The latest in our Leather Pipeline series of exclusive, dedicated market intelligence reports appear as part of the September 22 issue of Leatherbiz Weekly. It says there can no longer be any doubt that a recovery in the leather supply chain is now taking place.
“A recovery in demand is absolutely in place,” the report says, “and companies that want to meet this demand are having to ramp up production and their raw materials purchases.”
It goes on to make it clear that, as previous positive notes have hinted, this recovery is being driven by demand for upholstery leather in automotive and in furniture, while side leather production is still slower than everyone in the leather industry would like (because footwear is still the most important segment).
A second caveat comes in the shape of a warning that the recovery may be driven more by cheaper prices for finished leather than by a far-reaching rediscovery of leather’s appeal on the part of finished product manufacturers, brands and consumers. If prices go up again too severely and too abruptly, the new-found enthusiasm could prove to be short-lived.
However, if tanners and raw material suppliers manage the rebound well, further progress could follow.