• The delay of the US-China tariffs until August is welcome news, but is causing havoc with shipping logistics, and makes planning difficult
• The leather sector is being buffeted by changing information as companies try to hedge, but there is a growing feeling that governments are realising high tariffs would be good for no one
• Prada’s investment in Rino Mastrotto looks like a sign of confidence. Experts within the tanneries must still be allowed creative expression
• Adidas’ decision to ban kangaroo leather could mean skins will be left to rot. Companies should be braver when explaining leather’s qualities and not bow to perceived public opinion
• A shake-up of supply chains might be what is needed for groups to work less administratively and more creatively. The leather industry has previously been resilient in the face of these types of changes
MARKET INTELLIGENCE
Over the past two weeks, events outside of the leather markets have remained more important than the business within the supply chain itself. Firstly, of course, it was once again the US government's tariffs, with decisions changing almost daily. The most significant was the temporary suspension of tariffs between China and the US. In addition to the questions of which tariffs will apply, when they will apply and which products will be affected, the parties had to check how goods already shipped might be affected. The temporary suspension of tariffs is crucial. It does not help with planning for the second half of the year, but it does play a role for goods that were either already planned for shipment or en route. The deadline now is August 14.
Bear in mind that many of the US cattle hides that were either already planned or already travelling to China when the original tariffs were introduced were diverted, either because the Chinese customer was not prepared to bear the high tariffs, or the hides were planned for finished products for the US market, or simply because they were not sure whether the goods would be accepted or could not agree on what to do with the contracts. This changed again with the suspension of tariffs. A whole lot of raw and wet-blue hides could then be rebooked to their original ports of destination. Although this means high costs, it may still be the better option.
Questionable statistics
The official USDA statistics on sales and shipments of American cattle hides raised big questions. In the week ending 22 May, large volumes of sales allegedly to China suddenly
appeared in the statistics. At first glance, this was seen as confirmation of strong buying interest at favourable prices, but on closer inspection, suspicions grew that these were merely new statistics for existing contracts. It is also possible that some larger new deals were added and some bigger names were mentioned that have the financial resources to speculatively secure large quantities of very cheap commodities. In this context, of course, it is not so much a question of whether there are really valid leather orders to cover but whether it is just a question of securing cover for production with raw materials. Those who are concerned will already know exactly. For everyone else, it remains speculation. In the following week, the figures then fell again significantly, even if the absolute figure was still impressive under the conditions. Here, too, there may be other reasons.
New customs negotiations between the US and China are due to begin in London and the results will certainly be of great significance for the leather business. However, it should not be forgotten that the negotiations are not only important for the leather industry but also to the meat industry, as meat exports from America to China plays an important role.
At the same time, negotiations are taking place between the EU and the US. In addition to customs duties, the resulting logistics are also causing problems. In addition to completely unreliable dates for shipments, the first bottlenecks for empty containers are now becoming apparent. This is dangerous and means uncertainty for the calculation of freight costs.
Both exporters to the US and importers in the US are trying to hedge for the near future. This is particularly evident in the build-up of stocks in the US in order to avoid possible higher
TUESDAY, JUNE 10 2025
tariffs, but at the same time to ensure that they remain able to deliver. The logistics trade media report on rapidly filling bonded warehouse space that enables duty-free storage. Here too, it is not just a question of capacity, but also of the associated costs. Importers and exporters of products that use leather as a material have been mentioned. From Europe, these are the luxury companies, and from China it covers a wide range of products, from shoes to furniture.
To round off the negative influences on the demand for leather, the possible production cutbacks by car manufacturers due to a lack of raw materials from China must also be mentioned. This relates in particular to rare earths, without which vehicle production is inconceivable. Of course, this also applies to many other products, but leather still plays a major role in cars, especially in the premium segment. But even without the restrictions on the supply of base materials, the premium market for cars is in jeopardy, as European manufacturers are dependent on the two particularly important markets: the US and China. Sales were already far from satisfactory without additional restrictions.
Despite all the potential disasters that the trade conflict could trigger, there is a feeling some kind of solution can be found. There is a slowly growing confidence among most business leaders that political leaders realise an economic war could do more harm than good for them, too. Nevertheless, we are dealing with big egos and the risk of anyone overplaying their hand remains very high.
Acquisitions and consolidations
In the leather industry itself, the most interesting news over the past two weeks has been about further interlinking and broadening of the product range in the leather industry. We have already had the announcement that Pasubio, which operates almost exclusively in the automotive leather segment, is expanding its range and taking over leathergoods tanners. However, it is possible that this is not just an expansion of the product range, but possibly also the acquisition of specific expertise. It would not be surprising, as the market for automotive leather seems to be changing from a mass product to a more specialised niche product in the luxury segment.
Last week, the Rino Mastrotto Group announced that Prada had acquired a 10% stake. This is not just a purely financial investment; two tanneries that already belonged to Prada are now being integrated into RMG, plus a cash injection. Of course, such investments and acquisitions are always celebrated by those involved as a major
strategic and far-sighted decision, but in our opinion the two transactions are quite different. While Pasubio’s purchase of family-run tannery Antiba is new territory, the networking between RMG and Prada is only an extension of its supply chain.
RMG has always positioned itself broadly and has a great deal of expertise in all the different ways in which leather can be produced. With Prada and its brands, RMG is a strong partner in the luxury leather goods sector. For Prada, the benefits are perhaps even greater, as the acquisition of leather factories has not really proved to be the decisive success for many of the major luxury brands. They gain access to the material, but much of the agility and creativity of the independent leather factories has also been lost, in many cases. The spirit and creativity of a tannery lies not in its production facility, but with those who develop and produce the leather. You often get the impression that people have not realised that a leather manufacturer has a lot in common with
the designers who develop the collections. They must be given a lot of freedom, and creativity must not be restricted. If they are used solely as fulfilment for materials, the real appeal of leather in luxury goods is lost and the material becomes replaceable. Further developments in this sector will be particularly exciting. It may even point the way forward for the leather industry as a whole.
Kangaroo catastrophe
The decision by Adidas, another major sports and lifestyle brand, to abandon kangaroo leather has caused a great deal of discussion, at least within the industry. The decision was not a new one, nor was it made by Adidas alone. However, it sends out an exceptionally negative signal. It is difficult to understand why Adidas, a company that is riding a wave of success with its retro sneakers made of leather, should come up with the idea of banning kangaroo leather from its collection. It raises questions about how
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long it will stick with leather in the other models.
There are many reasons for this decision. It is possible that they are still being driven by the “spirit of the times”. This would be strange, as kangaroos are hunted and killed in Australia for many reasons, but certainly not to obtain the skins for leather production. What's more, kangaroo leather has very special and unusual properties. It is exceptionally tear-resistant and is better suited to the stresses and strains of sport than most other alternatives. It is safe to assume that you will find many athletes who would not want to do without their kangaroo leather sports shoes. Everyone has tried other materials and other shoes, but almost everyone always comes back to kangaroo leather shoes. This is especially true for football and rugby. Wetness, temperature, adaptability and comfort remain unrivalled.
It remains the case that brands have been pushed so far into a corner by supposed social trends and public opinion that they don't know exactly how to get out of this position. Over the years, the realities have been bent in such a way that great marketing tricks have to be performed to justify the use of leather again. Many brands would prefer it if they could get scientific absolution from somewhere to excuse their past actions and explain possible changes for the future. The facts are still on the table - it remains to be seen whether anyone will be prepared to use these facts openly and requalify the use of leather. If the decision to ban kangaroo leather is just caused by the scale of economics (production numbers are considered to be too small to care about the entire production, logistics) then at least this should be communicated. Valuable raw material is being destroyed in large quantities. The kangaroo skins must find another home or, like so many other hides and skins, they will be left to rot.
Splits and skins
There have been no significant developments in the split sector and for sheep, lamb and goat skins. In the case of splits, collagen and gelatine remain the dominant uses, at least in Europe. Splits for suede are in short supply. The decline in leather production is leading to correspondingly less production of splits and this must be compensated for by other raw material alternatives. It remains to be seen in the medium term whether the production of collagens and gelatine from bovine hide in Europe can or should be continued. Here too, the first mergers of producers are already taking place, as the existing production structure does not match the market situation.
Leather orders are not enough to make use of the capacity. Not only are the quantities insufficient, but the size of the individual orders no longer matches the production, in most cases. This applies to both Europe and China, with some exceptions. In our view, the new global risks are reorganising supply chains. Mass manufacturers have not yet made a final decision on how to deal with the
changed conditions in logistics and trade policy. Relocating production, increasing regional stockpiling, changing product ranges - opinions differ widely. This may be lamented, but perhaps this is exactly what is needed after many years without any significant change. Companies can be managed less administratively and more creatively. The leather industry has always proven to be very resilient. There have been major changes and relocations in a decadal rhythm and somehow the leather industry has always reinvented itself. In the last ten years, unfortunately, much of its potential has been taken away because the material has been demonised by the public.
So, for the next few weeks, we will simply have to wait and see under what conditions we will have to plan for the coming season. Either way, not much will change in the summer months. We can only hope that this time will be used to think about how we can regain the sovereignty of action and opinion for leather as a product. We remain convinced that the permanent defensive policy of apologies and explanations is not particularly useful. Anyone who wants to actively take their fate into their own hands must not become a slave to opinions.
US PERSPECTIVE
Sales of cured cattle hides for the period ending May 29 were 413,000 pieces. The figure for exports of wet blue was 64,400 pieces.
The most recent reports on hide prices showed no change, with butt-branded steer hides weighing 60-62 pounds at $15.25 each, and heavy Texas steers weighing 60-62 pounds still at $10 per piece.
Cow hide prices still had 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
Futures prices hit new life-of-contract highs, while cash markets seemed to be in a runaway. Each day has topped the previous in higher cash prices across the plains. Cattle first traded in Texas at $225 then progressed daily to $228 then $230 and finally, at the end of last week, $232. In the north things were quiet until the end of the week when trade action occurred at $240 live and $380 dressed. These prices were $7-$10 higher than the previous week’s.
There is a widespread feeling within the industry and futures traders that the most recent surge in cattle prices is not sustainable. These price increases in live cattle will not immediately be felt in the grocery store or restaurant menus but as pricing decisions occur in the next few weeks, more definition regarding the impact
Actual Slaughter Under Federal Inspection
on consumer spending will be tested.
Grain prices moved marginally higher. The graph of differentials between contract months in corn futures has undergone an adjustment that now has old-crop prices flatlined with new crop. Planting is nearing completion and traders expect 4 million more acres than last year. Corn basis levels in Guymon, Oklahoma, are at $0.90, basis the July contract.
GERMAN PERSPECTIVE
This week: the political course in the US continued unabated. If it didn’t have such farreaching consequences for the world, TrumpMusk would be a marvellous soap opera that would guarantee fantastic viewing figures.
The outcome between ‘money and politics’ will be interesting. In autocratic systems, the outcome would be clear, whereas in a system that is still democratic, much will depend on
the outcome of this dispute for the future.
The hide market in Germany is largely unaffected by these events. What can we do except try to minimise the potential risks and hope that the effects are correctly assessed? Otherwise, we continue to report the same conditions as in previous weeks.
Leather orders are insufficient, although it is debatable whether this is due to the season or a general lack of consumer demand. The summer holidays are also already the subject of discussion and it seems that most leather factories are planning to close production completely and possibly extend the interruption. The usual outsourcing, in part to maintain the flow of chilled hides, could possibly be cancelled this year.
If the rumours are confirmed that automotive production in Europe may be affected by the reduced export of rare earths from China, this would lead to a further reduction in the demand for leather from the automotive industry. It is to be hoped that, as
in the past (chip shortage), that high-priced vehicles will be the last to be affected and that this will also have an impact on the demand for leather.
A certain amount of relief for the market will result from the relatively low level of slaughter, and, therefore, low supply of hides. This is likely to continue for some time to come. This may be the first time in the recent past that we are faced with a situation in which the decline in the supply of raw hides is greater than the reduced production in tanneries.
This does not change the fundamental problems. But it would initially take some pressure off the market. However, anyone who wants to draw the reverse conclusion from this, that this would be a reason to ignore the general problems of the market and to expect that everything will change for the better in terms of price, could be mistaken. In any case, it is noticeable that many leather factories are currently working on new articles and looking for new ways and options to stabilise their
production again.
Due to all these circumstances, the market has found a certain balance at the moment, which still continues to prevent major changes in prices. The continued weakness of the US dollar is weighing on overseas sales and revenues in euro and the prices reported from competitive markets do not give much hope for a recovery.
China has still not lifted the ban on German hides and one can be quite sure that this is also because they are not needed. Sales this week were sufficient and prices have not changed.
The kill: The kill continues to fall and there are reports that some slaughterhouses are considering limiting their production to four days a week. There is simply not enough live cattle available on the market and somehow they are trying to put a stop to the constantly rising prices for the same. Hide weights continue to fall. Overall, this development has come a little earlier than usual this year, but is of course by no means unusual, seasonally.
What we expect: People are increasingly coming to the conclusion that there is unlikely to be any significant market change before the summer holidays. Of course, politics and the state of the world are always capable of delivering new surprises that could turn everything upside down. We will probably have to continue to live from week to week without expecting any major changes in the short term.
LONG READ
Leather and the Circular Economy: Thought Leadership
SMEs weigh data burden
Some of the world’s most beautiful shoes are made by highly skilled artisans in small workshops. Now, these manufacturers are being asked to also become data providers and sustainability managers as their customers lean on them to supply information for European legislation. What will become of these Italian SMEs that operate with already-tight margins?
The head of a small Italian footwear manufacturer inadvertently summed up the burden of new European data requirements by lamenting the “problem of sustainability”. Speaking as part of a panel discussion at footwear show Micam Milano, Alberto Masenadore of Calzaturificio Peron [politely] expressed frustration about the incoming legislation. “In the previous years, our main concern was to satisfy the designer, making good samples, and then satisfy the production, making high-quality shoes,” he commented. “Now, we have to also face this problem of sustainability.”
He is, of course, talking about the slew of new regulations and demands expected in the European Union in the next five years or so,
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including Digital Product Passports, Extended Producer Responsibility, the Corporate Sustainability Reporting Directive and others under the European Green Deal, which aim to make the fashion industry more sustainable and accountable, putting the onus on the sellers to take more responsibility for the goods they place on the market. As part of this, products will be expected to carry information about materials and manufacture, and the retailers must have a clear view of inputs and end of life. But who is expected to provide all this extra information? Whatever the theory, it looks like it will be the manufacturers, a challenge many – especially small and medium-sized enterprises (SMEs) –are wholly ill-equipped for.
There are about 4.3 million SMEs in Italy, 95% of which are micro-enterprises. They employ 13 million people and account for 80% of employment, according to government figures, generating more than 65% of the nation’s added value. They are the “powerhouse of the Italian economy” says Valentino Valentini, deputy minister at the Italian Ministry of Enterprises. However, there is now an urgent need to digitalise and upgrade these businesses so they can meet the fresh needs of their customers.
“The new EU regulations, particularly the Digital Product Passport requirements under the Ecodesign for Sustainable Products Regulation, present several challenges for small and medium-sized footwear manufacturers,” Giovanna Ceolini, president of Italian footwear manufacturers association Assocalzaturifici, tells World Leather. “SMEs will need to collect and document detailed data on materials, production processes, chemical usage and supply chain information, which they may not currently track systematically. Additionally, implementing digital systems to create, manage and transmit data requires technical expertise and software investments that small manufacturers often lack. Footwear production involves multiple suppliers across different countries, making full traceability a challenge for small producers with limited
influence over their supply chains. Furthermore, validating environmental claims and material compositions may require laboratory testing, adding further costs.”
Brands united?
Brands share some of the frustration, according to Rosie Gaunt, head of responsibility at luxury shoe brand Manolo Blahnik. Although not speaking in an official capacity, she expresses how difficult it is to gather the data required for the new rules. “It’s coming to us in snippets, and it’s not good enough,” she says. “There are a lot of solutions but these need investments from the brand, unfortunately, so it’s a challenge to prioritise that investment to make that work easier.”
Speaking at Micam, she was keen to stress how lucky brands are to work with such skilled artisans, and admits they are now asking them to “wear so many hats”. “All brands are asking a similar supply base for the same information, but maybe in a slightly
different way, so we’re inadvertently doubling, tripling or quadrupling the workloads of suppliers who are already doing something they haven’t been trained to do,” she says. “So, more collaboration is needed across the sector to support our suppliers, which is really what the whole industry is underpinned by.”
More collaboration, and more clarity, pleads Mr Masenadore. “We need to work with our customers to find a way to get this data together, because, as everybody knows, the margins in production are very small. Crucially, we don’t have a clear picture of what they really need, and everybody is different. It is very important that this becomes clearer.”
Financial instruments
To help with the burden, the Italian government has introduced specific fiscal and financial instruments to help enterprises invest in digitalisation, as well as tax credits and state guarantees of 80% on lending for working capital and new investments. It has also established a network of 50 innovation
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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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centres that offer experimentation labs, targeted training and mentoring programmes for SMEs interested in adopting new technologies.
Specific to footwear, several approaches are emerging to help small manufacturers adapt, starting with the development of standardised models and specific guidelines, Ms Ceolini tells us. “A gradual adoption process is essential to allow less structured companies more time to adjust their systems. Also, accelerating digitalisation efforts will be key to facilitating compliance and reducing the burden on SMEs.”
For its part, Peron has developed a system that uses radio-frequency identification (RFID) - adding a tag within the shoe that is able to carry data and record it in a permanent blockchain system. Footwear brand Tod’s recently used this system (although it is unclear whether it is from Peron) in its new My Gommino shoe, supported by the Aura Blockchain Consortium. Chips containing information on the origin of materials, production processes and compliance, as well as aspects of quality and sustainability, are embedded in the sole. Consumers can also scan this to learn stories of the artisans behind each pair, adding value by creating an emotional bond with the product.
These sorts of investments and strategies will be vital for the survival of the SMEs, and it is in nobody’s interests to let them flounder, but the question of who will bear these costs is “complex and sensitive”, Giovanna Ceolini concludes. “It will be necessary to work on brand-supplier dynamics with shared responsibility models and to be cautious about passing significant price increases on to end consumers. SMEs with less bargaining power may face greater pressure to absorb these costs.”
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One million Audi Q3s produced with Bader seat covers
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Audi Hungaria has marked a major milestone with the production of the one millionth Audi Q3 at its plant in Gyor, Hungary. The second generation of this compact SUV has been in production at the site since 2018.
Each of the one million Q3 vehicles produced features seat covers supplied by leather manufacturer Bader. The company confirmed that it delivers 100% of the seat covers for this model, supplying up to 4,000 sets per week. These include both premium Pearl Nappa leather and high-quality fabric options, all manufactured at Bader’s facility in Ukraine.
Audi described the milestone as a reflection of customer trust and the dedication of its workforce in Hungary. The company used the occasion to reaffirm its long-term presence in the region by renewing a strategic cooperation agreement with the Hungarian
government.
Bader said the project demonstrates its commitment to quality and efficiency, and added that it will continue as a partner in the production of the next generation of the Audi Q3.
Prada acquires minority stake in Rino Mastrotto Group
Prada Group has announced a strategic equity investment in Rino Mastrotto Group, further strengthening the partnership between the two companies.
The deal is complex. It includes transferring Prada’s equity in Tuscany-based leather manufacturer Conceria Superior and in French supplier Tannerie Limoges to Milan-based private equity firm NB Renaissance Partners. Renaissance Partners is the majority owner of Rino Mastrotto Group.
A cash investment from Prada in Rino Mastrotto Group is also part of the new deal, and in total, Prada will hold a 10% stake in the leather manufacturing group.
The transaction is expected to close between the end of Q2 and the start of Q3 2025, subject to customary conditions.
Rino Mastrotto, a global supplier of luxury materials and services, has long-standing ties with Prada. The agreement aims to support long-term industrial development and reinforce strategic synergies in the leather supply chain.
Rino Mastrotto CEO, Matteo Mastrotto, said the investment reflects a shared vision for sustainable growth. Prada chairman, Patrizio Bertelli, noted the importance of controlling key production stages and strengthening the Made in Italy value chain.
Livestock group hopes Strasbourg event will help ‘depolarise the debate’
Arecently
formed group that aims to inform discussions in the European Parliament about improvements to animal farming systems is to host a meeting in Strasbourg on June 19.
The event, organised by the Sustainable Livestock Intergroup, will include presentations from academics who will attempt to make it clear to members of the parliament that it would be wrong to think that the future of livestock is merely an agricultural issue.
“Given its numerous contributions to our societies, the future of livestock farming influences many aspects of our daily lives and deserves to be addressed in depth,” the Sustainable Livestock Intergroup said in the build-up to the meeting.
It said it wanted attendees to reflect on what our societies stand to lose if the livestock population declines.
Its belief is that discussing these matters openly and in depth will help “depolarise current debates and pave the way for realistic, science-based and sustainable solutions in animal farming”.
It added that this will necessarily include enhanced animal welfare.
EUDR: policymakers must listen to the evidence, industry says
Key points that leather industry representatives raised on a workshop on deforestation on June 3 included the insistence that the European Union Deforestation Regulation (EUDR) is likely to have a severe impact on the sector in Europe.
In parallel, the industry insisted that there is no direct link between leather and deforestation.
The workshop took place at the European Parliament in Brussels, with COTANCE, UNIC, the Leather and Hide Council of America and the International Council of Tanners among the organisations representing the leather industry.
They said hardly any country outside the EU is in a position to implement EUDR's mandatory traceability requirements. And as 40% of the raw materials that leather manufacturers in the EU need comes from outside the EU, losing access to the hides and skins they can supply could severely disrupt
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the supply chain, the participants warned.
They added: “Leather businesses in the EU are in a critical situation, which risks significant job losses across the industry’s value chain.”
In the course of the workshop, industry representatives also warned that shortcircuiting the European leather industry and replacing leather with synthetic alternatives such as polyurethane could increase environmental damage, in terms of higher emissions and resource use.
Finally, they warned officials from the EU institutions who were present that diverting cattle hides to landfills or to countries with weaker environmental standards would undermine the ambitious environmental goals that the European Union has set itself.
Based on this, COTANCE secretary-general, Gustavo González-Quijano called on EU policymakers to acknowledge the evidence and listen to the voice of the leather industry. He said: “Stakeholders across Europe and from third countries emphasise that complying with EUDR is not in their hands. Supply chains
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outside the EU will not set up costly cattle traceability systems just for a residue of meat production. Is the EU really expecting a handful of EU tanners to drive EUDR-type cattle traceability at global scale?”
Dr Martens targets growth after profit fall
Dr Martens has reported a steep fall in profits for the year ending March 30 but says it expects a return to profit growth in the next financial year.
The British footwear brand posted an adjusted pre-tax profit of £34.1 million (€40.5 million), down from £97.2 million ( € 115.4 million) the previous year.
However, the result was ahead of its earlier guidance of £30.6 million ( € 36.4 million). Group sales declined by 8% to £787.6 million (€935.2 million), in line with expectations, as the company cited difficult macroeconomic conditions in key markets.
To support a turnaround, Dr Martens has launched a new strategic plan, ‘Levers for Growth’. Chief executive Ije Nwokorie said the
company’s focus for the year had been on stabilisation, with improvements in direct-toconsumer performance in the Americas, cost savings, and a strengthened balance sheet.
The new strategy involves a shift from a channel-first to a consumer-first approach. Nwokorie said this would include expanding into adjacent product categories and tailoring distribution to local markets to maximise brand reach and improve capital efficiency.
For the current financial year, Dr Martens is forecasting a pre-tax profit in the range of £54 million (€64.1 million) to £74 million (€87.8 million).
Assomac mourns Mario Pucci
Italian leather and footwear machinery manufacturers’ association Assomac has announced the death of Mario Pucci, the organisation’s head of communications and international activities. His funeral took place in Florence on June 4.
In a statement, Assomac offered its condolences to Mr Pucci’s wife, Antonella, their daughter, Chiara, and their grandson, Andrea.
Mario Pucci settled in Vigevano in the 1970s and worked on a local paper before bringing his communications professionalism to Assomac in the 1980s, soon after the association’s launch.
He travelled widely and said India, in particular, always held a special place in his heart.
Current Assomac president, Mauro Bergozza, said Mr Pucci had a passion for building relationships with industry contacts across the world and had approached every aspect of work with skill and seriousness.
Turkish leather sector targets recovery with China focus
TheTurkish leather industry has launched a “Medium Term Program” under the coordination of the Aegean Leather and Leather Products Exporters’ Association to reverse an 18% decline in exports, which fell from $1.86 billion in 2023 to $1.53 billion in 2024.
Association president Erkan Zandar said the programme will guide companies on production efficiency, inventory management and financing, aiming to improve competitiveness and support recovery.
Strengthening ties with China is a key part of the plan. Sector leaders recently visited factories in Xiantao and Xiamen and are preparing for the China International Import Expo (CIIE) in Shanghai, November 5–10, 2025. A promotional launch for Turkish firms will take place on June 20 in Izmir.
Vice president Halil Gündogdu said China offers both a major market and valuable production know-how. “This fair is a key opportunity for Turkish companies to enter the Chinese market and make themselves known,” he said.
UNIC and COTANCE take EUDR argument to the heart of EU institutions
Leather industry bodies COTANCE and UNIC have made the case for excluding leather from the European Union Deforestation Regulation (EUDR) in a workshop at the European Parliament in Brussels on June 3.
Hosted by Italian member of the European Parliament Salvatore De Meo, UNIC and COTANCE used the workshop to present a clear, science-supported message that leather is not a driver of deforestation and deserves to be among the products that are exempt from the requirements of EUDR. The regulation will begin to come into effect at the end of this year.
More than 50 people attended the event, with representatives of the US, Argentina, Turkey and Australia taking part alongside officials from EU member states, the European Commission, members of the European Parliament, international organisations, industry experts and representatives from the leather industry.
COTANCE and UNIC said afterwards that the event marked “a major milestone in the industry’s advocacy efforts, and reinforced the importance of evidence-based policymaking
in the revision of EUDR”.
The findings of a study conducted by the Sant’Anna School of Advanced Studies at the University of Pisa formed part of the industry’s message. This 2024 study offered a comprehensive review of academic literature and available data on whether leather contributes to deforestation or not.
Another important aspect of the workshop was that it served as what UNIC and COTANCE called “the missing impact assessment on leather”. The European Commission has carried out no assessment of the impact EUDR is likely to have on the leather industry in the European Union. This event filled this “critical gap”, the organisers of the workshop said.
Following the workshop, UNIC vice-director, Luca Boltri, said: “We are grateful to Salvatore De Meo, who listened to our concerns and gave us this opportunity to bring to the European institutions the facts of the impact of a piece of EU legislation which is totally disconnected from the realities of the leather industry.”
For his part, Mr De Meo said he was happy “to stand up for an industry that is the pride of Italian fashion and is unfairly stigmatised by EUDR”. He pointed out that everyone wants to curb deforestation, but that it is no help to “the credibility of EU legislation” if measures have no real effect on the environment and at the same time “stifle the competitiveness of EU industry”.
Spanish leather and footwear employment drops again
Employment in Spain’s leather and footwear industry continued to decline in May 2025, marking the third consecutive monthly drop and returning to levels last seen during the covid-19 pandemic.
Social Security data show an average of 37,510 workers registered in the sector last month—31 fewer than in April, a 0.1% decrease. Compared to May 2024, the sector has lost 1,769 jobs, down 4.5% year-on-year. This trend contrasts with the broader Spanish labour market, which reached a new record with over 21.8 million registered workers.
Of those employed in the footwear and leather sectors in May, 89.7% (33,660) were under the general Social Security scheme, while 3,850 were self-employed. The workforce was nearly evenly split by gender: 51.6% men (19,356) and 48.4% women (18,154).
The data highlight ongoing challenges for the sector, despite strong national employment figures.
New podcast series explores leather’s future
Royal Smit & Zoon has launched a new podcast series, Leathertainment on the Go, offering listeners a wide-ranging exploration of the global leather industry.
Hosted by Florian Schrey of Royal Smit & Zoon and leather specialist Volkan Yilmaz— better known as Tanner Leatherstein—the eight-part series is now available to stream on YouTube and Spotify.
The series aims to provide insight into key themes shaping leather’s present and future, including debates around alternative materials, animal welfare, and the industry’s environmental footprint. Each episode features in-depth discussion intended to inform both professionals and those with a general interest in leather and sustainability.
Episode topics include:
– Common myths about leather
– Alternative materials
– The legacy of leather
– The leather production process
– The future of leather
– Sustainability and environmental impact
– Ethical concerns and animal welfare
– Durability and longevity of leather
The final episode features a guest interview with designer Noor Wentholt, known for her work in bespoke leather bags.
Leathertainment on the Go is positioned as both educational and accessible, combining technical insight with informal discussion and commentary. The series is now available in full.
Spain-Turkey
business summit takes place in Madrid
The leathergoods sector played an active part in a Spain-Turkey business summit that took place in Madrid at the end of May.
The director of ASEFMA, Spain’s leathergoods manufacturers’ association, Noemí Moreno, said the event had been a great opportunity to establish new commercial links with companies in Turkey.
She said business representatives from both countries had been able share their visions, market experience and discuss future possibilities for joint working “in a participative and agile format”.
International trade consultancy ESKZ Global organised the event in partnership with Turkish exporters’ association TIM and the Madrid Chamber of Commerce.
LVMH hands whole of Dior’s creative direction to Jonathan Anderson
Luxury group LVMH has expanded the role that Jonathan Anderson will have at Dior.
makes it natural
Mr Anderson stepped down as creative director of the group’s Loewe brand in March, a role he had held for 12 years. LVMH announced in April that he had taken up the role of artistic director at Dior.
Now, though, LVMH has said Jonathan Anderson will be the creative head of women’s, men’s, and haute couture collections at Dior. This will be the first time one designer has had responsibility for the creative direction of all the brand’s output since its founder, Christian Dior, died in 1957.
Automotive slowdown affects diversifying Pasubio
Automotive leather group Conceria Pasubio has reported a dip in first quarter revenues due to a slowing car sales market, but closed the acquisition of family-run leathergoodsfocused tannery Antiba in Tuscany.
Pasubio reported revenues of €81 million for the three months ended March 31, compared with € 88 million in the same
period last year.
During the period, the global automotive market was hit by shifting consumer preferences, regulatory changes and geopolitical factors, said the group, with total production volumes falling slightly.
Antiba produces chrome and vegetabletanned goat and half-calf skins for the luxury leathergoods market. It closed its latest fiscal year with revenues of € 57 million and earnings of €12 million.
Pasubio said: “The acquisition strengthens Pasubio’s presence in the Tuscan leather district, representing a significant territorial and product diversification for the group.”
Our recent Market Intelligence report suggested the purchase by Pasubio’s privateequity owners signifies “a high level of basic trust in the future of leather”.
The Conceria Pasubio Group supplies finished leather for seats, dashboards and steering wheels to Porsche, Jaguar Land Rover, Lamborghini, Bentley and Rolls-Royce.
The group operates 11 manufacturing plants comprising five production facilities in Italy, one in Germany, and cutting and lamination facilities in Italy, Serbia, Mexico and South Africa.
Bottega Veneta marks 50 years of Intrecciato
Bottega Veneta has launched a campaign titled Craft is our Language to mark the 50th anniversary of its signature Intrecciato leather weave.
Introduced in 1975, the Intrecciato technique involves hand-weaving narrow leather strips, known as fettucce, into a leather base or around a wooden mould.
The process, which demands hours of meticulous manual work, reflects Italy’s longstanding weaving traditions and the leather craftsmanship of the Veneto region.
The campaign includes a series of photographs and videos featuring both Bottega Veneta’s artisans and figures from the international cultural sector.
In September, the project will expand with the release of a print book and additional short films and photographs. The book is described as a “dictionary” of the brand’s language, craft, and values.
Arzignano cements leather’s ‘capital city’ claim with new trademark
Leather chemicals developer GSC Group is among the companies that have earned the right to use a new registered trademark for products from the Arzignano tanning district.
In this new project, Arzignano presents itself as the leather industry’s capital city. Its credentials include being home to 900 leather-sector manufacturing units that, together, employ 12,000 people and have a combined turnover of €3 billion.
Companies in the area around Arzignano and Chiampo produce 70 million squaremetres of leather per year.
Those that comply with requirements for fiscal and legal good practice, workplace safety, recognised environmental certifications and business ethics will be able to use the new ‘Arzignano Leather Capital’ trademark.
A dedicated committee will have the task of verifying that each company fully reflects the project’s values and contributes to strengthening the image and identity of the Arzignano district at national and international levels.
Head of strategic projects for the local authorities, Enrico Marcigaglia, will be the chair of this committee.
GSC Group’s chief finance officer, Dr Caterina Serafini, said being able to use the new Arzignano Leather Capital trademark was “a source of pride”.
She added: “Operating in a territory like Arzignano, which has always been synonymous with industrial excellence, means being an active part of a value ecosystem. Sustainability, for us, is not just a strategic objective, but a guiding principle that
integrates innovation, social responsibility and environmental respect.”
EU adopts country benchmarking system under EUDR
The European Commission adopted an Implementing Act establishing a country benchmarking system under the EU Deforestation Regulation (EUDR) on May 22.
It classifies countries as low, standard or high risk based on their deforestation links to seven key commodities: cattle, cocoa, coffee, oil palm, rubber, soya and wood.
The system aims to support due diligence, aid enforcement and encourage more sustainable production practices. Risk levels determine the extent of compliance checks, with reduced obligations for operators sourcing from low-risk countries.
A Staff Working Document outlines the methodology, using FAO global forest data.
The Sustainable Leather Foundation reports that most countries, including Brazil and Indonesia, are low or standard risk. Only Belarus, Myanmar, North Korea and Russia are classed as high risk.
The classification will be reviewed in 2026 following updated FAO data. Translations will be available when the regulation is published in the EU’s Official Journal.
Madrid prepares for Loewe Craft exhibition
Leathergoods brand Loewe is preparing to announce the winner of the 2025 edition of the Loewe Foundation Craft Prize.
Events celebrating Loewe’s commitment to craftsmanship have taken place in Asia in recent years but for 2025, the competition has returned to the brand’s home city, Madrid.
Thirty products celebrating traditional skills and crafts won inclusion on the finalists’ list for this year’s programme and all 30 will go on display in one of the Spanish capital’s most famous museums, the National ThyssenBornemisza Museum.
The exhibition will be open to the public from May 30. But the day before, Loewe will host a special event to announce which of the thirty entries has won.
Loewe created the Craft Prize in 2016 as part of its celebration of the 170th anniversary of the company’s foundation.
ASIA
Renovation project complete at Hermès store in Macau
Luxury leathergoods brand Hermès has completed the renovation of its store in the Four Seasons in Macau.
First opened in 2008, the shop offers visitors to Macau products from the entire Hermès range. It has now been expanded, renovated and reopened.
The site has what Hermès describes as “a luminous interior, with earthy shades, deep accents and bright materials”. Its equestrian and leathergoods collections are on display deep into this interior, on dark cherrywood and surrounded by diamond-patterned
panels, a reference to backgammon, which is popular in Macau.
Overall, the set-up celebrates both Macau’s culture and Hermès’s commitment to craftsmanship and innovation, the company said.
Chinese designer wins Louis Vuitton competition
Leathergoods brand Louis Vuitton has announced the winner of its Accessories Design Graduates Initiative (ADGI).
In this, the second year of the competition that aims to celebrate innovation, creativity and talent among fashion, art and design students, the winner is Kexin Zhang.
Ms Zhang trained at the Tianjin Academy of Fine Arts before moving to Belgium to pursue her studies at the Royal Academy of Fine Arts in Antwerp. Her specialism is in jewellery design.
Louis Vuitton said that the projects Kexin Zhang submitted for the competition showcased her ability “to translate her precision and creative flair from jewellery into leathergoods design”.
I said the winning designer’s ideas had brought a fresh and original approach to the Louis Vuitton legacy. She will now join the Louis Vuitton leathergoods and accessories teams and will contribute to “creative dialogue and design innovation” inside the company.
China headaches for US beef exports
Tariffs and hold-ups on renewing Chinese government approval of US beef plants mean exports of beef from the US to China have ground to a halt.
The US Meat Export Federation (USMEF) said at the start of June that, while discussions about longer-term trade relations between China and the US continue, China has continued to impose tariffs on imports of US beef. The current rate is 32%.
At the same time, it said the central government in Beijing has, in many cases, been slow to renew the registrations that US beef plants require to be approved for exports to China. Most US beef-producing plants’ eligibility for exports to China expired in midMarch.
As a result, USMEF said US beef exports to China “have been largely haunted”.
USMEF said its representatives around the world were working hard to find alternative markets for beef that was destined for China.
In the first quarter of 2025, the US exported 53,039 tonnes of beef to China, an increase in volume of 4%. These shipments had a value of $468.7 million, steady with the figure for the same quarter last year.
UPSIDA launches footwear park in Kanpur
The Uttar Pradesh State Industrial Development Authority (UPSIDA) is developing the state’s first dedicated footwear park in Ramaipur, Kanpur. The ?80 crore project (around $9.6 million) will span 131.69
acres and support MSMEs with Plug & Play infrastructure.
In the first phase, 75 industrial plots are planned, with 26 now available via the Nivesh Mitra portal.
UPSIDA CEO Mayur Maheshwari said the park would drive industrial growth and create thousands of jobs.
Investors must pay 5% of the land cost on application and 20% within 60 days of allotment. The remaining 75% can be paid in instalments over three years at 10% annual interest. Early full payment within 60 days qualifies for a 2% rebate, while anchor units can receive a 10% discount.
The park will offer ready-to-use plots with essential utilities to reduce setup time.
Bangladesh considers duty cuts on tanning chemicals
The government of Bangladesh is considering reducing customs duties on seven key tanning chemicals in the upcoming budget to support the country’s leather sector.
Currently, only 27 tanneries benefit from bond facilities allowing duty-free imports, while around 100 others face higher and inconsistent duties. Industry leaders say this creates an uneven playing field and hurts competitiveness.
The proposed changes include cutting duties on six chemicals from 5% to 1%, and reducing the duty on chromium sulphate from 10% to 5%, though a 15% VAT on sulphate may apply.
The Bangladesh Tanners Association (BTA) argues the move is insufficient. Chairman Shaheen Ahmed said total tax on some chemicals reaches nearly 59% and called for a reduction to 7.5%. He added that minor duty cuts would not solve the sector’s deeper issues.
Leather manufacturer holds free eyecare clinics for local community
The team at Tata International’s finished leather manufacturing facility in Dewas recently completed an on-site exercise to provide people in the surrounding community with eyecare.
People in the local community were able to attend free eyecare clinics at the Dewas tannery, in the Indian state of Madhya Pradesh, and the professional optometrists who ran the clinics distributed free glasses to people who needed them.
In total, more than 400 people attended the clinics.
Progress toward full water recycling at PrimeAsia
Leather manufacturing group PrimeAsia has reiterated its goal of using 100% recycled water in its tanneries by 2040.
Currently, the company recycles 58% of the water used in its production processes.
At its China facility, water treated in the onsite wastewater plant is clean enough to support koi fish in a pond outside the
building. The water is recycled from leather manufacturing activities.
To achieve its recycling targets, PrimeAsia has invested in automation and new treatment technologies. In China, automation of the wastewater treatment plant has helped reduce chemical use and improve water quality. In Vietnam, the company has trialled a membrane bioreactor (MBR) system combined with ozone treatment. This process improves water quality and colour while reducing sludge output. The MBR system is expected to become fully operational in Vietnam later this year, with trials due to begin in China.
PrimeAsia has said it will continue to seek further technological improvements to support its environmental targets.
AMERICAS
JBS invests in Vietnam, prepares for dual listing
Food and tannery group JBS is to invest
$100 million building two factories in Vietnam, producing beef, pork and poultry, primarily using raw materials imported from Brazil and creating 500 jobs.
Renato Costa, president of JBS-owned beef packer Friboi, said: "The partnership between JBS, the Vietnamese government, and our local partners represents a critical strategic step in our geographic diversification.
"This move not only strengthens our ability to serve the local market but also expands our global presence, creating a robust and sustainable supply chain that positions us even more competitively in the international market.”
Shareholders have also approved the company’s proposal for a dual listing. Its shares will begin trading on both the New York Stock Exchange (NYSE) and the São Paulo Stock Exchange (B3) this month.
Automotive excluded from temporary tariff relief
Car manufacturers have acknowledged that there would have been no benefit for them from the short-lived good news about tariffs on May 28.
A federal court blocked most of the tariffs that the US put in place in April on almost all imports from almost all trading partners.
US president, Donald Trump, had said he wanted to use executive power under the International Emergency Economic Powers Act of 1977 to make importers pay more to bring overseas-made goods into the US. But the Court of International Trade found that the president lacked the authority to impose the tariffs.
However, because additional tariffs on automotive had been announced before April, the Court of International Trade’s action did not extend to them.
In the event, the Court of International Trade’s ruling is on hold.
On May 29, the US Court of Appeals said it was pausing the ruling until it hears further legal arguments. Court hearings on the tariffs
will, therefore, continue, but automotive will not be among the industries that stand to gain.
The BBC reported that it had spoken to the UK’s Society of Motor Manufacturers & Traders and that the understanding among industry representatives was that there would be no change to the situation regarding exports of cars to the US.
A 2% tariff was already in place on automotive imports before this year. An additional tariff of 25% that President Trump announced in March had gone through what the BBC called “a more formal process” than those the president imposed in April. Therefore, shipments of cars to the US market will continue to carry a 27.5% tariff for the time being.
Taipei to host 2025 RLSD international final
TheLeather & Hide Council of America has confirmed that Taipei will host the fifth Real Leather. Stay Different. (RLSD) International Student Design Competition final, taking place on October 27–28.
Held previously in London and Milan, the competition promotes leather as a sustainable material in fashion. The 2025 final will be staged at Ambi Space One in Taipei 101, the world’s tallest green building, underlining the event’s focus on sustainability and innovation. Winners from regional competitions in categories including Apparel, Footwear, Accessories and People’s Choice will travel to Taiwan to present their leather designs to an international judging panel. Judges will include Hugo Boss managing director Christopher Koerber, Harper’s BAZAAR Taiwan editor-in-chief Kora Hsieh, stylist Mike Adler, fashion consultant Adrien Roberts and influencer Yu Lee.
Kerry Brozyna, president of the Leather & Hide Council of America, said: “In just five years, RLSD has become a globally recognised platform for promoting leather as a sustainable alternative to synthetics. Hosting the final in Taipei marks the next step in our mission to support innovation, leadership and the next generation of designers.”
The RLSD competition is open to current fashion students and 2023–2024 graduates. Entries must include at least 50% cattle hide leather and fall into one of the three core categories. The deadline for submissions is June 30, 2025.
Federal court orders removal of most Trump tariffs
Three judges at the federal Court of International Trade has ruled that almost all of the tariffs that US president, Donald Trump, announced on April 2 must be removed.
The court, which is located in New York, said on May 28 that the Trump administration did not have the authority to impose sweeping tariffs on almost all imports from almost all trading partners.
On April 2, which President Trump called ‘Liberation Day’, he said he was using
executive power under the International Emergency Economic Powers Act of 1977 to use the tariffs to help rebuild the US economy after decades of being “looted by nations near and far”.
Twelve US states and five relatively small businesses filed complaints against the tariffs and, in its May 28 ruling, the Court of International Trade found in their favour.
It said its reading of the International Emergency Economic Powers Act of 1977 was that the legislation does not “confer such unbounded authority” on the president. Because of this, it said it was setting aside the tariffs the plaintiffs had challenged.
The Trump administration immediately said it would appeal.
Capri details a ‘challenging’ year
TheCEO of luxury group Capri Holdings has described fiscal 2025 as “challenging” but added he is “optimistic about the path forward”.
During the fourth quarter, Michael Kors revenue fell 15% to $694 million compared with the same quarter last year, Jimmy Choo revenue decreased 3% to $133 million, while Versace revenue declined 21% to $208 million.
In April, the group announced plans to sell Versace to Prada Group.
Group CEO John Idol said: "While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The company is still in the early stages of its turnaround and we are seeing positive indicators that our strategies are beginning to work.
“Looking ahead, we continue to expect trends to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range.”
Brazilian footwear show reports record visitors
The fourth edition of BFSHOW, the biggest footwear tradeshow in Latin America, brought together 353 Brazilian brands from May 19 to 21 in Sao Paulo.
A record 12,300 buyers attended, including 1,200 from 60 countries.
The executive president of Brazilian footwear association Abicalçados, Haroldo Ferreira, said the event demonstrated the strength of Brazil's footwear production, the fourth largest in the world.
He said: “Brazil is a major global showcase for footwear with design, innovation, and sustainability. BFSHOW, which featured companies responsible for more than 70% of national production, was a clear demonstration of this.”
At the show, the association announced chairman Caetano Bianco Neto would be stepping down, replaced by Ricardo Wirth,
director of Calçados Wirth. The manufacturer makes 7,000 shoes per day, 90% for export.
Brazil’s footwear manufacturing sector is expected to grow 2% this year, reaching more than 940 million pairs.
AFRICA
All Africa Leather Fair concludes in Ethiopia Organisers of the All Africa Leather Fair (AALF) 2025, the Ethiopian Leather Industries Association (ELIA), expected more than 3,000 visitors to the three day fair in Addis Ababa, which concluded on May 25.
The show hosted 70 exhibitors as well as fashion shows, an innovation zone highlighting sector advancements, and panel discussions on industry challenges and opportunities.
The Africa Leather and Leather Products Institute (ALLPI) assisted leather producers in
Burundi, Eritrea, Kenya, Ethiopia, Malawi, Sudan, Uganda, Zambia, and Zimbabwe to network and gain insights from the trade fair.
During the grand opening, H.E. Tarekegn Bululta, Ethiopia's State Minister of Industry, described leather as a “gift of nature to Africa”, according to reports.
Keynote speeches were delivered by Nicholas Mudungwe, executive director of ALLPI, and Awale Yasin from UNIDO.
OCEANIA
Double honours at hi-tech awards for Mindhive Global
Mindhive
Global received two awards at the 2025 NZ Hi-Tech Awards, which recognise achievement and innovation across New Zealand’s technology sector.
The company won the New Zealand Trade and Enterprise Most Innovative Hi-Tech Agritech Solution Award for its system that
uses digital mapping and data analytics to improve the quality and traceability of cowhides. The technology enables processors to produce leather more efficiently by providing high-resolution, verifiable data for each hide, helping to make use of material that would otherwise be treated as waste.
Mindhive also won the Punakaiki Fund HiTech Startup Company of the Year Award. This award acknowledged the company’s development of a vision system that uses machine learning and image recognition to identify more than 25 types of defects in hides within seconds. The system is designed to replace manual inspection methods with an automated, consistent process.
According to organisers, the company’s approach has attracted interest from participants at different stages of the leather value chain, including processors and designers.
