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Leatherbiz Market Intelligence executive summary: • • • • • • • •

US–EU trade tensions persist amid political uncertainty Consumer confidence is weak in the US and Europe The confusion around the EU Deforestation Regulation is creating a major strain on leather industry European leather producers still face high costs and collapsing demand The shift toward protein use for hides is increasing Asian leather markets remain stable but highly price-competitive Split demand is steady; fine-wool sheepskin prices are rising Holiday and shipping disruptions are expected to worsen supply issues

MARKET INTELLIGENCE

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eopolitics continues to play a decisive role in developments along the leather pipeline. US trade policy is increasingly focused on relations in Asia, while relations with Europe continue to cool in many respects. Even if tariffs between the EU and the US are not currently in the news, trade relations remain complicated and difficult, particularly for those European exporters that have to maintain a significant market presence in the US. Not every company can comply with the wish of the US president and establish production facilities there. The main problem, however, remains uncertainty in planning, which not only concerns tariff decisions but also the general political situation in the US. The shutdown of US government agencies in September has a direct impact on consumption. Significantly deteriorated consumer sentiment published in early November can only be seen as an indication of this. In Europe, consumer sentiment is likewise heavily strained. On the one hand, the danger of war remains high and continues to weigh on consumer confidence. Leathergoods are not part of people’s basic needs, and therefore weak consumer sentiment has an exponentially strong impact on the leather supply chain. Increasingly, fears about job security and concerns about the financial stability of government budgets within the EU are having additional negative effects. Although employee representatives everywhere continue to try to defend their interests, many have now realised that in the end, only what has first been earned can be distributed. The reflexive call for higher taxes on the wealthy and the deeply rooted expectation that the state will ultimately be available as a guaranteed source of income still largely shape public opinion. On the political front, the European Union

Deforestation Regulation remains a major problem for the European leather supply chain. Its origins go back several years, and anyone who looks back honestly will remember that at that time, anything even remotely connected to climate policy was regarded by companies as untouchable. There was no courage to confront policy coming from Brussels with clarity and firmness. The geopolitical situation is now entirely different. The political entanglement has become so deep that it will be extremely difficult, even with great creativity, to find a way out. For now, we must wait for the European Parliament’s decision on the latest proposal, to impose EUDR on large companies from the end of December 2025, to know in which direction this issue will develop. Basically, more than two years have already passed since the law came into force, which legally creates a situation in which the EU regulation could be completely renegotiated or even abolished. Politicians should do that first, and only then discuss possible new ideas and solutions. The EU regulation is not only poorly designed; it also completely ignores international developments and the current political reality. Public mainstream opinion was considered more important than the clear difficulties that exist in implementing the regulation. For the European leather industry, this means that considerable company resources have been wasted, and more importantly, that investments and developments have had to be postponed owing to planning uncertainty. And all this while production costs in Europe have risen faster than ever before. The result today is massively worsened and more expensive production conditions, now faced with a significant decline in consumption that also goes hand in hand with falling prices. Rising costs, declining revenues, and planning uncertainty: it can hardly get much worse. Unfortunately, that is the situation in which

almost the entire European leather industry currently finds itself. A few exceptions can be gladly acknowledged, but they do not change the overall situation. With the massive decline in leather demand for European producers and the simultaneous rise in demand for proteins, new trade-flows have emerged. But with falling leather production, considerably fewer by-products are now available for various protein uses. As this market is clearly growing, efforts are being made with increasing intensity to compensate for this gap. More tanneries are now being used primarily for the first stage of production, while the further stages – up to finished leather – remain significantly underutilised. Naturally, this is completely unsatisfactory in terms of the value-creation a tannery must achieve. The questions that are now being discussed more intensely from day to day revolve primarily around the fact that the use of cattle hides in the protein sector is just as affected by EUDR as leather production itself. It is still astonishing that many people, starting with slaughterhouses, are not aware of this. The number of those who see the protein sector as the solution for the utilisation of cattle hides has increased considerably, yet many are not aware of this fact. Once again, this raises a very simple business management question. In the end, for any product, it always comes down to what kind of value creation and revenue can be achieved. A cattle hide, however, is not a uniform material and offers a broad range of possible uses, quality and price levels. This applies especially to European hides, which, due to their quality, still offer higher revenue potential at the upper end of the market. However, this spectrum can only be reliably assessed after hair removal. Only then can one decide in which value chain the highest revenue is possible. More and more people are now dealing with this question and the variety of revenue options. The surprising part is that it is often not the leather manufacturers themselves who are looking for alternative revenue opportunities, but rather the processors and marketers of splits and other by-products from leather production. At present, many secrets still surround these new possibilities and alternatives. Some may have better knowledge of the revenue chains than others, but the information and expertise do not seem to be widely shared. Assuming that EUDR does not obstruct these developments, there are strong indications that we are currently in a destructive phase for the utilisation of cattle hides. This also means that many of the traditional industrial


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processes established in recent years will have to be rethought. The optimisation of yields and the reduction of production costs in the leather industry would then no longer be the main focus, and the lack of flexibility could become one of the biggest obstacles for companies optimised only for industrial leather production. In Asia, by contrast, all these issues currently play only a secondary role. There, the focus is mainly on securing and possibly increasing leather sales. With falling raw material prices and weakening consumption, this naturally translates into massive price pressure. Consequently, the focus of Asian leather manufacturers is almost exclusively fixed on the raw material price. Purchases are being made, and with the abundant global supply of raw materials, opportunities to secure low purchase prices abound. Every attempt by individual supply markets to enforce higher prices has so far failed. Price pressure remains, further intensified by the high level of

competition in the leather market. Nevertheless, it can be observed that Europe’s problems are not evident in Asia in this form. However, this also means that, with low hide prices, the cost components of collection, processing, and transport are becoming increasingly significant. Cost advantages now simultaneously open up additional marketing opportunities. This also implies that a generalisation of raw material prices currently makes little sense: the return for one market may be attractive, while for another, owing to location and transport costs, sales at the same price may not yield equivalent returns. Consequently, generalised price reporting, as is often practised in many market reports today, can hardly be regarded as a real reflection of market prices. It can be assumed that many within the European leather industry have now come to terms with and accepted current realities. Decision-makers will very likely now have to discuss intensively how they intend to deal

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with the situation in the near future. A cyclical recovery, as has always somehow occurred in the past, is currently not in sight. If this season is lost (and that will likely become clear in the coming weeks) decisions on further production cuts or changes will have to be made quickly. Production capacities in the leather industry that close rarely return. There is no need to elaborate further on the split market at this point. Demand for splits used in suede leather remains stable, while supply is insufficient. The same applies to splits used for protein production. As a result, more and more whole hides are being processed as substitutes for this standard raw material. Even here, there would be several alternatives and creative solutions that could still generate benefit from the current market situation. In Asia, the importance of limed splits has recently declined, but the supply of wet-blue splits remains far from sufficient. As for sheepskins and lambskins, although no one wishes to speak of an improvement in the situation, we are slowly getting the impression that the severely limited supply is now having an effect on the markets. Highquality and special skins even show rising prices. In particular, fine-wool skins for premium garments and linings have seen slight price increases, keeping in mind that these types were never all that cheap in the first place. For other types, particularly those that are becoming increasingly scarce, the potential value of the wool itself is beginning to play a more significant role. Moreover, it is now recognised, especially in south Asia, that prices for this type of raw material will not fall any further. This is hardly surprising, since prices in the range of $1 or $2 per skin do not even cover collection and preservation costs. Therefore, it is unlikely that such low prices will be sustainable. Consequently, there are a few larger processors currently willing to build up stocks at very low prices, rightly assuming that the market risk for this material is minimal. We are now rapidly approaching the period of interruptions caused by the Christmas holidays and the Chinese New Year. It is the same every year, but under the market conditions currently prevailing in Europe, combined with major logistical problems toward Asia, further aggravated by the multiweek New Year shutdown, planning is becoming increasingly difficult, especially for raw material suppliers. In the coming weeks, it will become clear to what extent European tanneries will plan their production for December and January, and for overseas shipments one must expect an almost fourweek break in loading. As this affects not only the leather supply chain but virtually all maritime logistics, significant disruptions in deliveries must be expected. All in all, the coming weeks are likely to remain full of major challenges.

US PERSPECTIVE

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ew figures for export sales of cattle hides are unavailable because the US government website that publishes the


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information has not been updated since September because of the government shutdown there. There are updates on some hide prices. The most recent showed heavy Texas steers of 6062 pounds at $13 per piece. A week or so earlier, there were prices of $21 for buttbranded steers weighing 64-66 pounds. Cow hide prices stayed the same with northern dairy cows at $10.50 and south-west dairy cows at $10. Northern branded cows were down to $4 and south-west branded cows reduced to $3.50, 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.

Actual Slaughter Under Federal Inspection Once again, no new figures for cattle slaughter are available because the US government website that publishes the information has not been updated since September during the government shutdown there.

Cattle markets USA

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ackers took advantage of massive moves in futures to secure next week’s slaughter needs at steady to softer prices. Cattle traded at $232 in Texas and Kansas, which was $3$4 weaker. Northern cattle owners accepted $360 dressed and $230 live, prices that were steady with those of the previous week. A few cattle in Iowa traded for $228. Many of those northern sales are moving south where numbers are the shortest. Two factors are changing the availability of finished cattle. Heavier marketing weights and placement of large amounts of dairybeef crosses that are on feed for a year are resulting in slower turnover. Box prices were mostly flat for last week meaning this level of slaughter is matching the demand needs from the retailers. The drought monitor continues to favour herd expansion. Some dryness has developed in the southern plains. Chances are good that the slow rebuilding of the nation’s cattle herd is now morphing into full throttle rebuilding. Those forecasting recovery several years away will find it happening sooner rather than later. Corn prices were higher to begin the week. Harvest is moving to the final stages as hot and dry weather are ideal for bringing in the crop. Some disappointment has been evident in crop yields and this has supported strength in the corn market. Elevators are holding the basis flat. Corn basis levels in Guymon, Oklahoma, are at +$0.60, basis the December contract.

GERMAN PERSPECTIVE This week: Recent main developments have not come from any spectacular new sales or market activity, but rather from a growing realisation: the use of cattle hides

outside of traditional tanneries and the leather industry continues to gain ground. Naturally, this remains a matter of price: the revenues achieved are far from a cause for great celebration. Yet it is evident that many sellers currently welcome the alternative outlets now available for their hides. Whether these new channels will truly absorb all hides generated from ongoing kill remains to be seen in the weeks ahead. It is important to note that only a limited portion of the material produced can even remotely achieve the returns required to cover costs. For now, these alternatives should therefore be regarded more as a temporary solution than as a genuinely profitable business. In addition, the long-term sustainability of these sales routes is uncertain; they will likely be tested once suppliers start seeking higher prices. For the moment, many market participants seem content to secure outlet stability until the end of the year.

In the leather sector itself, conditions have not changed significantly. There continues to be interest from overseas buyers, though they remain extremely price-sensitive. In plain terms, higher prices are currently not achievable, and the weaker US dollar is again eroding returns. The differences may appear minor, but when margins are already thin, even small movements can have a noticeable effect. In India, certain relaxations for leather exports have been introduced, and final decisions regarding US tariffs are expected to bring clarity in the coming weeks regarding the market potential there. In Europe, meanwhile, the situation remains tense. Fully integrated tanneries have shown no signs of a meaningful recovery in business or demand. The main challenge continues to lie on the abattoir side, which remains heavily influenced by political and strategic decisions and less by real market conditions. The logic behind certain actions


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LATEST HIDE AND SKIN PRICES FROM GERMANY TYPE

WEIGHT RANGE

AVG. GREEN WEIGHT

SALTED WEIGHT

AVG. WEIGHT SALTED PRICE PER KG GREEN WEIGHT

TREND

15/24.5 kg

22.0/23.5 kg

13/22 kg

20/21 kg

€ 0.80

Stable

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.60

Stable

15/24.5 kg

22.5/23.5 kg

13/22 kg

20/21 kg

€ 0.40

Stable

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.50

Stable

30/+ kg

33.5/35.5 kg

27/+ kg

29/31 kg

€ 0.50

Stable

25/29.5 kg

27.5/28.5 kg

22/27 kg

25/26 kg

€ 0.85

Pressure

30/39.5 kg

36.0/37.0 kg

24/34 kg

31/33 kg

€ 0.87

Pressure

40/+ kg

45.0/48.0 kg

34/+kg

38/40 kg

€ 0.87

Pressure

Thirds

15/+ kg

25.0/27.5 kg

13/+ kg

24/26 kg

€ 0.40

Stable

Thirds bulls

30/+ kg

38.0/40.0 kg

24/+ kg

33/36 kg

€ 0.45

Stable

Ox/heifers

Dairy cows

Bulls

is often difficult to grasp. Price-wise, little movement has been seen this week, and new price levels for the remainder of the year are expected to be negotiated next week. The kill: Slaughter activity continues to rise gradually. However, the parameters on the beef market have shifted considerably. Prices for live cattle are falling, which is hardly a surprise under current retail conditions. Consumer demand at these high price levels has been disappointing, and beef exports have also lost momentum. Milk prices are falling. There is little reason to expect a nearterm turnaround; the real question is rather how much further live cattle prices will decline. What we expect: Next week, final price negotiations with European tanners will take place. Discussions will likely include agreements and planning into early next year. Anything other than a downward price adjustment would be a surprise. From today’s perspective, it seems less a question of if and more a question of by how much. Expensive hides are simply too costly for the current leather market environment.

LONG READ Leather and the Circular Economy: Circular Stories

Luxury’s pivotal moment? As luxury sales dip, brands should find a way to monetise resale channels without impacting brand value, according to a study. A new crossparty congressional group in the US hopes to boost the sector, too.

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he luxury market appears to be in flux. In a sector that showed resilience even through the pandemic, and which tends to grow at above inflation rates, recent declines


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reported at the big brands shows that it is not immune to macroeconomics. LVMH Group, which owns brands including Christian Dior and Fendi, reported a 9% fall in first-half revenues in its fashion and leathergoods division to ¤19 billion. Similarly, Kering reported a 16% dip in first-half revenues to ¤7.6 billion. Its biggest brand, Gucci, contributed ¤3 billion to the total, but this figure represents a decline of 26% year on year. Leathergoods-focused Bottega Veneta provided most solace to Kering, with revenues declining ‘only’ 1% to ¤846 million. Before these results, in April, consultancy Bain & Company, in partnership with the Italian luxury goods industry association Altagamma, published a report suggesting the global luxury sector was facing its “most farreaching disruptions” for at least 15 years and that the ¤1.5 trillion revenue industry faces its first slowdown since the global financial crisis of 2008-09 (excluding the temporary effect of the Covid-19 pandemic). Luxury confidence has been eroded by economic upheavals, geopolitical and trade tensions, currency fluctuations and financial market volatility. As well as these factors, Bain claims there is growing disillusionment among younger generations, notably Generation Z, who are seeking creativity, excitement and emotional re-engagement. Millennials, too, are being more cautious due to financial pressures.

Capitalising on resale One of the ways luxury brands could offset declining revenues would be to take more control of resale channels, it has been suggested. A survey by Mastercard found that in 2024, about 27% of online spending on luxury clothing was at fashion resellers. However, most of these sales take place on third-party platforms. Luxury brands are keen to not damage their reputation in a sector so image-driven, so taking control of these platforms can be tricky – why would consumers then pay full price? – but it is a balance they should seek to strike, says Bain. UK-based online retailer Karen Millen has launched a preloved luxury channel, where second-hand bags are selling for not much less than they would full price. A quilted leather Chanel bag that costs £5,664 new is selling for £4,634 – only an 18% discount. Similarly, a Hermes bag is on sale for £5,759 when it was only 11% more – £6,500 – new. These prices suggest handbags – particularly leather ones with their innate durability – can hold their value time and again, also meaning there could be repeated profits to be made from single items, with the bonus that reseller does not have to pay for the original manufacture, logistics, retail and marketing. In the US, a congressional caucus (members that meet to pursue common legislative objectives) has been launched to boost the second-hand market. Democrat Sydney Kamlager- Dove and Republican Nicole Malliotakis have jointly set up the Recommerce Caucus to champion small businesses and expand digital access. "Recommerce is more than a trend, it’s a

growing economic engine that provides consumers with affordable, high-quality goods and gives entrepreneurs, small businesses and resellers access to trusted, thriving marketplaces,” says Kamlager-Dove. She aims to reduce sales tax on second-hand items and provide tax credits for companies adopting circular business models. Not surprisingly, the caucus has been endorsed by eBay, Etsy, Mercari, OfferUp, Pinterest and Poshmark. The group will also advocate for policies that help individuals and small businesses earn income through resale, repair and refurbishment on digital platforms, and support initiatives that extend product lifecycles, cut down on landfill waste and encourage environmentally responsible commerce. Rachel Kibbe, CEO of American Circular Textiles, comments, “For too long, resale, repair and reuse have been sidelined in policy conversations, despite their critical role in reducing waste, creating jobs and giving everyday Americans the chance to

participate in the circular economy. This caucus reflects a long-overdue recognition of the entrepreneurial power and environmental impact of recommerce.”

Decarbonisation bonus Boosting resale channels could also help to ‘decarbonise’ the fashion industry, something artificial intelligence (AI) and similar tools could help to navigate. Luxury’s high gross margins mean that brands tend to overlook overproduction. However, unsold inventory not only erodes margins but also carry environmental costs that are increasingly under regulatory scrutiny, particularly in Europe. Therefore, cutting overproduction and scaling resale will be important to focus on, suggests Bain. Its latest report says AI-powered sales forecasting is already in use or being tested by 60% of fashion brands, enabling more accurate predictions of consumer demand across styles, sizes and geographies. In parallel, around half of brands are using AI


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to allocate stock more precisely. Technology is also enabling new production models, where brands are piloting made-to-order and made-to-measure approaches that reduce waste by producing only what is needed. “Second-hand is fundamental to reaching the Science-Based Targets Initiative’s near-term targets, and digital product passport (DPP) is a critical element to remove friction and cost to the overall channel,” says Matteo Capellini, a partner at Bain. “Done right, resale can shift from margin drain to margin growth, and become a credible and scalable decarbonisation tool.” Despite short-term volatility for the luxury industry at present, its long-term prospects remain strong, Bain concludes. Over the next five years, more than 300 million new consumers – over half of these in Generation Z or Generation Alpha – are expected to enter the market. Rising global incomes, generational wealth transfers and a projected 20% increase in the number of high-networth individuals will increase the pool of

potential buyers. Despite the falling first half revenues reported, there was ample local demand for LVMH’s fashion and leathergoods, and the sector maintained its very high operating margin. “Beyond the prevailing uncertainties, we remain focused, thanks to the long-term vision that has always guided our family group,” says group CEO Bernard Arnault. “We head into the second half of the year with great vigilance, and I am confident in LVMH’s tremendous long-term potential and the commitment of our teams. Our main shared priority is about offering our customers the most exceptional products.” The big luxury brands need to refocus on the fundamentals of the luxury business, having clear and differentiated brand identities and high product quality, concludes Bain. Increased technology – especially the use of AI – supply chain modernisation and more sophisticated pricing analytics will be essential. “As the industry faces an increasingly complex global landscape, luxury brands are

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entering a pivotal new chapter – one that demands sharper focus, greater cultural relevance and growth rooted in purpose,” says Federica Levato, Bain’s head of fashion and Luxury in Europe. “At the heart of this transformation is a redefinition of value and meaning that resonates across all generations – with those shaping luxury today, and those who will define it tomorrow.”

NEWS EUROPE Industry figures and EU officials to share a platform at Porto shoe event

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igures from across the European footwear industry and from the European Commission will take part in an event on the future of the footwear sector. It will take place in Porto on November 18 and 19. Industry figures who will take part will include the president of the International Union of Shoe Industry Technicians (UITIC), Sergio Dulio, chief executive of footwear technology provider Desma, Christian Decker, and the president of host footwear industry Apiccaps, Luís Onofre. Participants representing the European Commission will include the head of its official representation in Portugal, Sofia Moreira de Sousa, and its director-general for industry, the internal market, entrepreneurship and small and medium businesses, Kerstin Jorna. As well as conference sessions, the event will include a number of factory visits hosted by footwear manufacturers in the Porto region. President of the European footwear industry confederation (CEC), Rosana Perán, will formally close the event at the end of the second day.

Car assembly lines could stop as chip shortage worsens

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he European Automobile Manufacturers’ Association (ACEA) has said it is increasingly concerned by imminent disruption to vehicle manufacturing due to the block in supply of microchips from China. The resulting shortage of supply of the type of chips used in the control units of vehicle electrical systems is hitting automakers around the world hard, said the association. The industry is currently working through reserve stocks but supplies are rapidly dwindling and some manufacturers are already expecting imminent assembly line stoppages. Alternative suppliers exist but it will take many months to build up the additional capacity needed to meet the shortfall in supply. ACEA director general Sigrid de Vries said: “We know that all parties to this dispute are working very hard to find a diplomatic solution. At the same time, our members are telling us that part supplies are already being stopped due to the shortage. We urge


TUESDAY, NOVEMBER 11 2025 LEATHERBIZ 7

all involved to redouble their efforts to find a diplomatic way out of this critical situation.”

Worshipful Company of Glovers installs former Pittards director as master

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ormer sales director at leather manufacturing group Pittards, Mike Dodd, has been installed as the new master of the Worshipful Company of Glovers, one of the City of London’s liveried companies, or ancient trading guilds. The Glovers’ company was formed in 1349. Mike Dodd joined Pittards, a specialist in gloving leather, in the 1980s after studying languages at university. He worked at the Somerset-based leather manufacturer until it closed in 2023. He worked in a number of roles, eventually becoming sales director.

Milan event will outline the luxury market situation for 2026

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ltagamma, the organisation that represents luxury brands in Italy, will host an event in Milan on November 20 to present a new market monitor report for the luxury sector worldwide. This report is one that Altagamma works on each year with specialist research firm Bain & Company. This edition will review the global luxury market’s performance in 2025 and provide high-level forecasts of what is likely to happen in the market in 2026. President of Altagamma, Matteo Lunelli, will give a welcome address. Following this, the organisation’s chief executive, Stefania Lazzaroni, will head up a presentation of the forecast study, named the Altagamma Consensus, for 2026. Luxury industry leaders will then take part in a discussion about the study’s main findings.

million, which is in line with the figure for 2024, but 10% down on 2019. VDA also said consumers in the domestic market in Germany had registered 2.4 million new passenger cars of all types and from all origins in the first ten months of 2025. This figure represents an increase of 1% compared to 2024, but a decline of 22% compared to 2019. Of the new cars registered this year so far, 683,400 were electric vehicles. VDA pointed out that this is an increase of 47% year on year.

Education network is now a “collaborative community”

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roviders of education and training programmes for the textiles, clothing, leather, and footwear (TCLF) industries in Europe took part in a workshop on November 4 on a digital skills project called AEQUALIS4TCLF. AEQUALIS4TCLF has funding under the Erasmus+ programme to assess the green

skills that TCLF companies in Slovenia, Czechia, Croatia, the Netherlands, Finland, Lithuania and Serbia need. After the workshop, organisations involved said the network of TCLF education providers in the European Union now encompasses 33 different education and training centres. They said this most recent workshop confirmed that their network is “more than a platform”. They said it has now evolved into “a strong, collaborative community in which members find support, share knowledge, cocreate opportunities and take joint action to strengthen skills and secure new funding innovation”.

Apprenticeship roles open at Bentley Motors

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igh-end automotive company Bentley Motors has launched its search for 65 new apprentices to start at the company in 2026. Of the 65 positions available, there are 41 one-year industrial placement roles that are

QUAKER COLOR A STEP AHEAD IN AUTOMOTIVE FINISHING

Another high-end fashion brand’s creative lead steps down

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uxury brand Balmain has announced the departure of Olivier Rousteing as its artistic director. Mr Rousteing had been in the role for 14 years. He said he was proud of everything he had accomplished at Balmain. He was only 25 when he took up the role and continued his work after Balmain was acquired by Qatari investment group Mayhoola in 2016. Brands that have had a change of person in senior creative roles so far this year include Gucci, Balenciaga, Bottega Veneta, Dior, Hermès, Loewe, Chanel, Fendi and Gaultier.

German car market still way short of pre-covid levels, despite electric surge

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erman car manufacturers produced 3.5 million passenger cars in the first ten months of 2025. This is an increase of 1% year on year, but national automotive industry association VDA said the figure was 12% below the numbers for 2019. Germany’s exports of passenger cars between January and October reached 2.7

Supplying innovative ǻRMWLIW XS XLI EYXSQSXMZI MRHYWXV] JSV SZIV WM\ HIGEHIW

Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century


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open now. The other 24 positions are for young people who will take up three or fouryear apprentice roles at the company from February 2026. These jobs are at the company’s manufacturing site in Crewe, north-west England. The roles available cover all functions of the business.

LWG opens consultation on labour and social responsibility section

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he Leather Working Group (LWG) has opened a public consultation on the Labour and Social Responsibility section of its forthcoming Leather Production Standard. The section sets out requirements on social and labour practices developed with input from brands, tanneries, and NGOs. It is intended to apply to organisations of different sizes, with assessments adjusted according to company scale. Social responsibility, which previously appeared as a non-scoring section under Protocol 7, will become a scored component

in the Leather Production Standard and will contribute to medal ratings. The Labour and Social Responsibility section was not part of the initial draft of the Leather Production Standard. LWG is inviting stakeholders to review and provide feedback on this new section by December 28, 2025. Consultation documents are available on the Standards Development page of the LWG website. Queries can be sent to standards@leatherworkinggroup.com

Pasubio awarded EcoVadis Gold rating

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coVadis has awarded automotive leather group Conceria Pasubio a Gold rating, ranking the Italian company among the topperforming organisations worldwide for sustainability. The assessment covers environment, ethics, human rights, and sustainable procurement. Group sustainability manager Francesca Cariglia said the recognition reflects Pasubio’s structured approach to applying environmental, social, and governance (ESG)

principles across its operations. Conceria Pasubio, part of PAI Partners, said it will continue to focus on innovation, responsibility, and value creation throughout its supply chain.

French footwear firm applies for bankruptcy protection

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rench footwear company Groupe Royer has applied to the courts for protection to help it avoid going out of business. The group, owner of the Kickers brand in most markets, announced on October 29 that it had asked to be placed under judicial reorganisation. This means it will be under court supervision as it tries to continue operating while restructuring its business.

Uncertain future for Piñatex

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eports from Spain suggest that Ananas Anam, the company that produces Piñatex, is seeking bankruptcy protection for its operation there. Industry publication Modaes said at the end of October that sources at Ananas Anam España SL had confirmed the company was preparing to submit a request for legal protection from its creditors. We have asked the company if it will still make its pineapple-based materials at its operation in the Philippines but, as yet, have received no clarification on the matter. Ananas Anam’s main office was in London but official records show that the UK-based company formally closed down in March 2023. Those records also make reference to a registered Ananas Anam company in Ireland. According to entries at Ireland’s official companies registration office, this operation was dissolved in March 2022. A number of senior people have left the business in recent months. Head of research and sustainability, Dr Raquel Prado, and head of communications and business development, Riikka Juva, both left Ananas Anam to take up roles at food distribution group Del Monte in August. The managing director of Ananas Anam España, Josep Taylor, left his role in October. The company’s founder, Dr Carmen Hijosa, has a background in leathergoods design and production but has frequently presented Piñatex as an alternative to leather.

GSC Group publishes 2024 sustainability report

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SC Group has published its 2024 sustainability report, providing information on environmental, social, and governance aspects of the business. The report states that the company achieved reductions in emissions, implemented water recovery initiatives, and continued training and safety programmes for its workforce. The company reports a total of 157 employees, with 30% women and most holding permanent contracts. Around 94% of staff are from local communities. The report notes that the 6,500m²


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application laboratory has now been completed, and highlights ongoing development of low-solvent, metal-free, and bio-based products. Certifications listed include ISO9001, ISO14001, ISO45001, ISO14064-1, ISO14067, and ZDHC. In his summary, CEO Adriano Serrafini states, “In 2024, we recovered over 84,000m³ of water, reduced CO2e emissions by 14.5%, and increased the share of ZDHC-registered products to 74% of our revenue, reflecting our focus on sustainable processes and ecoinnovative solutions.”

AI questions offend Hermès artistic director

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he artistic director of Hermès, Pierre-Alexis Dumas, has said machines will never replace the artisan craftspeople who work at the leathergoods company. In a recent interview with the Wall Street Journal, the newspaper said Mr Dumas, a sixth-generation member of the family that founded Hermès, “looked offended” when asked if the company was using artificial intelligence (AI). “It’s all about the human touch,” the artistic director said. “Yes, you can programme a machine. But the machine does not have feelings. It does not have consciousness. It is not aware of what it is doing.” He went on to say that even if, hypothetically, machines in the future could do everything humans can, he would not use them to replace the skilled workforce that Hermès employs. “Over my dead body,” he insisted. “You are talking to someone who works for a company that has more than 7,000 craftspeople.”

A different kind of vehicle for Aston Martin leather

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eather sourced from the collections that automotive company Aston Martin sources for its luxury cars will soon be in use in a different kind of vehicle, a baby-stroller called the Egg3. The two UK-based brands joined forces to develop a collection of three different strollers, which use Aston Martin car interior leather on the handle. Egg3’s parent company, BabyStyle, put the prams on show at the Kind+Jugend exhibition in Cologne in September. It has now confirmed that the high-end strollers will go on sale in December. It said using leather from Aston Martin’s own automotive supply chain was part of a whole range of “meticulously crafted detail” in the products. The strollers will be available in three colours: racing lime green, dark grey and light grey. The last of these will have leather in a tone that Aston Martin calls ‘bitter chocolate’ on the handle. The other two will have black leather. Founder of BabyStyle, Andy Crane, said: “Retailers and parents have often described Egg as the Aston Martin of the stroller world, so in many ways, this partnership feels like a natural evolution. Both Aston Martin and Egg

are driven by design, precision and a deeprooted respect for craftsmanship.” Aston Martin’s director of brand diversification, Stefano Saporetti, described the strollers as a means of bringing “our passion for exceptional design, meticulous craftsmanship and engineering excellence to products that enhance every aspect of a luxury lifestyle”. He said the baby strollers are “a testament to the pursuit of performance and beauty, no matter the journey”.

COTANCE joins calls for ‘stop-theclock’ mechanism on EUDR

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eather industry body COTANCE is one of 24 business organisations in the European Union that have issued a new joint open statement on the European Union Deforestation Regulation (EUDR). The European Commissioner for the environment, Jessika Roswall, said in September that she was requesting a second 12-month delay to the application of EUDR,

giving businesses extra time to prepare. However, on October 21, the Commission published a proposal that, if approved, will see EUDR come into effect for larger companies, as previously scheduled, on December 30, 2025. For small and micro operators, the proposal does ask for a six-month delay, meaning EUDR will come into application for them on December 30, 2026. On October 28, COTANCE and 23 bodies representing a range of industries issued an open statement urging the Commission to pause and reconsider before moving forward. They called for it to introduce a ‘stop-theclock’ mechanism so that policymakers can make “a proper and a comprehensive assessment of EUDR’s impact and implementation” before the regulation comes into application. They said the October 21 proposal and the challenging timeline to have it approved by the European Parliament and the European Council risk undermining the credibility and

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the enforcement of EUDR, while placing European operators in “an untenable position of legal and operational uncertainty”. To expect companies to be ready to comply with a regulation that has been “hastily renegotiated” only weeks before its entry into application is “unrealistic and unacceptable”, the open statement said. It also said that, in practice, operators of all sizes will be forced to comply from the same date. The statement explained that “the operational reality of the market”, with integrated supply chains, means mediumsized and large companies interact with much smaller operators all the time. As a result, smaller operators “will be required to align immediately to maintain business relations”, the statement said. It insisted that this makes the idea of an extra 12 months for small companies to prepare “illusory”. COTANCE and the other 23 industry organisations that signed the statement said

they strongly supported EUDR’s objective of combating deforestation, but that the obligations EUDR imposes on businesses have to be made “truly workable”.

Istanbul prepares for AYSAF

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he industry in Turkey is preparing the AYSAF exhibition, which is taking place for the seventy-third time in Istanbul from November 12-15. Organisers are expecting visitors from all parts of Turkey across the region. On show will be materials for leather and footwear production from 130 suppliers.

Turkey bans leathergoods e-commerce imports from China

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ukey’s minister of trade has said it will ban consumers there from bringing into the country leathergoods and footwear purchase online from Chinese e-commerce platforms. The ban will apply to products that sellers

have shipped to private addresses by post or parcel delivery company. Towards the end of October, the ministry said it had carried out tests on more than 180 imported items and found that more than 80% of them failed to meet safety standards. In a statement, the ministry said that laboratory tests showed items brought in from China to have excess levels of phthalates, lead, cadmium and other substances that it said posed a risk to public health.

French leather to feature at MIF Expo with ‘Made in Leather’ stand

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he French leather industry will feature at the 13th MIF Expo, the Made in France exhibition, from November 6 to 9 at Porte de Versailles in Paris. The event, which attracts more than 110,000 visitors annually, brings together around 1,000 French manufacturers across diverse sectors, including textiles, decoration, cosmetics, and gastronomy. Alliance France Cuir will present its Made in Leather (Made in Cuir) space, an immersive journey through the country’s tanning and manufacturing expertise. Highlights include a “sensory wall” exploring the textures, colours and finishes of French hides, and a leather library supplied by tanneries such as Alran, La Molière, Raynaud Jeune, Haas, Rémy Carriat and Ictyos. Around twenty French-made leather creations will be on display, including gloves, shoes, watch straps and decorative objects. Visitors can also take part in workshops on leather repair and maintenance, featuring demonstrations by Franck Tabaste, À La Ville À La Montagne and shoe shiner Éric Feray. A before-and-after display of shoe repairs will show the value of caring for leather products. The Made in Cuir experience extends beyond the exhibition halls with a mural in the Paris metro, inviting visitors to share photos using #MadeInCuir.

Ferragamo to push craftsmanship in a return to its roots

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talian fashion brand Salvatore Ferragamo has reported flat third quarter revenues at ¤221 million. The group has embarked on a shake-up to try to turn its fortunes around, part of which is strengthening its core categories of footwear and leathergoods, ”balancing heritage and innovation”. Its marketing campaigns have a renewed focus on craftmanship and “timeless elegance”. Positive results were driven by the North American, European and Latin American markets, which more than offset the challenging luxury goods context in Asia, said the company.


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ASIA Footwear figures show steep drop in imports of leather shoes into China

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hinese footwear companies exported just over 6 billion pairs in the first eight months of 2025, bringing in revenues of nearly $29 billion. Volumes were down by 1.4%, but revenues fell by 8.5% year on year. Exports of leather shoes in the eight-month period amounted to 350 million pairs, which brought in revenues of just over $5 billion. These figures represent falls of 2.5% in volume and of 6.9% in value compared to the January-August period in 2024. In terms of imports over the same period, 120 million pairs came into China, with a value of more than $3.6 billion. Of these 35.4 million pairs were made of leather. These had a value of nearly $1.6 billion. Imported shoes in general were down by 12.1% in volume and by 8.9% in value year on year. Imports of leather shoes were down by 21.3% in volume and by 18.4% in value.

Indonesia: Hardy UK to set up new distribution network

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pecialist supplier of shaving and fleshing blades to the tanning industry Hardy UK is working to set up a new distribution channel for its products in Indonesia. This follows an internal investigation into the set-up the company had in place in that market previously. Hardy UK has told leatherbiz that its investigation has resulted in a clear conclusion. It said it has definitive evidence that counterfeit products disguised as genuine Hardy blades, were being delivered to some customers. It explained that genuine Hardy blades have a stamp in the metal showing the brand’s name and a batch number. These were missing from the counterfeit products that came to light during the investigation in Indonesia. A forged sticker was the only means of linking the fake blades to Hardy UK. The company said this practice was unfair to customers in tanneries who believed they were buying genuine Hardy products. It added that what had happened was also of detriment to the brand.

presence in China in the early 1990s. It added that it also wanted to pay tribute to Chinese consumers, describing them as “the most demanding, connected and informed consumers on the planet”.

Pattern persists in leather industry performance in China

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nalysis of the performance of China’s leather manufacturing sector shows that the pattern that has emerged so far in 2025 continued into August, the latest month for which figures are available. Industry body, the China Leather Industry Association, presents the pattern as being a mid-single-digit percentage fall in the volume of raw hides and skins and of semi-finished leather that Chinese tanners have brought into the country. The fall in value of this material is, however, substantially higher year on year. Figures for the first eight months of 2025 show that Chinese tanners imported 944,000 tonnes of raw hides and skins, paying $760 million for the material. These figures mean a fall of 5.1% in volume, but a decline of 17.1% in value. This means that leather manufacturers in China have been paying an average of just over $800 for each tonne of raw hides and skins. This would equate to around $20 for a raw hide weighing 25 kilos. The corresponding figures for the same period in 2024 suggest that, from January to August, tanners in China imported around 995,000 tonnes, with a value of $917 million. This means they are paying less for raw hides and skins this year. The average value of one tonne of hides this year has fallen by 13%. And, in 2024, the January-August average cost to Chinese tanners of a raw hide weighing 25 kilos was $23. In the first eight months of 2025, Chinese tanners also imported 394,000 tonnes of semi-finished leather, paying $580 million. This means a fall in volume compared to the same period in 2024 of 5.6% in volume and of 16.3% in value. Over the same period, leathergoods and footwear manufacturers in China imported 25,000 tonnes of finished leather, with a value of $380 million. Here, the falls are of 16.1% in volume and of 18.1% in value.

Sewing automation on offer LVMH pays tribute to Chinese consumers at CIIE 2025

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uxury group LVMH has a major presence at the 2025 China International Import Expo (CIIE) in Shanghai. This is the sixth time the group has taken part in the exhibition, a major event for promoting imports into China of quality products from overseas companies. There were 430,000 buyers at the 2024 edition of CIIE and for this year’s edition, which runs from November 5-10, organisers have said they hope for nearly 450,000 buyers to attend. At this year’s exhibition, LVMH said it wanted to celebrate its “lasting relationship” with China. The group first established a

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echnology provider JustWell Machinery has developed a new automated sewing machine that it says is ideal for use in the manufacture of leather bags, shoes and belts. The Dongguan-based company described the new sewing machine as highly efficient and stable.

Japan’s new prime minister puts local leather bag in the spotlight

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apan’s new prime minister, Sanae Takaichi, has drawn global attention to a domestic leather brand after being photographed carrying a black leather tote made by longestablished Tokyo manufacturer Hamano Inc. The bag, known as the Grace Delight Tote,

is priced at around ¥136,000 (¤840) and is made from Japanese leather and finished with gold-coloured hardware. Hamano, which has been producing leather goods for more than 140 years and has supplied the Japanese imperial family, describes the design as combining elegance and practicality. Following Ms Takaichi’s public appearances with the bag, orders have surged, with the company now facing extended delivery times into early 2026. The sudden interest has been widely covered in domestic and international media, with some commentators noting that the prime minister’s preference for a locally made accessory aligns with her reputation for conservative values and support for Japanese craftsmanship. Analysts say the episode highlights the influence of political figures in shaping consumer demand and offers a timely example of how local leather manufacturing can gain renewed visibility through highprofile exposure.

Busan meeting seems to have eased trade tensions for now

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rade and tariffs were the main points of discussion at a meeting between the presidents of China and the US that took place in Busan, South Korea on October 30. Products from China that the US links to the drug fentanyl, exports from the US to China of soya beans and shipments the other way of rare-earth minerals created most of the headlines. Of more direct consequence for the trade between the two of leather and finished products containing leather, the US said it would cut tariffs on imports from China in general by 10%. However, this still leaves the rate at 47%. For now, at least, most commentators have reacted by saying the Busan meeting has helped ease tensions.

British student wins RLSD 2025 International Fashion Award

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ritish designer Jamie Unlu O’Grady, from De Montfort University, has been named Overall Winner 2025 in the Real Leather. Stay Different. (RLSD) International Student Design Competition for his modular footwear concept SubTraction. Judges praised the design for its originality, ecological focus and commercial promise. Harper’s Bazaar Taiwan editor-in-chief Kora Hsieh called it “a very thorough, well thoughtout concept with huge potential for commercialisation.” Mr O’Grady said the award would help him take his idea to market: “My dream is to turn it into a real product that changes how people buy, wear and sustain their shoes.” Other finalists from Italy, Vietnam, Jerusalem and Taiwan were commended for exploring themes of sustainability, craftsmanship and nature. Leather & Hide Council of America president Kerry Brozyna said the RLSD programme “equips young designers to


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challenge fast fashion and redefine responsible design using sustainable, natural fibres.” Now in its fifth year, RLSD received nearly 1,500 entries from over 75 design institutions worldwide and continues to promote designled sustainability across the global fashion industry.

THE AMERICAS ABQTIC shares agenda for 2025 annual conference

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razil’s national leather chemists’ and technologists’ association, ABQTIC, will hold its annual conference for 2025 on November 15. This will be the twenty-fifth time the organisation has organised its annual conference event. This time, the venue will be Ribeirão Preto in São Paulo state. ABQTIC has said the programme will consist of six technical presentations in the morning, with a voting session in the afternoon to elect a new leadership team for the organisation.

LHCA joins major USDA trade mission in Mexico City

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he Leather and Hide Council of America (LHCA) is taking part in one of the largest USDA trade missions in history, being held this week in Mexico City. The initiative brings together US agricultural and trade representatives with Mexican partners to explore new export opportunities. The event was highlighted by LHCA president Kerry Brozyna in a social media post, which noted the presence of senior US and Mexican officials at a reception hosted at the Ambassador’s residence. LHCA’s participation reflects its ongoing efforts to strengthen global markets for US hides and leather, while contributing to broader discussions on agricultural trade and cooperation.

Capri remains confident in longterm growth prospects

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uxury group Capri, owner of Michael Kors and Jimmy Choo, is “pleased” with its second-quarter results, which show trends are improving, despite revenue falling 3% to $856 million. The group’s sale of Versace is expected to close in the third quarter, when it will use the proceeds to repay most of its debt, strengthening the balance sheet and provide flexibility to invest in growth or return capital to shareholders. Capri CEO John Idol said: “Trends continued to improve sequentially, which resulted in revenue, gross margin and operating income exceeding our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energise our fashion luxury houses.” Michael Kors’ second quarter revenue of $725 million decreased 1.8% compared with the same period last year, while Jimmy Choo revenue of $131 million decreased 6.4%. Mr Idol added: “We expect retail trends to

improve in the back half of fiscal 2026, positioning us to return to growth in fiscal 2027. Longer term we remain optimistic about the sustainable growth potential of both Michael Kors and Jimmy Choo.”

Wolverine reports progress but says it can do better

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ootwear group Wolverine World Wide has published its Global Impact Report for 2024, in which it highlights all leather is sourced from tanneries rated gold or silver by the Leather Working Group. The group measured its Scope 1 and 2 greenhouse gas emissions for the first time and purchased 17,000 MWh of Renewable Energy Credits to help offset electricity usage at North American locations. Around 155 social compliance audits were conducted across 96% of Company’s Tier I factories and 170 tons of paper and corrugated cardboard were recycled in US locations. Chris Hufnagel, CEO of Wolverine Worldwide, said: “Over the past year we’ve continued to transform our business, sharpen our focus, and align our teams around our bold new vision. “Our new Vision and Values are a call to action that drives and directs our actions across people, planet, product, and purpose. From reducing our environmental footprint and sourcing more responsibly, to empowering our employees and giving back to our communities we’re proud of our progress we’ve made, but equally, we know we can and should do better.” In 2022, the company embarked on a multi-year turnaround plan that included selling its Wolverine Leathers business, brands and licences as well as cutting jobs.

ANPIC attracts more than 8000 visitors

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he sixtieth edition of the ANPIC exhibition took place in León, Mexico, from October 22-24. Organisers said more than 8,000 visitors from 20 countries came through the exhibition doors to see up close leather collections for autumn-winter 2026-2027. There were more than 900 stands covering 22,000 square-metres of exhibition space.

Updated Leather Manifesto for COP30

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wenty organisations across the global leather industry have signed an updated version of the ‘Leather Manifesto’. A manifesto for the industry first appeared in 2021, on the occasion of the United Nations Climate Change Conference, COP26. The document declared and celebrated the circular-economy credentials of leather, especially its durability, repairability and lasting beauty, which foments long use of finished products made from the material. Now, in the build-up to COP30, which will run in Belém, Brazil, from November 10-21, an updated version of the manifesto has appeared. In the updated version, signatories

explained: “As we see every year with the COP negotiations, resolving differences of opinion on how best to protect the planet and people is a huge challenge. A significant factor is the often opposing views of the negotiating parties and their presentation of evidence to support their views. Sustainability debates are skewed by narratives and numbers that obscure reality.” The text added that “this obfuscation” has also blighted perceptions of leather. “Leather, durable, repairable, and deeply woven into our cultural identity, is one of humanity’s oldest materials,” it continued. “For millennia it has clothed, sheltered, and protected us.” But it in today’s sustainability discourse, leather is largely misunderstood, sometimes vilified, often mis-measured, and rarely recognised for what it truly is: a renewable, circular by-product of livestock farming, the manifesto said. It has set out to correct this imbalance and to position leather as a positive, renewable biomaterial within a circular economy.

Brazilian leather joins Presidential Mission to Indonesia and Malaysia

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he Brazilian leather sector, represented by the Centre for the Brazilian Tanning Industry (CICB) through the Brazilian Leather project, is part of the Presidential Mission to Indonesia and Malaysia. The delegation is attending the Brazil– Indonesia Economic Forum in Jakarta to explore partnerships and strategic alliances aimed at strengthening Brazil’s leather exports. Indonesia is a key market for the Brazilian Leather initiative, with an established industrial base in textiles, footwear, leather goods, and automobiles, supported by a skilled workforce and global export networks. The mission will continue to Malaysia, another target market for Brazilian leather. The country will host the Brazil–Malaysia Business Summit, which will focus on trade and industrial cooperation in manufacturing sectors such as leather, electronics, automotive products, and rubber. CICB said participation in both markets supports its goal of promoting the international presence and competitiveness of Brazilian leather.

OCEANIA Australian beef industry reports record sustainability gains

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he Australian beef industry has reported major environmental progress in its 2025 Annual Update under the Australian Beef Sustainability Framework (ABSF), as reported by Meat and Livestock Australia (MLA). Since 2005, net CO2-e emissions have fallen by 70.1%, mainly through carbon sequestration on grazing land. Beef production reached a record 2.75 million tonnes, while solid waste to landfill dropped by 71.6% between 2022 and 2024. Chair of the ABSF Steering Group Patrick


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Hutchinson said the results show that sustainability has become a competitive advantage for the sector. The framework has identified feed sourcing, traceability, and innovation partnerships as future priorities, aligning with global reporting and sustainability standards.

Mindhive Global secures Series A funding to accelerate expansion AI-powered leather quality assessment specialist Mindhive Global has completed a Series A funding round led by agritech venture capital firm Cultivate Ventures, with participation from existing shareholders. The investment will support the company’s expansion across Brazil, Europe, and Asia, and accelerate development of its data-driven leather intelligence systems. Following rapid growth over the past year, including partnerships with JBS Couros and operations in nine countries, Mindhive plans

to scale deployment of its AI-based grading and defect detection technologies. Its solutions provide verified hide data within seconds, helping tanneries optimise production, reduce waste, and improve consistency across the supply chain. Mindhive recently launched its FinishSelec system at SIMAC Tanning Tech 2025, with Scottish Leather Group confirmed as the first customer. The company was recognised this year with two NZ Hi-Tech Awards for innovation and export success. Subscribers can read a full article on the collaboration between Mindhive Global, Zünd and Mind under the Dectura Flow system in the first issue of World Leather, to be published in January 2026.

RM Williams expands Adelaide site with new leather workshop

Adelaide site, increasing production capacity by 90 per cent since Tattarang acquired the company in 2020. The new 20,000 square metre facility, named Bushman’s Base, brings the company’s total Adelaide footprint to 29,500 square metres. Bushman’s Base houses craft and clothing workshops, the boot repair service, and a new in-house leather wallet production line, bringing specialist leather work under one roof for the first time. The expansion strengthens the company’s ability to meet global demand while maintaining traditional leather craftsmanship. Dr Andrew Forrest AO, owner of Tattarang and RM Williams said the expansion helps “pass on skills and ensure every pair of RM boots is a piece of homegrown excellence.”

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ustralian bootmaker RM Williams has opened a second workshop at its northern

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