7 Sep 2022

Our latest Leatherbiz Market Intelligence report is now available for subscribers to read in the Intelligence section of the website.



With the summer holidays over, leather industry representatives in Europe and beyond are turning their attention to the Lineapelle exhibition in Milan (September 20-22), the report says.

At the event, a clearer picture will emerge of the genuine mood in the indusrty and of the prospects for growth in demand for leather among finished product manufacturers and brands.

Lineapelle aside, the report’s assessment of the market situation is that furniture’s fortunes are falling, after two strong years, fuelled by consumers’ desire to invest in interior decoration during covid-19 lockdowns.

Market Intelligence says most in the industry who are searching for signs of optimism are focusing on automotive, but it warns that, while car manufacturers are presenting a positive picture for production in the closing months of this year and beyond, the big increases are unlikely to be among higher-end vehicle models. It is these cars, in Europe at least, that consume large quantities of leather.

The report reasons that production at this higher end of the automotive market never suffered much of a slow-down in Europe, meaning growth opportunities are more limited.

Demand for these expensive cars has declined in China, it continues, and, although there are few signs, with ongoing covid restrictions of this market picking up soon, there has been better news from makers of electric vehicles in China. Here, there is growth. And domestically produced electric vehicles in China, including those made by Arcfox (pictured) are much more likely to have leather in the interior than those made overseas.

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