The latest edition of Leatherbiz Market Intelligence went onto the website on May 11. This time, the report focuses on what lies ahead in the autumn. It makes it clear that when it comes time for the next round of discussions about what materials will go into new collections of furniture and other finished products, leather faces a tougher time than in 2020.
Price is the key, naturally. Low prices last year encouraged something of a boom in leather furniture, but when discussions start up again this September, finished leather prices are likely to be substantially higher.
Our exclusive report says that the cost of wet blue from contract tanners in China has increased by 200% compared to last year. Raw material prices have doubled, chemical costs are between 25% and 50% higher, and transport charges are about 100% more than they were.
It points out that the manufacturers of alternative upholstery materials also face difficulties in keeping their prices down, but it will take hard work to convince brands to invest in leather in the same way as they did in 2020.