• This year has started slowly for the leather industry, with weak orders and limited activity, particularly in Europe
• Geopolitical uncertainty continues to undermine planning, confidence and demand for leathergoods
• Financial stress is rising in Europe, underlined by an automotive leather producer entering administration
• Banks and insurers are tightening scrutiny, increasing pressure across the sector
• Pricing is distorted as raw material costs dominate and quality differentiation weakens
• No near-term recovery is expected, with political uncertainty delaying meaningful decisions.
MARKET INTELLIGENCE
The year 2026 is now beginning to take shape along the leather pipeline, albeit at a very subdued pace. In Europe, most operations only fully resumed activities at the beginning of last week. Given the still limited order intake, there was neither incentive nor necessity to ramp up operations early or to push staff to maximum capacity.
As a result, relevant developments over the past two weeks have largely remained confined to parallel levels. Geopolitical conditions continue to play a decisive role, with the sheer number of direct and indirect factors affecting the leather pipeline becoming increasingly difficult to capture. What is clear, however, is that Europe is currently suffering particularly strongly from political uncertainty, both at national and international levels. In the two key European economies, France and Germany, the political situation remains in a state of limbo, effectively blocking necessary structural reforms. The European Commission is also displaying significant weaknesses in leadership and strategic direction, further amplified by the changed political balance within the European Parliament.
At the same time, political and economic uncertainty in the US is becoming increasingly evident. The narrative that tariffs only hurt overseas is losing credibility amid rising domestic prices. Despite ongoing trade disputes and tariffs, China’s global exports remain strong and do not suggest that current US trade policies are delivering the economic outcomes expected by their proponents. Additional irritation is caused by repeated public attacks by the US president on the chairman of the Federal Reserve, whose
professional competence is widely undisputed. The accumulation of often inconsistent national and international decisions is fuelling general unease and undermining confidence in economic predictability.
Developments in Iran are also leaving a significant mark. The entire Middle East is affected by the political situation there, regardless of the direction it may take. Fears of growing instability are widespread.
These factors are clearly weighing on consumer sentiment across most regions. The narrative that “experiences are more important than ownership” is particularly detrimental to leather-based consumer goods.
Within the leather pipeline itself, there have been only a few substantial developments over the past two weeks. In Europe, the most significant news was that one of the two well known Austrian automotive leather manufacturers has gone into administration. The fact that a leather producer in Europe may be forced to close did not come as a surprise to regular market observers. Notably, however, the company had long been regarded as financially solid and structurally strong, and was not considered an obvious early casualty. The administrators are now seeking to minimise losses for creditors through an orderly winding-up of operations. The success of this process will largely depend on whether the reported asset values withstand realistic market valuation.
The immediate question was whether this represents an isolated case or the beginning of a broader trend. Opinions differ widely and are often driven more by individual interests and expectations than by objective analysis.
Insolvency events involving well known companies inevitably have significant
TUESDAY, JANUARY 20 2026
secondary effects. Credit insurers and banks increase their scrutiny of the entire sector. More restrictive lending, reduced credit lines and lower insurance coverage could place additional pressure on other companies. Businesses with higher levels of external financing, in particular, must prepare for intensified scrutiny. Such developments do not necessarily affect only the weakest players, but can also impact structurally sound companies.
Additional European automotive leather suppliers are currently reporting weak financial performance in publicly available disclosures. Should negative signals continue to accumulate, the issue will rapidly gain momentum and breadth. It must also be recognised that some companies are heavily dependent on financial investors. In such situations, banks, insurers and investors primarily focus on securing their capital and minimising potential losses. Willingness among private owners to absorb losses over extended periods is rare.
Overall, the risk potential for further disruptions within the sector is clearly increasing. A key upcoming milestone will be the 2025 annual results, most of which are expected to be available by the summer.
Beyond this, there are some stabilising elements. The planned increase in US tariffs on Chinese furniture imports has been postponed for another year. While tariffs remain in place, the reduction in immediate uncertainty may support higher import-export volumes over time. As leather-upholstered furniture continues to play a meaningful role in the US market, this could improve order intake for the Chinese leather industry, though not before next season.
At the same time, raw material suppliers report growing interest in raw hides in China, accompanied by continued and aggressive price pressure. This raises the question of whether the raw material component still plays a decisive role in price formation at all. In more detailed discussions, it becomes apparent that the cost component of hide prices has become almost dominant, while intrinsic product value is increasingly marginalised.
The segmentation of leather products by quality and price level has become significantly imbalanced. The vast majority of leather is sold at prices that leave little realistic return for the raw material itself. The former compensation effect from higher-priced premium leathers, particularly in Europe, continues to diminish as the market share of such products contracts. Consequently, raw material quality is losing relevance; size and
split yields are becoming the primary calculation drivers. Even superior hides rarely achieve higher leather prices. Markets and quality levels are increasingly decoupling, and the leverage of quality differentiation continues to weaken.
Whether this assessment proves to be the defining trend of the coming months should become clearer in the weeks ahead and will likely shape the outlook for raw material markets.
Activity in the split market also remains limited. Demand has eased, and the availability of inexpensive raw materials for the collagen industry is exerting downward pressure. Nevertheless, overall protein demand remains solid and continues to represent a meaningful outlet for bovine hides.
In the sheep and lambskin segment, rising wool prices are becoming increasingly noticeable. Particularly for medium and coarser wool qualities, the still historically low
Actual Slaughter Under Federal Inspection
skin prices offer an attractive option for wool recovery, potentially even without immediate processing. In practice, however, this is rarely pursued, as semi-processed goods can be stored and do not tie up additional capital. Whether this represents a sustainable trend or merely a short-term opportunity remains an open question.
Globally, our contacts share the view that no fundamental changes are likely in the coming weeks. Seasonal impulses are absent, and the Lunar New Year holidays are
Excellent –Bisphenol optimized syntans to achieve high leather quality
approaching (February 17). While planning discussions and potential product adjustments are ongoing, concrete decisions are likely to be postponed. Any momentum would require either an unexpected renaissance of leather in mass production or speculative stocking of low-priced raw materials, particularly in Asia. The primary obstacle remains political uncertainty and the erratic decision-making of individual actors. Under such conditions, few are willing to commit to long-term decisions. Success will likely be limited to those capable of navigating this environment, or simply those who are favoured by circumstance.
US PERSPECTIVE
Sales of cured cattle hides for the period ending January 8 were 332,600 pieces. The figure for exports of wet blue was 129,800 pieces.
The most recent reports on hide prices showed butt-branded steers weighing 64-66 pounds at $20, and heavy Texas steers weighing 60-62 pounds at $12.50 per piece.
Cow hide prices still had northern dairy cows at $8.50, south-west dairy cows at $8, northern branded cows at $3.50 and south-west branded cows at $3, with weights of 50-52 pounds in each case.
The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.
Cattle markets USA
Show
lists are down in Texas, flat in Nebraska, and up in Kansas. Market fundamentals are strong and will be sustained by frigid temperatures across the nation’s plains.
Packers accomplished some improvement in box prices last week and managed, with the aid of plummeting cattle futures, to buy cattle steady with the previous week. With the futures down hard, mostly steady to $1 higher prices occurred in all areas. Live trades were mostly at $233, with a few at $234 in Nebraska. Dressed prices were mostly at $365, steady with last week.
Box prices closed last week with solid gains. Slaughter levels are finding support at the retail level. The choice-select spread remains narrow. Because of improved quality grade, more prime cuts will be on the shelf this year. Daily beef reports should include spreads between choice and prime, as prime volumes are on a par with select for volume of sales.
One casualty of the beef marketing efforts has been the highest-end products. Wagu
LATEST HIDE AND SKIN PRICES FROM GERMANY
and “all natural” specialty items are often seen on the meat counter, but always carry a hefty price tag. These include the USDA Prime cuts and have become more prevalent as quality grade on all cattle continues to break new records. It is not unusual to see packages carrying a discount sticker. They must be sold like all perishables, but unlike most perishables, the consumer experience eating the discounted cuts is not diminished. The dairy segment of the beef industry is in a liquidation mode following drops in cheese, milk and butter prices. More dairy cows can be expected in this year’s slaughter numbers. Helpful to many dairy operations are the prices of day-old beef-dairy cross calves that have become a popular feature in marketplace.
Grain Futures. Corn prices moved higher to close the week. The USDA stocks report raised ending stocks to 2.2 billion bushels from estimates of 1.9 billion bushels. USDA also added 1.3 million acres to the harvested acres for this year. The report was very bearish for corn prices. Corn basis levels in Guymon, Oklahoma, are at +$0.50, basis the March contract.
GERMAN PERSPECTIVE
This week: More than half of January has already passed, yet the year still does not appear to have gained real momentum. While deliveries and production in Europe have resumed and a certain operational routine has returned, the tone of current discussions and communications does not reflect a high level of market activity or enthusiasm. Most conversations remain focused on administrative matters. When broader topics are addressed, they tend to revolve around challenges and problems rather than opportunities, potential, or strategic adjustments. These observations mainly apply to Europe.
There is little indication that market participants are actively seeking solutions to
the current overall situation or are seriously considering adapting to changing global conditions. Instead, there is an underlying hope that conditions will eventually improve and return to former levels. This mindset currently characterises large parts of the meat industry as well as some of our peers. While such a development may materialise at some point in the future, it appears unlikely in the foreseeable term.
General uncertainty continues to weigh heavily on Europe, acting as a significant constraint on decision-making. In overseas markets, the overall sentiment remains more constructive. Decision-makers there appear less burdened by structural uncertainty and are more focused on assessing how markets and demand may evolve, and how to secure their share of future growth. However, the dominant theme in these markets continues to be raw materials pricing.
Discussions are driven less by realistic planning and more by the expectation that
raw materials might become even cheaper. Success in this regard has been limited so far, but at the same time there is no strong pressure to replenish inventories. Waiting is perceived as the preferable option, rather than realistically assessing whether marginally lower input costs would materially influence business performance. This creates the risk of missing historically low raw material prices, as the current, admittedly ample, availability is implicitly treated as a permanent condition.
As a result, overall market paralysis persists. During the past week, only limited sales opportunities emerged, primarily due to the gap between customer price expectations and minimum acceptable price levels and also the moderately improved dollar exchange rate did not help close the gap. Market activity therefore remained subdued. As the Lunar New Year approaches (February 17), both sides are likely to face increasing pressure to take decisions.
The kill: Slaughter activity shows a similar pattern. Slaughter numbers have gradually returned to normal levels, and the extreme weather-related disruptions are no longer an issue. The current combination of declining milk prices and historically high prices for live cattle has, so far, not led to the anticipated effects. An increased willingness among farmers to sell dairy cattle would not have been surprising, yet this has not materialised to any meaningful extent. Likewise, low pork prices combined with relatively high beef prices have not yet resulted in noticeable shifts in consumer behaviour.
What we expect: No major new impulses are expected. If any momentum emerges, it is more likely to originate from overseas markets, while Europe is expected to remain largely in a wait-and-see mode until the end of the month. There is currently no immediate need for action. The Lineapelle trade fair in Milan is approaching, although it remains uncertain how well attended it will be. The overlap with the 2026 Winter Olympic Games, combined with limited and expensive hotel availability, has so far been a discouraging factor. Nevertheless, the fair remains the most important meeting point for the leather industry, and most market participants are therefore expected to attend. Until then, any stronger market impulses would come as a surprise. Meaningful new insights or increased market movement are unlikely to emerge before mid-February with the results of Lineapelle and the end of the New Year break in Asia.
LONG READ
We are re-running an in-depth interview from our Leather Leaders series from October 2020 as a tribute to industry pioneer Tom Schneider, who died on January 18, 2026.
Leather Leaders: Tom Schneider
Tanner aims to turn the tables on vegan alternatives
Founder and executive chairman of leather manufacturing group ISA TanTec, Thomas Schneider, makes it clear that his company’s recent announcement that it will produce plantbased alternative materials alongside leather is for a simple reason. It wants to replace plastic, not leather.
How would you sum up the effect, so far, of covid-19 on the leather business in general?
In the leather industry we are talking three sectors: automotive, furniture and the third is shoes and handbags. Automotive had a dip but has recovered amazingly well. We have a joint-venture with a producer of automotive leather in China [Heshan Bestway] and it’s nearly full. The furniture
side is one we’re not involved in but I have a lot of friends there and that business seems to be okay. What really suffered a lot was the shoe and handbag business, consumer goods. In covid times, people were still buying furniture, but maybe not a pair of shoes. In athletic stores, business is okay because people are going out and buying bicycles and jogging. But if you go into a casual shoe store, their business sucks.
What has been the effect on ISA TanTec’s activity in particular?
This is our main business, the shoe business. What happened also is that hide prices dropped dramatically and inventory built up. There is a saying that a crisis shows character. In general, I have to say brands were very fair. Most of our prices are negotiated at a certain pace and there is an index on raw materials. Most of the brands said they would not renegotiate prices this year because they know how much inventory is in the factory. We easily had 1,000 containers of wet blue in inventory, including on the water or in the harbour. There were some brands that wanted to renegotiate, but not many. Generally the brands were really good. Inside ISA, we started cutting investments in February. We had no travel costs any more, which was an advantage, of course. Everything switched to Zoom and it’s an advantage for it to be normal to visit a customer on a virtual basis. In the future, no one will want to go back to the pre-covid times with a lot of travelling. Zoom calls are more effective. You can meet the relevant people directly on the screen, the meeting starts on time, it’s a different meeting mentality. It’s really good. But, to come back to what we did, we kept 100% of the workforce and that’s not easy when you have 1,200 people. We were inventive. We cut overtime, but we paid everyone for 40 hours a week, even if they were only able to work 20 hours. Then people knew they were working for the right company. Furthermore we saved money on all management and indirect levels and nobody argued against that. But what we didn’t do was cut the budget for research and development. In fact, we increased it.
How are things now in midOctober?
Our business has recovered. It’s not at 100%, but, when I calculate the year-to-date figures, it’s at about 70% recovered. This is also to do with brands consolidating [the number of suppliers they want to work with]. They see it as a necessity to work with suppliers that can deliver, who have the financial strength and the research and development capability to deliver in different locations.
As an experienced and knowledgeable leather industry leader, what do you foresee for 2021?
When you see reports from EY, KPMG, PwC or the Harvard Review, they are all saying the same thing. Consumer behaviour is changing
and that covid means the change is happening even faster. With people in lockdown and working from their home office, you are able to see all of the garbage you create, because it’s all in one place. This is shocking. It is making people wake up and they want to rethink and slow down their lives. They want to know more about the products they are buying. Sustainability will be a big change in 2021 and beyond; you will see a push from a lot of companies for sustainable products. But, specific to 2021, I must say I think it will be worse than 2020. We’ll see more unemployment, more bankruptcies and consumption will go down. Yes, 2020 has been tough, but in many countries there are programmes like the one we have in my home country, Germany, called Kurzarbeit, or short-time working, in which the government pays enough money for people to work some of the time and receive about 80% of their salaries. That’s very different from being unemployed.
What do you foresee specifically for the tanning industry?
Consumers want products from clean factories and that means our industry needs to change too. I forecast that some tanneries will not invest and that some will go out of business. Ten or twelve years ago, I stood before 600 tanners in China and told them that, within ten years, 50% of them would be out of business. I was wrong: within five years 60% of them had gone.
Looking further ahead, what do you think the future holds for the relationship between tanners and footwear manufacturers and brands (in general)?
As I mentioned, brands are consolidating their suppliers and they are selecting carefully. They want suppliers who have a good story and can deliver. We have 12 brands who already do co-marketing with us. It helps that some of them want a one-stop shop and that
we can make leather, but also do cutting, make labels, trims, laces and other products for them too. They need companies that invest in new products because in 2021, brands will need stories just to maintain, not gain, market share.
Last year at a major conference in Guangzhou, you warned shoe industry executives that hides would go into landfill if there was too little demand for leather. Since then, we have had confirmation that millions of hides are, indeed, going into landfill. If the reasons you presented in Guangzhou were coherent, correct and well explained, why wasn’t that enough? What would you tell the same audience today?
The question, really, is why is demand decreasing? The leather industry is partly guilty for this. We have to recognise that
because if you excuse everything you can’t change it. Yes, there have been inaccurate messages, but the leather industry didn’t do anything about them. I was on the executive committee of [multi-stakeholder body] the Leather Working Group for many, many years and I always pushed for the LWG to take a stand and advertise the good things that the leather does. The leather industry doesn’t have a voice really, and this is the issue. Leather Naturally [an industry-funded campaign group] is trying to change the image of the tanning industry. Companies should be a part of that, even if only passively by contributing finance. There are great people doing it and working very hard. This is late, but it’s not too late. We can, at least, slow down the process [of companies choosing alternative materials], even if we are not winning the battle. In the meantime, tanners everywhere need to make sure they clean up their own factories. We don’t need to give the [buyers] more reason to reject leather. When you Google tanners it’s bad
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images that come up immediately. It’s time to reverse this.
It’s more than 10 years since you began presenting ISA TanTec’s leather as LITE, highlighting its low impact on the environment. How would you sum up the benefits that has ISA TanTec gained from this?
It’s been 16 years of LITE, actually. We celebrated its fifteenth anniversary last year. It started with the concept that it would be good to reduce energy, water and impact and that this would be better than recycling. Avoidance is very difficult, but recycling is not as good. As to the benefits, LITE can identify the carbon footprint of every single one of our products; it was amazing what we found out. Sometimes only a slight difference in the formulations made a big difference. We have benefited from reducing energy and water and we’ve also made our production more consistent. Defining all of that was a lot of work but there have been massive savings. For brands, LITE has been an advertising tool. Compared to LWG, there are water usage levels that you need for a gold rating and we are at half that. So they ought to give us a platinum rating.
What are the pros and cons of having as part of your group tanning operations in such diverse countries as China, Vietnam, the US and Italy?
We have five operations: China, two in Vietnam, the US and Italy. Four of the five work from wet blue and have more or less the same lay out, use the same chemicals and serve the same customers. So much footwear is produced in China, Vietnam and Bangladesh and the customer wants the same leather in all three places. The second advantage is risk management. At Saigon TanTec, we have 600 people. If local authority officials come in and find just one person not wearing a mask, they can shut down the whole operation. TransAsia TanTec [completed in 2019 and only 50 minutes away] is a good back-up.
How
do you view alternative materials?
We all talk about sustainable products. Leather is a sustainable product. The carbon footprint of leather is lower [than that of rival materials]. It’s renewable, it’s a by-product, not a co-product, and all of this is proven now. We are also involved in a project to prepare alternative material, made from natural resources, for brands to use. These are mushroom-based products that are commercially usable and 100% natural. We are not saying that this is an alternative to leather. No. Absolutely not. I don’t want to have an alternative to leather. I want to have an alternative to the vegan materials, to the polyurethane stuff. That is the crucial part. The materials are already being tested by a bigname brand who may order a million or several million square-feet of the new
materials next year, but it will be to replace plastic. It’s not replacing leather. It’s not our target to cannibalise our product but to offer customers additional products, ones that have a good story behind them and are available from a supplier that brands have worked with for 20 years already.
NEWS EUROPE
Native American leader links EUDR to colonialism
Asenior representative of native American peoples has described the European Union Deforestation Regulation (EUDR) as “a new spin on colonialism”.
Maserati registrations fall sharply across key markets
Luxury car company Maserati saw a significant decline in global registrations in 2025, with total deliveries across key markets dropping 31% to 7,347 vehicles.
The United States, historically a major market, recorded just 2,838 units, down 41% from 2024, with the Grecale accounting for most sales. Italy fell 23% to 1,716 units, while Japan and the UK dropped 31% and 21% respectively. Switzerland and Austria saw the steepest declines, 46% and 52%.
Germany and France were among the few markets to grow, with 17% and 12% increases respectively, though volumes remained low. Maserati plans to rebuild under new CEO Jean-Philippe Imparato, focusing on matching production to demand and reducing dealer inventories. Cristiano Fiorio and Simonetta Cerruti joined the brand’s leadership late in 2025 to support marketing and sales strategies.
Director appointment for UK, Europe and central Asia at RollsRoyce
Automotive company Rolls-Royce Motor Cars has appointed John Beckley to the position of regional director for its home market, the UK, for the rest of Europe and for central Asia. He took up the role at the start of January.
In a 30-year career at parent group BMW and at Rolls-Royce, Mr Beckley started off in technical roles before moving successfully into sales.
Rolls-Royce said his appointment reflected the importance of the region he will cover describing it as “a diverse group of established and emerging luxury markets”.
Wollsdorf Leather goes into administration
Reports from Austria have confirmed that Wollsdorf Leather Group’s future is in the hands of external administrators. Restructuring and insolvency company KSV has confirmed that it is working on a turnaround plan for the leather manufacturing group, with a partner company, Kapp & Partners handling day-to-
day administration.
It has said it may be possible for parts of the business to continue but only if this is in keeping with best interests of creditors.
The corporate structure comprises Wollsdorf Leder Schmidt and Wollsdorf International. Wollsdorf Leder Schmidt operates the company’s leather manufacturing plant in Austria. Wollsdorf International has 90% ownership of Wollsdorf Leder Schmidt.
The group also has leather production, leather cutting and sales operations in Mexico, China, Hong Kong, Croatia, Uruguay and the US.
Leatherbiz has asked KSV what the restructuring of the company will mean for these operations. The documents it has published suggest that a sale of assets is likely to be part of the turnaround plan KSV presents to creditors and to the authorities.
Head of insolvency at KSV for the Austrian states of Styria and Carinthia, Brigitte PeißlSchickmair, told us: “The proceedings are still in their early stages.”
QUAKER COLOR A STEP
AHEAD
IN AUTOMOTIVE FINISHING
Riva Schuh and Gardabags: New sourcing model emerging
Footwear and leathergoods show Riva Schuh and Gardabags closed in Italy this week (January 10 to 13), with the president of its scientific committee suggesting the sourcing landscape is changing to a more nuanced scenario guided by “affinity-based factors”.
Economist Enrico Cietta said geography remains important, but is now accompanied by geopolitical, cultural, technological and industrial elements as well as a more cautious approach to risk management.
China has lost approximately 780 million pairs in terms of exports and 770 million pairs in terms of production since 2017, he added, which the country had been able to offset through domestic consumption until 2023. Now, production and exports are declining and other countries are increasing their shares.
He concluded Expo Riva Schuh and Gardabags is aligned with the new model and aims to be a “stable point of reference in a constantly evolving market”.
Supplying innovative
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century
Skyeskyns launches new leather
collection
Scotland-based sheepskin tannery
Skyeskyns has developed a handcrafted marbled leather accessories collection with innovation support from Highlands and Islands Enterprise (HIE).
Founded more than 45 years ago on the Isle of Skye, Skyeskyns is Scotland’s last remaining sheepskin tannery. In 2025, the company began developing a new accessories range using vegetable-tanned leathers and natural paints, expanding beyond its established home décor products.
Through HIE support, Skyeskyns worked with a marbling specialist based in New York and the product design team at Glasgow School of Art’s Highlands and Islands campus in Forres. The project has resulted in a lowwaste accessories range that uses offcuts for smaller leather goods, anchored by a marbled leather bag.
The company plans to introduce the collection in its own retail shops before a wholesale debut at Shoppe Object during
New York Design Week in February 2026, followed by UK and European wholesale activity.
Grenson gains golden glow
British actor Stephen Graham has been drawing attention not just for awards success but also for his footwear choices, with Grenson once again appearing on the red carpet.
Following recent recognition for Adolescence at the Critics Choice Awards, Mr Graham opted for a familiar pair of Grenson shoes at the Golden Globes, underlining his preference for the Northamptonshire shoemaker.
The shoes were Grenson’s Camden derby, a style he has worn publicly before, including on The Tonight Show Starring Jimmy Fallon in March last year. This time, he chose the black version, having previously been seen in burgundy.
The Camden is a wholecut derby in polished bookbinder leather, lightly finished for a clean, understated sheen.
Made at Grenson’s Northamptonshire factory, it sits on the 201G last with a generous round toe and extra toe spring, featuring an all-round storm welt, double leather sole and Goodyear welting, made "skin to box" in-house.
Mercedes-Benz sales decline 10% in 2025
Mercedes-Benz reported a 10% fall in global vehicle sales in 2025, with weaker demand in China and the impact of US tariffs weighing on results.
The group sold around 2.16 million cars and vans during the year. Car sales declined 9% to just over 1.8 million units, while van sales fell 11% to 359,100.
Fully electric models accounted for just under 10% of car sales.
Sales in China dropped 19% to 551,900 vehicles, while deliveries in Germany were flat at 213,200.
In the United States, sales declined 12% to around 285,000 vehicles, with tariffs cited as a contributing factor.
First non-family CEO for Pikolinos
Footwear
and leather manufacturing group Pikolinos has announced Francisco Sánchez as its new chief executive, a departure from the group’s family-run structure.
The company produces footwear in the area around Elche and also runs its own leather finishing company, Pies Cuadrados. Its shoes sell in 60 countries around the world. It runs 20 own-brand stores and has more than 8,000 points of sale in total.
Founder, Juan Perán, launched Pikolinos in 1984 and ran the company until 2016, when he handed over the reins to his children. His son, Juan Manuel Perán, took over as chief executive, while his daughters, Rosana and Carolina, also assumed leadership roles. Rosana Perán was elected president of CEC, the European footwear industry confederation, in 2023.
At the start of 2026, after posting record results for three consecutive years, Pikolinos announced that it was entering a new stage of development, with Francisco Sánchez as the first person outside the Perán family to lead it.
Mr Sánchez is an engineer by trade but has a track record in business transformation, with many of the projects he has worked on having links to the leathergoods sector.
On taking up his new position at Pikolinos, he said: “Leading a business these days is about much more than results. It is about building organisations that have meaning, that are centred on people and on the sustainability of both the business and its surroundings.”
EU clears Mercosur free trade deal for signing
EU member states have approved the signing of a free trade agreement between the European Union and the Mercosur bloc, ending more than 25 years of negotiations and moving the accord to the next stage.
A sufficient majority backed the deal on January 9, despite opposition led by France.
According to EU sources, 21 countries supported the agreement, with Austria, France, Hungary, Ireland and Poland voting against and Belgium abstaining. The decision allows Commission president Ursula von der Leyen to sign the agreement with Argentina, Brazil, Paraguay and Uruguay in Asuncion on January 17.
Supporters including Germany and Spain say the deal will help offset trade disruption linked to US import tariffs and reduce reliance on China by improving access to raw materials. Brazilian president Luiz Inacio Lula da Silva described the vote as a historic step for multilateralism.
Opponents, particularly in France, argue that increased imports of beef, poultry and sugar could undermine EU farmers.
The agreement is expected to be the EU’s largest in terms of tariff reductions, removing €4 billion of duties on EU exports. Two-way goods trade between the blocs was valued at €111 billion in 2024.
The deal must still be approved by the European Parliament, with a final vote expected in April or May.
Record annual sales for BMW brand
The BMW Group delivered 2.46 million vehicles in 2025, an increase of 0.5% yearon-year, and its BMW brand reported a record year with 213,457 cars sold.
Lower demand in China was offset by growth in Europe.
Board member Jochen Goller said: “In 2025, in a challenging environment, the BMW Group sold more vehicles than in the previous year.
“Our electrified vehicles were in particularly high demand. Europe reported especially strong growth, with battery-electric vehicles accounting for about a quarter of total sales.
“In total, the BMW Group will launch more than 40 new and revised vehicles with various drive options by 2027.”
Electrified vehicles accounted for a quarter of BMW Group sales worldwide in 2025, with fully-electric vehicles representing around 18%.
The Mini brand delivered 288,290 vehicles, 18% more than the previous year. The RollsRoyce brand delivered 5,664 units, around 1% fewer than in 2024.
Council submits plans to repurpose Walsall Leather Museum
Walsall Council has submitted a planning application to convert the Walsall Leather Museum into an assisted learning centre for students with special educational needs and disabilities (SEND), according to various media outlets.
The Littleton Street West site has housed the museum since 1988 and forms part of a Victorian factory complex formerly known as the Broadway Training Centre.
Under the proposals, Walsall College would take over the property, citing benefits such as
access to outdoor space, teaching kitchens, a drama studio, and nearby transport links to support student independence. The council has confirmed that the works fall within the same planning class as the museum, so only a certificate of lawfulness is required rather than full planning permission.
Leather fashion designer and educator Lauren Broxton has expressed concern over the council’s plans. A petition opposing the closure has gathered more than 3,300 signatures, and the matter has been raised in Parliament by MP Valerie Vaz. It is now under consideration by the Department for Culture, Media and Sport, with further discussions expected involving other government departments.
A decision on the planning application is set for February 12.
Turkey remains key supplier to US leather market
Turkey’s leather and fur apparel exports grew 17.2% to $226.6 million in 2025,
despite a 5.3% decline in total leather and leather goods exports, according to the Istanbul Leather and Leather Products Exporters’ Association (IDMIB).
Footwear and processed leather exports fell, while leather accessories saw modest growth. The United States remains a key market, receiving one in four exported leather jackets. EU countries accounted for 40.7% of Turkey’s total leather exports, followed by the Middle East (12%) and the Americas (8.4%). Germany led by individual country share at 8.2%, followed by Italy (7.2%), Iraq (7.1%), and the US (6.8%).
Talking to local media, IDMIB Chairman Guven Karaca said high inflation and interest rates increased production costs and weakened price competitiveness, particularly against Asian and some European competitors. He added that exporters are seeking stabilisation in 2026 rather than rapid recovery.
Leather remains among Turkey’s highest value exports, with an average export price of
makes it natural
$13.9 per kilogram, ranking fourth after jewellery, defence and aviation, and ready-towear apparel.
APIC to bring In-Leathers project to a close at Alcanena event
Portuguese tanning industry representative body APIC will host an event on January 29 to bring a project called In-Leathers to a formal close.
The event will take place at the national leather museum in Portugal’s main tanning municipality, Alcanena.
APIC secured funding to launch the InLeathers project in 2023. Its objective was to promote Portuguese leather in international markets.
At the new Alcanena event, APIC will provide a review of the project and discuss what the results will mean for the country’s wider leather manufacturing strategy in the future.
European car market reports modest growth
The UK new car market grew for the third year in a row in 2025, breaching the two million mark for the first time since the pandemic, with 2,020,520 registrations, according to the Society of Motor Manufacturers and Traders (SMMT).
The market rose by 3.5%, with growth across all buyer types.
Mike Hawes, SMMT chief executive, said: “The new car market finally reaching two million registrations for the first time this decade is a reasonably solid result amid tough economic and geopolitical headwinds. Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high. Given developments abroad, government should act urgently to deliver a vibrant market, a sustainable industry and an investment proposition that keeps the UK at the forefront of global competition.”
Figures from ACEA, the European
Automobile Manufacturers’ Association, show new EU car registrations increased by 1.4% from January to November 2025, compared with the same period in 2024.
Despite the recent positive momentum, overall volumes remain well below prepandemic levels, it noted.
Leathergoods start-up’s ‘remarkable’ rise towards a value of €1 billion
French business daily Les Échos has taken an admiring glance at start-up leathergoods brand Polène.
The newspaper has estimated the handbag brand’s value to be “close to € 1 billion”, calling this a remarkable figure for a company that launched in 2016.
It described Polène as a Digital Native Vertical Brand (DNVB), one that launched on the internet for, initially, online customers only.
It took until 2021 for Polène to open its first store, on the Rue de Richelieu in Paris. Now it also has a second flagship store on the French capital’s Champs-Élysées and an in-store boutique at the Bon Marché department store on the city’s Rue de Sèvres.
International expansion has followed, with stores opening in the last two years in Beijing, London, New York, Tokyo, Seoul and Hamburg.
Les Échos said Polène had made a great success of offering customers “accessible luxury”, with its bags costing between €380 and €520.
APICCAPS sets out plea for conscious consumption
Portuguese footwear association APICCAPS has launched a global advertising campaign to promote “conscious consumption” of footwear.
It says awareness and care are the “new pillars of the future”, urging responsibility, authenticity and an urgent "paradigm shift" in the sector.
Paulo Gonçalves, communications director at APICCAPS, said: “Every year, 24 billion pairs of shoes are produced, 88% of which are made in Asia. This is neither reasonable nor sustainable. We believe that it is possible to produce high-quality footwear in Europe at fair prices.”
End of the line for Vestiaire Collective co-founder
One of the founders of Vestiaire Collective, Fanny Moizant, has left the company.
Ms Moizant founded the Paris-based luxury resale platform in 2009 with Sophie Hersan. Vestiaire Collective quickly won a strong following among high-end consumers who wanted to preserve the useful lives of bags, clothes, shoes and accessories.
Its model was to invite private sellers to offer pre-owned handbags and other items for sale to online shoppers. But it hired leather experts and other craftspeople to carry out a physical check of every item before shipping to buyers.
In October, chief finance officer, Bernard
Orta, a former Goldman Sachs executive director, took over as chief executive of Vestiaire Collective, in place of Maximilian Bittner. Fanny Moizant and Sophie Hersan remained on board as, respectively, company president and fashion director.
However, at the start of 2026, Ms Moizant said her time at Vestiaire Collective was over and that she was leaving. She said she had not initiated or expected this development.
She encouraged customers to continue to support the company, saying: “Vestiaire still needs you: every treasure you give new life to is a quiet rebellion for a better fashion future.”
Italian footwear sector shows signs of stabilisation, says Assocalzaturifici
The Italian footwear sector is showing early signs of stabilisation despite a still uncertain global macroeconomic environment, according to a business survey by the Confindustria Accessori Moda Study Centre for Assocalzaturifici.
Data for the first nine months of 2025 show revenues down by 4.1% compared with the same period last year among surveyed member companies. However, the pace of decline eased significantly in the third quarter, with turnover falling by just 0.9% year on year, compared with sharper contractions in the first half of the year.
Full-year projections point to sector turnover of around € 12.8 billion, down by approximately € 409 million or 3.1% compared with 2024, a notably smaller contraction than last year.
Exports in the first eight months of 2025 reached € 7.72 billion, down 1.3% in value, while volumes rose by 4.3% to 131.8 million pairs. Average export prices fell by 5.3% to € 58.58 per pair. The EU market recorded growth in both value and volume, with Germany performing particularly well. The Middle East continued to be the most dynamic non-EU region, led by strong growth in the United Arab Emirates.
Industrial production remained weak, with the ISTAT index down 8.5% over nine months. The number of active footwear manufacturers fell by 3.4%, while employment declined by 2.3%, although recourse to short-time working schemes showed signs of easing later in the period.
Former Stahl wet-end chemicals division launches as Muno Wet-end leather chemicals developer Muno formally launched on January 5.
Chief executive, Xavier Ràfols, said Muno, which is the result of Stahl’s decision to spin off its wet-end division, had immediately become “a global leader in wet-end leather solutions”.
He said the new company would offer the global leather sector “technical excellence, innovation and sustainability”.
Stahl announced its intention to divest its wet-end chemicals division in November
2024. It said it wanted to concentrate on chemicals for leather finishing, as well as on its specialty coatings business.
The original plan was for Syntagma Capital, a private equity firm based in Brussels, to acquire Stahl’s wet-end division. However, in November 2025, both parties decided to step away from the deal, owing to weak market conditions.
Right away, Stahl said it would continue with the plan to separate out its wet-end business and the divested division would run as an independent company, Muno.
The new company’s main production sites and research and development activity will be in Italy and India, supported by a network of sales offices and application laboratories in different parts of the world. It starts with a team of more than 450 people.
ASIA
Leather bags production to begin at Onitsuka Tiger
Japanese sports group ASICS has announced a first dedicated production facility for its Onitsuka Tiger brand. The factory opened at the start of the year; the group held a formal opening ceremony for it on January 15.
It said the new facility integrates “the entire lifecycle of creation”, from material development to design and production, with everything under one roof.
The facility will strengthen production of footwear such as its Nippon Made series and its formal leather shoe line, called The Onitsuka. Furthermore, for the first time, Onitsuka Tiger will begin producing leather bags at the new site.
In future, this site will also become a “cultural hub”, showcasing Japanese craftsmanship and the Onitsuka Tiger brand vision to a global audience. It will work closely with the Onitsuka Tiger international creative headquarters in Milan, and with the ASICS Institute of Sport Science, which focuses on pioneering research in advanced sports technology.
Apex Tannery to install in-house ETP to meet buyer standards
Apex Tannery has announced plans to build an in-house effluent treatment plant at its tannery in Bangladesh to meet regulatory requirements and international buyers’ environmental standards.
The plan was approved at a meeting of the company’s board of directors on January 13, according to a disclosure filed with the Dhaka Stock Exchange on January 14,.
The company said it will install the effluent treatment plant alongside a chrome recovery plant and a sewerage treatment plant within its existing tannery premises. The facilities are expected to cover an area of approximately 12,000 to 15,000 square feet.
The total investment is estimated at Tk12 crore, equivalent to approximately US $1 million.
According to the disclosure, the in-house ETP will treat effluent generated from
operations ranging from the wet blue stage through to finished leather production.
The company said the project is intended to strengthen environmental compliance, meet international buyer standards, and support its long-term sustainability objectives, while maintaining competitiveness in the global leather market.
Japan celebration for Loewe Leathergoods
brand Loewe has underlined its “deep and enduring relationship with Japan” by opening a new flagship store in the Ginza district of Tokyo. The new store is the second-biggest the brand has anywhere in the world.
Loewe’s presence in Japan dates to 1973 when it opened a boutique in the the Nihombashi Mitsukoshi department store in Tokyo; this was the brand’s first store outside Spain. Now, with the new flagship store in Ginza, it has 46 stores in Japan.
The brand launched a series of events on January 9 to mark the opening. It has also worked with Kyoto-based ceramic studio Suna Fujita to create a special capsule collection.
Suna Fujita founders, Shohei Fujita and Chisato Yamano, have applied their creativity to products that include a special ‘hammock’ bag, a shearling coat and a jacket with cherry blossom motifs.
This special collection also includes new versions of Loewe’s Amazona and Basket bags, as well as a range of small leathergoods.
Japanese leathergoods brands head to Europe
Japan’s Ministry of Economy, Trade and Industry is supporting leathergoods companies to attend menswear show Pitti Uomo in Florence and Paris-based Man/Woman show through its New Standard Japan Leather project.
The Japanese leather used by leathergoods brand A LEATHER is said to be soft and supple due to the soft water in the tannery’s hometown, Himeji. Its designs (pictured) are inspired by sportswear, military wear and dress styles. “Our mission is to convey Japan's high-quality leather and craftsmanship globally through innovative leather products, and to pass these techniques on to the next generation,” said the founders.
Leather sneaker brand Brightway was launched in 2020 by the third generation of a shoemaking family. The style is described as “minimalist designs for any occasion” and the shoes come with a ten-year after-sales maintenance service.
Taannerr is tannery group Sanyo Leather’s own brand, launched in 2022, when the group celebrated its 111th anniversary. “We deliver items crafted from leather we confidently select as tanners to customers who love leather, items that will be cherished for years to come,” the company said.
Pitti Uomo took place from 13 to 16 January. Man/Woman takes place from January 23 to 25.
Council for Leather Exports announces new chairman
The Council for Leather Exports (CLE) has announced the appointment of a new chairman, with Chairman Ramesh Kumar Juneja, taking over from R K Jalan, during the 184th meeting of its Committee of Administration in Chennai.
Mr Juneja brings more than four decades of experience in the leather industry and has been associated with CLE for over 15 years. He previously served as regional chairman for the eastern region and as vice chairman from April 2024.
Sponsored by the Ministry of Commerce and Industry, CLE represents India’s leather, footwear and leather products exporters. The new appointment comes as the sector addresses challenges linked to sustainability requirements, global competition and export market diversification.
French leather sector exports to China hit by ‘tariff arm-wrestling’ National industry body Alliance France Cuir has calculated a fall of 8% in the value of the French leather industry’s exports to Asia in the first ten months of 2025.
It said there had been declines of 9.5% in the value of shipments to Japan, and of 7.5% in the export revenues coming into the industry during the ten-month period from sales in South Korea.
Even though the reduction in China and in Hong Kong was lower, 4.6% and 5.5%, respectively, Alliance France Cuir said the figures for those markets were the most significant.
It explained that the French leather sector had earned €4 billion from full-year exports to China and Hong Kong in 2024, putting those markets far in front of the US and Italy, which had full-year figures of €2.4 billion and €1.9 billion, respectively, in 2024.
In the first ten months of 2025, leathergoods accounted for 85% of export value for the French leather sector in China. Footwear accounted for 12%.
In 2025, Alliance France Cuir said the sector’s shipments to China had been affected by international trade tensions and domestic events. It said buyers in China had become “more prudent” about placing new orders owing to “the uncertainties resulting from all the tariff arm-wrestling between Beijing and Washington”.
Domestically, according to Alliance France Cuir, lower sales in China were also linked to a reduction in consumer confidence there, which has its roots in the property crisis that began in 2017, followed by long covid-19 lockdowns. “This has, progressively, encouraged Chinese consumers to buy less,” it said.
It quoted Alain Wang, a China expert who has taught at the Institut Français de la Mode fashion school for the last 15 years. He said: “Chinese consumers are saving their money because they are fearful of the future. China continues to have success in export markets and money is coming into the country, but the situation is precarious because of a lack of social protection.”
Mr Wang said that, in times of crisis,
children’s education, health and saving for retirement become the top priorities for Chinese consumers.
China halves tariffs on imports of wet blue
Aseries of changes to China’s tariff regime took effect on January 1. The Customs Tariff Commission of the State Council announced reduced tariffs on a total of 935 products.
Countries exporting wet blue bovine hides to China will now face tariff levels of 3%, instead of the previous levels of 6%.
Imports of semi-processed sheep and goat skins will also face lower tariffs now, with the levels for this material falling from 14% to 10%.
THE AMERICAS
Lear earns Top Employer 2026 certification
Automotive
seating developer Lear Corporation’s operations in 10 countries have received Top Employer certification from the Top Employers Institute for 2026.
Facilities in Brazil, the Czech Republic, Romania, North Macedonia, Poland, Slovakia, Spain, Italy, Hungary and Morocco were recognised after an assessment of human resources practices, including people strategy, work environment, talent management, learning and development, diversity and inclusion, and employee wellbeing. Lear was also named Top Employer Europe for the fourth consecutive year.
President and CEO Ray Scott said the certification reflects the company’s focus on workplace practices and employee engagement. The company’s “Together We Win – Employee Experience” programme supports these efforts across its global operations.
Double-digit declines go on for US beef exports, despite October ‘rebound’
The US Meat Export Federation (USMEF) has reported exports of beef from the US of just under 950,000 tonnes in the first ten months of 2025, bringing in revenues of almost $7.8 billion.
USMEF said these figures represented declines of 11% in volume and of 10% in value year on year.
It said, however, that excluding China from these results would make the comparison far less favourable for the 2025 figures. Without China, which the tariff situation has made a much more difficult market for US beef exporters, the results would have shown falls of 3% in volume and of only 1% in value.
The organisation said it was encouraged by October figures. Even these still showed declines year on year, there was a pick-up in volumes of beef exports compared to a low figure in September, with shipments of 93,448 tonnes. In terms of revenues, October’s figure, $759.5 million, was the highest since June. USMEF said the October figures showed “an encouraging rebound for beef”.
Furniture firm prepares for IPO as prospects improve
Furniture
chain Bob’s Discount Furniture is to launch an initial public offering (IPO) for shares in the company. It plans to list on the New York Stock Exchange.
Based in Manchester, Connecticut, Bob’s has an extensive range of leather sofas and armchairs among its products.
In recent comments, the company said the furniture market has had a difficult last few years but was now operating in “a more favourable landscape”.
It explained that during the covid-19 lockdowns of 2020 and 2021, the furniture market grew strongly as people invested in a stay-at-home lifestyle. Bob’s has said the slowdown that followed this has been exacerbated by high interest rates and inflation.
But it said interest rates and inflation in the US were now “normalising”; it expects sales of houses to improve as a result.
Bob’s Discount Furniture added that the current tariff confusion is affecting its business less than that of some furniture companies. It said it had stopped sourcing in China before the end of 2024 and that it now sources 63% of its products from Vietnam and 27% from suppliers based in the US.
Covid-19 pass-time turns into a leathergoods business
Amother-and-daughter
start-up in Uruguay, LanaMara, is using leather to produce fashion products in the country’s interior.
Patricia Gigena and María Sara Rodríguez started making waistcoats, tops, hats and caps out of leather, wool and other materials during the covid-19 lockdown and have now turned a way of passing the time into a business.
LanaMara took part in a new edition of a special fair for small and medium enterprises that Uruguay’s main chamber of commerce has run for several years in Montevideo.
“We learned to make these products during the pandemic,” Patricia Gigena said at the event, “and we found that we like it very much. The business we have set up is very artisanal.”
Her daughter, María Sara Rodríguez, explained that being part of the fair had been a good opportunity for LanaMara. “Because we live in the interior of the country, we have found this to be a good way for us to make an impression in the capital and, she hoped, in the wider world.
Centenary year for CICEG
This will be a year of centenary celebrations for the Cámara de la Industria del Calzado del Estado de Guanajuato (CICEG), the main industry body in Mexico’s main footwearproducing state.
At the start of 2026, CICEG said it was celebrating its 100-year legacy. Predecessor organisation, the Union of Shoemakers in the city of León, formed in 1926.
The history of artisan footwear manufacturing in Guanajuato, and in León in particular, goes back far longer. Academic studies date the earliest record of shoe production in León to the year 1645. There
are also records of footwear workers’ representative bodies dating back to the first decade of the nineteenth century.
But CICEG said the events of 1926 marked the beginnings of “an organised shoe industry” in the region. It added: “One hundred years on, the same entrepreneurial spirit lives on in CICEG.”
Brazilian industry renews commitment to innovation as export values dip
Full-year figures show that Brazil exported 640,100 tonnes of hides and skins in 2025, an increase in volume of 7.1% compared to the previous year.
However, in terms of value, the Brazilian leather industry suffered a decline of 9.8% in export values, with 2025 revenues reaching $1.1 billion.
Tanning industry body CICB said 31.7% of the total value had come from shipments to China and Hong Kong, while the US had a share of 12.6% of the total. Italy was the third-biggest market, with a 10.8% share.
Leather manufacturers in the state of Rio Grande do Sul had the greatest share of the total value with 28.6%, followed by São Paulo with 15.3% and Paraná with 14.2%.
Commenting on the figures, head of market intelligence for CICB, Rogério Cunha, said: “Last year was certainly a year of complexity for our industry, with many challenges. But the whole industry is ready to keep working to the full. This includes a commitment to continue investing in new technology.”
He explained that it was in the context of this commitment to innovation that the 2026 CICB Sustainability Forum will take place in Novo Hamburgo on March 4, as part of the Fimec exhibition. He said artificial intelligence would be a central theme at the event.
Brazil overtakes US as world’s largest beef producer
Brazil overtook the US to become the world’s largest beef producer in 2025, according to market estimates cited by Reuters, after output exceeded expectations and helped ease pressure on global meat prices.
Brazil was already the leading beef exporter, shipping meat worth almost $17 billion ( € 15.6 billion) last year, based on government data. Analysts have raised production estimates ahead of official figures due in February, citing higher slaughter driven by strong export demand from China and the US.
Industry sources said productivity gains are helping Brazil sustain output despite elevated slaughter. Faster insemination, wider feedlot use and younger slaughter ages are shortening production cycles. Average slaughter age has fallen to about 36 months, compared with five years a decade ago.
Consultancy Athenagro estimated Brazilian beef output rose about 4% in 2025, while US production fell 3.9% to 11.8 million tonnes, following prolonged drought. Analysts said higher efficiency could allow
Brazil to expand output without significantly increasing herd size or pasture land, with implications for global supply and prices.
Strong leather presence at Inspiramais
The Brazilian leather sector will, once again, have a strong presence at the Inspiramais exhibition when it next takes place on January 27 and 28.
Fifteen leather manufacturers who will put their latest collections on show at the event in Porto Alegre.
Buyers from Brazil and other Latin Americas countries will be able to see samples of leather articles from Arte da Pele, CBR Leather, CR Leather, Couro & Arte, Curtume Rusan, Curtume Mats, FAF Couros, Fuga Couros, Mucca Pelli, Nova Kaeru, OCM Best Brasil, Romeu Couros, Toizinho, Tre Anytry and Zitty Couros.
Buckman raises prices citing cost pressures
Leatherchemicals manufacturing group
Buckman has announced a price increase of between 5% and 12% on impacted product lines, effective February 1, or as existing contracts allow.
The company said the adjustment is necessary to address ongoing cost pressures, including inflation, transportation, labour, increased regulation and associated compliance costs, as well as higher prices for key raw materials.
Buckman stated that it has taken significant steps throughout 2025 to manage operational, supplier and business costs and will continue these efforts into 2026. These measures, the company said, have helped to limit the scale of the upcoming increase.
According to Buckman, the company remains committed to maintaining its standards of value, quality and service for customers while continuing to manage costs and minimise business risk.
Tapestry hits leather-sourcing goals
Tapestry, the parent company of Coach and Kate Spade New York, has published its FY2025 Corporate Responsibility report, in which it outlines progress towards its goals and celebrates hitting 2025 targets.
Leather makes up more than half of raw materials used by Tapestry’s brands by weight and is one of the key focus areas in its strategy to reduce impact on the environment.
It surpassed its goal of sourcing 90% of leather from silver and gold-rated Leather Working Group (LWG) tanneries by the end of 2025, reaching 99%.
In October, Tapestry’s vice-president of advanced technological development, David Wright, was elected as chairman to LWG’s executive committee to guide and support strategy setting.
In FY2025, 10% of leather was sourced from farms using regenerative agriculture practices or made with recycled inputs, reaching its 2030 goal five years early. “While this represents meaningful progress,
we remain focused on maintaining this goal and driving further innovation in the leather industry,” said the company.
During the year, it nearly quadrupled its initial 2023 investment into Gen Phoenix, a UK-based manufacturer of recycled leather fibre materials, taking its stake to 9.9%.
In 2019, Tapestry committed to achieving 95% mapping and traceability of raw materials by 2025, and it achieved this goal.
Tapestry became the first brand to commit to join the Deforestation-Free Leather Fund, with a $250,000 funding commitment to World Wildlife Fund (WWF). It also worked with consultants to pilot the implementation of a traceability data standard for beef and cattle within Australia.
In FY2026, through funds provided by the Tapestry Foundation, Tapestry will implement data requirements across a group of core tanneries. In parallel, with funding from the Tapestry Foundation, WWF and the Better Food Future (BFF) initiative in support of UN Global Compact (UNGC) Ocean Stewardship Coalition have launched the Global Traceability Framework for Beef & Leather, aiming to scale this approach across beef and leather supply chains for the industry at large.
OCEANIA
New IULTCS president outlines approach
Incoming
president Geoff Holmes has outlined his approach as he begins his term leading the International Union of Leather Technologists and Chemists Societies (IULTCS).
In a message to members, Mr Holmes described his appointment as an honour and stressed the responsibility involved in representing a global community of leather scientists, technologists and chemists. He reaffirmed the Union’s role in providing governance for member societies and supporting members, while promoting education, science, publications and communication across the sector.
He thanked outgoing president Dr Joan Carles Castell for his leadership, with particular reference to his long-standing work with ISO and CEN leather-related committees. Mr Holmes also welcomed vice president Dr Giancarlo Levato and highlighted his early support, especially in relation to renewed engagement with international standardisation activities.
Mr Holmes acknowledged the contribution of secretary Dr Luis Zugno and the chairs of the Union’s commissions, noting their work on technical methods, sustainability, training, standardisation and external position statements.
Looking ahead, Mr Holmes said he wants the IULTCS to remain a forum for open and rigorous scientific discussion, including the examination of challenging ideas, while maintaining its position as a trusted and forward-looking voice for leather science. His term runs from 2026 to 2027.
