Leather Market

The article provides a detailed analysis of the global leather market, forecasting a slight increase in both consumption and production over the period from 2022 to 2030. It discusses trends in consumption, production, imports, and exports, highlighting key countries and types of leather. The data shows a shift in market dynamics, with some countries experiencing growth in both production and imports, while others face declines. The analysis also includes information on average prices and rates of growth for different types of leather products.

Market Forecast

Driven by rising demand for leather worldwide, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +2.2% for the period from 2022 to 2030, which is projected to bring the market volume to 8.2B square meters by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.0% for the period from 2022 to 2030, which is projected to bring the market value to $57B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Leather

In 2022, global consumption of leather declined slightly to 6.9B square meters, with a decrease of -2.4% on 2021. Over the period under review, consumption saw a relatively flat trend pattern. As a result, consumption reached the peak volume of 11B square meters. From 2020 to 2022, the growth of the global consumption remained at a lower figure.

The global leather market size fell to $41.6B in 2022, remaining constant against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption showed a noticeable reduction. As a result, consumption attained the peak level of $58.3B. From 2015 to 2022, the growth of the global market remained at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were Italy (881M square meters), China (817M square meters) and Turkey (702M square meters), together comprising 35% of global consumption. The United States, India, Brazil, Vietnam, Pakistan, Bangladesh and Nigeria lagged somewhat behind, together comprising a further 27%.

From 2012 to 2022, the biggest increases were recorded for Vietnam (with a CAGR of +10.4%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest leather markets worldwide were Italy ($3.4B), the United States ($3.4B) and Pakistan ($3.4B), together accounting for 24% of the global market. China, Turkey, India, Vietnam, Bangladesh, Nigeria and Brazil lagged somewhat behind, together accounting for a further 28%.

Vietnam, with a CAGR of +8.1%, recorded the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of leather per capita consumption in 2022 were Italy (15 square meters per person), Turkey (8.2 square meters per person) and Vietnam (2.6 square meters per person).

From 2012 to 2022, the biggest increases were recorded for Vietnam (with a CAGR of +9.3%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

Leather of bovine and equine animals (4.9B square meters) constituted the product with the largest volume of consumption, accounting for 78% of total volume. Moreover, leather of bovine and equine animals exceeded the figures recorded for the second-largest type, sheep, goat, swine or reptile leather, excluding chamois leather (763M square meters), sixfold. The third position in this ranking was held by chamois, patent and combination leather (345M square meters), with a 5.5% share.

From 2012 to 2022, the average annual growth rate of the volume of leather of bovine and equine animals consumption amounted to +1.7%. For the other products, the average annual rates were as follows: sheep, goat, swine or reptile leather, excluding chamois leather (-0.5% per year) and chamois, patent and combination leather (-2.7% per year).

In value terms, leather of bovine and equine animals ($20.1B) led the market, alone. The second position in the ranking was held by sheep, goat, swine or reptile leather, excluding chamois leather ($9.1B). It was followed by chamois, patent and combination leather.

For leather of bovine and equine animals, market remained relatively stable over the period from 2012-2022. With regard to the other consumed products, the following average annual rates of growth were recorded: sheep, goat, swine or reptile leather, excluding chamois leather (-0.8% per year) and chamois, patent and combination leather (-4.2% per year).

Production

World Production of Leather

In 2022, global leather production reduced modestly to 6.6B square meters, with a decrease of -2.1% on 2021 figures. In general, production saw a mild contraction. The pace of growth was the most pronounced in 2019 when the production volume increased by 18% against the previous year. As a result, production attained the peak volume of 10B square meters. From 2020 to 2022, global production growth failed to regain momentum.

In value terms, leather production amounted to $39.8B in 2022 estimated in export price. Overall, production showed a perceptible slump. The growth pace was the most rapid in 2013 when the production volume increased by 7.8%. Global production peaked at $55B in 2014; however, from 2015 to 2022, production failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2022 were Brazil (891M square meters), Turkey (706M square meters) and the United States (666M square meters), together comprising 34% of global production.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the key producing countries, was attained by Turkey (with a CAGR of +7.8%), while production for the other global leaders experienced more modest paces of growth.

Production By Type

Leather of bovine and equine animals (4.5B square meters) constituted the product with the largest volume of production, comprising approx. 77% of total volume. Moreover, leather of bovine and equine animals exceeded the figures recorded for the second-largest type, sheep, goat, swine or reptile leather, excluding chamois leather (755M square meters), sixfold. Chamois, patent and combination leather (346M square meters) ranked third in terms of total production with a 5.9% share.

From 2012 to 2022, the average annual rate of growth in terms of the volume of leather of bovine and equine animals production was relatively modest. With regard to the other produced products, the following average annual rates of growth were recorded: sheep, goat, swine or reptile leather, excluding chamois leather (-2.6% per year) and chamois, patent and combination leather (-2.7% per year).

In value terms, leather of bovine and equine animals ($18.3B) led the market, alone. The second position in the ranking was taken by sheep, goat, swine or reptile leather, excluding chamois leather ($9B). It was followed by chamois, patent and combination leather.

From 2012 to 2022, the average annual rate of growth in terms of the value of leather of bovine and equine animals production was relatively modest. With regard to the other produced products, the following average annual rates of growth were recorded: sheep, goat, swine or reptile leather, excluding chamois leather (-2.4% per year) and chamois, patent and combination leather (-3.4% per year).

Imports

World Imports of Leather

In 2022, approx. 2.9B square meters of leather were imported worldwide; with a decrease of -8.9% compared with 2021 figures. Overall, imports showed a slight contraction. The pace of growth was the most pronounced in 2021 when imports increased by 21%. Global imports peaked at 4.1B square meters in 2014; however, from 2015 to 2022, imports failed to regain momentum.

In value terms, leather imports declined modestly to $14.2B in 2022. In general, imports saw a noticeable shrinkage. The most prominent rate of growth was recorded in 2021 when imports increased by 24% against the previous year. Global imports peaked at $26.1B in 2014; however, from 2015 to 2022, imports remained at a lower figure.

Imports By Country

In 2022, Italy (804M square meters) and China (725M square meters) represented the main importers of leatheracross the globe, together amounting to approx. 54% of total imports. It was distantly followed by Vietnam (291M square meters), mixing up a 10% share of total imports. India (83M square meters), Thailand (82M square meters), Indonesia (65M square meters), Spain (61M square meters), Cambodia (59M square meters), Mexico (53M square meters) and Turkey (45M square meters) held a minor share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Cambodia (with a CAGR of +16.5%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, China ($2.1B), Italy ($1.6B) and Vietnam ($1.2B) were the countries with the highest levels of imports in 2022, with a combined 34% share of global imports. Indonesia, Thailand, India, Spain, Cambodia, Mexico and Turkey lagged somewhat behind, together accounting for a further 20%.

In terms of the main importing countries, Cambodia, with a CAGR of +10.8%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Leather of bovine and equine animals dominates imports structure, finishing at 2.6B square meters, which was approx. 90% of total imports in 2022. It was distantly followed by sheep, goat, swine or reptile leather, excluding chamois leather (186M square meters), constituting a 6.3% share of total imports. Composition leather (98M square meters) held a relatively small share of total imports.

From 2012 to 2022, average annual rates of growth with regard to leather of bovine and equine animals imports of stood at -1.3%. At the same time, composition leather (+1.6%) displayed positive paces of growth. Moreover, composition leather emerged as the fastest-growing type imported in the world, with a CAGR of +1.6% from 2012-2022. By contrast, sheep, goat, swine or reptile leather, excluding chamois leather (-6.2%) illustrated a downward trend over the same period. While the share of leather of bovine and equine animals (+3.1 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of sheep, goat, swine or reptile leather, excluding chamois leather (-3.9 p.p.) displayed negative dynamics. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, leather of bovine and equine animals ($11.5B) constitutes the largest type of leather imported worldwide, comprising 80% of global imports. The second position in the ranking was taken by sheep, goat, swine or reptile leather, excluding chamois leather ($2B), with a 14% share of global imports. It was followed by chamois, patent and combination leather, with a 2.7% share.

From 2012 to 2022, the average annual growth rate of the value of leather of bovine and equine animals imports totaled -3.9%. For the other products, the average annual rates were as follows: sheep, goat, swine or reptile leather, excluding chamois leather (-6.4% per year) and chamois, patent and combination leather (-5.0% per year).

Import Prices By Type

In 2022, the average leather import price amounted to $5 per square meter, surging by 8.5% against the previous year. Overall, the import price, however, saw a pronounced slump. Over the period under review, average import prices reached the maximum at $6.4 per square meter in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major imported products. In 2022, the product with the highest price was chamois, patent and combination leather ($17 per square meter), while the price for composition leather ($3.7 per square meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by composition leather (+1.2%), while the other products experienced a decline in the import price figures.

Import Prices By Country

The average leather import price stood at $5 per square meter in 2022, picking up by 8.5% against the previous year. Overall, the import price, however, showed a perceptible decrease. Global import price peaked at $6.4 per square meter in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Indonesia ($7.9 per square meter), while Italy ($2 per square meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+2.4%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Leather

Global leather exports fell to 2.6B square meters in 2022, waning by -8.7% on the previous year. In general, exports recorded a noticeable contraction. The pace of growth was the most pronounced in 2021 when exports increased by 30%. The global exports peaked at 4.4B square meters in 2013; however, from 2014 to 2022, the exports stood at a somewhat lower figure.

In value terms, leather exports declined to $14B in 2022. Overall, exports showed a abrupt contraction. The most prominent rate of growth was recorded in 2021 with an increase of 25% against the previous year. The global exports peaked at $27.6B in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

Exports By Country

In 2022, Brazil (657M square meters) represented the key exporter of leather, generating 25% of total exports. Italy (243M square meters) took the second position in the ranking, followed by the United States (236M square meters). All these countries together took approx. 19% share of total exports. Paraguay (112M square meters), China (82M square meters), New Zealand (72M square meters), Australia (69M square meters), Poland (65M square meters), Spain (56M square meters), Thailand (53M square meters), Germany (50M square meters), Turkey (49M square meters) and India (49M square meters) held a little share of total exports.

Brazil experienced a relatively flat trend pattern with regard to volume of exports of leather. At the same time, Poland (+14.8%), China (+6.1%) and Paraguay (+1.8%) displayed positive paces of growth. Moreover, Poland emerged as the fastest-growing exporter exported in the world, with a CAGR of +14.8% from 2012-2022. Turkey, Australia and Thailand experienced a relatively flat trend pattern. By contrast, New Zealand (-2.5%), India (-3.8%), Italy (-3.8%), Germany (-5.9%), the United States (-6.5%) and Spain (-7.9%) illustrated a downward trend over the same period. While the share of Brazil (+7.1 p.p.), Poland (+2.1 p.p.), China (+2 p.p.) and Paraguay (+1.9 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of the United States (-2.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Italy ($3.3B) remains the largest leather supplier worldwide, comprising 23% of global exports. The second position in the ranking was held by Brazil ($1.2B), with an 8.6% share of global exports. It was followed by China, with a 6.6% share.

In Italy, leather exports contracted by an average annual rate of -3.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Brazil (-5.2% per year) and China (+7.8% per year).

Exports By Type

Leather of bovine and equine animals prevails in exports structure, accounting for 2.2B square meters, which was approx. 89% of total exports in 2022. It was distantly followed by sheep, goat, swine or reptile leather, excluding chamois leather (178M square meters), mixing up a 7.2% share of total exports. Composition leather (65M square meters) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to leather of bovine and equine animals exports of stood at -4.4%. composition leather (-2.6%) and sheep, goat, swine or reptile leather, excluding chamois leather (-10.4%) illustrated a downward trend over the same period. While the share of leather of bovine and equine animals (+5 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of sheep, goat, swine or reptile leather, excluding chamois leather (-5.8 p.p.) displayed negative dynamics. The shares of the other products remained relatively stable throughout the analyzed period.

In value terms, leather of bovine and equine animals ($11.4B) remains the largest type of leather supplied worldwide, comprising 81% of global exports. The second position in the ranking was taken by sheep, goat, swine or reptile leather, excluding chamois leather ($2B), with a 14% share of global exports. It was followed by chamois, patent and combination leather, with a 3.2% share.

From 2012 to 2022, the average annual growth rate of the value of leather of bovine and equine animals exports amounted to -4.4%. With regard to the other exported products, the following average annual rates of growth were recorded: sheep, goat, swine or reptile leather, excluding chamois leather (-8.9% per year) and chamois, patent and combination leather (-4.0% per year).

Export Prices By Type

The average leather export price stood at $5.4 per square meter in 2022, rising by 4.8% against the previous year. In general, the export price, however, continues to indicate a slight reduction. The pace of growth appeared the most rapid in 2014 an increase of 7.8% against the previous year. As a result, the export price reached the peak level of $6.4 per square meter. From 2015 to 2022, the average export prices failed to regain momentum.

Prices varied noticeably by the product type; the product with the highest price was chamois, patent and combination leather ($19 per square meter), while the average price for exports of composition leather ($3 per square meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by composition leather (+2.4%), while the other products experienced mixed trends in the export price figures.

Export Prices By Country

In 2022, the average leather export price amounted to $5.4 per square meter, picking up by 4.8% against the previous year. In general, the export price, however, showed a mild reduction. The pace of growth was the most pronounced in 2014 an increase of 7.8%. As a result, the export price attained the peak level of $6.4 per square meter. From 2015 to 2022, the average export prices failed to regain momentum.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Italy ($14 per square meter), while Paraguay ($0.6 per square meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Spain (+7.7%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform