The global leather goods industry is forecast to reach revenues of $91.2 billion by 2018, according to a recent study.

The report, conducted by Research and Markets, claims the sector is set to see a CAGR of 3.4% over the next five years, consistent with rising demand for leather goods.

Due to the large number of players in direct competition for market share, competitive rivalry is at an all-time high with new design and innovative leather products driven by changing lifestyle and fashion trends.

Tracking two market segments across four geographic regions, the study provides an overview of the industry, as well as a focus on manufactures of products and accessories such as briefcases, suitcases, business cases, travel bags, jackets, wallets, purses and belts.

Also included is a five-year annual trend analysis, highlighting market size, profit and cost structure for North America, Europe and the APAC and ROW regions.

Despite its rude health, the industry faces some prevailing challenges. These include the rising input costs of raw materials, which have severely impaired profit margins, in turn reducing the industry’s gross dividends.

There has also been a rise in research and development activities in developing countries geared towards expansion, as well as growth and capital expenditures for business expansion, increasing the overall debt found across the industry.

It is hoped the study will provide industry leaders with competitive benchmarking of the world’s top five retail drug companies, while providing up-to-date information on the market share, profit margins, capabilities and strategies.

Moreover, it provides the tools needed to successfully drive and align critical business decisions with these emerging trends, requirements and the market’s overall potential.