Introduction to Indian Leather Industry
The ability of the Indian Leather Industry to develop and move swiftly, along with a focus on luxury, enables it to fulfil rising customer demand for new product offers and trends. Leather manufacturers are raising their image in niche markets with innovative products like purses and backpacks fashioned from unusual skins. Coach, with its famed purses, is pushing farther into high-end accessories, necessitating a wide array of exotic skins, opening up chances for tanneries that specialise in these small but lucrative niches.
Why Leather Industry Is Important?
It’s easy to forget in our modern world of mass manufacturing that humans have been making things for hundreds of years, and that the majority of those products are still in use today. Leather is one of these long-lasting items. Perhaps you have an idea for something made of leather, or you simply want to learn more about how leather is created so you can better appreciate your favourite shoes or belt. Whatever your passion, leather is unquestionably one of man’s oldest materials. Because it is so useful, it has outlasted innumerable other fads and fashions. Leather has been utilised by various civilizations throughout history, from clothes to furniture, purses to saddles.
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Is The Leather Business Profitable?
Are you thinking of beginning a leather-related business? Are you looking for low-cost leather business ideas or chances with a high return on investment? This post will undoubtedly assist you in determining the most popular leather business opportunities. The leather sector is well-known around the world. Consumer need for new designs and creative stylish leather products has recently boosted the leather goods industry‘s demand. In the year 2020, the market for leather goods was estimated to be worth USD 394.12 billion. Between 2021 and 2028, industry experts predict a compound annual growth rate (CAGR) of 5.9%. Though some of the leather industry’s businesses require a lot of finance and supervision, there are certain chances you may start with little money. Less capital investment even as home-based. The leather industry is spread in different segments, namely, tanning & finishing, footwear & footwear components, leather garments, leather goods including saddlery & harness, etc.
World’s Tannery
India’s leather industry produces roughly 13 percent of the world’s hides/skins and has a healthy yearly production of about 3 billion square feet of leather. The country is responsible for 9% of global footwear production. The industry is noted for consistently high export revenues and is one of the country’s top ten foreign exchange earners.
With access to 20% of the world’s cattle and buffalo, as well as 11% of the world’s goat and sheep population, India has a plethora of raw materials.
The leather business is a high-wage industry that employs over 4 million people, the majority of whom are from lower socioeconomic groups. Women account for roughly 30% of the workforce in the leather products business. With 55 percent of the workforce under the age of 35, India’s leather sector has one of the youngest workforces.
The major markets for Indian leather and leather products are the United States (17.22%), Germany (11.98%), the United Kingdom (10.43%), Italy (6.33%), France (5.94%), Spain (5.01%), the Netherlands (3.52%), the United Arab Emirates (3.35%), China (2.61%), Hong Kong (2.15%), Belgium (2.21%), and Poland (2.11%).
- The world’s second-largest producer of footwear and leather garments
- The world’s second-largest exporter of leather garments
- The world’s fifth largest exporter of leather goods and accessories
- The sector may generate 425 employment in manufacturing, adjacent industries, and retail for every 1,000 pairs manufactured and sold in India per day.
- In terms of volume, India produced 1.8 billion units in 2017 and is predicted to generate about 3 billion units by 2024, with an annual growth rate of more than 10%.
- According to the Council for Footwear Leather & Accessories, the footwear industry has the potential to grow to US$ 80 billion by 2030, which is eight times its current size.
- In the year 2019, the Indian footwear market was valued at $ 9.70 billion
- In India, per capita footwear consumption is expected to increase from 1.7 pairs in 2016 to 2 pairs in 2019.
In 2019, the non-leather footwear market in India accounted for around 59% of the total footwear market, with a market value of $ 4.3 billion, which is predicted to grow to $ 6 billion by 2024.
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Growth of Indian Leather Industry:
The leather, leather products, and footwear industries in India play an important role in the Indian economy. This industry is noted for consistently high export revenues and is one of the country’s top 10 foreign exchange earners. During the 2020-21 fiscal year, India exported $3.68 billion in footwear, leather, and leather products. The leather business employs around 4.42 million people, the most of whom are from the poorer portions of society. With a 30% share of the market, women are the most common workers in the leather products industry.
India is the world’s second-largest exporter of leather goods, third-largest exporter of saddlery and harness, and fourth-largest exporter of leather clothing. India has become one of the most powerful countries in the world. One of the most important countries in the world for hide tanning and finishing. The leather sector is expected to grow at a rate of 5-10% each year and contribute roughly 6% of India’s GDP. India is the world’s third-largest exporter of raw hides and skins, fourth-largest exporter of finished leather, fourth-largest exporter of footwear, and eighth-largest exporter of leather garments.
India is also one of the top ten exporters of finished leather goods in the world. It is set to become an even bigger contributor to job creation in the future, with over 20 million people directly employed and more than 100 million indirectly depending on it. The global leather business generates over $40 billion worth of leather each year. Leather items are popular all around the world. It’s one of the most popular. With the rise in population and urbanisation, the leather business expands. The leather industry is profitable because humans consume its products on a daily basis. Because of its wide range of applications, the industry’s scope is continuously expanding.
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What is Business Opportunities in Indian Leather Industry?
Here are some possibilities if you’re wondering what business opportunities are accessible in the leather industry. When contemplating company options, keep in mind that launching any form of endeavour is difficult; nonetheless, is a lucrative business for entrepreneurs looking for new ventures. As we all know, creativity is the yardstick by which any business is judged. In the leather market, there are a plethora of possibilities. The variety of uses for leather is one of the reasons for its profitability. Leather is used in a variety of ways, including shoes, clothing, handbags, accessories, and bags.
As a result, the leather business entails trading. In anything made of leather you have the option of being a manufacturer, a retailer, or a distributor. You will be the one to develop the product to meet any objective you have in mind as a manufacturer. To investigate various choices before making a final decision it’s also vital to remember that if you do decide to establish a business in the leather sector, you’ll need a lot of money.
In the following years, the worldwide leather goods market size is expected to rise at a CAGR of around 5.4 percent. The growing need for a comfortable environment the leather industry is one of the world’s oldest manufacturing businesses. It’s no wonder that leather and its derivatives are among the most widely traded goods on the planet.
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INDUSTRY SCENARIO
Exports of leather, footwear and leather products touched $4.03 bn during 2020-21. The different segments of leather, footwear and leather goods exports and their respective share of exports are:
- Footwear accounted for 46.2 percent of the total.
- Leather Accessories (25.2%).
- 7 percent for finished leather
- Leather garments accounted for 14.4% of the total.
- 6 percent Saddlery & Harness
The states of Tamil Nadu — Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul, and Erode – are the key production centres for footwear, leather, and leather products in India. West Bengal – Kolkata; Uttar Pradesh – Kanpur, Agra, Noida, and Saharanpur; Maharashtra – Mumbai; Punjab – Jalandhar; Karnataka – Bengaluru; Telengana – Hyderabad; Haryana – Ambala, Gurgaon, Panchkula, Karnal, and Faridabad; Delhi; Madhya Pradesh – Dewas; Kerala – Kozhikode and Ernakulam.
Related Feasibility Study Reports: Leather, Leather Goods and Leather Tanning, Finished Leather for Footwear and Leather Goods, Products, Industries, Leather Tannery, Leather Accessories
GROWTH DRIVERS
Large Millennial Population
The youth make up a third of the Indian population, and their increased focus on branded consumption is driving luxury footwear purchase.
Organized Retail Market in India
By 2025, the global retail industry, which expanded to $ 0.7 trillion (Tn) in 2019, is predicted to surpass $ 1.1 trillion (Tn).
Availability of Manpower
With 62 percent of the population in the working age category of 15 to 59 years, the workforce is young and well-trained.
INDUSTRY TRENDS
Leather is a Champion Industry: Under the ‘Make in India’ programme of the Hon’ble Prime Minister.
Production Development Centers By 2020, Mega Leather Clusters (MLC) will be in place.
Possibility of Creating Export Units: Leather, footwear, and leather products exports totaled $4.03 billion in 2020-21.
Some Useful Links:
Government Ministry/ Department
Industry Scenario
- Indian Finished Leather Manufacturers and Exporters Association
- Indian Footwear Components Manufacturers Association
- Indian Leather Products Association
- Indian Leather Technologists’ Association
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