The USA is a huge market when it comes to wholesale leather products. In this global fashion hub, you’ll find a growing number of consumers who are always looking for better quality and the latest trends in the market. The appeal and durability of the leather goods make them an excellent product for the wholesale market. Like all previous years, you’ll see that the demand for wholesale leather goods is consistent in 2024 too.
With a recent shift towards sustainability, there’s a rise in consumer demand for custom-made and unique leather goods. This era of e-commerce expansion offers both challenges and opportunities for wholesale leather goods suppliers, and if you’re one of them, this article is for you. You must stay ahead of the trends and understand the latest opportunities to succeed.
In this article, we’ll have a detailed understanding of the trends and opportunities of the wholesale leather goods market in 2024. So, without further ado, let’s begin!
An Overview of the Wholesale Leather Goods Market in the USA
According to the latest data by Grand View Research, the U.S. leather goods market size in 2023 is estimated at $50.08 billion. It’s growing at a fast pace and is expected to reach $52.32 billion in 2024.
There are several factors that contribute to the growth of the USA wholesale leather goods market. These include:
- Better living standards
- An increase in disposable income
- A rise in fashion choices and evolving trends
- Growth of international and local tourism
All these factors grow the demand for luxurious leather accessories, apparel, and footwear. The Grand View Research’s report says that the growth rate from 2024 to 2030 is 6.5% and is expected to reach $76.53 billion by 2030.
Image source: The Brainy Insights
Wholesale Leather Goods Market Trends in 2024
You can’t sustain yourself in the business if you’re unaware of the wholesale leather goods market trends. To stay ahead and up to date, you need to know that the leather wholesale goods market is now focusing on the following:
Sustainability and Eco-Friendly Leather
When customers look for leather products, their primary focus has shifted to sustainability. When the user focuses on sustainability, then the manufacturers should do the same. This trend has forced manufacturers to adopt more eco-friendly processes, such as vegetable-tanned leather or sourcing products from suppliers that ensure their products are made considering ethical practices.
So, manufacturers or suppliers providing sustainable leather products will benefit from this changing trend towards sustainable leather.
Customization and Personalization
It’s an evergreen trend and will flourish in 2024 for the wholesale leather goods industry too. You’ll see people looking for customized leather goods that reflect their styles. The trend overtakes the market as monogrammed wallets or custom-made handbags. The demand is going to increase in the future.
You can’t ignore this when selling your products in the market. You can make custom leather products yourself or connect with manufacturers that allow for personalization to acquire more sales and attention of the customers.
E-commerce and Omnichannel Strategies
E-commerce is now growing at a fast pace, and there’s no sign of slowing down. With this changing trend, you must be a manufacturer who can embrace omnichannel strategies to provide a more user-friendly shopping experience. For this, you should try selling through marketplaces like Amazon, using social media platforms, and making a well-designed and optimized website for your business.
Technological Advancements
Like every sector, you’ll see technology affecting the wholesale leather goods market too. Innovations like 3D printing make it easier to create prototypes and offer customization. Moreover, the recent logistics and inventory management software advancements will help streamline processes and reduce costs.
Shifts in Fashion Trends
Fashion trends don’t remain the same always and staying ahead of the trends is important for your success in the wholesale leather goods market. You need to understand that there is a recent shift towards minimalism, practical, functional items, and gender-neutral products. To be updated with the shifts in fashion trends, you should closely monitor the fashion industry to provide what consumers are looking for.
Opportunities for the Importers and Wholesalers For Growth
To stay ahead of your competitors, you can’t miss the opportunities for growth in the wholesale leather goods market. Here are some things that you can do to grow as an importer or wholesaler:
Collaborating with Sustainable Leather Producers
As the trend is shifting towards sustainable fashion, this is the time to find sustainable leather products if you want to grow yourself in the leather products market. To find sustainable leather producers, research online at various online forums. Then, reach the producers directly for more information about their environmental and ethical standards.
Private Label and OEM Production
If you want to make your own leather brand, the private label is a great opportunity for you. This allows you to have more control over design, quality, and pricing. OEM, the abbreviation for Original Equipment Manufacturer, production helps you to expand your products as you get the opportunity to work with established manufacturers.
Expanding into E-Commerce Markets
The digital marketplace is a huge market today and offers huge growth potential if you understand how to use it for your business. You should explore different social media platforms, and once you have the pros and cons of each place, select the one or more that will work the best for your products. Social media advertising is a powerful digital way to expand your business and reach more audiences to drive more sales.
Emerging Markets in the U.S.
If you’re targeting large metropolitan areas like New York and Los Angeles, you’ll have to deal with a competitive market space, too. Smaller cities and emerging markets also have great potential and are becoming increasingly important in the US regarding leather goods. In these areas, there is a need for quality products, and there is less competition. Hence, it’s easy to grow your leather goods business there.
Diversification and Innovation
With constantly changing trends, it’s important to offer diversification and innovation for every business to ensure success and stay ahead. Your business should be flexible enough to adapt to new trends to succeed in the evolving leather goods market. You might have to add new product categories, adopt advanced manufacturing techniques, or explore new materials to offer something new and unique to your consumers.
Understanding Consumer Behavior and Trends 2024
Source: Statista
According to Statista, the United States is the top market for luxury leather goods worldwide. That means the potential to grow your leather business here is huge, but this isn’t possible without understanding the consumer behavior or trends that will help you succeed in 2024. Some customers invest in leather goods; you just have to find the best way to pitch them so they trust your business.
In 2024, consumers primarily look for quality, durability, and sustainability when purchasing leather goods. They want their items to last longer, but they should also be sourced ethically. Personalization is another rapidly growing trend that you can’t skip.
You’ll find certain categories more popular than others and these include:
- Handbags
- Wallets and belts
- Footwear
So, try researching these products more to invest in them and build a profitable leather goods business in the US.
Another trending consumer behavior that you must understand is their shopping behavior. COVID played a huge role in shifting people from physical to online shopping, and they prefer online shopping even when COVID is gone. The ease of shopping online makes people more comfortable when it comes to shopping for their everyday leather essentials, so you can’t skip your online presence. You have to build a trustworthy and active online space to showcase your products and win more customers.
The physical marketplace is also important when customers purchase high-end products and want to see and feel the quality before purchasing. So, you need to choose one or both based on your products.
Challenges for the Wholesale Leather Goods Market 2024
To persist in the market, understanding the challenges for the wholesale leather goods market in 2024 is as important as understanding the opportunities. Some of the challenges that you’ll face in the wholesale leather goods market in 2024 are given below:
Supply Chain Disruptions
After COVID-19 is gone, the effects are still there. Global supply chain disruptions are still a major issue in 2024 due to logistical challenges and geopolitical tensions. In the US, too, sourcing raw materials and leather products from the international market has become a little hassle.
Before you step into the world of the leather goods market, you need to understand that the process can become challenging due to shipping delays, shortage of shipping containers, etc. So, you have to be prepared for this and take steps to efficiently supply leather products.
Rising Costs of Leather
Due to the recent shift towards sustainability, the cost of leather has increased. However, droughts, environmental challenges, and high demand for high-quality leather have limited the availability of raw hides. Due to the agricultural challenges in the major leather-producing countries, there has been a reduction in the supply of hides, leading to an increase in leather costs.
This rise in costs impacts the profit margins for wholesalers. Therefore, you need to find reliable souring agents and ways to ensure you provide high-quality leather products without compromising the profit margins.
Regulatory Compliance
Strict regulatory rules for labeling, product safety, and sustainability have affected the wholesale leather market globally and in the US too. U.S. businesses must comply with the Consumer Product Safety Improvement Act (CPSIA) and the Federal Trade Commission (FTC) guidelines on labeling and advertising, which can result in significant penalties for non-compliance.
International standards, such as those in the European Union or from leather industry bodies, also shape the global market. As the U.S. imports a considerable portion of its leather goods, you must ensure that your suppliers comply with international standards. Ensuring compliance increases costs related to testing, certifications, and auditing of suppliers, which can limit profitability and delay time to market.
Labor and Production Challenges
In 2024, the labor shortage in the manufacturing sector continues to impact leather goods production, especially in countries like China and India, major suppliers to the U.S. market. Skilled labor is required for many stages of leather goods production, from tanning to crafting finished products.
A shortage of experienced workers has led to longer lead times and increased costs as manufacturers struggle to meet demand. You need to discuss this with your suppliers before you order any leather products from them.
Environmental Regulations and Impact on Manufacturing
Environmental concerns are playing a huge role in shaping the wholesale leather goods market in 2024. The leather tanning process has historically been criticized for its environmental impact, particularly its heavy use of chemicals such as chromium. In response, governments and environmental organizations are pushing for stricter regulations on tanning methods and the environmental footprint of leather production.
In the U.S., leather goods wholesalers must comply with both federal and state-level environmental regulations that increasingly require more sustainable production practices. As consumer demand for eco-friendly products grows, businesses must either invest in cleaner, more expensive production methods or risk losing market share to more environmentally conscious competitors.
Don’t forget to discuss this too with your sourcing agent or supplier and ask them to provide you only greener alternatives, those made from chrome-free tanning processes or sourcing leather from certified sustainable suppliers.
Strategies for Success in the Wholesale Leather Goods Market in 2024
To succeed in the competitive marketplace, here are some strategies you can adopt for success in the wholesale leather goods market in 2024.
Building Strong Supplier Relationships
Your success in the wholesale leather goods market is directly connected with a reliable and sustainable supply chain. For this, you need to establish strong relationships with leather suppliers, manufacturers, and sourcing agents. This will ensure quality, competitive pricing, and consistency in providing high-quality leather products to your customers.
Long-term partnerships allow you to get better prices and exclusive products while reducing supply chain disruptions.
Leveraging Marketplaces like Amazon
The recent trend of e-commerce growth has revolutionized the way leather goods are sold. Now, online marketplaces, such as Amazon, offer a reliable and vast opportunity for wholesalers. By listing your products on Amazon, you can get a huge customer base while reducing the costs for the physical selling operations. To ensure your success on Amazon, remember the following tips:
- Always ensure to optimize your listed products with high-quality images, detailed descriptions, and relevant keywords.
- Use Amazon’s Fulfillment by Amazon (FBA) for prompt delivery and streamlining logistics.
- Never ignore Amazon’s advertising tools, such as Sponsored Products, to increase sales and enhance visibility.
Adapting to Market Trends
You can never win the marketplace while ignoring the leather market trends, especially in terms of sustainability and design. To stay competitive, you must stay ahead of the trends and adapt to the changing trends if you don’t want to lose your customers.
Using Data and Market Analysis
Today, the world has changed into a data-driven space, and making informed decisions is essential for you to stay ahead in the wholesale leather goods market. By using data analysis, you can better understand customer behavior, identify emerging trends, and optimize product selection and pricing strategies.
To have more detailed insights, you can invest in tools that provide real-time market analysis and help you identify new opportunities. When you have a comprehensive understanding of the marketplace, you can make better decisions, ensuring long-term success in the constantly evolving leather goods market.
How to Sell Leather Goods in the USA Better?
To sell leather goods in the USA better, you need to follow all the strategies mentioned for success in the wholesale leather goods market. When you follow these strategies, remember that success comes with consistency. Therefore, to see the results of your effort, adopt a never-giving attitude for your leather goods business.
To achieve excellence, you can also connect with experts in the field to help you navigate the process. According to recent statistics, China is now the biggest supplier of imported-quality leather goods and had a $1.6 billion import value in 2023. The market is still expanding and will grow more in 2024. To better understand the shipping cost from China to the USA, click here!
Better selling begins with better sourcing. If you import high-quality products, you will be able to get a good customer base. Now, finding a reliable souring agent is a hassle, but not anymore because I have it covered for you.
You can trust bagsplaza for all your leather product sourcing needs. As a leading factory in China with 5 dedicated production lines, Mherder has successfully assisted thousands of wholesalers worldwide in importing high-quality leather handbags, wallets, backpacks, and more. Our comprehensive business model includes B2B wholesale, OEM, and private label services, catering to the purchasing staff of large companies, fashion buyers, distributors, and Amazon sellers alike. With a committed team and a focus on customer satisfaction, all your questions will be actively addressed before you source through us. Visit us at bagsplaza.com and experience seamless sourcing today!
