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Leather Pipeline - Footwear needs to step up for sustained leather recovery
07 October 2020

The latest in our Leather Pipeline series of exclusive, dedicated market intelligence reports appears in the October 6 issue of  Leatherbiz Weekly.



It confirms that there has been a continuation of the recovery in leather demand that we have reported in recent weeks. However, it insists that this is insufficient and that only a genuine revival in demand for side leather among the footwear manufacturers of the world will be able to provide confirmation of “a healthy new cycle”.

It explains, as previous issues of the report have done, that the recovery started in China. Economic recovery there is further advanced than in most regions and Chinese tanners have taken advantage of low raw material prices and of consumers’ return to the shops to increase their consumption of hides and their output of finished leather.

In addition, there has been a wider increase in demand for automotive and furniture upholstery leather. But there has been no “big recovery of the material’s use” in footwear to date.

The Leather Pipeline report says it’s mostly for price reasons that some buyers are investing in leather, but it says this could provide a platform for a more sustainable recovery.

It warns, however, that what it describes as exaggerated reports of high demand for hides could tempt meat companies to try to put the price of the raw material up too much too soon and put leather’s fledgling recovery in jeopardy.