22 Sep 2022

We published the latest edition of Leatherbiz Market Intelligence on the website on September 20.

 

 

With the September edition of the Milan fair now under way in Milan, our report this time speculates that it could be the scenario for “a turning point in the raw materials market”.


The thinking behind this is that cost increases for labour, chemicals, transportation and, of course, energy that we have seen in recent months would be enough to cause a 30% increase in the cost of leather. The report makes it clear that this would be the figure even if hide prices stayed exactly the same.


If the price of leather were to increase by 30%, it would hurt the material’s chances of remaining popular in the all-important, price-sensitive mass market for consumer goods, Market Intelligence says, adding that the luxury sector is a world apart.


It claims that a cushion will be crucial to prevent tanners from putting prices up by so much that it puts the middle market off. This cushion can only come from a fall in the price of hides and this is the turning point it believes may emerge.

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