14 March 2024

Leatherbiz Market Intelligence - Production capacities may have to reduce

Our latest Leatherbiz Market Intelligence newsletter went live on March 12 and is available here.

This time, the report suggests that the contrast between the leather industry’s situation in Europe and in Asia is becoming greater.

In Asia, low hide prices and production costs have helped create an environment in which leather manufacturers serving the retro-loving athletic footwear market, the furniture sector and clothing brands are seeing a surge in demand.


Meanwhile, in Europe, the newsletter says, leather producers may have advantages in delivery times, reliability, creativity, transport costs, carbon footprint, smaller batch sizes and, above all, flexibility, but they are struggling to make these pay. It says: “The paradox is that politics and the self-imposed certification and regulation mania in Europe [are] hindering the entire supply chain and may make it impossible to continue.”

Its conclusion is that, sooner or later, the low level of “capacity utilisation rates” that many leather manufacturers in Europe are experiencing will have their consequences. If orders continue to fall short of production capacity in European tanneries, those capacities will have to reduce, it says, adding: “We have to accept the economic reality.”

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