• Great uncertainty remains in the tariff situation
• The distortions are so extensive that no one can really escape unaffected
• Another topic that is keeping everyone busy is the European Union Deforestation Regulation (EUDR)
• There are threats that third countries will raise a case at the World Trade Organisation against the European Union over EUDR
• This threat is serious and perhaps ought to lead to EUDR, once again, being postponed or even cancelled
• There are two reasons why postponement and cancellation are unlikely to happen
• The European Commission has already lost face over EUDR and will not want to lose face again
• Secondly, there are large corporations that will be able to comply with EUDR and see this as a competitive advantage (because many others will not be able to comply) and have every interest in capitalising on it.
MARKET INTELLIGENCE
The holiday season in Europe has reached its peak. This means that hardly any leather-related factories will be open for the next two weeks. There is no such thing as a traditional summer holiday in Asia, which is why almost all eyes are on possible activity there. However, there is also relatively little to report from there, and really only that people are racking their brains as to how best to react to US tariff policy.
If you look at the movement on the raw materials markets, Vietnam remains one of the main centres for leather and shoe production, alongside China. Even if the tariffs place a burden on imports from Vietnam to the US, hides exported from the US to Vietnam are cheap. This means that part of the tariffs that are then levied on shoes and other finished products are ‘paid’ by US livestock farmers, who are currently receiving less for their animals than they hoped owing to lower returns from slaughterhouses for hides. In the overall calculation for the cattle, this is not of decisive importance, but the fact remains.
As already discussed in our last issue, China is focusing much more on the importance of the domestic market, because this is where one can see greater leverage for the leather industry at the moment. Of course, this does not mean that exports are not important and, for many products, the capacities from China cannot simply and immediately be replaced elsewhere. Nevertheless, the shifts to the Indian subcontinent and even Turkey cannot
be ignored; everything can still be turned upside down by the tariff disruption.
The latest tariff announcements for Brazil also sent shockwaves through the leather supply chain. A tariff of 50% on goods from Brazil will close many doors for Brazilian products in the US market and put an end to the idea that Brazil could be a substitute supplier and production country to replace China.
A 25% tariff announced for goods from India could also have a significant impact on leather products. The last word has not yet been spoken on this matter; the tariffs in this case (as in others) have a political rather than an economic background.
For its part, the EU has concluded a tariff agreement with the US and opinions differ widely as to its impact and quality. At first glance, the 15% seems a rather low rate compared to others, but here too, products that use leather could also be hit hard. The agreements have not yet been signed and who can say at the present time whether what is being celebrated in the media as a major event will actually be finalised.
It is therefore relatively easy to summarise that, with regard to the problem of tariffs for the US market, all we know at the moment is that in reality we know nothing. Such a situation is not very helpful at a time when the demand for leather products and the use of leather is under severe pressure anyway. This is still a very cautious formulation of the situation. In addition to the direct influences on and for exports of leather products from
TUESDAY, AUGUST 05 2025
many countries around the world to the US, the planning uncertainty is also an extremely large burden for all those involved.
Only those who either source few or no raw materials from the US or export few or no finished products to that market can take a more relaxed view of the general chaos. However, the distortions are so extensive, even in indirect form, that no one can really escape completely unaffected.
In recent weeks, many publicly listed companies have published their results for the second quarter and for the first half of 2025. The results were not particularly positive for the leather industry. European car manufacturers reported massive declines in turnover and profits and, as we all know, the use of leather has not been spared. The order situation at leather factories has been unsatisfactory for many months and this has now been confirmed once again by the figures. Publications and forecasts in such times of crisis must always be viewed with particular caution. Management boards are forced to strike a very fine balance between reality and optimism.
One thing was clear from the announcements: a rapid improvement in the situation and thus also an increase in sales and production of vehicles that are (still) equipped with leather is hardly to be expected. This means that the European automotive leather industry is unlikely to see a rapid, noticeable recovery in demand. At this point, however, we should briefly mention that we have received somewhat better news from China and that many of the major manufacturers are still using leather in their interiors. We would also like to refer back to our last issue, in which we were able to report that, when in doubt and with a reasonable price difference, Chinese customers still prefer leather to plastic.
The situation was not much better for luxury goods manufacturers. There were rays of hope, or at least one, with Hermès. But even there, there is talk of a deteriorating environment, if you read the statements correctly and know that material planning for the last quarter is being handled much more cautiously. By contrast, things looked bad for the other major groups. Declining sales and earnings, and as there is nothing more poisonous for exclusivity and luxury than failure, everything possible is being done to put the situation in perspective. A difficult task. Plans have been made, sales are not keeping pace with production, price increases have not been able to compensate, ‘noiseless’ solutions have to be found for unsold stocks of finished products and, in view of the
general situation, a strong brand is no longer believed to be a recipe for quick success. Instead, there is a fear that it is no longer possible to sell everything as luxury at top prices simply because a lot of money is spent on designers, models, advertising and store locations. It is possible that customers today demand much more than bling. Truly successful brands and their values are synonymous with eternity and must not exude the odour of transience, which unfortunately many do today. Just look at the development of materials and manufacturing. What was once craftsmanship in everything is now often an industrial commodity. Given the importance of this sector for the leather industry, the next few years will be very important. Simply buying tanneries has not and will not be enough to build on the success of the past.
As is well known, little has happened on the markets in recent weeks and the motto is ‘wait and see’. What else could you do in this
phase of uncertainty, given that the holidays came at exactly the right time?
We can skip the splits and skins segments at the moment. Despite reduced supply, we are also hearing rather negative news from the split market. Intense competition for orders is also leading to price wars here, which are coming at the wrong time.
Otherwise, the European Union Deforestation Regulation (EUDR), which is due to come into force on 1 January 2026, has kept us busy again in recent weeks. This dangerous and, for many, potentially deadly monster that was created in Brussels is now said to have become a peaceful, cute little lapdog, suitable for petting and cuddling. At least this is what the European Commission seems to believe. We would not advise anyone to rely on this. They could find themselves still bitten or even eaten by the monster faster than they would like.
Without going into the details, which everyone who considers themselves affected
Excellent –Bisphenol optimized syntans to achieve high leather quality
must do anyway, it is worth considering the risk that third countries could take the zerorisk status of EU countries to the World Trade Organisation. It is almost certain that the EU will be sued by the WTO for distortion of competition. For this reason, EUDR will have to be stopped or suspended again. This is not because of the relatively insignificant leather supply chain, but because there are other areas and products in which the consequences cannot yet be fully assessed. Many regulations for finished products do not yet reflect reality at all. We should not even talk about monitoring and actual implementation. A regulation and law can only be applied if it can be monitored and complied with. There is no need to talk about the sense or nonsense of a law under these conditions.
But there are two important reasons why EUDR may not be abolished or suspended again. Firstly, the European Commission cannot lose face again; this would suggest, once again, that while the Commission wants a lot, it seems able to do little properly and in a sensible way. Secondly, there are now large corporations that are convinced that they will only be able to comply with EUDR requirements at great expense and effort. They will be able to put in the effort and carry the expense, but they know that many of their competitors will not. Therefore, they see EUDR compliance as a competitive advantage and have every interest in capitalising on it. They do not want the effort they have put into the preparations to be in vain.
We must expect the wait-and-see phase to continue over the next few weeks. On the one hand this is because of the holidays and on the other, of course, it is because of the general uncertainty caused by tariff policies. This is not just about the question of which customs duties will be levied on the end product, but also the many other influences, such as the question of energy costs, supplies and prices for chemicals, and so on. These will also have an impact.
However, it is also true that all of this affects all sectors and not the leather industry alone. The influences are so complex that it is hardly possible at present to make a final evaluation of the consequences. However, one issue, and perhaps the most important of all, remains completely unaffected: the question of how and in what form the use of leather as a material can be revitalised. Without this, all other issues may be important to individual companies, but do not change the main difficulty, which is that leather has lost market share. Any further hindrance and impediment that the decisions of the European Commission and other organisations cause will do nothing to support interest in leather, at least in Europe.
US PERSPECTIVE
Sales of cured cattle hides for the period ending July 24 were 252,400 pieces. The figure for exports of wet blue was 146,600 pieces.
The most recent reports on hide prices showed Colorado branded steer hides weighing 62-64 pounds down in price at an average of $12 each, and heavy Texas steers weighing 60-62 pounds still at $11 per piece.
Cow hide prices were unchanged, showing northern dairy cows at $12, south-west dairy cows at $11.50, northern branded cows at $4 and south-west branded cows at $3, with weights of 50-52 pounds in each case.
The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.
Cattle markets USA
Processors will attempt to capitalise on the shortened supplies of product created by two weeks of slaughter below 550,000 head. Retailers will begin to build inventories for the Labor Day holiday (September 1). Cattle owners will try holding onto their trade leverage to push cash prices higher. The testing ground will be at the retail counter when consumers are presented with higher prices and forced to choose between competing meats.
Trade prices moved forward last week despite the rout in the futures. In the south the bulk or earlier trade at $235 turned into $236 later in the week, and in the north live trade at $245 turned to $247. These prices were $3-$5 higher. The bulk of dressed sales were reported at $385, which was $5 higher. Box prices moved higher, led by the choice cuts. This follows a $30 decline in the cut-out during July.
Corn prices moved lower this past week. The southern plains will feature a bumper crop this year. Elevators are lowering the fall basis in anticipation of a large corn crop, but raising the current basis on the spot month. Corn basis levels in Guymon, Oklahoma, are at $1 above the September contract.
GERMAN PERSPECTIVE
This week: We cannot remember a summer with so little activity. This is certainly due in large part to the fact that the market in China is still closed to us, but that is really only part of the current situation.
As already noted several times in previous issues, European tanners have now finally gone on their summer holidays and it remains the case that it can almost be seen as an escape so as not to have to deal with business for a few weeks. Of course, this will not apply to everyone, but for most the problem of insufficient orders remains acute and no solution is really on the horizon for the coming months.
The latest news from the European automotive industry may not have been a surprise, but it was no cause for hope either. The situation was similar for most of the major leathergoods brands, which, with very few exceptions, were unable to report satisfying sales. These are all just the companies that have to publish their business performance. For the others, the real situation remains
Actual Slaughter Under Federal Inspection
hidden, at least for those who do not have direct access without a direct business relationship.
One thing can probably be said without much exaggeration: There are not many positive voices to be found at the moment. What consequences this will have and how things will continue for the rest of the year after the holidays will probably only become clearer in the course of September. As this is the case, there is no really significant
information to provide at the moment. The necessary orders and deliveries have been agreed in the last few weeks without planning more than the bare essentials for the restart after the holidays. In all cases, however, it can only be described as a basic supply. However, due to the low level of slaughter, it is not particularly significant at the moment.
Even without being able to export directly to China at the moment, the markets in Asia are showing little activity at the moment.
High-quality hides are being sought, but the price expectations of interested buyers simply cannot be realised. In the case of standard types, if there is any interest at all, it is all about the price. Even then, people are really only looking for exceptional ‘special offers’. In this environment, one should assume that this would exert additional pressure on prices. However, this is not the case at the moment, so the reduced activities are dragging on more or less unchanged.
The kill: There is no news to report on the slaughter side. The volumes are low, but normal for the summer. Prices for live cattle are crumbling somewhat, but this is not at all surprising after the sharp rises of recent months. The realities on the beef market will only become apparent after the summer and the possible changes in the meat industry in Germany may also play a role.
What we expect: The All China Leather Exhibition will take place in Shanghai at the beginning of September, and one gets the
impression that the number of visitors and international exhibitors will probably be significantly reduced this year. Many seem to be deciding very late. In short: without any surprising activities in the near future, there will be no changes.
LONG READ
Leather and the Circular Economy: Circular Stories
Behind the leather golf glove
The precision with which gloving leather producers go about their work lets golfers feel the difference.
The concept of the circular economy is gaining momentum across a range of
industries, and the production of leather for golf gloves offers a clear example of how this thinking translates into practice. Golf itself enjoyed a resurgence during the covid-19 pandemic, as players sought outdoor activity with space for fresh air and social distance. This renewed enthusiasm led to increased demand for equipment – not just clubs and balls but also gloves, which play an essential role in grip and control. At the top end of the market, leather, specifically Cabretta leather, remains the preferred material, prized for its feel, durability, and performance.
But there is more to Cabretta leather than sporting function alone. Its story illustrates the principles of resource efficiency and value retention that underpin the circular economy. Cabretta leather comes from the skins of indigenous hair sheep – animals that are not farmed for their skins, but primarily for meat. The leather is a by-product, ensuring that nothing from the animal goes to waste and that maximum value is extracted from each animal raised.
These hair sheep are well suited to dry, challenging environments. In Africa, countries such as Ethiopia, Nigeria, Chad, Mali, and South Africa have the largest populations, while in Latin America, Brazil and Mexico lead the way, with breeds such as the Santa Ines and Pelibuey. Other nations, including Colombia, Venezuela, and Peru, maintain substantial numbers of Criollo hair sheep, descended from African stock, and adapted to tropical conditions.
This production system, typical of most leather supply chains, where skins are a byproduct of meat production rather than the primary reason for raising livestock, offers clear sustainability advantages. It ensures that valuable raw materials are not wasted, reduces environmental impact, and supports the economic viability of rural farming communities.
In addition, recent research has highlighted a further potential benefit. As climate change accelerates, hair sheep may play an increasingly vital role in global food production. These animals are more resilient than most other livestock, showing a greater tolerance for heat stress and limited feed resources. Their ability to grow and reproduce under such challenging conditions suggests they could help safeguard supplies of animal protein in a warming world, reinforcing their importance within integrated and sustainable agricultural systems.
For the leather industry, Cabretta represents more than just a high-performance material for premium golf gloves. It is also a quiet success story of the circular economy in action: a material that delivers function and quality but also fits into a system where resources are used efficiently, and environmental impacts are kept in check.
Livelihoods and local value
The name “Cabretta” is a nod to the Spanish word for goat – Cabra – though the leather itself comes from hair sheep, not goats. These sheep are different from wool sheep: they have smooth coats rather than fleece, and
Ox/heifers
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their skins are naturally thin, fine-grained, and supple.
That makes them ideal for leather goods where feel, fit, and flexibility matter - such as gloves.
Ethiopia is one of the world’s largest producers of indigenous sheep, with almost all of its 42.9 million sheep belonging to native breeds that have adapted over centuries to thrive in the country’s diverse environments. Raised mainly by smallholder farmers across the highlands and lowlands, these sheep – alongside goats and cattle – are an essential part of Ethiopian culture, rural life, and the national economy, particularly in regions where crop farming is unreliable. They provide meat, income, and, importantly, their skins – a valuable material that would otherwise go to waste. The supply of skins flows through a complex and far-reaching network of traders that extends deep into every region of the country. Broadly speaking, Ethiopia’s sheep fall into two main categories: Highland and Lowland breeds. Lowland sheep are often black- headed and tend to have a woollier fleece compared to their Highland counterparts.The livestock sector contributes around 12% to Ethiopia’s total GDP, and more than 30% to its agricultural GDP. It also provides a livelihood for about 65% of the population, many of whom are small-scale farmers. For these communities, raising sheep is about much more than meat production: it’s a source of resilience and independence. Transforming the sheep skins into highperformance leather connects these rural producers with international supply chains. It brings income to regions that might otherwise be excluded from global trade and ensures that more value is extracted from every animal raised.
Why golfers still prefer Cabretta
So, what makes this leather so special on the course? According to Reg Hankey, former CEO of Pittards, a company with over 200 years of leather expertise, it all comes down to the “feel factor”.
“A glove is not just a commodity,” he explains. “It’s a precision tool. The tactile connection between player and club needs to be consistent, reliable, and almost invisible to the wearer.” Leather delivers on that better than any synthetic material.
Cabretta leather’s tight fibre structure makes it soft and pliable yet highly resistant to tearing or abrasion. Its ability to maintain grip without the player having to squeeze the club too hard is critical to preserving swing mechanics. That delicate balance between control and comfort is why top tour professionals continue to favour full-leather gloves.
From skin to stitch: the making of a glove
Turning raw hairsheep skin into glove leather is a meticulous process. It is tanned, shaved, softened, and inished to achieve a consistent thickness of just 0.45 mm with a tolerance of half the thickness of a sheet of paper (ie 0.45 +- 0.05mm). This precision
matters. Golfers can feel the difference if even one part of the glove is slightly thicker or stiffer than the rest.
Some of the biggest performance benefits come from advanced leather treatments. Pittards’ Stay Soft technology, for example, was introduced over 40 years ago and remains a key innovation. It helps gloves stay soft and grippy even after exposure to sweat and moisture – a common challenge for golfers playing in humid or rainy conditions.
Behind the scenes, manufacturing a glove is no less involved. Maria Bonzagni, former senior director of golf gloves at Acushnet Gloves and FJ Gear, spent 25 years overseeing the development of tour-grade gloves. She says a single glove involves about 30 separate production steps, from material inspection and die-cutting to stitching, shaping, and final quality control.
Each component, from the leather itself to closures and linings, is tested for colour, stretch, and consistency. Cutting patterns are tailored to different hand shapes, while the
Leather is a global business. Leather is a global business. More than 95% of US hides are than 95% of US hides are exported, with value added across with value added across the globe. A strong leather the A strong leather industry bene昀ts us all. bene昀ts us all.
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sewing process requires precise control of thread, tension, and stitch count to ensure durability without compromising feel.
Once assembled, the gloves are placed on heated forms to hold their shape, then tested for fit.
“Quality checks throughout the manufacturing process – and particularly the final size check – confirm and validate the glove before it ever reaches the package,” Ms Bonzagni explains.
Fit, function and sustainability
A well-fitted glove should feel like a second skin: snug but not restrictive, firm without being stiff. Fit affects everything from grip to confidence. A glove that shifts or sags can lead to discomfort, blisters, or erratic shots. When a leather glove fits properly, it gets better with age, stretching slightly to match the user’s hand and maintaining grip over many rounds.
Although synthetic materials are gaining ground for their durability and weather resistance, leather remains the benchmark for comfort and performance. Many gloves today use hybrid designs – Cabretta in the palm for feel, synthetic panels elsewhere for flexibility – but for purists and professionals, nothing beats a full-leather glove.
And with proper care, these gloves last. Stretching the glove back into shape after each round helps bring the natural oils to the surface, keeping the leather soft and extending its lifespan – another nod to circular thinking: invest in quality, take care of it, and make it last.
A global Journey with local roots
From small farms in Ethiopia’s highlands to the final stitch in a factory, the journey of a Cabretta leather golf glove is one of craftsmanship, science, and sustainability. It is also a powerful example of how the circular economy works in practice: making use of byproducts, supporting rural economies, and extending the life of natural materials through careful design and production.
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And our data-driven Life Cycle Assessment And our data-driven Life Assessment ensures leather is the most transparently ensures leather is the most studied natural material countering studied natural material, misinformation from oil-derived rivals ‘rivals’.
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As the golf industry continues to evolve, and as players become more aware of where their gear comes from, the humble glove might just become a symbol of what thoughtful sourcing and sustainable production can achieve. One round at a time.
Summer workshops took place in Portugal and Spain in July to help trainers, tutors, and teachers across Europe in their work to pass on leathergoods knowledge and skills to new generations of workers.
The two boot-camps took place as part of a project called Learning Factories. The
project launched in 2023 and will run until October 2025. Its main objective has been to upgrade the training process in the leathergoods sector in Europe and, through this, to help manufacturers attract and retain workers while giving them the skills required to support a “green and digital transformation” of the sector and increase its competitiveness.
Small and medium-sized manufacturing companies have taken part, as have publicand private-sector providers of vocational education training in different parts of Europe. The initiative has had the backing of the European Footwear Federation (CEC) and Portuguese industry body CTCP. It has been co-funded by the Erasmus+ programme of the European Union.
The summer boot-camps took place in Sa~o Joa~o da Madeira, near Porto, and in Ubrique in southern Spain. There were workshops, company visits and “co-creation sessions”. Teachers and trainers in leathergoods from Belgium, Spain, Portugal, Romania and Poland took part.
ICLT: End of an era
The Institute for Creative Leather Technologies (ICLT), part of the University of Northampton, formally closed on July 31, marking the end of more than a century of formal leather education in the town.
The institute’s origins can be traced back to 1893 in South London, where it was established under the Leathersellers’ Company. A dedicated leather college was built there in 1909. The leather training provision later moved to Northampton, becoming part of Nene College and eventually the University of Northampton.
In 2019, the ICLT relocated from the university’s former Park Campus to a purposebuilt facility at Waterside Campus. Officially opened in September that year, the new 27,000 square-feet, two-storey building housed Europe’s only working university tannery, alongside testing laboratories, teaching rooms and commercial research space. It was intended as a global centre of excellence for leather education and innovation.
The university confirmed the closure of the ICLT in December 2023, citing a “severe decline in student numbers”, financial pressures, and falling international recruitment following Brexit and the covid-19 pandemic.
A small group of former students, staff and industry representatives gathered to mark the institute’s final day on July 31.
In a statement, the university told Leatherbiz: “While the University of Northampton will no longer offer its leather technology courses, leather will remain a key component of the work of students on our fashion, textiles and footwear course. The university maintains a close partnership with The Leathersellers’ Company, which provides funding for students at all levels to be introduced to leather and its qualities, with guest speakers, workshops and trips to UKbased tanneries.”
Ferragamo to reinforce its heritage and embrace digital storytelling
Italian brand Salvatore Ferragamo is the latest luxury company to report a decline in firsthalf sales with a 9% fall against the same period last year to ¤474 million.
During the second quarter, the company undertook “a comprehensive diagnostic of its brand positioning”.
It has already started implementing changes and said it is confident these will become increasingly effective by the end of this year and then even more so in 2026.
“With respect to our product offer, we are working on recognisable aesthetics, leveraging on our heritage symbols and codes. The focus will be on our core leather offering, shoes and leathergoods, enhancing desirability through craftsmanship and innovation,” said the company.
“Our goal is to deliver a global assortment, partially diversified by geography, ensuring a stronger alignment with our target clients. This
QUAKER COLOR A STEP AHEAD IN AUTOMOTIVE FINISHING
will be achieved through a more punctual and efficient collection structure, featuring higher depth, fewer SKUs, and an optimised pricing architecture.”
The handbag offering will cover “all key functions and price points”.
A new communication strategy will include in-store events, collaborations and more frequent digital content.
Vaccination programme under way in Turkey as FMD spreads
Turkey’s ministry of agriculture has said an outbreak of foot-and-mouth disease in cattle is spreading across the country.
Its general directorate of veterinary services has halted the sale of live cattle at markets across Turkey and has banned farmers and traders from transporting live animals between provinces.
It has also begun a vaccination programme at farms across the whole country.
Officials have said they believe live cattle imported into Turkey in time for the Eid-al-
Supplying innovative finishes to the automotive industry for over six decades
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century
Adha festival in early June and the movement of live animals to different parts of Turkey for the festival are possible sources of the disease.
During the festival, families that can afford it are encouraged to sacrifice a whole animal and to share the meat with family, friends and the poor.
H1 results ‘well below potential’, Kering says Luxury group Kering has reported first-half revenues of just under ¤7.6 billion. This is down by 16% compared to the same period in 2024.
Its biggest brand, Gucci, contributed ¤3 billion to the total, but this figure represents a decline of 26% year on year. The group said Gucci’s newer leathergoods lines were “very successful” in the most recent quarter.
Yves Saint Laurent’s revenues in the first six months of 2025 reached ¤1.3 billion, down by 11% year on year.
Once again, Bottega Veneta was the brand that provided most solace to Kering, with revenues of ¤846 million for the first half. This
represents growth of 1% compared to the same period last year.
Commenting on the results, group chairman and outgoing chief executive, François-Henri Pinault, said: “Though the numbers we are reporting remain well below our potential, we are certain that our comprehensive efforts of the past two years have set healthy foundations for the next stages in Kering’s development.”
He reiterated that it was he who had recommended to the board that new chief executive, Luca de Meo, take over in September.
Full-hide finishing to debut at
Simac by Gemata and Costa Gemata and its subsidiary Costa will introduce two new leather finishing lines at Simac Tanning Tech 2025.
Full Greenfinish and Top Greenfinish systems claim to enable in-line upgrading of full hides for the first time, offering an alternative to traditional release paper methods typically limited to half hides. They
are aimed at tanneries serving the automotive and furniture sectors.
Full Greenfinish uses a patented Costa process that combines embossing cylinders with a recyclable film, allowing grain imprinting at low temperature and pressure.
The technology has reportedly been in use for three years at a tannery in Arzignano and is said to improve yield, reduce environmental impact, and deliver uniform surface quality.
Top Greenfinish adds a spread-coating function to the film process, making full-hide finishing possible.
A prototype will be available for testing at Gemata’s Trissino headquarters from September.
Both lines aim to reduce chemical use, lower production costs, and increase design flexibility.
Bergi marks 60th anniversary at Simac Tanning Tech
This year’s edition of Simac Tanning Tech will mark the 60th anniversary of Bergi, the machinery company founded by Giovanni Bergozza in the 1960s.
Now run by the third generation of the Bergozza family, the company has maintained a longstanding focus on mechanical engineering for the leather industry.
Bergi’s early developments included the first arm-type padding machine and improvements to buffing and pressing systems. In the 1980s and 1990s, the company expanded into international markets, including Asia, with equipment for ironing and embossing leather.
The 2000s saw the introduction of the Bertech brand and a wider range of machines for leather handling.
At this year’s fair, Bertech will present a new monitoring programme for energy use and maintenance, as part of ongoing efforts to improve automation and process control. A further machine concept is planned for launch in 2026.
China-US trade talks move to Sweden
High-level
talks between China and the US have taken place with the aim of securing agreement on trade. The talks took place in Stockholm.
The two countries agreed a truce in May, holding back from imposing triple-digit tariffs on each other’s products. The truce was for 90 days and is set to expire on August 12.
US treasury secretary, Scott Bessent, who travelled to Sweden for the talks, said he thought an extension of the truce was a possible outcome.
China’s vice-premier, He Lifeng, led his country’s delegation.
TFL to present new leather technologies at ACLE 2025
Leather chemicals specialist TFL will take part in the All China Leather Exhibition (ACLE) 2025, which runs from September 3–5 at the Shanghai New International Expo Centre. The company will present a new collection of leathers in the forecast colours for
Autumn/Winter 2026–27, developed for footwear, leather goods and automotive interiors. The range showcases TFL’s focus on premium chemicals, technical expertise and seasonal design.
Highlights will include an expanded Tanigan range of bisphenol-free syntans, enabling leather manufacturers to meet brand and legal requirements with BPS/BPF levels below 10 ppm.
TFL will also introduce Roda line, a product range developed for transfer coating, offering a more sustainable alternative to conventional finishing, with reliable performance across fashion and high-end applications.
TFL will exhibit in Hall E2, stand E03.
EU and US agreement brings tariff clarity
Exports from the European Union to the US will incur a baseline tariff of 15%, half the level that US president, Donald Trump, had threatened.
Mr Trump met the president of the European Commission, Ursula von der Leyen, on July 27 during a short holiday in Scotland.
Full details of the agreement have yet to emerge, but after the meeting Ms von der Leyen said a single 15% tariff rate for the vast majority of EU exports gave “much-needed clarity for our citizens and businesses”.
She added that the agreement also included zero-for-zero tariffs on a number of strategic products. This includes aircraft, certain chemicals, certain agricultural products, natural resources and critical raw materials.
She did not specify which products this zero-for-zero arrangement will apply to, but insisted work to add more products to the list would continue.
Leathersellers Company appoints new Master
Martin
Dove has been appointed Master (Chair) of the Leathersellers’ Company for 2025–2026, marking 100 years since his greatgrandfather, Frederick Lionel Dove, held the same role.
With nearly 40 years’ experience in the public sector, he now advises on major infrastructure projects across transport, defence, health, and social care. He is a Review Team Leader and Associate of the National Infrastructure and Infrastructure Authority, working with government bodies on longterm, sustainable planning.
His background includes roles at PriceWaterhouseCoopers, the Commonwealth Development Corporation, and the NHS, with project work spanning the UK, Malawi, and Thailand. His family’s construction firm, Dove Brothers, worked on City of London and Leathersellers’ buildings for over 200 years.
Martin remains involved in education as a member of the Leathersellers’ Federation of Schools, where he previously chaired the Finance and General Purposes Committee.
He said: “I look forward to continuing the Leathersellers’ work of fostering opportunity through education and strengthening our commitment to advancing social mobility;
supporting the leather industry; and increasing understanding and engagement with Adverse Childhood Experiences, the core charity grants programme of the Leathersellers’ Foundation.”
Declines for Italy’s shoe sector in first quarter
In the first three months of the year, the Italian footwear sector recorded a 7% decline in turnover, according to the Confindustria Moda Research Centre.
Exports showed a modest positive increase in volume (2.5%), helping to limit the decline in value of 4.1%.
Exports in the first quarter reached ¤3 billion for 53.2 million pairs, with average prices falling by -6.5% to ¤57.07 per pair.
As in the previous year, EU markets (+0.8% in value and +6.4% in volume) performed better than non-EU destinations.
Within the EU, Germany showed a strong recovery (+15.5% in value and +17% in volume) after sharp declines exceeding -10% in Q1 2024. Exports to France also grew in
volume (+4.6%), although they declined in value (-6.9%). This figure includes re-imports of products manufactured in Italy for French luxury brands. France remains the top destination country.
Outside the EU, exports to Switzerland remained stable, reflecting the reduced use of Swiss logistics hubs by luxury multinationals, in favour of direct shipping to final markets.
There was a significant slowdown across the main Far East markets: China fell by -17.9% in volume (-27.5% in value); Hong Kong by14.3%; South Korea by -18.1%; and Japan by -33.5% (-13.6% in value). Overall, the Far East dropped by -22.6% in quantity and -25.3% in value.
Conversely, the positive trend continued in the UAE (+16.8% in value and +33.5% in volume) and Turkey (+21% in value).
The United States remained stable in value (+2.2%) but declined in volume (-10.6%) due to trade policy and a slight devaluation of the dollar.
Giovanna Ceolini, president of footwear manufacturers association Assocalzaturifici,
makes it natural
said: “There are no significant improvements in the international economic and geopolitical landscape. Some resilience is evident, but the recovery remains weak.”
Tanner Leatherstein joins Stow as partner
British Leather goods brand Stow London has announced that leather expert Tanner Leatherstein (Volkan Yilmaz) has joined the company as a shareholding partner and director of craftsmanship.
Known for his detailed deconstruction and analysis of leather goods, Tanner Leatherstein has a global following of more than two million and is part of the Business of Fashion’s BoF 500.
In his new role, he will support product development and design at Stow, and help the brand expand its reach through his online presence.
Stow said the partnership will bring Leatherstein into close collaboration with
managing director Adam Bryer and founder Carol Lovell.
The brand manufactures its products in a family-owned factory in Ubrique, Spain.
LVMH claims ‘good resilience’ as H1 revenues fall
Luxury
group LVMH has reported total revenues of ¤39.8 billion for the first six months of 2025. This figure represents a fall of 4% compared to the same period last year.
Its leathergoods and fashion division contributed ¤19.1 billion to the total, down by 8% year on year. LVMH said one of the reasons for this decline was that the 2024 figure had been boosted by high levels of tourist-driven purchases, particularly in Japan, a popular shopping destination in this months among visiting high-end Chinese consumers.
In the first half of this year, the group said there are had been “good resilience among local (non-tourist) customers” in key markets. It also said operating margins remained “at a
very high level”.
Chanel invests in Tuscan tannery Nuova Impala
French luxury group Chanel has acquired a 20% stake in Tuscan tannery Nuova Impala, consolidating its presence in the Italian leather supply chain.
Founded in 1957, Nuova Impala specialises in fine leathers and has collaborated with Chanel for more than a decade.
The brand described the move as a way to reinforce an existing industrial partnership built on craftsmanship and sustainability.
This follows earlier investments in Italian tanneries Gaiera and Samanta, as well as in French and Italian manufacturers Leo France and Grey Mer. Chanel’s leather investments also include facilities in France and Spain.
Assocalzaturifici celebrates 80th anniversary
The Italian footwear sector is marking three anniversaries this year: the 40th anniversary of testing company CIMAC, the 80th anniversary of manufacturers association Assocalzaturifici and the 100th edition of trade show Micam.
During the celebrations for the association’s 80th anniversary, its president, Giovanna Ceolini, said: “In these 80 years, our companies have faced challenges with courage and determination. Our value lies in our people: it is thanks to them that Made in Italy continues to tell stories of beauty, tradition and innovation.”
Her time leading the association has been marked by significant efforts to address the industry's challenges, especially regarding the issue of tax credits for research and development.
The founding of Confindustria Accessori Moda, which unites footwear, leathergoods, furs and tanneries and is led by President Ceolini, has also strengthened representation of the leather supply chain, which now includes 10,000 companies with 140,000 employees. The companies have a joint turnover of ¤30 billion.
The 100th edition of Micam will take place between September 7 to 9 in Milan.
AQC renews commitment and launches leather campaign
Leather watch-strap manufacturers’ association AQC (Association pour l’Assurance Qualité des Fabricants de Bracelets Cuir) has renewed its commitment to promoting safe and sustainable leather bracelets, with all five General Assembly delegates confirming support for its vision, mission and values.
The organisation’s strategy continues to rest on four pillars: chemical compliance, traceability, credibility, and communication.
As part of this effort, AQC has launched a new campaign with industry partners to “make leather popular again, backed by science”, aiming to share verified facts and challenge widespread myths.
Preliminary findings from its LCA+ project suggest that AQC leather bracelets have a
lower environmental impact than previously assumed.
Full results will be presented at its Multistakeholder Meeting on November 20 in Geneva.
Leather and suede see growth in Lectra review
Lectra’s latest Retviews Trend Report shows year-on-year growth in leather and suede use in fashion collections for summer 2025.
The number of leather items rose by around 11% compared to 2024, while suede increased by over 70%.
Animal print styles grew by approximately 30%, and ballet flats, many of which are produced in suede or soft leather, also saw moderate gains.
These shifts reflect broader trends highlighted in the report, including a move towards vintage and preppy styles and a decline in casual footwear.
The data, based on real-time analysis of brand collections between January and May 2025, suggests continued demand for leather materials in both footwear and apparel.
Materials go on display at LVMH
Métiers d’Art
Leather featured prominently at a special exhibition in Paris on July 8-9.
LVMH Métiers d’Art, a specialist part of the luxury group that it founded in 2015 to help secure access to high-end leather and other raw materials, opened the doors of its showroom for the event, which it called Material Days.
Visitors had access to the materials LVMH craftspeople work with. On the ground floor, high-end leathers were on display on mannequins and columns, setting the scene for the rest of the exhibition.
Also on display were fabrics and metals.
Bain: AI could help luxury brands reduce overproduction
For luxury brands, durability and impact per wear are intrinsic to business models but cutting overproduction and scaling resale will be important to focus on when it comes to decarbonisation, according to Bain & Company.
In a new report, the consultancy firm said luxury’s high gross margins mean brands tend to overlook overproduction. However, unsold inventory not only erodes margins, but also carries environmental costs which are increasingly under regulatory scrutiny.
The report recommends using AI to help address overproduction and improve inventory efficiency. AI-powered sales forecasting is already in use or being tested by around 60% of fashion brands, it said, enabling more accurate predictions of consumer demand. In parallel, around half of brands are leveraging AI to allocate stock more precisely.
Technology is also enabling new production models, where brands are beginning to pilot made-to-order and made-to-measure approaches that significantly reduce waste by producing only what is needed.
The report finds that second-hand doesn’t add value for brands as most sales take place on third-party platforms. Emissions are only reduced when second-hand volumes grow at the expense of first-hand volumes. Brands must turn second-hand into a profitable, brand-owned channel that provides both customer lifetime value and emissions reductions, said the firm.
Matteo Capellini, a partner at Bain & Company, said: “Second-hand is fundamental to reaching the Science-Based Targets, and Digital Product Passport is a critical element to remove friction and cost to the overall channel. Done right, resale can shift from margin drain to margin growth, and become a credible and scalable decarbonisation tool.”
ASIA
Japan trade deal will offer level playing field for US beef, USMEF says
The US Meat Export Federation has welcomed a new trade agreement between the US and Japan. It said the Asian country was the second-biggest export destination for US beef.
USMEF president, Dan Halstrom, said the new agreement would “return US red meat to a level playing field in Japan”.
Japan and the US issued announcements about the deal on July 23, with a 15% reciprocal tariff on most products.
Revenue
up for China’s leather garments sector, in spite of export slide
Leather garment manufacturers in China are growing revenue even though the value of their shipments to export markets is down.
This indication that the domestic leather garment market is on the up comes from figures for the January-May 2025 period that the China Leather Industry Association (CLIA) has shared.
It did not give a value for the overall sales that leather garment manufacturers and brands were able to achieve in the five-month period, but confirmed that revenues were up by more than 12% year on year.
With regard to exports, the garments they shipped to customers outside China over the period had a value of just over $34 million, a fall of 20% year on year.
CLIA also shared details of imports of leather garments into China in the first five months of this. These products had a value of $40 million, a fall of 8.7% year on year.
China: footwear exports fall in value, but leather shoes fare better
Figures from the China Leather Industry Association (CLIA) show that manufacturers in the country exported 3.7 billion pairs in the first five months of this year, up by 0.8% year on year.
These shipments generated export revenues of $17.6 billion, which represents a decrease of 7.9% compared to the same period in 2024.
For leather shoes, specifically, exports reached a volume of 200 million pairs over the five-month period and a value of more than $2.8 billion. This is an increase of 1% in volume and a fall of 3.9% in value year on year.
In parallel, CLIA reported imports of 70 million pairs of footwear between January and May 2025, with a value of more than $2.1 billion. These figures represent decreases of 11.6% in volume and of 10.9% in value.
Increased customer demand will drive ramp-up in production at Stella
Footwear group Stella International has reported revenues of $753.5 million for the first six months of 2025. This is up by 0.6% year on year.
Over this period, the group shipped 27.5 million pairs of shoes and other footwear. This represents an increase in volume of 3.8% year on year.
The average selling price that Stella generated from these shipments was $27.40, a fall of 90 cents per pair, or 3.2%, compared to the same period in 2024.
Chief executive of the group, Chi Lo-Jen, said: “We are expanding and ramping up new production lines in Indonesia and the Philippines to catch up with increased customer demand. Worker utilisation and efficiency will slowly improve over the course of the year. We remain focused on partnering with our customers to navigate market challenges, capitalising on the strength and flexibility of our diversified production base.”
LEFASO proposes fashion materials innovation centre
TheVietnam Leather, Footwear and Handbag Association (LEFASO) has proposed a 40-hectare innovation, R&D and trading centre to strengthen the domestic supply of fashion materials and boost the competitiveness of Vietnam’s leather, footwear, textile and garment industries.
At a government meeting on July 22, LEFASO vice chairwoman and secretary general Nguyen Thi Thanh Xuân said the sector remains heavily reliant on imported materials. She stressed the importance of building local supply to support long-term growth and attract more orders.
LEFASO is working with textile and timber industry bodies on the proposal, which would support innovation, streamline supply chains and serve both domestic and regional markets.
Ms Xuân said government backing and supportive policies will be key to its success.
Revenues down for tanners in China
The China Leather Industry Association (CLIA) has shared information on the performance of the industry there in the first five months of 2025.
From January to May, CLIA said major leather manufacturers across the country had
achieved sales with a value equivalent to $3 billion. It said this represented a decrease of 8% compared to the same months in 2024.
Over the five-month period, tanners in China imported 608,000 tonnes of raw hides and skins, paying $500 million for them. This indicates a decrease of 4% in volume and of 14% in value.
Imports of semi-finished leather reached 268,000 tonnes, with a value of $400 million. Comparison to the same months last year shows an increase of 7.9% in volume, but a fall of 6.9% in value.
Finally, imports of finished leather reached 15,000 tonnes in volume and $230 million in value, down by 15.1% and 20.2%, respectively, year on year.
AMERICAS
Short-term tariff pause for Mexico
Footwear brands manufacturing in Mexico have received a temporary reprieve from a planned 30% US tariff, following a last-minute decision by US President Donald Trump to pause implementation for 90 days.
The new 25% tariff extension will now expire on October 31, providing just enough time for US retailers to import fall and winter collections ahead of the holiday season.
The decision followed what President Trump described as a “very successful” call with Mexican President Claudia Sheinbaum. According to a Truth Social post, Mexico has agreed to eliminate “Non Tariff Trade Barriers,” though no further details were given.
US-based brands such as Steven Madden Inc. and Crocs, which shifted production from China to Mexico in recent years, stand to benefit. However, others, including Madden, also manufacture in Brazil and now face a 50% duty increase following a new executive order
Despair in Brazil as US trade talks collapse
With the August deadline for trade deals with the US looming, there have been winners and losers.
There have been important agreements with the European Union, Japan, South Korea, the UK and other important trading partners, but others have been unable to secure a deal with the US.
No deals are in place so far with China, India, Canada or Brazil, among others.
On July 30, US president, Donald Trump, signed an executive order implementing 50% tariffs on imports from Brazil, to take effect on August 6.
The main footwear industry body in the South American country, Abicalçados, described this as a serious set-back that would cause “irreversible damage” to exports of Brazilian footwear.
Executive president of Abicalçados, Haroldo Ferreira, said: “This is a serious situation. It will have a direct impact on the Brazilian footwear industry, for which the US is our main overseas market. But it will also have an impact on thousands of jobs.”
He explained that some footwear
manufacturers base their business on export markets, with the US as their main target. He insisted that a 50% tariff will make shipments of shoes to the US economically unviable. “In the first instance, we are talking about the loss of an estimated 8,000 jobs,” he said.
The US is also an important export destination for Brazilian leather. In the first half of 2025, tanners and traders in Brazil shipped hides, skins and leather with a value of $78 million to the US, making the US the sector’s second-most valuable export market, behind only China.
Imported hides expand Brazilian tanners’ product
offering, CICB says Operators in Brazil imported hides and skins with a value of (US) $33.5 million in the first six months of 2025. Imported raw material reached 31,500 tonnes in volume.
These figures, shared recently by national leather industry body CICB, represent a fall of 30.6% in value and of 14.1% in volume compared to the same period in 2024.
Wet-salted hides represented 47% of the total value of these imports, while wet blue’s share was 42%. The principal sources of the material were the US and Uruguay. The US accounted for more than 45% of the total value.
“The raw material we are able to source from those countries is from cattle breeds that are different from those we have here in Brazil,” CICB said. “They complement and extend the product offering our leather manufacturers are able to bring to market.”
Texas to see second Louis Vuitton workshop open in 2027
Luxury brand Louis Vuitton will open a second leathergoods workshop in Texas in 2027.
The company opened a first workshop there, in the town of Alvarado, 40 kilometres south of Fort Worth, in 2019. Chief executive of parent group LVMH, Bernard Arnault, announced in a recent interview with the Wall Street Journal that a second workshop would follow the year after next.
Mr Arnault made the comments in the build-up to a new trade agreement that will put tariffs on exports of most products from the European Union to the US at 15%. There had been fears of much higher tariff rates and the LVMH chief executive lobbied hard for a good agreement between the two trading partners and the avoidance of any escalation in trade tensions.
During the negotiations, White House officials made it clear that they wanted European companies to manufacture more product in the US. A number of luxury brands argued that they would find this impossible owing to their reliance on an established supply chain in Europe and the artisan skills of workers there.
The Louis Vuitton experience in Alvarado has clearly given Mr Arnault confidence that an expansion of production on the other side of the Atlantic is feasible.
LVMH could sell the Marc Jacobs brand
Luxury group LVMH is in talks to sell the Marc Jacobs brand, a report in the Wall Street Journal has said.
Potential buyers the report mentioned included Authentic Brands, Bluestar Alliance and WHP Global.
LVMH acquired the brand when its founder, Marc Jacobs, joined the Paris-based group as creative director of Louis Vuitton in 1997.
Speculation about a sale intensified after LVMH published its results for the first six months of 2025. At an investor briefing to discuss the results, the group’s chief finance officer, Cécile Cabanis, said the group would not hesitate to sell brands that it no longer regards as “a good add-on”.
Brazilian delegation heads to Lima for leather and footwear event
National
body for the footwear components industry Assintecal is to take 24 Brazilian companies to Peru for the Expo Detalles exhibition in Lima.
This event, which showcases finished leather, machinery and chemicals as well as footwear components, takes place from August 6-8.
Brazil’s export promotions agency, ApexBrasil, is supporting the delegation’s trip across the border to Peru for the exhibition.
In the build-up, iternational marketing manager for Assintecal, Luiz Ribas Júnior, commented: “Despite instabilities in the international sphere, the footwear industry in Latin American countries continues to invest in materials and technologies. Of the 10 main destination countries for Brazilian footwear components, six are in this region.”
Brazil’s meat companies rethink US shipments
Roberto Perosa, president of Brazil’s beef exporters’ association ABIEC, has said meat companies are rethinking shipments to the US after President Trump's announcement of a 50% tariff on the country from August 1.
Mr Perosa said: "New shipments are under analysis by the private sector due to the increase in tariffs.”
Brazil accounts for nearly a quarter of US beef imports, reported Reuters.
AFRICA
Kenyan SMEs learn of strength in numbers
Kenya’s Principal Secretary of the State Department for Industry, Dr Juma Mukhwana, has promised policy guidance for the leather sector, a supportive environment for cluster development, and access to training, technology and financing.
He was speaking at a workshop for micro, small and medium enterprises (MSMEs) and artisans in Nairobi to promote cluster development, cooperative formation and improving market access.
Participants engaged in group exercises to
apply training concepts to their specific contexts, developing action plans and addressing challenges in cooperative implementation.
Roubiki Leather City opens second investment phase
Egypt’s Ministry of Industry has confirmed that Cairo for Investment and Development (CID) is accepting applications for the second phase of investment at Roubiki Leather City. Thirty-six fully equipped units for leather goods manufacturing are available. Applications must be submitted via the national Digital Industrial Platform by July 27, 2025. Units are offered under Instalment Sale or Operational Rent systems, with financing options provided in partnership with the
Export Development Bank of Egypt. Facilities include factories and workshops ranging from 121m² to 2,000m². Investors will also receive licensing and technical support through the Industrial Development Authority.
Located in Badr City, Roubiki is a government-backed industrial zone designed to support high-value leather manufacturing and boost export capacity.
OCEANIA
Australia
to
ease US beef import restrictions
Australia will ease restrictions on beef imports from the US from July 28, the agriculture ministry has confirmed. The decision follows a scientific review that
found US biosecurity controls now meet Australian standards.
Restrictions had been in place since 2003 due to BSE concerns. Since 2019, only beef from animals born, raised and slaughtered in the US was permitted, but tracking issues limited exports. The updated rules will now include cattle legally imported into the US from Canada or Mexico.
Agriculture minister Julie Collins said Australia’s biosecurity would not be compromised. Industry body Cattle Australia has called for an independent review.
Analysts say the move is unlikely to impact the local market due to high US beef prices.
