LBizMarketIntelligence_180325

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Leatherbiz Market Intelligence executive summary:

• APLF did not provide any major new insights; it only confirmed what everyone already knew

• Large, established companies are not completely satisfied with their order books at the moment, but overall production capacity utilisation is still relatively stable for them

• The same applies to smaller companies that are involved in producing special leather of various kinds, materials that clearly stand out from the general offering

• The situation is most difficult for medium-sized producers, who are neither in a position to deliver anything special, nor able to keep up with the prices of larger companies

• Trade tensions, weak demand in the Chinese domestic market and geopolitical uncertainties are also having a negative impact on demand for leather

• The overall demand for leather is shrinking and the main problem remains that the material itself has lost its appeal for many.

MARKET INTELLIGENCE

Last week, all eyes were on the APLF fair in Hong Kong. This fair is traditionally characterised by a completely different spirit and a completely different structure of visitors and exhibitors compared to Lineapelle in Milan.

The number of exhibitors and visitors did not appear to be significantly different from last year. Turkey, Pakistan and to some extent Italy were represented with a relatively large number of individual stands of tanners. Turkish tanners are finding good sales in China for many speciality items, especially sheepskins, and this is also reflected in the exhibitors and products.

In addition, there was a remarkable number of Indian representatives who were looking for potential suppliers for their customers in the leather industry. All in all, this symbolised the impression that the Indian leather industry and, by extension, the footwear industry there are benefiting in particular from the current relocation of production from Europe and from China.

Otherwise, almost all of the large, well known Asian mass manufacturers were represented at the fair, even if one or two names that were represented with impressive stands in previous years were absent this year. There was a clear decline in the number of visitors from the Chinese industry. The shift to the All China Leather Exhibition in Shanghai cannot go unnoticed. However, this cannot be the only reason for a smaller number of Chinese companies exhibiting in Hong Kong.

This must also have a lot to do with the fact that Chinese companies do not expect too much from visiting the fair in Hong Kong.

Visitors gave the impression that there were clearly more people interested in selling than in buying raw materials or leather. All in all, we had the impression that the very special excitement that used to be a feature of the first few days of the fair was barely noticeable this year. It seems that almost everyone has come to terms with the current situation, both in the industry and geopolitically. With the erratic, daily decisions of the US administration, it is currently almost impossible to make any plans or decisions for the future with any degree of reliability. Of course, this is also reflected in the leather industry.

Who knows today which products and which countries will be subject to which tariffs on imports and exports in the near future? It is therefore virtually impossible to plan supply chains in the leather industry at the present time and this adds to the fundamental problem of leather use. For this reason, the leather industry is trying wherever possible to relocate its business to regions that may not be affected by the trade war, either in the very short term or in the longer term. Of course, it is very difficult to judge at the moment whether this can actually be said reliably for entire regions already.

In any case, it is clear that producers from countries that are not currently the focus of possible tariffs are much more confident about the business situation than Chinese manufacturers are.

TUESDAY, MARCH 18 2025

Large, established companies are not completely satisfied with their order books at the moment, but overall production capacity utilisation is still relatively stable for them. The same applies to smaller companies that are involved in producing special leather of various kinds, materials that clearly stand out from the general offering that the large companies cover with their volume production.

The situation is most difficult for mediumsized producers. They are neither in a position to deliver anything special, nor are they able to keep up with the prices and demands of larger companies. The cost of operating a tannery above a certain size can only be passed on to customers if there are very large quantities of leather involved.

The topic of the alternative use of hides and splits comes up again and again. In this context, it is noteworthy that that the prices for lime splits in China have once again fallen significantly in recent weeks.

Those who had travelled to Asia before APLF reported full warehouses and generally no great buying interest. This may come as little surprise in view of the developments of the last few months, but of course you always have to remember that we are now entering the summer half-year, which is generally weaker in terms of production. Summer temperatures will also not encourage anyone to hold more stock than they absolutely need to.

It is of course always true that you cannot really allow major interruptions in the supply of raw materials, as the delivery times to Asia are too long and surprises in international logistics can never be ruled out. In the end, however, it always comes down to the fact that production capacity will have to be adjusted to real business levels at some point and it is difficult at the moment to get a clear overview of where the balance will lie in the end.

One thing that is certain is that it will need an intensive trigger or stimulus to bring capacity utilisation in the leather industry back to a normal level. Only fashion, consumer interest in something different or the function of leather as a material can help. Many other parameters that have been repeatedly emphasised for some time will not have any positive effects. If this does not succeed, the trend of no longer using all hides for leather production will continue. Until then, the ‘status quo’ of production, consisting of a few large manufacturers linked to international brands and a large number of small specialists and niche manufacturers, is unlikely to change. Those who do not belong to these groups will probably continue to face difficult times.

The market for splits is still very mixed at

the moment. In China, as mentioned, falling prices for lime splits are being reported, while in Europe, lower leather production is supporting prices. The demand for wet blue splits is stable, especially in Asia, and the same applies to prices. Inexpensive suede leathers are well represented in the collections of mass manufacturers.

Successful niches have also emerged for lambskins and sheepskins. The fine-wool, small skins, which are a successful fur alternative in China, are particularly striking. The prices for these raw materials have increased significantly in recent months and good interest and business for them was reported at APLF. Increased prices for coarser wool also makes the use of skins an interesting alternative again. The proceeds from the wool are now sufficient to cover the costs of the raw material. Now it depends on whether a market can be found again for nappa leather. The chances are not bad. It can no longer be down to the price.

Slaughter Under Federal Inspection

APLF did not provide any major new insights. It only confirmed what everyone already knew. The overall demand for leather is shrinking and is focused on the areas mentioned above. We are now facing a weaker summer half-year. The erratic policies of the US government, weak demand in the Chinese domestic market and geopolitical uncertainties are also having a negative impact on demand for leather.

However, the main problem remains that the material itself has lost its appeal for many.

US PERSPECTIVE

Sales of cured cattle hides for the period ending March 6 were 231,800 pieces. The figure for exports of wet blue was 28,300 pieces.

The most recent reports on hide prices showed butt-branded steers weighing 64-66 pounds at $24.50, with heavy Texas steers weighing 60-62 still at $16.50 per piece.

Cow hide prices remained unchanged at $13.50 for northern dairy cows, $13 for southwest dairy cows, $7 for northern branded cows and $6.50 for south-west branded cows, with weights of 50-52 pounds in each case.

The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.

Cattle markets USA

Excellent –Bisphenol optimized syntans to achieve high leather quality

Show list sizes were higher in Texas and lower in Kansas and Nebraska. The weekto-week variances in committed cattle changes the dependence on the cash markets. Cattle owners will press to extend the rally in cash prices moving back towards all-time highs.

This past week’s cash market was sharply higher, especially in the south where cash cattle moved from an average of $197 to probably $203 this week. In the north live cattle sold mostly $205-$206, up by $3-$4. Dressed sales were mainly $325, up by $10. Packers’ reliance on grid and formula commitments often distort the volume of cash sales but they were light in all regions.

March is a transition month, moving to improved demand for beef. Box prices firmed but processors lost ground with higher input cost of fed cattle. The fed cattle portion of the weekly slaughter continues to make a larger percentage of the total slaughter than in prior years with slaughter of dairy and beef cows in decline. The shortfall of the cow slaughter has led to packers pulling from the fed cattle population to put together weekly slaughter needs.

Corn prices found a trading level between $4.50 and $5 per bushel. Corn basis levels have moderated and new receiving facilities for repeater trains will bring grain more efficiently from grain surplus areas to grain deficit areas. USDA reports will begin to form a structure for this spring’s planting acreage in upcoming reports. Corn acres are expected to increase by 3 million acres but trade policies could unravel the plans. Corn basis levels in Guymon, Oklahoma, are at $0.90, basis the May contract.

LATEST HIDE AND SKIN PRICES FROM GERMANY

GERMAN PERSPECTIVE

This week: Many people made the effort again to travel to Hong Kong for the APLF fair last week. This was more focused on the mass markets than Lineapelle, which took place in Milan a few weeks before.

Most of the leather manufacturers that exhibited individually were those that already have a stable customer base in Asia and did not expect to attract new customers. Rather, they sought to use APLF as a central meeting point to talk to their customers from all over the region in one spot.

It is difficult to judge exactly, but it seems that there were more exhibitors looking to sell raw and semi-finished goods than there were visitors looking for leather suppliers. Apart from that, everything was the same as always, only much more relaxed. There was no big news to tell; all opinions and views on the current global political situation and its effects had already been exchanged beforehand and therefore the discussions were focused on business relationships.

Of course, we were not in an easy position, because at least for our customers in China, it was not clear when we will be able to deliver goods to China again. There was news on the second day that Germany was generally considered free from foot and mouth disease again, with certain minor restrictions, but it was not known until the end of the trade fair whether the Chinese authorities would see it that way immediately. At least the first step has been taken and now we hope that the German authorities will quickly and intensively find a solution with the Chinese authorities. This has not yet happened and even goods that were shipped before the outbreak have not yet been cleared for import.

Without really being actively involved in the market, it is of course difficult to make a real assessment of the market situation. In principle, however, it can be said that demand remains rather depressed and therefore price pressure is still more likely to persist for most categories. This was also evident for material

LATEST HIDE AND SKIN PRICES FROM GERMANY

from many other countries.

In earlier times, such a situation would certainly have caused a lot more excitement, but the trade is now taking it much more calmly, safe in the knowledge that there is not much they can do to change things.

No great renaissance in demand for leather could be observed in Hong Kong; the only thing that can now be taken for granted is that some leather production, especially for shoes, has once again started to move more towards the Indian sub-continent.

For the few deals that were available, prices changed very little and when they did, they had to be adjusted slightly downwards. In conjunction with the weaker dollar, revenues in euro on overseas markets are falling again.

The kill: Surprisingly, the kill continues to change very little. The level remains still very high for the time of year and, in view of the slight decline in the number of animals, the question for the rest of the year is whether there will still be enough cattle available for slaughter if the demand does not decline.

What we expect: In the coming weeks, the first issue to be addressed will probably be whether the export of German hides to China will become possible again. Only then will it be possible to get a reasonable overview of the market situation. In Europe, prices are changing very little and there are some relatively active buyers for heavy material, although the vast majority of leather factories appear to be rather cautious. Leather orders are not increasing, nor are the call-offs for leather, and we are now entering the assuredly quieter phase in production and the months with a higher number of public holidays.

LONG READ

Leather and the Circular Economy: Circular Stories

Life and Seoul

Leathergoods start-ups from Seoul caught the eye at the September edition of Mipel in Milan. Six of them travelled to Italy for the occasion, but the South Korean capital is home to thousands more.

A new feature at the 126th edition of Mipel in Milan in September was a section given over to the Seoul Leather Manufacturer Support Center. The centre is an incubator facility run by the authorities in the South Korean capital to help start-up companies attain success. There are currently 300 small manufacturers operating at the site, but the director, Hong Chang Uk, insists there are around 3,000 manufacturers making bags and other accessories in the city, with a further 300 start-up companies making high-end shoes.

Mr Hong’s role begins with the selection of start-ups that he thinks will benefit from becoming part of the community at the centre. There, they have access to education and training resources to learn more about leather and techniques for turning it into beautiful products. There is also machinery they can share for cutting, stitching and finishing the things they make, and a professional photographic studio to help brands showcase their collections, all supported by the city. According to Mr Hong, South Korea is home to high levels of artisan skills, including a deep understanding of materials and of manufacturing processes.

Export challenge

The domestic market is strong in South Korea, Mr Hong explains. The country’s economy is the fourth-largest in Asia and the fourteenth biggest in the world. In its most recent forecast at the start of the third quarter of 2024, the International Monetary Fund foresaw full-year growth of 2.5% for South Korea this year. The centre has already carried out a number of projects on home soil, promoting the facility and the brands that work there to consumers in Seoul and other parts of the country.

“But South Korea is a relatively expensive place to produce,” the centre’s director continues, “certainly in comparison to some of our neighbours.” This makes export growth a challenge, especially in the east Asia region. For this reason, the Leather Manufacturer Support Center has begun to look further afield for export clients, including in Europe.

For the Mipel project, the centre invited six of the companies to prepare collections of products to put on display in Milan as examples of what the Seoul start-ups are capable of. Mr Hong makes it clear, though, that the trip to Italy was part of a wider initiative to boost export sales for all the

companies that make up the collective.

For illustrative purposes, one of the brands, l’Homme Vide, had a shoulder bag on show, a model called Louise, that is available at a wholesale price of $110 each, with a minimum order quantity of 50. The bag is 38x24 centimetres and is available in six colours. Founder of the brand and designer of the bag, Jang Hyuk, describes the Louise bag as “simple but cool”. He especially likes the way the curves work.

The appeal of tradition

Start-ups that made their way to Milan also included Pyogo Studio, which only launched in the summer of 2023. Its approach is to try to combine leather artisanship with the look and the heritage of hanbok, the traditional dress of the Korean peninsula. A product in which this combination comes across clearly is one called Lucky Bag.

In seeking to “show the aesthetic of Korea” through fashionable leathergoods, Pyogo has

given the Lucky Bag the billowy, full-volume appearance of hanbok skirts. The bags are small at 21 by 19 centimetres, but they are cinched at the top by a drawstring mechanism, in a manner reminiscent of securing a garment at the waist of the wearer, and balloon out towards the bottom.

Two leather colours were on show in Milan: black and ivory.

The beauty of blemishes

Back at l’Homme Vide, Jang Hyuk is another who says he seeks to reinterpret the classical while staying faithful to tradition. He has been translating this into the brand’s tote bags, briefcases and attractive, slimline document holders for five years now. He uses one of the briefcases himself, one that has vegetabletanned leather in a pale golden colour, combined with waxed cotton canvas. The base and the flap are leather; the rest of the body of the bag is canvas.

Mr Hyuk explains that he loves the fact that

scratches and other marks on the leather he chooses to use are so visible. He is referring to scrapes that were in evidence on the raw hide before the tanning process began, but also to blemishes that have come as a result of wear and tear, of which there is plenty in a metropolitan area of more than 25 million people. He says strangers among the millions have stopped him in the street to admire the bag, a model that, in spite of all the marks, he calls Healing.

According to Mr Hyuk, the accumulation of marks is a good thing. “The scratches are a testament to how long this bag has lasted and how much use it has given me so far,” he says.

NEWS ROUND-UP

EUROPE

Designer’s creative power is what Gucci needs, Kering says Georgian designer Demna Gvasalia has been named as the next artistic director of Gucci. He will move to his new role in early July from Balenciaga, where he has been artistic director since 2015. Gucci and Balenciaga are both owned by Paris-based group Kering.

Chief executive, François-Henri Pinault, said Demna Gvasalia’s “creative power” was “exactly what Gucci needs”. As I thank him for everything he has accomplished over the past 10 years, I look forward to seeing him shape Gucci’s new artistic direction.”

Gucci’s previous artistic director, Sabato de Sarno, left the role in February, just before Kering published weak annual results. Gucci, its biggest brands contributed €7.7 billion to

total group revenues in 2024, a decline of 23% year on year.

The group posted total revenues of €17.2 billion, a fall of 12%.

Muirhead expands by-product innovation

Muirhead,

part of the Scottish Leather Group, has launched BioPRO Foam, the first naturally fire-resistant, protein-based aviation biofoam made from hydrolysed collagen, a by-product of its leather production.

With 20% bio-content, it replaces harmful substances like melamine and PFAS, enhancing fire safety and passenger comfort while benefiting the environment.

Dr Warren Bowden, head of innovation and sustainability, highlighted that the integration of bio-protein reduces harmful additives and improves durability, setting a new standard for seat foam technology.

Champions of Best Practice

comprehensive (ISP) underpinned by a Life Cycle Assessment (LCA) for leather. This will ensure that hard data and (LCA) ensure hard data and continual improvement in our processes and systems best position us for a future in and systems best position for a future where sustainability is a key driver for commercial decision making. key driver commercial decision making.

This ISP consists of four strands.

• The provision of the most accurate information about leather, sustainability and production.

• The championing of best practice at every point in the supply chain.

• The willingness to address the hard issues our industry faces.

• The sharing of information with members, manufacturers, consumers and the media.

Today we look at best practice.

U.S. Government environmental standards, and those of our supply chain’s animal care, rank among the world’s highest and assure buyers of U.S. hides and leather that they have been produced to exemplary standards in all areas including animal care, ESG and sustainability.

champions of best practice. We accelerate the adoption of new standards and promote them in the U.S. and around the world.

Examples of recent industry developments championed by L&HCA, for example, of speeding the tanning process.

remove chromium (III) for reuse. And evaporation is now being used for the removal of salt while coagulants can be added to the water which bind with waste to leave a sediment which can be safely disposed of.

Best practice does not stop at the border.

We do not just promote this framework domestically. We actively promote it worldwide. The more trusted leather is, from wherever it originates, the better it is for the U.S. leather industry and for the planet.

From trade communications to our global Real Leather. Stay Different. program repositioning leather as the material of choice for tomorrow.

BioPRO Foam is chemically bonded with collagen for added strength and is tailored to various body types for exceptional ergonomic performance. Unlike traditional foams, it is moulded to customer specifications, minimising waste and ensuring consistent aesthetics.

Foot-and-mouth confirmed in Hungary

For

the second time this year, a European Union country has confirmed an outbreak of foot-and-mouth disease (FMD).

On March 7, Hungary confirmed the presence of the disease on a dairy farm near the border with Slovakia. There are around 1,400 head of cattle on the farm.

Owners of the farm first spotted symptoms in a group of heifers on March 3 and isolated the animals. Tests by veterinary services over the days that followed confirmed FMD.

A protection zone with a radius of 3 kilometres, and a surveillance zone with a radius of 10 kilometres are in place.

These cases come two months after Germany confirmed its first outbreak of FMD in 35 years.

Leathergoods are part of new EUUS trade dispute

The US government extended its imposition of tariffs to the European Union (EU) on March 12, announcing levies of up to 25% on imports of steel, aluminium and certain products containing steel and aluminium.

In response, the European Commission said it would reimpose counter-measures that it first set up in 2018 and 2020. In addition, it said it would immediately launch a process to place tariffs on a new list of products.

This process involves a consultation exercise with EU stakeholders, which the Commission has already begun and aims to conclude by mid-April.

New target products include imports from the US of a range of manufactured items including leathergoods, and a range agricultural products including beef.

According to the European Commission, the

tariffs the US is applying will affect trade worth $28 billion per year. Its countermeasures will affect trade with an annual value of € 26 billion.

Commission president, Ursula von der Leyen (pictured), said: “We deeply regret this. Tariffs are taxes. They are bad for business, and worse for consumers. They disrupt supply chains and bring uncertainty for the economy. Jobs are at stake and prices will go up. Nobody needs that.”

Donatella passes the creative reins at

Versace

Donatella Versace, who has led the fashion house as chief creative officer for nearly 30 years, is stepping aside and will assume the role of chief brand ambassador, supporting its philanthropic and charitable endeavours.

Dario Vitale, formerly Miu Miu’s design and image director, will take her place as creative lead.

John Idol, CEO of Versace owner Capri Holdings, said: “Today’s announcements were part of a thoughtful succession plan for Versace. Since 1997, Donatella has led the creative vision for the House of Versace and played an integral role in the company’s global success.”

Donatella Versace said: “I am thrilled that Dario Vitale will be joining us, and excited to see Versace through new eyes. I want to thank my incredible design team and all the employees at Versace that I have had the privilege of working with for over three decades. It has been the greatest honour of my life to carry on my brother Gianni’s legacy. He was the true genius, but I hope I have some of his spirit and tenacity.”

Mr Vitale added: I want to express my sincere thank you to Donatella for her trust in me, and for her tireless dedication to the extraordinary brand that Versace is today. It is a privilege to contribute to the future growth of Versace and its global impact through my vision, expertise and dedication.”

Muirhead launches collection for visually impaired travellers

Leather manufacturer Muirhead, part of Scottish Leather Group, has introduced a new seat cover design to improve accessibility for blind and visually impaired travellers. Part of the ‘Sensation’ collection, this design incorporates texture, colour contrast, and tactile elements.

The 2025 collection showcases the diverse needs in aircraft cabin design, featuring tactile and high-contrast elements for independent navigation with a calming earth tone palette. Advanced embossing and digital printing have created raised seat numbers and Brailleembossed safety instructions, in collaboration with students from the Royal National College for the Blind. Headrests also include printed seat numbers for low-vision passengers.

Lead designer Jamie O’Donnell highlighted that the design enhances confidence and dignity for blind and visually impaired travellers, integrating accessibility features without sacrificing style.

WGSN predicts a return to smarter dressing

Aspart of the Micam Milano footwear show at the end of February, trends consultancy WGSN outlined what it sees as the footwear trends manufacturers and brands should be catering to for spring-summer 2026.

One of these is the return to smarter dressing as we move away from the relaxed styles driven by pandemic-driven lockdowns.

Retail data shows strappy dress shoes overtook comfort styles last year, as customers gravitate towards dressing up. “Occasionwear will become more important,” said WGSN consultant Madeline Van Der Hoek.

Another key theme will be shoes with “multisensory” or tactile appeal, with important materials including velvets, suedes and jellied textures.

People’s changing holiday habits – for instance, booking holidays in fringe months –mean that summer styles should be available for a longer portion of the year, said the consultant.

QUAKER COLOR

A STEP AHEAD IN AUTOMOTIVE

FINISHING

To inform its predictions, WGSN uses six years of retail statistics, as well as social media and event data. It also monitors search engines and tracks influencers and brands.

Ferragamo confirms profit dive Italian leathergoods brand Salvatore Ferragamo has confirmed a more than 50% reduction in profit for 2024 to € 35 million, and a 10% drop in revenues to €1bn.

The group attributes the drop to a complex market context, ongoing geopolitical tensions and macroeconomic uncertainties, impacting the demand for luxury goods.

Asian markets have slowed, with a particularly difficult environment in China.

However, the group commented handbags and shoes, in particular the new Hug bag and the Zina ballet shoe, sold well in the fourth quarter.

It said: “Considering the uncertainties over demand by luxury consumers, we remain cautious on short-term expectations. We will continue to strengthen our product offer,

Supplying innovative

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

leveraging on our strong heritage, while optimising customers segment targeting. We are confident in our capabilities to navigate the evolving market dynamics, maintaining as top priorities revenues performance and profitability.”

In February, the group announced the departure of CEO Marco Gobbetti. A replacement is being sought.

GSC to present latest innovations at APLF

Italian leather chemicals group GSC will participate in the APLF Leather 2025 trade fair, taking place from March 12th-14 in Hong Kong.

As part of the event, GSC will present OMW Leather Technology, a metal-free tanning process that repurposes byproducts from the olive oil industry, supporting sustainable leather manufacturing.

GSC will also introduce advancements in low-bisphenol retanning agents and new leather finishes, reflecting ongoing efforts in material innovation and environmental

responsibility.

APLF Leather serves as a key forum for industry professionals, facilitating connections between China, Southeast Asia, and global markets.

Visitors can learn more about these technologies at Booth 3C-A20.

Start-up leans on Ecotan for ‘biodegradable’ shoes

Italian footwear brand Sneark has launched a range of ‘biodegradable’ trainers, using Ecotan leather.

Founder Lello Romano had worked as an architect for 20 years, but the covid pandemic and lockdowns made him reassess his career choice and resurrect an earlier dream to work in the footwear industry. “Even though I have built so many things in my life, I don’t want to die with regrets,” he said.

The leather is tanned gently without chemicals and the insoles are made from cork. Hemp is also used in the upper and the shoes are dyed with natural dyes.

When the shoes are at the end of their

useful life, customers can return them for 20% off their next purchase. The uppers can be broken down and used as a bio-based fertilisers, and the rubber sole can be broken down using natural enzymes in a process taking 180 days.

The shoes are made by high-end shoe manufacturers in Tuscany and will retail for around €400. Although the price is high, they are to be looked at as investment pieces that will not go out of fashion, a spokesperson told Leatherbiz at the Micam footwear show in Milan (February 23 to 25).

At the co-located Lineapelle leather show, tanneries making Ecotan leather included KTM Leather, Pellegrini Group, Volpi Concerie, Antiba and Haas Tanneries.

The biocircular synthetic tannins in Ecotan, by Silvateam, are designed to work with chestnut, gallnuts and other extracts. They mimic the structure of natural tannins with a smaller, simpler molecule. While natural tannins are the primary tanning agents, additives, colours and finishes are required in the later stages of tanning. Silvateam partnered Biofin Leather (Gruppo Biokimica) to recommend finishing products that are in keeping with the requirements needed for biodegradability.

LWG names director of standards

The multi-stakeholder Leather Working Group (LWG) has appointed Victoria Snelling as director of standards, reporting to executive director Vanessa Podmore.

Ms Snelling spent 15 years at The British Standards Institution, producing technical standards on a range of products and services, and supplying standards certification services for business.

She was responsible for a portfolio of more than 200 domestic standards and standardisation projects, managing strategic interactions with sponsors and committees.

CSIL puts figure on value of global furniture production in 2024

Milan-based

furniture industry market research provider CSIL has put global furniture manufacturing in 2024 at $471 billion in value. This was equal to the value for 2023, but was down on the figure for 2022.

According to CSIL, this stability came in spite of “complex challenges, including disruptions in maritime transport and heightened geopolitical risks”.

It went on to say that Europe was among the hardest-hit regions, and that consumption of furniture had declined in Germany and France in particular. It said economic uncertainty continued to weigh on consumer confidence and spending.

In contrast, though, Asia’s furniture industry showed signs of resilience in 2024, with what it called “a gradual recovery in Chinese exports”, in addition to a growing presence in the global market of exporters from other parts of Asia.

Change

of

chief executive at TFL

Leather chemicals group TFL has announced André Lanning as its new chief executive. He took up the post on March 1.

It said Mr Lanning was replacing Russell Taylor, who became TFL’s chief executive, originally on an interim basis, in July 2023, at the time of the departure of Wolfgang Schütt. It said Mr Taylor was stepping down for personal reasons.

André Lanning has joined from Trinseo, a Pennsylvania-based producer of plastics and latex binders that was spun off from Dow Chemical in 2010. He was Trinseo’s chief commercial officer.

Earlier in his career, he held senior roles at Kemira, Yara International, Nuon, Advanced Refining Technologies (ART) and WR Grace.

TFL said the new chief executive’s strategic priorities included driving commercial excellence, expanding market share, optimising operational synergies and pursuing organic growth opportunities.

Additionally, it said he would explore strategic merger and acquisition initiatives “to further strengthen TFL’s competitive position”.

Leather technology educational modules made available

Two updated self-study modules on leather technology are now available offering valuable learning resources for individuals and organisations in the industry.

Authored by former World Leather technical editor Richard Daniels, the studies bring together his extensive knowledge and experience in the global leather sector. Leather: An Introduction provides essential background information for those new to the subject or seeking a general understanding. Leather: An Overview of Manufacture is a more advanced, ten-section study designed to support individuals training to become leather technicians.

Comprising approximately 45,000 words and over 450 images, the modules are structured for clarity, combining concise text with supporting visuals. They are suitable for self-study, in-house training, reference use, and as educational resources at introductory and intermediate levels.

Reviewed and approved by IULTCS, SLTC, ALCA, COTANCE, and UNIDO, the studies are now available for free download via their respective websites.

ASIA

APLF 2025 closes

The Asia Pacific Leather Fair officially closed on March 14, marking only the second time it has taken place in Hong Kong since the pandemic.

Compared to the 2024 edition, the number of exhibitors was slightly reduced. The overall atmosphere at the show reflected an industry grappling with uncertainty, confusion stemming from trade wars, and a hope for a return to peace.

Many exhibitors indicated that their primary

objective was relationship management rather than deal-making meetings. Maintaining business relationships emerged as the foremost goal as they navigated through these challenging times, with the hope of returning to previously profitable conditions.

Leather Naturally: updates on sustainability and engagement

The campaign group Leather Naturally (LN) held its APLF breakfast meeting on March 13.

During the meeting, Kim Sena provided a brief overview of recent activities by LN, including the Life Cycle Assessment (LCA) project, that ultimately contributed to positive changes for leather in the Higg Materials Sustainability Index (MSI).

After his presentation, an engaging Q&A session took place, moderated by Dr. Kerry Senior. The main focus of the discussion was on how to increase consumer and brand engagement. Audience members acknowledged the valuable work that LN has accomplished in recent years while also expressing interest in how to better communicate these efforts outside the industry and effectively portray them to younger generations.

APLF starts its 5th decade

TheAPLF exhibition, now in its 41st year, opened in Hong Kong on March 12. Over 600 exhibitors from 40 countries and regions participated, with 24 group pavilions on display.

At the inaugural press conference on March 12, newly appointed event director Janice Lee celebrated the exhibition's entry into its fifth decade. She expressed hope that the participants at APLF could shape market trends and influence leather prices for the next three quarters of 2025.

The event will feature 25 side events, including seminars, talks, and business matching meetings, scheduled over the course of three days.

Ms Lee noted that these additional events were a direct response to feedback from previous visitors, aiming to address their desire for more industry knowledge, especially in educating Generation Z. She also pointed out that the added events have previously contributed to increased foot traffic at the exhibition.

Leather industry collaboration key to traceability challenges

During the recent open session of the International Council of Tanners meeting in Hong Kong, held on March 11, the day before the APLF exhibition, David Wright, the vice president of advanced technological development at Tapestry, the parent company of Coach and Kate Spade, discussed the company’s approach to traceability.

He emphasised that the primary motivation for this work is regulatory compliance, particularly in relation to the European Union Deforestation Regulation (EUDR), rather than

consumer demand. Mr Wright stated that Tapestry does not plan to implement product traceability for consumers at this time.

Noting that it is only a matter of time before the EUDR regulations could be applied to finished products, requiring a complete traceability map to sell products in Europe, he provided an overview of Tapestry's new traceability project, highlighting the collaborative nature of the leather industry, while also stressing the need for greater integration among different sectors of the supply chain.

In his presentation, he pointed out that the leather industry has faced unfair challenges over the years and faces significant challenges in traceability due to the fragmentation of the supply chain. This includes multiple stakeholders, from cattle ranchers to tanneries and manufacturers. The lack of standardised traceability practices compounds the difficulties in achieving transparency.

Through the philanthropic organisation Tapestry Foundation, the company has granted $12 million to support traceability initiatives.

For more information about the traceability efforts being undertaken by Tapestry, you can read the latest issue of World Leather magazine.

CLE eyes export figure of $5 billion for this financial year

Provisional

figures from India’s Council for Leather Exports (CLE) suggest that total export revenues for the industry in the current financial year could surpass $5 billion. India’s financial year runs from April to March.

For the period from April-December 2024, CLE has put export revenues for India’s leather industry at $3.8 billion, up by 2.5% year on year.

If this growth trend continues into the final quarter of the financial year, the industry organisation said, the full-year figure will be above the $5 billion mark.

Leather footwear surge lifts Bangladesh exports

Figures from the Bangladesh Export Promotion Bureau (EPB) point to export growth for the country’s leather sector in the first eight months of the current financial year, the period from July 2024 to February 2025.

In the course of those eight months, the industry achieved export revenues of $757.5 million, an increase of 8.5% year on year.

Finished leather exports fell by 8.7%, to reach revenues of $84.8 million. Leathergoods exports also decreased in value, falling by 8.3% to $221.8 million.

But overall growth came on the back of a surge in the value of exports from Bangladesh of leather footwear, which increased by 24% to reach $450 million.

Expansion for PrimeAsia in Vietnam

Leather manufacturing group PrimeAsia held an event on March 8 to celebrate the completion of an expansion project at its

tannery in Vietnam.

The group said that the expansion at PrimeAsia Vietnam, at Ba Ria in Vung Tau in the south of Vietnam, takes production capacity there to more than 8 million squarefeet of finished leather per month.

Globally, PrimeAsia’s total production capacity is now 12.5 million square-feet per month.

Guests at the event toured the facility and joined PrimeAsia in what it called a celebration of the ongoing dedication of its partners and its own teams.

APLF announces leadership changes

APLF has appointed Janice Lee as Event Director, adding to her current role as Senior Portfolio Director. With nearly 25 years of experience in the exhibition industry, Ms Lee has previously held positions as Project Manager and Sales Director for APLF. Her return to the event is expected to bring

continuity and industry insight.

In a related move, former APLF Director Grace Lee has been promoted to General Manager for Taiwan. With extensive leadership experience, she will oversee operations and strategic growth in the region.

APLF acknowledged the contributions of both individuals and expressed appreciation for the support of its community ahead of upcoming events.

Leather Naturally participation at APLF

LeatherNaturally has confirmed its presence at APLF 2025.

The organisation will host various events, including networking opportunities, industry updates, and a breakfast meeting for members.

Attendees can visit the Leather Naturally Lounge from March 12-14, at Concourse 3E, Level 3, HKCEC, where the team will be available for discussions on industry initiatives.

A Leather Naturally Updates session is scheduled for March 12, from 14:00 to 14:45 at the Main Stage, Hall 3G, HKCEC, providing insights into ongoing and future projects.

Additionally, an exclusive breakfast meeting for current and prospective members will take place on March 13, from 09:00 to 10:00 at Meeting Room N106-N108, HKCEC.

Is It Leather? president to address industry challenges at APLF

The Is It Leather? campaign will take part in APLF Hong Kong 2025, where president Katie Kutskill will discuss critical issues facing the global leather industry.

Her presentations will examine the impact of misinformation, evolving consumer preferences, and the increasing replacement of genuine leather with synthetic alternatives.

Ms Kutskill has raised concerns about the spread of disinformation by activist groups and retailers, arguing that it is contributing to declining demand for real leather in fashion, footwear, automotive, and accessories. She will participate in three presentations at the event, focusing on industry alignment and strategies to address these challenges.

Among the sessions, Katie will join Deborah Taylor of the Sustainable Leather Foundation on March 13 to discuss how to communicate leather’s sustainable value to consumers. On March 14, she will speak alongside Yusuf Osman of Yussico on the future of the leather industry. Both events are free to attend and will take place at the Main Stage, Hall 3G, HKCEC.

APLF Hong Kong 2025 will serve as a key platform for industry leaders to assess the future of leather and explore solutions to market pressures.

Thai tannery promotes ‘silk’ finishing and aims to double capacity

Thailand-based

tannery Chun Wang is planning to double its capacity this year, following the purchase of new Italian machinery, which enables it to process more sustainably and efficiently.

The tannery, launched in 1935, is now run by the fourth generation of the family and supplies to the leathergoods and footwear sectors, working with European hides, from raw to finished leather.

Based in a tanning cluster near Bangkok, the tannery also works with European chemical suppliers and offers a bio-based finish, Activated Silk, made from silkworm cocoons, the brainchild of US-based Evolved by Nature.

Chun Wang returned to the Lineapelle leather fair in February after a five year hiatus, ready to promote its new efficiencies and ecological offerings to the European market.

Thailand is an increasingly attractive sourcing destination as brands and manufacturers diversify into Cambodia and Vietnam due to tariffs and costs, a spokesperson told Leatherbiz.

AMERICAS

Country music star partners with Wolverine Footwear brand Wolverine has announced singer-songwriter Jordan Davis as a new brand ambassador.

The Louisiana-born country music star said he had grown up seeing his father and his grandfather wear Wolverine boots for work and leisure and that, as a result, he had “a lot of trust” in the brand.

He added that the rugged, hard-working and enduring qualities of the boots were the same qualities that he holds most closely.

A range of Wolverine products that he has chosen as his particular picks is now on sale to fans of the footwear and of the musician. The range includes versions of the brand’s 1000 Mile, Wellington, Rancher and Rancher Flag boots, as well as clothing and accessories.

Assintecal to host buyers’ groups at Fimec

Brazil’s national representative body for footwear components manufacturers, Assintecal, will host official buyers’ groups from four Latin American countries at this year’s Fimec exhibition.

The event takes place in Novo Hamburgo from March 18-20.

Assintecal has work with export promotions agency ApexBrasil to bring buyers from Colombia, Mexico, Argentina and Ecuador to Fimec in an effort to expand the impact of Brazilian components manufacturers in these markets.

International markets manager for Assintecal, Luiz Ribas Júnior, said geographical proximity and cultural similarities made these markets ideal for Brazilian footwear components companies who want to expand their export business.

He said the invited buyers represented manufacturing groups who produce a combined total of more than 500,000 pairs of footwear per month.

US beef exports up in January

Official statistics show that the US exported 102,840 tonnes of beef in January 2025, bringing in export revenues of $804.6 million.

These figures represent growth of 3% in volume, and of 5% in value year on year.

Growth was driven in part by larger exports to China and Canada, the US Meat Export Federation said.

Tariff reprieve for Canada too, for now

Following the announcement of another one-month postponement of tariffs on imports from Mexico to the US on March 6, Canada has also won breathing space.

Several hours after US president Donald Trump said applying tariffs of 25% on all imports from Mexico would cease for now and begin again on April 2, he announced a similar halt for Canada.

This postponement applies to imports of

products that were previously able to cross into the US tariff-free under existing North American trade agreements. Canada said in response that it would put retaliatory tariffs on US imports on hold too.

Canadian beef and hides are among the products caught up in the trade confusion.

According to Statistics Canada, the country exported 3.1 million cattle hides and veal skins in 2024 with a value of more than $140 million Canadian dollars.

This raw material went to 17 different export markets, with China taking the biggest volume. But 90,406 hides went to the US and 87,039 to Mexico.

Tense start for new ‘Shoes From Mexico’ label

Footwear

was one of many product categories affected by the 25% tariffs the US imposed on March 4. Shoe manufacturers in Mexico were facing turmoil because of the tariff and trade dispute that has opened up

between Mexico, and the US and may still do so, although a temporary reprieve came on March 6.

The new tariffs began to apply the day the Mexican footwear industry gathered in León for the 92nd edition of the Sapica exhibition. Events on the first day of the exhibition included the presentation of a new certified brand-name, ‘Shoes From Mexico’.

Industry organisation CICEG has told World Leather that Mexico exported 48.1 million pairs of shoes and boots in 2024, bringing revenues of $980 million into the country, with an average price per pair of $20.37.

Compared to 2023, these figures represent an increase in volume of more than 60% and a total increase in value of 7.6%. But the average price per pair for Mexican footwear exports fell by 33% year on year, suggesting that price pressures are an important factor in the country’s footwear trade in international markets.

CICEG has confirmed that almost 85% of

12 - 14 MARCH 2025

Mexico’s total footwear exports in 2024 were to the US.

On March 6, US president, Donald Trump, said that, after speaking to his Mexican counterpart, Claudia Sheinbaum, he had decided to postpone until April 2 the application of the new tariffs.

This postponement applies to exports from Mexico of products that were previously able to cross the border tariff-free. Trade agreements between Mexico and the US have been in place since 1994.

Automotive companies win onemonth tariff exemption

Car manufacturers have won a one-month exemption from 25% import tariffs on products entering the US from Canada and Mexico.

US president, Donald Trump, announced the exemption on March 5, one day after the tariffs came into force.

The White House said automotive groups Ford, Stellantis and General Motors had asked for the exemption because, on the back of free trade agreements that have been in place in North America since 1994, they have built supply chains that connect Canada, the US and Mexico.

Immediate response to tariffs from Canada, Mexico delays until Sunday

Canada responded immediately to the imposition by the US of tariffs of 25% on virtually all imports from north of the border. When the US tariffs kicked in on March 4, Canada applied retaliatory 25% tariffs on a series of products that it imports from the US and will add to the list of products affected on March 21.

Mexico’s president, Claudia Sheinbaum, said she would announce Mexico’s response at a public meeting in Mexico City on March 9.

She said: “These measures will clearly affect businesses in our country, but they will also affect the people of the US because they will push up the price of many of the products that we make in Mexico.”

Ms Sheinbaum said in a television address that the tariffs were “a unilateral measure”. She said that following US president Donald Trump’s announcement in February of a onemonth delay in the imposition of the tariffs, Mexico had worked hard to resolve trade issues without tariffs. “We thought we had an agreement,” she said. “We don’t understand why the US tariffs have now come into force and we do not think they are necessary.”

She said Mexico would always seek dialogue.

Disappointment at USMEF over tariff imposition

The US Meat Export Federation (USMEF) has issued a statement in response to the imposition on March 4 of additional US tariffs of 25% on virtually all imports from Canada and Mexico, and additional tariffs of 10% on all US imports from China.

USMEF chief executive, Dan Halstrom, said

the organisation was disappointed that the tariffs had come into force. He pointed out that Canada, Mexico and China accounted for $8.4 billion in US red meat exports in 2024, including nearly $4 billion in exports to Mexico.

He said a large share of this revenue came from exporting “under-utilised cuts and variety meats (offal)” and that selling these products to customers in export markets helped producers in the US “maximise the value of every animal produced”.

Mr Halstrom went on to explain that US beef exports contributed value equivalent to $415 for every steer or heifer slaughtered in the US in 2024.

RLSD international student design competition opens

The2025 International Real Leather. Stay Different. (RLSD) Student Design Competition is now open for entries, inviting students worldwide to design apparel, accessories, or footwear using real cattle leather. The competition encourages a focus on durability and sustainability, aiming to counter the wastefulness of fast fashion.

Now in its fifth year, the RLSD competition has established itself as a platform for emerging designers. Past participants have gone on to work with brands such as Christian Louboutin, Dior, and Loewe. Judges from leading global fashion houses will assess entries based on craftsmanship, creativity, and the ability to create long-lasting designs.

Regional events will be held in Africa, Taiwan, China, Thailand, and Vietnam. Entrants are required to use at least 50% real cowhide—a by-product of the meat and dairy industries that is often discarded. Unlike synthetic fabrics, which now make up 60% of clothing and contribute to large-scale waste, leather is biodegradable and durable. Environmental groups have raised concerns over textile waste, with landfills in countries such as Ghana and Chile growing large enough to be visible from space.

The competition opens on March 1, 2025, and closes on June 30. Entries can be submitted via the RLSD platform.

Deforestation-Free Leather Fund set up by WWF, Tapestry already on board

Campaign group World Wildlife Fund (WWF) has unveiled an initiative called the Deforestation-Free Leather Fund.

Its aim is to collect an initial $10 million over the next three years from companies in the leather sector to fund initiatives that will support traceability and resilience in the upstream supply chain.

Projects that the new fund will finance will target places that, according to WWF, are at higher risk of environmental degradation. The solutions will accelerate what it called “deforestation- and conversion-free sourcing from those regions”. These projects will, initially, be in Brazil, but the possibility exists of expanding the work to other beefproducing countries in South America in the

near future, it explained.

“While leather is a by-product of the beef and dairy industries, it still carries responsibility for embedded impacts and emissions in the supply chain,” said WWF’s senior director for beef and leather supply chains, Fernando Bellese. “Companies that use leather, including those in the fashion, automotive and furniture industries, have unique leverage within the supply chain to encourage and support more sustainable practices by influencing beef and tannery operations.”

WWF has said it is already working to secure contributions to the fund from brands, retailers, leather processors and finished product manufacturers. The fund will enable these contributors to deliver “deforestationfree commitments”, it said, and send “strong market signals” to livestock farmers and meat companies.

Accessories group Tapestry is one of the first companies to make a financial commitment to the Deforestation-Free Leather Fund. This commitment is in addition to the Tapestry Foundation’s $3 million philanthropic grant to WWF in 2022, which has already led to the development of a system to enhance traceability of the leather value chain. An indepth feature on this new system appears in the February-March 2025 issue of World Leather.

Speaking about the new Deforestation-Free Leather Fund, Tapestry’s vice-president for ESG and sustainability, Logan Duran, said: “We believe strongly in the importance of sustainability in leather manufacturing, and this commitment reaffirms that belief. We invite other companies, within and outside our industry, to join us in these efforts.”

Mr Duran added that one of the reasons Tapestry looks on the Deforestation-Free Leather Fund as “a positive development and a value-driver” is the support it will provide in meeting regulatory requirements, including the European Union Deforestation Regulation (EUDR).

“We want companies to commit for three years,” Fernando Bellese concluded, “but we hope the fund will run for much longer. We hope it will run until deforestation is no longer a hot topic.”

Pasubio opens leather processing plant in Mexico

Automotive leather supplier Conceria Pasubio Group has opened a new facility in León, Guanajuato, with an initial investment of $13 million.

The plant will focus on cutting leather for seats, headrests and door panels, supplying materials for brands including BMW, Maserati, Volkswagen, Skoda and Stellantis. The company expects to generate 540 direct jobs over the next three years.

Government representatives attended the opening ceremony, noting León’s history in leather production and its role in the automotive supply chain. The new plant adds to Pasubio’s existing operations in Italy, Germany, Serbia and South Africa, increasing

its presence in North America.

With this expansion, the company now operates 13 factories worldwide.

OCEANIA

AI transforms leather grading at JBS

Mindhive Global has signed a multi-year deal with JBS Couros to expand its AIpowered leather grading system across 13 wet-blue processing sites in Brazil, with rollout set for completion by June 2025.

The agreement builds on their U.S. collaboration, with Mindhive already installing its first AI grading machine at a JBS Couros site in Brazil. The system processes up to 360 hides per line, per hour, with grading accuracy

exceeding 91%.

Guilherme Motta, CEO of JBS’s Leather Division, said the technology would enhance efficiency. “This will set new standards for leather grading, ensuring every hide meets the highest criteria for our global customers,” he said.

Mindhive’s system assesses hides in four seconds, identifying defects across 25+ categories. The goal is to improve consistency, reduce waste, and streamline operations at JBS Couros, which supplies wet-blue leather to the automotive, furniture, footwear, and leather goods industries.

Mindhive Global CEO James Bayly said the Brazil expansion was a key milestone. “By collaborating with JBS Couros, we are demonstrating the scalability and reliability of our AI-powered system,” he said.

The technology will automate classification, reduce manual sorting, and track performance across multiple sites via centralised dashboards, standardising grading and improving efficiency.

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