Several key factors underpin the demand for imported leather across ASEAN countries:

• Rising Middle Class: As incomes rise, so does the demand for premium and branded leather goods, especially in urban centers.
• Growth of Footwear and Garment Industries: ASEAN is a global hub for footwear and apparel manufacturing, necessitating consistent and quality supplies of leather.
• Automotive Sector Expansion: The proliferation of car ownership and assembly plants increases demand for automotive-grade leather for seats and interiors.
• Tourism and Hospitality: Growth in hotels and restaurants leads to increased demand for leather furniture and décor.
• Inadequate Local Supply: Not all countries possess sufficient livestock or tannery capacity to meet domestic demand, making imports essential.

Leading ASEAN Importers of Leather

Among ASEAN nations, four countries stand out as the leading importers of leather: Vietnam, Indonesia, Thailand, and Malaysia. Their import patterns, key trading partners, and market drivers are discussed in detail below.

Vietnam
Vietnam has rapidly ascended as a global manufacturing powerhouse, particularly in footwear and leather goods. Major international brands such as Nike, Adidas, and Puma have established production bases in the country, fueling the need for high-quality imported leather.

• Import Profile: Vietnam imports substantial quantities of raw hides, wet blue leather, and finished leather, predominantly for footwear and fashion accessories.
• Key Suppliers: The main sources are the United States, Brazil, Italy, South Korea, and India.
• Industry Focus: Over 1,500 footwear factories operate in Vietnam, mainly in the south, creating a robust and consistent demand for leather imports.
• Trends: Vietnam’s imports are characterized by increasing demand for sustainable and traceable leather, driven by the requirements of global fashion brands and export market regulations.

Indonesia
Indonesia’s leather sector caters to both domestic consumption and export-oriented manufacturing. The country’s large population and thriving middle class support robust demand for leather goods.

• Import Profile: Indonesia imports both raw and finished leather, with an emphasis on hides for processing and finished leather for footwear and upholstery.
• Key Suppliers: Australia, the United States, and Italy are among the top suppliers.
• Industry Focus: The footwear industry is a major driver, along with furniture and automotive sectors.
• Trends: There is growing interest in innovative leather alternatives and sustainable processing due to environmental concerns.

Thailand
Thailand is renowned for its high-quality leather manufacturing, servicing both export and domestic markets. The country also acts as a regional hub for luxury goods and automotive assembly.

• Import Profile: Thailand imports wet blue, crust, and finished leathers, as well as specialty leathers for the automotive and high-fashion sectors.
• Key Suppliers: Import sources include Italy, the United States, and China.
• Industry Focus: Thailand’s leather industry is diversified, with significant activity in footwear, handbags, automotive interiors, and furniture.
• Trends: Demand for luxury and branded leather goods is rising, with increasing imports of exotic leathers for the high-end market.

Malaysia
Malaysia’s role as a major importer is underpinned by its developed manufacturing sector, strategic location, and well-established export links.

• Import Profile: Malaysia imports raw hides, wet blue, and finished leather to supply its domestic manufacturing sector.
• Key Suppliers: The United States, Australia, and Brazil are primary sources.
• Industry Focus: The country’s industries include footwear, automotive upholstery, and high-quality apparel.
• Trends: There is an emphasis on sourcing premium quality leather and adopting technologies for eco-friendly processing.