20 March 2024

China Leather Industry

As the largest producer of leather by volume, China is a key market for the export of cattle hides, semi-finished and wetblue leather to feed its production lines.

It exports and imports billions of dollars of raw materials and finished products but at the same time has not been immune from recent global events such as the pandemic and, more recently, the economic impact of the conflict in Ukraine.

Despite maintaining study GDP growth of 5.0% – 5.5%, this has not prevented the leather industry from declining.

The China Leather industry Association (CLIA) charts the reasons for this decline in 2023 in a speech given by the CLIA Vice Chairman, during the ACLE press conference for the 2024 event held at midday on Day 2 of APLF.

The speech covers the volume and value of the production of leather, leather footwear, bags, and garments as well as the export performance of each category.

The internal demand side of the equation is also dealt with including comments on the strong performance of the domestic auto sector. China new car buyers are more likely to prefer leather seating in their NEV’s than their western counterparts, according to the report.

The report is not overoptimistic but predicts steady recovery in the fortunes of the China leather sector since the footwear and garment sectors have already “hit bottom”.

This is a must-read for companies interested in doing business with China.

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