Leather & Fur Processing & Handbag & Harness Manufacturing in Ireland - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Leather & Fur Processing & Handbag & Harness Manufacturing in Ireland industry analysis

Europe is an established leader in the production of leather and leather goods. Products made in Europe boast a reputation of having very high quality and durability, coupled with a degree of craftsmanship. Italy, France and Spain are leading nations in the production of leather and leather goods for the fashion sector. Renowned European brands, including Hermès and Louis Vuitton, offer luxury leather items which are highly sought after and command a higher price, boosting revenue and profit. However, leather producers have also faced challenges because of the shift in consumers' behaviour towards synthetic, vegan, or faux leather. The COVID-19 outbreak and severe inflationary pressures have also weakened demand. Revenue is expected to contract at a compound annual rate of 7.5% to €29.9 billion over the five years through 2024, including a 3.2% drop in 2024.

Trends and Insights

• Europe dominates the production of high-quality leather goods. With Italy, France and Spain leading the charge, the leather industry's prosperity is largely due to luxury demand from wealthier consumers worldwide and a coveted 'Made in Europe' status.
• Premium handbag and leather product manufacturers could lose out on the US market. Yale University estimates that an 18.3% price increase for imported leather products in US markets, potentially pricing out many US consumers. This disproportionately affects premium European manufacturers reliant on transatlantic sales.
• High-quality craftsmanship and branding drive market share concentration. Successful leather and fur goods manufacturers leverage an established brand's reputation and their ability to produce high-quality products to gain a competitive edge.