Strong Outlook for Luxury Leather Points to Bio-Based Solutions

Key Takeaways

  • 1. With luxury leather goods projected to grow 4-6% annually through 2027, bio-based leather presents a timely opportunity for brands to differentiate with sustainability and innovation.
  • 2. Consumers are seeking novelty, ethical craftsmanship and verifiable sustainability, making next-gen materials a strategic investment for brands looking to build trust and long-term loyalty.
  • 3. The story behind bio-based leather—rooted in innovation, sustainability and craftsmanship—resonates with modern luxury buyers who value meaning and quality in their purchases.
Despite a wider slowdown in the luxury market, leather goods continue to have bright prospects as a category.

According to the 2025 State of Fashion, Luxury report (subscription required) by Business of Fashion and McKinsey & Co., luxury leather goods are on the rise, and are “poised for the fastest growth at 4–6% per year between 2025 and 2027”. The report cites enduring demand for investment pieces as a purchase driver.

 

The jewellery category has an equally strong outlook and together the two groups are predicted to be the most resilient product category through 2027. Out of all categories, the two grew the fastest in the 2019 to 2023 period. The strong growth was driven by price increases and demand for iconic products, particularly in leather goods.

A Good Time To Go Bio

Luxury brands are exploring ways to balance volume growth with sustainability and exclusivity. At Alt. Leather, we think this represents an ideal opportunity for brands to implement novel and sustainable materials like our 100% bio-based leather. Furthermore, the report highlighted consumer concerns about (un)ethical supply chains and the environmental impact of luxury goods, further enforcing the chance for bio-based leather options to emerge as a multi-faceted solution that tackles environmental, ethical and quality concerns.

Investing in 100% bio-based leather alternatives taps into a lucrative segment while offering a point of differentiation.

Not the Same Old Story

The report also highlighted that storytelling, and the new-found popularity of experiences, have a renewed importance in attracting luxury customers, who are looking for deeper meaning in their purchases. 

 

Bio-based leather is rich with storytelling possibilities that circle themes of innovation, sustainability, ethics and craftsmanship. Naturally, we’re biased, but could there be anything more exciting than a 100% bio-derived product designed from inception to have a super-low impact? A new type of material that has gone through thousands of iterations to become its best version; that has taken bright scientific minds and visionary entrepreneurial spirits to create; and that is made from 100% biological inputs, zero animal products and zero petroleum plastics, and yet is as beautiful and durable as the finest traditional leathers? 

 

We think the story behind bio-based leather makes a compelling narrative for luxury buyers. But are they willing to buy novel materials? Research elsewhere shows they are. According to a 2023 study by North Mountain Consulting Group for Material Innovation Initiative 92% of U.S. consumers are open to buying next-gen materials, “including 51% who were somewhat/moderately likely to purchase and 41% who were very/extremely likely to purchase,” the report noted.

Current Consumer Tastes

The report also noted consumer scepticism around greenwashing. We believe brand engagement and investment in 100% bio-based leather alternatives with transparent LCA data would demonstrate genuine sustainability efforts, therefore enhancing customer trust and loyalty. 

 

While the Business of Fashion report found that on average, sustainability is only an important purchasing factor for 50% of luxury consumers, there is a growing desire for novelty and attention to quality, the latter coloured by concerns around ethical craftsmanship. Bio-based leather ticks the box for innovation, ethical manufacturing and quality.

The Bio Opportunity

With luxury leather’s projected annual growth of 4-6% between 2025 and 2027, investing in innovative leather alternatives taps into this lucrative segment while offering a point of differentiation.

Alt. Leather is poised to satisfy luxury’s appetite for leather with sustainability and style. Get in touch to join us in shaping luxury leather’s future.

    Follow

    Ready to start your
    Alt.future








      Copyright © Alt.leather 2024