Bag and baggage: Sustained strong import penetration will limit industry growth

Industry performance in the Leather Good and Luggage Manufacturing has struggled over the five years to 2018. An appreciating dollar has caused domestically manufactured goods to be more expensive than their foreign-based competition. Consumers are increasingly satisfying their leather good needs by purchasing less-expensive imported items while domestic operators are netting less and less revenue from exports. Overall, revenue declined over the past five years. However, over the five years to 2023, industry revenue is expected to marginally recover thanks to the growing phenomena of reshoring manufacturing as well as a renewed demand for niche industry products. Furthermore, an expected depreciation of the US dollar will benefit operators...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-0.2%
Forecast Growth 18-23
Profit
Employment
23,854
Businesses
7,528
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Consumers are increasingly satisfying their leather good needs by purchasing less-expensive imported items
  • Overarching, macroeconomic trends define this industry, such as the value of the US dollar
  • IBISWorld expects industry revenue to moderately increase during the five-year period
  • Industry Report - Industry SWOT Analysis Chapter

    The Leather Good and Luggage Manufacturing industry is in the decline phase of its life cycle. Industry value added (the measure of this industry's contribution to the US economy) is expected to increase at an annualized rate of 0.1% over the 10 years to 2023. In contrast, GDP is forecast to grow an annualized 2.2% over the same period. The industry experiences intense competition from imports, with many companies sourcing accessories luggage, and other leather goods from countries with lower production costs. Imports are expected to satisfy an overwhelming share of domestic demand over the 10-year period, declining only slightly from 94.6% in 2013 to an estimated 93.0% in 2023. The...purchase to read more.

    Additional Insights for the Leather Good & Luggage Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Leather Good & Luggage Manufacturing Industry are

  • Economies of scale
  • Establishment of export markets
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Trade-weighted index in the Leather Good & Luggage Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Leather Good & Luggage Manufacturing Industry?

    Operators in this industry primarily manufacture clothing accessories, including belts, hats, luggage, handbags, wallets and various other leather and nonleather goods and accessories.

    Industry Products
  • Women's handbags and purses
  • Luggage (including suitcases, travel bags, backpacks, etc.)
  • Personal leather goods (excluding women's handbags and purses)
  • Neckwear
  • Hat bodies and fabric caps
  • Gloves and mittens
  • Apparel accessories
  • Industry Activities
  • Manufacturing luggage pieces
  • Manufacturing and designing handbags
  • Manufacturing neckties
  • Manufacturing hats, caps and other headwear
  • Manufacturing and designing belts and other leather goods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Trade-weighted index
  • Demand from clothing and clothing accessories stores
  • Demand from handbag, luggage and accessory stores
  • Price of leather

  • Current Performance
  • Import dominance
  • Profit and participation
  • Operating conditions
  • Chart: Revenue Growth

  • Industry Outlook
  • Reshoring: causes, processes and potential results
  • International trade and profitability
  • Table: Leather Good & Luggage Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Leather Good & Luggage Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Men's & Boys' Apparel Wholesaling
  • Women's & Children's Apparel Wholesaling
  • Men's Clothing Stores
  • Women's Clothing Stores
  • Department Stores
  • Warehouse Clubs & Supercenters
  • Handbag, Luggage & Accessory Stores

  • Key Selling Industries
  • Leather Tanning & Finishing
  • Plastic & Resin Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Textile Mills

  • Products & Services
  • Other
  • Women's handbags and purses
  • Luggage (including suitcases, travel bags, backpacks, etc.)
  • Apparel accessories
  • Hat bodies and fabric caps
  • Personal leather goods (excluding women's handbags and purses)
  • Neckwear
  • Gloves and mittens
  • Chart: Leather Good & Luggage Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Retailers
  • Other
  • Manufacturers
  • Chart: Major Market Segmentation for the Leather Good & Luggage Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Rent, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Leather Good & Luggage Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Leather Good & Luggage Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Leather Good & Luggage Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Leather Good & Luggage Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Trade-weighted index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Offshoring
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • Saddlery
  • Equipment for horses, typically made of leather.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Leather Good & Luggage Manufacturing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Leather Good & Luggage Manufacturing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Leather Good & Luggage Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Leather Good & Luggage Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Leather Good & Luggage Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear