Leatherbiz Market Intelligence executive summary:
• Any discussion on the use of leather always ends with an argument about cost
• With leather, it is not only about the price of the material itself, but also the costs involved in its further processing
• China will be the key to further development along the supply chain, simply because the size of the consumer market there
• The same may also apply to India in the foreseeable future, but, from the point of view of consumption of leather, this will probably take some time
• If consumers elsewhere are not made aware of the functional properties and benefits of leather, it will be extremely difficult to reverse the trend in the use of the material
• It remains essential for leather as a product that manufacturers clearly accept the material in terms of fashion, function and marketing
• Without this, the demand for leather will continue to shrink and leather as a material will increasingly be pushed back into the corner of speciality and exclusive materials.
MARKET INTELLIGENCE
There are always phases in which there is little to report along the supply chain in the leather industry, or simply nothing particularly new or exciting happens. We are currently in such a phase, which is not particularly surprising, as the new year is only just starting in the western world and people in Asia are preparing for the Lunar New Year celebrations (January 29) and the long break there.
In times when business is going well and producers are planning for the future with vigour and ambition, these interruptions are not always noticed. For some time now, we have been in a phase in which the leather industry is still looking for a clear strategy for its material. It cannot expect much support from finished product manufacturers and major brands. Leather as a material has lost much of its prestige. For industrial production it offers few advantages, one could even say it presents more disadvantages.
We have covered the topic of what leather has to offer as a material in the various finished products often enough here. In our opinion there are no new arguments. This leaves the question of whether there can be any development at all that could push the material back into the centre of demand.
These topics have already been discussed sufficiently and all aspects from all sides have been scrutinised. An increase in interest can hardly be achieved from the bottom up in the supply chain. The impetus, if any, must come
from the top down. Even though it may be boring, it is worth recalling the recent success for athletic footwear brands of retro models made from suede. This wasn’t about the material at all; it was simply a coincidence. They wanted to produce the original shoe and its features in every respect and offer them to the market. It is indisputably a very positive side effect that if you talk to users and buyers of these shoes today, they often confirm that they are very comfortable to wear, definitely more so than their plastic predecessors.
However, the problem remains that very few people attribute this to the material. If you talk to the most young buyers and users, most of them don’t even realise what material their new shoes are made of. There are also very few people who can show and explain it to them, which means that even with this great success, leather as a material can only benefit very little, if at all.
If you want to look for other possible ambassadors for the material, you can mention the Birkenstock company, for example. Of course there are others, but as an arm of a prominent luxury group (it is majority-owned by L Catterton) it is acceptable to quote their strategy. The model range has been expanded considerably and, fortunately, the company has not focused on plastic. Rather, we are seeing more and more shoes made of leather and it is astonishing that the buyers of these shoes are well aware of the material their shoes are made of and, in their opinion, should continue to be made of.
From the old days and the old standard
TUESDAY, JANUARY 21 2025
models that Birkenstock produced, which were so often bought by people who have to stand and walk a lot and for very long periods, people simply expect the footwear to be longlasting and comfortable. If you ask potential buyers of Birkenstock shoes today, it is rarely only the fashion aspect, but often the certainty that you will get quality and longwearing properties. Of course, this is not to deny that the growth of the brand also has a lot to do with the fact that it is currently perceived by the public as particularly fashionable.
If you look at today’s high-quality trekking and outdoor footwear, you will notice that although leather is still the dominant material, it is obviously being cut wherever possible for supposed cost reasons. Of course, the customer hardly notices this at first, but in the higher-price categories, the customer still expects to receive the same quality and the same hard-wearing characteristics that used to be so familiar. It is not certain whether this will continue to be the case with the new models. If not, the question naturally arises as to whether the customer will attribute this to the reduced use of high-quality leather. The answer to this will only emerge in the future. Any discussion that centres on the use of leather always ends with the argument of cost and price. Although often lamented, it is unfortunately still the case that costs and savings are still the dominant factors in the decision-making process of manufacturing companies. With leather, it is not only about the price of the material itself, but also the costs involved in its further processing. To process leather, you still need qualified personnel, both in the assessment and in the tannery.
Added to this, of course, is the fact that processing is becoming increasingly expensive owing to a lack of labour and rising costs in Europe. We hear almost daily of further production operations being relocated to Asia. There is little news of re-shoring. This also makes the production of high-quality leather with the corresponding technical properties in Europe increasingly difficult because the clients of the leather manufacturers are moving away.
The bottom line is that as long as consumers are not made aware of the material and its properties and functional properties are not a central argument in marketing, it will be extremely difficult to reverse the trend in the use of materials.
The situation is not much better in the other leather processing sectors either. This has also been sufficiently discussed. It remains the case that the manufacturers of furniture
and automotive leather are confronted with the fact that the material is only used in special, high-end areas. The specific clientele that does not want to do without leather and is prepared to pay higher premiums for it will continue to be served for as long as there is no other option. The focus that was used to present leather as a superior, exclusive and value-enhancing material is almost nonexistent today. Here too, there are many areas in which function should take centre stage, but manufacturers do not seem to expect this to benefit their market position, their sales and therefore their profits.
Human and economic thinking is actually relatively simple. If people expect more benefit and profit from something, they will choose to do it. The really frustrating thing today is that even among those who still see leather as part of their product DNA, the material is seen as a necessary evil and a problem rather than a treasured and promising part of the business model.
As a result, and it is very easy to see in the markets for raw materials and in the prices for leather that the total demand for leather continues to shrink. There are still doubts here and there at producer level, but the facts and figures speak for themselves. Large leather manufacturers, who produce industrially and therefore have certain cost advantages, together with the global brands, can be more successful in resisting the decline than the classic, smaller, traditional leather manufacturers. Unfortunately, the growing market share of industrial and standardised (corrected and finished) leather types is also robbing the material of many of its positive characteristics. At the same time, of course, this also means that European manufacturers are finding it increasingly difficult, and in some cases perhaps even impossible, to maintain production owing to higher production costs and the flight of their customers.
In Asia, leather production is also being
Actual
Slaughter Under Federal Inspection
showed Colorado branded steers weighing 6668 pounds up slightly at $20.50 per piece, while heavy Texas steers weighing 60-62 fell slightly in price to reach $17 per piece.
Cow hide prices were $13.50 for northern dairy cows, $13 for south-west dairy cows, $7 for northern branded cows and $6.50 for southwest branded cows, 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
Frigid temperatures will be the focus for most feeding operations. Cattle owners will keep the attention on the cattle and be less concerned about marketing to start the week. Some were reminded of January past when snow and wind troubled feeding operations and cattle performance.
The market this past week was mostly steady to firm. Trading developed and continued in the south at $201. Northern live prices were steady at $203-$206, with dressed prices at $322, which was $2 higher. The cut-out was flat at week’s close. Demand is proving to be solid as retailers restock from holiday beef purchases. The choice-select spread has narrowed, as expected seasonally.
New grazing opportunities and improvements in the cash prices for fed cattle have help propel the replacement markets higher. The jump in calf prices has caused some operators to opt out of this year’s stocker programme and take cattle in for grazing.
Corn futures jumped higher to close the week. Basis levels are softening. The increase in corn prices will encourage more switching to wheat in feedlot rations. Corn basis levels in Guymon, Oklahoma, are at $1, basis the March contract.
GERMAN PERSPECTIVE
This week: There is little to report on the market this week. The reason is that everything in Germany is currently centred around the outbreak of foot-and-mouth disease.
What was initially just a suspicion last Friday quickly became a certainty. How a small herd of buffalo in the Berlin region became infected with the virus will certainly require a detailed investigation. There are many rumours and one can only hope that there is a real willingness to investigate the origin of the outbreak.
For the time being, however, this does not matter for our business, because with the confirmation of the infection, Germany also loses its status as a country free of foot-andmouth disease. This is an essential condition for most health certificates for export to countries outside the EU. This means that Germany is currently subject to a de facto export ban for most animal by-products, including hides and skins.
Fortunately, there have been no further
confirmed cases to date and there is therefore justified hope that the spread of the disease has been prevented. However, it is still too early to say for sure. Fortunately, the transport of animal by-products within the EU is only prohibited for products that come directly from the restricted zone. This means that the transport and delivery of hides and skins within the EU is not restricted from the rest of Germany.
However, the not insignificant proportion of exports to countries outside the EU, and China in particular, will be affected and this will have an impact on the market. The idea that prices will collapse as a result of this cannot really be justified. There are still other uses for the hides and there is also the market in the rest of Europe. As the entire market is currently in a phase of upheaval anyway, a small, localised problem in Germany is of no real central importance for the general market development.
Regardless of what happens in Germany,
LATEST HIDE AND SKIN PRICES FROM GERMANY
the real factor influencing market development is the demand for leather in combination with opportunities in alternative markets. As people in Asia are now preparing for the festive season around the Lunar New Year (January 29), customers are really only interested in what happens to their current contracts rather than what might happen to prices on the German market. There have been no new sales this week, at least for us, so there is nothing to report.
The kill: Slaughter was not really affected by the events. At least we did not notice any major changes. The numbers remained at a normal level for January, slightly reduced but still stable and normal for the time of year.
What we expect: Under the current conditions, a forecast for our market for this coming week makes little sense. We cannot be active on the export markets at the moment. In Asia people are more concerned with closing down their production and focusing on family celebrations for the Lunar New Year. As demand for leather remains relatively weak, there are no great fears of a significant change in prices anyway. Rather, people are probably interested in what will happen immediately after the inauguration of the new US president. In Europe, too, we cannot expect any major new impetus in the coming weeks.
LONG READ
Leather Leaders: Chiara Mastrotto
Informed choices
Chiara Mastrotto, president of Gruppo Mastrotto, points to the benefits, especially in difficult times, of strategic investments in innovation and diversification. She says a meritocratic culture is the foundation of the group’s success, strengthening its resilience, and
helping it adapt to market challenges and maintain a competitive advantage.
Gruppo Mastrotto recently highlighted that 30% of group employees are women and that 50% of the group’s executives and board members are women. In your opinion, what are the main advantages that this brings to the group?
We believe that the foundation of success lies in a meritocratic culture. Regardless of gender, we focus on identifying and promoting talent based on skills, achievements, effort and potential. Such an approach not only promotes fairness but also nurtures an environment in which the best ideas thrive, leading to superior outcomes. The significant presence of women across all levels of Gruppo Mastrotto, and particularly in executive and board roles, strengthens the organisation in multiple ways. A balanced representation fosters a more inclusive and equitable work culture, where diverse perspectives drive creativity and innovation. This diversity improves decision-making, as women often bring complementary viewpoints and approaches to problemsolving. Moreover, it encourages collaboration and builds stronger team dynamics.
What benefits does it bring with regard to your standing with external partners?
Beyond these internal benefits, it also resonates with our external stakeholders. It signals to clients, partners and our communities that Gruppo Mastrotto prioritises progressive values and leads by example in an industry in which women are still underrepresented. This differentiates us and also allows us to attract and retain top talent, enabling us to respond more effectively to complex challenges in a rapidly evolving market.
What advice do you give when people ask you (as they frequently do) how more women can become business leaders, especially in the leather industry?
My advice begins with recognising the critical need both for individual effort and systemic support. Women aspiring to leadership roles must cultivate resilience and confidence, but they also need access to environments that actively support their growth. In my experience, breaking into leadership in a male-dominated sector requires persistence and the ability to continuously learn and adapt. Building strong networks, both within and outside the industry, is invaluable for gaining insights, mentorship, and advocacy. At an organisational level, companies must implement policies and initiatives to actively address gender imbalances, ensuring all employees are given equal opportunities to succeed. Furthermore, fostering a culture that values diverse leadership styles and actively
challenges stereotypes is essential. In the leather industry, specifically, showcasing successful female leaders is a powerful way to inspire change and encourage more women to pursue careers in the sector.
UNIC warned recently that the market momentum for Italian leather manufacturers was “extremely negative” after two difficult years. What grounds for optimism do you see for 2025?
The national trend indeed confirms a challenging situation, with a significant decline in customer orders. This reflects broader market dynamics, including increasing competition and shifting consumer preferences. However, at Gruppo Mastrotto, we have managed to counteract this downturn through strategic investments in innovation and diversification, reinforcing our resilience and adapting to market challenges to maintain a competitive edge. While the
overall outlook for the industry remains cautious, a positive factor is the enduring global recognition of Italian leather for its unparalleled quality, especially in the premium and luxury segments. This reputation positions us favourably to continue collaborating with leading brands in fashion, automotive and interior design. These partnerships, coupled with our ongoing focus on excellence and innovation, give us confidence in navigating the uncertainties ahead, and leveraging opportunities as they arise.
After the global leather industry secured fairer treatment from the Higg Material Sustainability Index, you said this would help highlight that leather is a sustainable material. What are the main arguments you usually present when trying to convince people outside the industry that leather is sustainable?
Leather is one of the most compelling examples of sustainability in materials, directly supporting the principles of the circular economy. As a by-product of the food and dairy industry, its production prevents organic waste from ending up in landfills, turning it instead into a long-lasting and versatile material. Every year, tanneries globally recover more than 8 million tonnes of raw hides, preventing the emission of approximately 5 million tonnes of greenhouse gases that would result if these hides were discarded as waste. Furthermore, leather’s durability significantly reduces waste compared to plant-based alternatives, which often degrade quickly and require frequent replacement. In communicating these facts, we also address misconceptions about synthetic substitutes, which rely on petroleum-based plastics that have a high environmental cost. We emphasise that genuine leather is biodegradable and aligns with consumer values of sustainability and longevity. I strongly believe that it is crucial for brands
and the industry to educate consumers transparently about these aspects, ensuring they make informed choices.
What is the Circular Fashion Manifesto?
The Circular Fashion Manifesto, promoted by the SDA Bocconi School of Management in Milan, is a commitment to transforming the fashion industry by embedding principles of circularity across the entire value chain, from design and production to consumption and recycling. Gruppo Mastrotto’s participation underscores our dedication to sustainable innovation. A notable example is our collaboration with footwear brand Tod’s, the One Next Step project, which features in the programme. This project aims to develop a new eco-design protocol for footwear products. This initiative focuses on evaluating all of the material used in footwear, determining key performance indicators (KPIs) for sustainability. For this project, Gruppo Mastrotto developed a specialised leather that
meets exceptionally technical requirements, while maintaining optimal CO2 emission performance and full traceability, ensuring the highest standards of durability and transparency.
In what way can the Circular Fashion Manifesto help emphasise the sustainability credentials of leather?
By engaging in such collaborative efforts, we not only showcase leather’s environmental potential but also strengthen the industry’s narrative as a leader in sustainable practices. Aligning with the Circular Fashion Manifesto allows us to reinforce leather’s role as a cornerstone of a truly sustainable fashion system, promoting transparency and innovation throughout the product development process.
Champions of Best Practice
and systems best position us for a future in and systems best position for a future where sustainability is a key driver for commercial decision making. key driver commercial decision making.
This ISP consists of four strands.
• The provision of the most accurate information about leather, sustainability and production.
• The championing of best practice at every point in the supply chain.
• The willingness to address the hard issues our industry faces.
• The sharing of information with members, manufacturers, consumers and the media.
Today we look at best practice.
U.S. Government environmental standards, and those of our supply chain’s animal care, rank among the world’s highest and assure buyers of U.S. hides and leather that they have been produced to exemplary standards in all areas including animal care, ESG and sustainability.
champions of best practice. We accelerate the adoption of new standards and promote them in the U.S. and around the world.
Examples of recent industry developments championed by L&HCA, for example, of speeding the tanning process.
remove chromium (III) for reuse. And evaporation is now being used for the removal of salt while coagulants can be added to the water which bind with waste to leave a sediment which can be safely disposed of.
Best practice does not stop at the border.
We do not just promote this framework domestically. We actively promote it worldwide. The more trusted leather is, from wherever it originates, the better it is for the U.S. leather industry and for the planet.
From trade communications to our global Real Leather. Stay Different. program repositioning leather as the material of choice for tomorrow.
Gruppo Mastrotto has customers in a wide variety of industries: footwear, interior design, automotive, furniture, et cetera. What are the biggest challenges in serving such a diverse range of customers? What are the advantages of having so many different areas to focus on?
Yes, serving a diverse clientele comes with the complexity of meeting varied demands. Each industry has unique requirements in terms of material specifications, performance standards and design preferences. For example, automotive clients prioritise durability and safety, while fashion brands often focus on aesthetics and trend alignment. This necessitates a flexible and highly specialised approach to production, alongside a commitment to consistent quality and innovation. However, this diversity is also a significant advantage. It provides resilience against market fluctuations, as a downturn in one sector can often be offset by stability or growth in another. Additionally, working across industries fosters cross-fertilisation of ideas and technological advancements. Insights gained in one sector, such as advanced material treatments for automotive interiors, can inspire innovations in others, like high- performance leathers for furniture. For Gruppo Mastrotto, this broad market presence is a strategic asset, enabling us to remain at the forefront of the global leather industry.
NEWS ROUND-UP
EUROPE
Property deal raises more than €800m for Kering
Luxury group Kering has raised more than €800 million through a property deal with Paris-based private investment group Ardian. As part of the deal, Kering and Ardian have founded a new joint venture, which will have three real estate properties in the French capital as its assets.
Ardian will have 60%
properties, for which it will pay a total of €837 million. Kering will retain the remaining 40% of ownership.
The three properties are the Hôtel de Nocé in the city’s Place Vendôme (pictured), and two buildings located on Avenue Montaigne.
Kering’s deputy chief executive, Jean-Marc Duplaix, said the new partnership would allow the group “to secure for the long term prominent retail locations, while preserving our financial flexibility”.
For her part, the head of real estate at Ardian, Stéphanie Bensimon, said the joint venture embodied “a transformative approach to real-estate strategies for luxury groups like Kering”.
Training bursaries for leather craftspeople
Heritage Crafts, with support from the Leathersellers’ Foundation and the British Leather Industry Development Trust, is offering bursaries of up to £4,000 for new and early-career leather craftspeople facing financial hardship.
The bursaries aim to remove financial barriers and make the heritage crafts sector more inclusive. Eligible applicants include those starting a leather craft career, refining essential skills, or acquiring new techniques.
Leatherworking crafts are defined by the use of leather as a primary material and include activities such as saddlery, shoemaking, harness making, tanning, fashion, accessory making, and others.
Funds can cover training, tools, materials, and related costs but not living expenses. Successful applicants will receive guidance to achieve their goals.
Regional realignment for Bentley Motors
Luxury automotive brand Bentley has a realignment of its business operations. It is combining its operations in the UK, Europe, the Middle East, Africa and India into a combined region.
This will become the biggest part of Bentley’s business, comprising 95 retail partners in 41 markets, accounting for onethird of the company’s global sales.
It has appointed Richard Leopold as regional director. He has worked at Bentley for 17 years and has already held leadership positions in each of the markets that make up the new regional structure.
Waste-free achievement for SlovTan
Slovakia-based leather manufacturer
SlovTan has said it has now found downstream supply chain partners for all of its solid tanning residues, meaning none of its trimmings, shavings or off-cuts go to waste.
Larger off-cuts of finished leather that the Liptovský Mikuláš-based company cannot use go to partners for use in small leathergoods and other finished products, while shaving dust is being compacted into large pellets for use in waste-to-energy facilities.
Semi-processed trimmings that are still rich in fat are being processed into animal feed,
and shavings from its chrome-free operations are going into organic fertiliser for farmers to use.
Oeko-Tex update test criteria for 2025
The
Oeko-Tex association has announced updated testing criteria, limit values, and certification guidelines for 2025, effective 1st April after a transition period. The changes aim to enhance trust and sustainability in the textile and leather industries.
Notable updates include stricter leather supply chain transparency requirements under the Leather Standard to align with the European Deforestation Regulation. BPA limits under Standard 100 have been reduced, and organic cotton certification is now managed through Organic Cotton. Made in Green integrates Organic Cotton certification, while Eco Passport expands to cover commodity chemicals and prioritises biodegradability. Collaboration with ZDHC enables STeP certificate holders to join the
FINISHING
Supplier to Zero Programme.
Oeko-Tex gave more detail on these updates in a public webinar on January 20.
Muirhead introduces integrated leather seat cover service
Leather manufacturer Muirhead, part of Scottish Leather Group, has announced the launch of a new seat cover service, providing an integrated solution for the aviation industry.
The service covers the entire process, from leather production to the creation of finished seat covers, all managed in-house.
The company, known for its sustainable leather and global partnerships, now offers an integrated approach that encompasses every stage of the process—from leather production to the creation of finished seat covers. By managing all aspects in-house, the company aims to deliver unmatched quality, fit, and performance.
Head of cabin engineering at Muirhead, Martin Longden, highlighted the importance
Supplying innovative
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century
of this development: “Unlike fabrics or synthetics, leather demands specialised craftsmanship and technical expertise to achieve the fit and performance required in aviation – expertise often missing in traditional supply chains.”
BMW bets on electric vehicles as sales dip
The BMW brand delivered 2.2 million vehicles to customers in 2024, 2% less than in 2023.
In Europe, the brand expanded its market share, registering double-digit sales growth in Italy, France and the UK. It also posted sales growth in the US.
The Rolls-Royce brand delivered 5,712 units to customers (-5%) in the full year while Mini sold 244,915 units (-17%).
Despite the declines, which the group attributed to delivery stops in connection with the Integrated Brake System as well as subdued demand in China, it delivered 426,600 fully-electric vehicles, achieving BEVsales growth of 13.5%.
Jochen Goller, board member for sales, said: “The BMW Group is maintaining its growth trajectory for fully-electric vehicles amid challenging market conditions. This is reflected in both the significant sales growth for fully-electric vehicles and the clear rise in new BEV orders in Europe.”
Germany reports buffalo footand-mouth outbreak
Germany has confirmed its first outbreak of foot-and-mouth disease since 1988 in a water buffalo herd near Berlin, according to a report by Reuters.
Authorities euthanised the affected animals and established a 3-kilometre exclusion zone and a 10-kilometre monitoring zone, restricting animal and product movement.
The highly contagious disease affects cloven-hoofed animals but poses no risk to humans. Investigations into the source are ongoing, with no federal or international measures planned.
The Friedrich Loeffler Institute warned of risks from illegally imported animal products,
as the disease remains common in parts of Asia, Africa, South America, and the Middle East.
Jaguar commits to leather traceability through LWG membership
Car manufacturer Jaguar Land Rover (JLR) has joined multi-stakeholder organisation Leather Working Group (LWG), a move it describes as a “milestone for the leather industry”.
Andrea Debanne, chief sustainability officer at JLR, said: “Through becoming a member of the Leather Working Group, JLR can help promote the highest standards in leather production and sustainable development, in line with our Reimagine strategy, which aims to set benchmarks in environmental societal and community impact for a luxury business.
“This means committing to transparency, social responsibility and environmental stewardship, and ensuring full traceability in all our material sourcing, including leather.” Its Reimagine strategy outlines a path to become a carbon net-zero business by 2039.
The group added its membership is a sign of its commitment to supporting the development of tools that drive improvement.
TFL names Dietrich Tegtmeyer’s successor
Leather
chemicals group TFL has announced Dr Volker Rabe as its new head of industry relations and new business development. He succeeds Dr Dietrich Tegtmeyer, who retired towards the end of 2024.
Dr Rabe has been associated with the leather industry since his childhood, as his family ran a tannery for more than 130 years. After completing his PhD in chemistry in 2009, he worked at research institute FILK for two years before entering the leather chemicals sector. He has held various positions at TFL and its predecessor companies since 2012.
He represents TFL on various committees of the leather industry and this year became chairman of the research commission of the IULTCS.
Royal Smit and Zoon secures global ZDHC certification
As of December 2024, all the production facilities of Royal Smit & Zoon achieved Level 3 certification, the highest confidence level awarded by the Zero Discharge of Hazardous Chemicals (ZDHC) programme. This milestone reflects the Dutch company's efforts to enhance sustainability within the leather value chain
The certification of Smit & Zoon India Pvt Ltd marked the final step in ensuring all global facilities meet ZDHC’s stringent standards. Additionally, the company has over 1,000 products registered on the ZDHC Gateway platform, further demonstrating its dedication to sustainable leather production.
By partnering with ZDHC, Royal Smit &
Zoon reinforces its mission to promote responsible chemical use and wastewater management in the fashion industry, positioning leather as a sustainable material choice.
Europeans set to eat less beef
The European Commission’s agricultural outlook, published annually, has projected beef production will fall by 450,000 tonnes to 6.3 million tonnes by 2035 – 7% less than the average in 2022-2024.
The EU cow herd is set to decrease by 2.9 million head over this period.
EU beef consumption decreased in 2024 because of tight EU supply, high prices and a growing negative perception due to sustainability concerns, according to the report.
This is likely to continue and, as a result, by 2035 per capita beef consumption may drop from 9.8 kg per year to 9.2 kg per year (-6%).
EU exports of live animals are expected to decline by 3.2% per year between 2022 and 2035 due to increased competition, less animals available for exports, and concerns about animal welfare in long-distance transport. However, EU meat exports could grow 1% per year to 2035, mainly due to demand from trade partners and a partial substitution of live exports for meat.
Fight to save leather museum continues
Campaigners in Walsall are continuing efforts to save a museum dedicated to the leather manufacturing heritage of the town.
At the end of last year, Walsall Council confirmed that it would seek to close the current building and relocate the museum’s collection by April 2026. Its intention is to finalise this plan by the end of February this year.
According to campaigners, though, the Walsall Leather Museum is a “cherished landmark” and “the last remaining heritage asset that Walsall possesses”. They have also expressed concern that any move will make it difficult to keep the museum’s collection intact.
A petition is in place to try to convince Walsall Council to reconsider its decision.
Gruppo Mastrotto secures ESG funding
Italy-based leather manufacturer Gruppo Mastrotto has obtained a €25 million ESGlinked loan from Crédit Agricole Italia. The financing is tied to the achievement of specific environmental, social, and governance (ESG) performance indicators, reflecting the company’s focus on sustainability.
The loan will fund two primary initiatives. The first involves extending Life Cycle Assessment (LCA) analysis across all product lines to improve environmental performance. The second project introduces a recovery system for organic by-products in the tanning process, which will be repurposed into components for fertilisers and bio-stimulants by specialised companies.
This operation supports Gruppo Mastrotto’s 2023-2024 strategy, which includes investments in ESG projects. The company, with revenues exceeding € 500 million and over 5,000 employees, recently acquired Coindu Group, a European producer of leather and fabric automotive interiors.
Rolls-Royce Motor Cars announces £300 million expansion project
Automotive group Rolls-Royce Motor Cars has announced plans to invest more than £300 million to extend its manufacturing facilities in Goodwood in the south of England.
It opened the Goodwood site at the start of 2003 and said this new project would involve “the single largest injection of capital” into the business since then.
In the 22 years since the site opened, the Goodwood manufacturing plant has undergone “significant internal changes”, Rolls-Royce said. However, the building itself has remained largely unchanged.
In 2003, he company employed 300 people at Goodwood and produced one car per day. Now, 2,500 people work at the site and production has increased to 28 cars per day.
The extension will create additional space for the increasingly complex and high-value bespoke projects that customers are asking Rolls-Royce to undertake. It said more and more of its clients now define luxury “as something deeply personal to them”.
It will also prepare the manufacturing facility for the company’s transition to “an allbattery electric vehicle (BEV) future”.
Dr Martens creative director steps down
DarrenMckoy has announced his decision to step down as creative director of Dr Martens, a position he has held since 2022.
Mr Mckoy, who joined the company in the mid-2010s, shared the news in a LinkedIn post, reflecting on his decade-long tenure with the iconic UK-based footwear brand.
During his time at Dr Martens, he played a pivotal role in the company’s transformation, contributing to its growth from a £136 million business to a £1 billion enterprise. In his post, he expressed gratitude for the opportunity to shape the brand as product director and creative director, describing the experience as "extraordinary and life-changing."
Mr Mckoy revealed that his decision to leave was made early last year, citing a desire to pursue new creative challenges. His departure comes amid declining sales for Dr Martens and a broader leadership transition.
Ije Nwokorie, currently the brand’s chief brand officer, is set to take over as CEO following Kenny Wilson’s planned exit at the end of 2024.
Italian fashion clusters achieve growth, in spite of leather
Further analysis of figures for the first nine months of 2024 have led Italian financial
services group Intesa Sanpaolo to attribute export growth of 2.3% for the country’s top ten fashion manufacturing districts.
These ten districts, which include the leathergoods manufacturing cluster near Florence and the leather-making cluster in Arzignano, achieved exports with a combined value of € 33.7 billion over the nine-month period in 2024. This represents growth of 2.3% compared to the same period the year before.
However, Intesa Saopaolo’s analysis attributes all the growth to three clusters devoted to goldsmithing, those in Arezzo, Vicenza and Valenza. Arezzo goldsmiths contributed more than €5.3 billion to the total and achieved growth of almost 120%.
The news is less positive from the leather clusters. The banking group said leathergoods production in Florence was the second-biggest in the list of ten, bringing in export revenues of € 3.6 billion, but this cluster’s revenues contracted by 21.5% year on year.
In Arzignano, exports of leather gave revenues of €1.7 billion, down by 2.4% year on year.
Lloyd reveals new brand identity
German
footwear brand Lloyd has introduced a new brand identity to position itself as a global lifestyle brand.
Under the claim "Own the Moments", the company statement said the rebrand focuses on "Joy, Confidence, and Style".
The updated vision, Fuel a Positive Lifestyle, reflects Lloyd’s aim to inspire through innovative designs and a broader product range. The rebrand includes a modern serif logo, the "Wings of Inspiration" symbol, and a fresh colour palette of brick red and dark mint.
“This rebrand honours our heritage while embracing modernity,” said CEO Andreas Schaller, emphasising Lloyd’s commitment to quality and global growth, building on its 137 year heritage.
High-end brands to discover SS26 leathers in Scandicci
Leather
Preview, an Italian show dedicated to high-end fashion leathers, is preparing to open its doors in Scandicci, Florence, on January 15 and 16.
More than 1,000 buyers have registered, from brands including Birkenstock, Loewe, Bottega Veneta, Dior, Jimmy Choo and Burberry.
The region is home to high-end accessories producers, making it “easier for supply and demand to meet”, said organisers.
Spring-summer 2026 leather trends on display include materials inspired by Italian heritage; 1950s American culture and pop art; sports and the Olympics; and the sweeping seascapes of Scotland and Ireland.
Tanneries and suppliers exhibiting include Montebello, Gruppo Mastrotto, Italhide, Gruppo Dani and FL Leather.
ASIA
TFL to showcase innovations in Chennai
Leather chemicals group TFL has confirmed its participation in the India International Leather Fair (IILF) 2025, scheduled to take place from February 1-3 in Chennai.
Building on over two decades of presence at the event, the company will present a curated collection of premium leather articles.
The display will include garments, accessories, and footwear designed in the Spring-Summer 2026 season's colours. TFL will also highlight its Roda Line, a transfer coating chemistry designed to offer customised solutions for both fashion and high-performance applications.
TFL will also showcase its Tanigan brand, which focuses on ultra-low to zero bisphenol (BPS/BPF) syntans which aim to help customers meet evolving regulatory standards while maintaining high performance. The
range will be featured in shoe uppers and leather goods displayed at the event.
TFL invites visitors to experience its innovations and learn more about its offerings at Stand H1A-05-A in Hall 1.
Footwear
exports bring growth for Bangladesh leather sector
Bangladesh’s Export Promotion Bureau
(EPB) has reported growth of 10.4% in leather-sector exports in the first six months of the current financial year, July-December 2024.
Leather industry exports achieved combined export revenues of $577.3 million.
Finished leather exports fell in value by 11.6%, reaching $62.5 million. Leathergoods exports also declined over the six-month period, reaching $182.4 million in value, a fall of 11.1% year on year.
But leather footwear exports increased in value by more than 30%, reaching $352.6 million.
Rolls-Royce outlines importance of China as it celebrates Phantom
Rolls-Royce Motor Cars has unveiled a Phantom Extended created to celebrate Year of the Dragon, as it starts a year-long celebration marking 100 years of the Phantom.
Commissioned by a client from China, Phantom Dragon offers a contemporary rendition of the ancient Chinese legend of two dragons with a pearl.
Exceptional woodcraft is expressed across the commission, complemented by Ardent Red and black leathers on the seats, with the client’s family name in ancient Chinese calligraphy embroidered onto the headrests.
Martina Starke, head of bespoke design at Rolls-Royce Motor Cars, said: “Phantom Dragon highlights the importance of our presence in China through the Private Office in Shanghai. Having a dedicated Rolls-Royce team in this region gives us a unique understanding of, and connection to, one of the world’s most significant luxury markets.”
The British carmaker desribed the Phantom as the “pinnacle Rolls-Royce motor car: the most magnificent, desirable and effortless motor car in the world”.
ISA Next-Gen Materials releases life cycle assessment results
Following the recent announcement from the Leather Working Group (LWG) of its Life Cycle Assessment (LCA) report for global leather production, ISA Next-Gen Materials, through its leather manufacturing ISA TanTec group, has shared the results of its own LCA study.
The company, which specialises in ecofriendly leathers and sustainable materials for footwear, handbags, apparel, and accessories, contributed its findings to the LWG report.
The LCA results, based on a cradle-to-gate analysis, revealed key environmental performance metrics for ISA’s leather, including:
• Global Warming Potential: 18.6 kg CO2e per m²
• Eutrophication Potential: 0.11 kg PO4e per m²
• Abiotic Depletion: 135 MJ per m²
• Water Use: 9m³ of water per m²
• Water Consumption: 0.26m³ of water per m²
• Freshwater Ecotoxicity: 272 CTUe per m²
Commenting on the release of the data, senior director operational strategies, Carl Flach said: “It’s showcasing the progress in data quality and the potential for sciencebased sustainability discussions.”
Reopening in Bangkok for Hermès
Leathergoods brand Hermès recently reopened its store in the Central Embassy shopping mall in Bangkok following renovation.
All 16 of Hermès product ranges are on offer across two floors in the store, inviting visitors “to immerse themselves in the heart of the house’s creative universe”, it said.
Hermès emphasised that high levels of craftsmanship “broaden the scope” of its products.
Leathergoods are in a partially encircled area to provide what the company has called “a serene ambience”.
Footwear group Stella welcomes growth in “higher-margin” categories
Unaudited figures from footwear group Stella International indicate that the group shipped 53 million pairs of shoes and boots in 2024, bringing in revenues of $1.5 billion.
These figures indicate growth of 8.2% in volume and of 3.5% in value compared to Stella’s results for 2023.
The group achieved an average sales price of $28.40 per pair in 2024, down by 4.4% year on year.
Chief executive, Chi Lo-Jen, said Stella had benefited from having a diverse customer portfolio. He said orders from “customers in higher-margin categories” had increased and that the group believes this trend will continue into 2025.
CLIA announces Moda China Fashion Fair 2025
The China Leather Industry Association (CLIA) has formally announced the Moda China International Shoes, Bags & Apparel Fashion Fair 2025, scheduled for September 3-5, 2025 alongside the All China Leather Exhibition (ACLE).
Covering 23,000 square-metres in Halls W1 and W2, the fair will feature shoes, bags, leather goods, and apparel. It will include 11 exhibition areas, showcasing international and domestic brands, independent designers, industrial clusters, fashion trends, and cultural heritage displays.
The official website for the Moda China Fashion Fair went live on 31 December 2024, providing updates, participation details, and registration information. For more, visit Moda China Fashion Fair.
AMERICAS
Leather as an expression of hope at Inspiramais
Atotal of 17 leather manufacturers will take part in the January 2025 edition of Inspiramais, which takes place in Porto Alegre on the 21 and 22 of the month.
They have prepared collections of finished leather that they think will work well with the fashion trends predicted for the second half of 2026.
The team at Inspiramais has collated the leather collections into a special display at the exhibition, with ‘Human’ as the theme and “the word ‘hope’ as its central axis”.
Co-ordinator of the project, Marnei Carminatti, from the Inspiramais research and design team, said in the build-up to the show that using these materials as an expression of hope “reaffirms the appreciation of leather as an essential material, capable of reflecting the
needs and aspirations of a constantly changing world”.
The 17 participating leather manufacturers are Casa Romeu, Fuga Couros, Leather Labs, CBR Couros, Mucca Pelli, Nova Kaeru, Couroquímica, CR Leather, OCM Best Brasil, Curtume Mats, Strut, Faf Couros, Tre Anytry, FD Home Décor, Toinzinho, Sud Leather and Zitty Couros.
New Balance achieves record sales in 2024
Athletic
footwear brand New Balance reported $7.8 billion in global sales for 2024, a 20% increase from the previous year, according to media reports. This marks a record performance for the privately held Boston-based company, which selectively shares its financial results.
CEO Joe Preston expects the company to reach $10 billion in sales within a few years. New Balance's growth aligns with shifts in market dynamics, as competitors like Nike and
Adidas see declining market share, creating opportunities for brands such as New Balance, Puma, and Asics.
Key drivers of the company’s success include strong retail partnerships and enhanced digital engagement.
Date confirmed for 2025 CICB Sustainability Forum
Brazil’s national tanning industry association, CICB, has announced March 19 as the date for the 2025 edition of its Sustainability Forum.
The CICB Sustainability Forum is a one-day conference that takes place in the context of the Fimec exhibition in Novo Hamburgo, which this year runs from March 18-20.
CICB said lifecycle assessment in the leather industry will be a key theme at this year’s forum.
Executive president, José Fernando Bello, said: “Special attention should be given to lifecycle assessments, which are increasingly
12 - 14 MARCH 2025
important to clients. This is already impacting the supply chain and material requirements.”
Full-year results for Brazilian leather are worth celebrating, CICB says Brazil has reported revenues from its 2024 exports of leather, hides and skins of more than $1.25 billion, an increase of 12.5% compared to the previous year.
Measured by area, the quantity of leather, hides and skins that Brazil exported last year increased by 22.3% to reach almost 195 million square-metres. And in terms of weight, the increase was of 38.8%, reaching almost 600,000 tonnes.
The executive president of national tanning industry organisation CICB, José Fernando Bello (pictured), said the positive results were welcome news for the whole sector. He explained: “Last year was crucial for us. We worked relentlessly on issues such as compliance, traceability, and customs barriers, achieving results that have set the stage for further growth in 2025.”
Key markets push US beef exports higher
Beef exports from the US in the month of November reached a volume of almost 110,000 tonnes, and a value of $872.7 million. These figures represent increases of 10% in volume and of 11% in value.
The US Meat Export Federation said demand for US beef was strong in South Korea, China and Taiwan, and was “fairly steady” in Japan.
Chief executive of the organisation, Dan Halstrom, said US beef exports also had a strong performance in Mexico in November and that there had been “outstanding demand” in Egypt for variety meats, or offal. Mr Halstrom said this had been “critical for bolstering carcass value”.
Former Cargill hides manager dies
The former manager of hides and byproducts at meat company Cargill, Richard Kelley, died suddenly at the end of 2024. He was 70.
He went on to hold senior international sales roles at the Cargill group and spent five years in Australia as head of the group’s beef business unit there.
Mr Kelley worked at Cargill for more than 30 years before retiring in 2009.
UK beef market access could be “early trade win” for Trump Vice-president of economic analysis at the US Meat Export Federation, Erin Borror, has said favourable conditions for shipments of US beef and pork to the UK could represent “an early trade win” for the new administration in Washington DC.
Donald Trump’s return to the presidency is due to take place at an inauguration ceremony on January 20.
Ahead of the event, Erin Borror (pictured)
said: “The US and the United Kingdom held significant trade talks during the first Trump administration. That could signal an opportunity for an early trade win, particularly for US beef and pork.”
She said that the UK benefits from “practically unfettered access into the US”, and called for “reciprocal access”.
“We have basically no access into the UK for US beef, and that’s a $2 billion market,” Ms Borror commented. “
She also pointed out that the free-trade agreement that the US already has with Mexico and Canada is up for review in 2026. She said the agreement, USMCA, negotiated in the first Trump term, had delivered tarifffree trade and minimal sanitary standards across North America.
“The trade agreement needs to be preserved and strengthened when it comes up for review,” she said.
CEO change for Tandy Leather Factory
Tandy
Leather Factory has named Johan Hedberg as its new Chief Executive Officer and Board member, effective January 6.
Mr Hedberg, with over 30 years of wholesale and retail leadership experience, previously served as Chief Sales Officer and President, Americas, at Fiskars Group. He succeeds Janet Carr, who will remain with the company through March 2025 to assist with the transition and other key initiatives.
Chairman Jeff Gramm praised Ms Carr’s leadership, noting her role in improving product quality and navigating challenges such as the Covid crisis. He welcomed Hedberg, highlighting his expertise in driving sales growth and team leadership.
The company also announced the election of John (Rocky) Sullivan to its Board of Directors, replacing James Pappas, who will step down alongside Ms Carr. Mr Sullivan, an investment professional and business owner, joins as Tandy prepares for its headquarters relocation later this year.
AFRICA
Ethiopia’s leather sector still underperforming
Press in Ethiopia have reported the country earnt $10.5 million from the leather sector over the past five months although they noted, given the size of country’s cattle population, the sector “underperformed”.
Zulfiker Abajihad, director of the Leather and Leather Products Industry Research and Development Centre, told the Ethiopian Press Agency there were limitations related to productivity, demand, technology and capacity.
In 2023, the country launched a 10-year Leather Sector Development Strategy that aims to transform the country into a major leather and leather products exporter. At the time, Industry Minister Melaku Alebel said Ethiopia had Africa's largest cattle population, along with significant sheep, goat and camel herds. While it has over 165 million cattle and produces 41 million hides and skins annually, only 22 million hides reach tanneries each year.
OCEANIA
Australian red meat exports reach record highs
Australia exported a record 2.24 million tonnes of red meat to 104 countries in 2024, the highest volume ever recorded, according to Meat & Livestock Australia (MLA).
Significant increases were seen across all categories: beef exports rose to 1.34 million tonnes, lamb to 359,299 tonnes, mutton to 255,098 tonnes, and goatmeat to 51,489 tonnes.
The United States was the largest market for beef, lamb, and goatmeat, while China led in mutton imports. Increased domestic supply, driven by herd and flock maturity, combined with favourable global market conditions and Australia’s strong reputation for quality, supported the growth.
MLA noted that 87% of exports went to countries with free trade agreements, emphasising the importance of trade access in facilitating this record-breaking performance.
