraps, gear knobs, door panels &
armrests, dashboard & console covers, car mats, headliners and pillar trims
and other customized applications.
Market size
The global market size of the leather industry was valued at
USD 498.6 Bn in 2024, according to a report by Fortune business insights, with
India producing 13% of the world leather. India is the second largest exporter
of leather garments, third largest exporter of Saddlery & Harness and fourth
largest exporter of Leather Goods in the world.
Trends
The factors driving leather consumption across the world are
a taste of luxury leather products by the consumer across wide range of applications
such as luxury handbags, footwear, clothing & accessories, car seats &
other automobile applications in luxury cars. This is fueled by an increase in
disposable income of the rising population across countries such as India. The
youth in India are increasingly drawn to luxury leather products, inspired by
the choices of celebrities and social media influencers. With rising disposable
incomes, young consumers are eager to associate themselves with premium brands
by purchasing luxury leather bags, wallets, and accessories. This growing
aspiration and spending power is expected to significantly boost the demand for
leather products in India.
SWOT
analysis
Strengths
1.
Abundance of raw material, about 3 billion sq.
ft of leather produced annually owing to the huge cattle population
2.
Skilled manpower and technological support for the
production of leather goods and footwear
3.
Dedicated support of allied industries such as
leather chemicals, finishing auxiliary
4.
Industry compliance and adherence to
international environmental standards
5.
Strategic geographic location and connectivity
of the country
Weaknesses
1.
Volatility of geopolitics and impact of high
taxes levied by countries
2.
Customer preference to not use animal based
leather due to ethical and environmental factors
3.
Inclination of automakers to use ‘Vegan leather’
instead of animal leather. Synthetic leather options to drive away from animal
derived leather
Opportunities
1.
The increased technological development in
manufacture of leather products and auxiliary industries
2.
Exploring new markets for trade such as Russia
and Africa
3.
Improved connectivity and supply chains across
the globe
4.
Government regulations such as withdrawal of
port restrictions on finished, tanned, and wet blue leather favoring exports
5.
Removal of export duties to maximize benefits
passed to MSMEs and increase their participation in global leather value chain
Threats
1.
High tax impositions, up to 50% by the largest
leather importer, the US
2.
Availability of non-leather alternatives such as
synthetic leather at cheap prices
3.
Increased competitiveness from low cost
manufacturing countries
4.
High cost of raw material owing to animal
welfare concerns on extraction of raw material required for leather goods
5.
Environmental impact of leather tanning and
related processes
Conclusion
The Indian leather industry holds a pivotal position in the
global market, backed by its vast raw material base, skilled workforce, and
strong export potential. As one of the top 5 leather exporters worldwide, India
continues to supply premium products across categories—ranging from footwear
and garments to accessories and automotive applications.
With Europe as a key market and rising aspirations among
India’s youth for luxury leather goods, the industry is set for sustained
growth. However, challenges such as competition from synthetic alternatives,
high international tariffs, and growing environmental concerns cannot be
overlooked.
Looking ahead, the future of India’s leather sector lies in
embracing sustainable practices, leveraging government incentives, exploring
untapped markets like Russia and Africa, and adopting advanced technologies. By
balancing tradition with innovation, India has the potential to strengthen its
global leadership in leather production and exports, while catering to evolving
consumer preferences worldwide.
