The production of leather products in South Korea witnessed fluctuating trends over the past years, starting with a gradual increase from 2013 to 2015, peaking at 12.558 trillion KRW in 2015. This growth trend reversed from 2016 onwards, with a sharp decline in 2017, dropping by 19.51% year-on-year. The sector experienced some stabilization between 2018 and 2019, with slight upticks, but the impact of the COVID-19 pandemic caused a significant decline in 2020 by 17.43%. A bounce-back occurred in 2021 with a 19.87% increase, only to slightly decrease again by 0.49% in both 2022 and 2023. The market stood at 9.1084 trillion KRW in 2023.
Looking ahead, the forecast predicts a continued gradual decline in the production of leather products. With the projected year-on-year variations ranging from -0.42% to -0.49% and the forecasted 5-year CAGR standing at -0.42%, the sector is expected to shrink modestly to 8.8717 trillion KRW by 2028. This represents an overall decline of 2.06% from 2024 to 2028.
Future trends to watch for include potential shifts in consumer preferences towards sustainable and ethically produced materials, the impact of technological advancements in material sciences, and possible regulatory changes favoring eco-friendly alternatives that may further influence the leather goods industry.
