Apparel And Leather Products Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Apparel And Leather Products Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021 •
  • 400 pages •
  • Report ID: 6009743 •
  • Format: PDF
Major companies in the apparel and leather products market include NIKE Inc; Christian Dior SE; H&M AB; Adidas AG and VF Corp.

The global apparel and leather products market is expected to grow from $818.19 billion in 2020 to $971.38 billion in 2021 at a compound annual growth rate (CAGR) of 18.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1311.66 billion in 2025 at a CAGR of 8%.

The apparel and leather products market consists of sales of apparel and leather products by entities (organizations, sole traders and partnerships) that produce apparel, leather and related products. Apparel producers cut and sew (i.e., purchase fabric and cut and sew to make a garment) and/or produce garments by first knitting fabric and then cutting and sewing the fabric into a garment. The apparel manufacturing industry includes entities manufacturing full lines of ready-to-wear apparel and custom apparel: apparel contractors, performing cutting or sewing operations on materials owned by others; jobbers, performing entrepreneurial functions involved in apparel manufacturing; tailors, manufacturing custom garments for individual clients; and entities that combine knitting with the production of complete garments, but excluding producers of knitting fabric not combined with the produce of complete garments. Leather and allied product producers transform hides into leather by tanning or curing and fabricating the leather into products for final consumption, and/or produce similar products from other materials, including products (except apparel) made from "leather substitutes” such as rubber, plastics, or textiles. Rubber footwear, textile luggage, and plastics purses or wallets are examples of "leather substitute" products included in this market. The apparel and leather products market is segmented into leather and allied products and apparel.

Asia Pacific was the largest region in the global apparel and leather products market, accounting for 36% of the market in 2020. Western Europe was the second largest region accounting for 28% of the global apparel and leather products market. Africa was the smallest region in the global apparel and leather products market.

The growing awareness of the adverse effects of the textile industry on the environment is encouraging customers to opt for sustainable materials. Unlike natural materials, synthetic fibers take a long time to decompose as they are made from petroleum products. Biological materials like spider silk are light and have tensile strength that are used in making garments. Some companies also creating a decomposable synthetic version of spider silk. For example, Spiber Inc., a Japanese biomaterials specialist, was the first to produce artificial spider silk . The company uses genetically modified E. coli to produce the silk proteins which are used to produce silk fibers. As consumers globally grow increasingly concerned regarding the environmental impact of their apparel purchases, the demand for sustainable materials is expected to increase. Consumers are also often more willing to pay a premium for products they deem to be environmentally friendly, thereby providing opportunities for higher profit margins at the point of sale and across the supply chain.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the apparel and leather products market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in halting of manufacturing activities and a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the apparel and leather products market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Increasing demand for online shopping is expected to help the apparel and leather products market grow. Manufacturers can now sell their products on a larger platform than before, which will increase their customer base geographically driving the growth of the apparel and leather products market. In countries such as India, for instance, e-commerce portals have boosted the sales of traditional garments by giving larger exposure to producers who were confined to one geography where the weaving community was located.