Sheepskin and Lambskin Market

The article delves into the increasing demand for sheep or lamb skins (without wool) worldwide, with a forecasted upward consumption trend over the next eight years. Market performance is projected to grow with a CAGR of +1.8% in volume and +3.8% in value from 2022 to 2030, reaching 2.3M tons and $6B, respectively, by the end of 2030. China emerges as the largest consumer and importer, while Australia leads in production and exports. The global market experiences fluctuations in consumption, production, export, and import prices, offering a comprehensive overview of the sheepskin and lambskin industry.

Market Forecast

Driven by increasing demand for sheep or lamb skins (without wool) worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.8% for the period from 2022 to 2030, which is projected to bring the market volume to 2.3M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.8% for the period from 2022 to 2030, which is projected to bring the market value to $6B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Sheep Or Lamb Skins (Without Wool)

In 2022, consumption of sheep or lamb skins (without wool) decreased by -0.7% to 2M tons, falling for the second consecutive year after four years of growth. The total consumption volume increased at an average annual rate of +1.7% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2017 with an increase of 6.7% against the previous year. Over the period under review, global consumption hit record highs at 2M tons in 2020; afterwards, it flattened through to 2022.

The global sheepskin and lambskin market size reached $4.5B in 2022, approximately reflecting 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, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 with an increase of 9.1% against the previous year. Over the period under review, the global market reached the maximum level at $4.5B in 2019; afterwards, it flattened through to 2022.

Consumption By Country

The country with the largest volume of sheepskin and lambskin consumption was China (828K tons), accounting for 41% of total volume. Moreover, sheepskin and lambskin consumption in China exceeded the figures recorded by the second-largest consumer, Turkey (125K tons), sevenfold. New Zealand (61K tons) ranked third in terms of total consumption with a 3% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in China totaled +1.4%. The remaining consuming countries recorded the following average annual rates of consumption growth: Turkey (+1.6% per year) and New Zealand (+1.1% per year).

In value terms, China ($2B) led the market, alone. The second position in the ranking was held by Turkey ($283M). It was followed by Mongolia.

From 2012 to 2022, the average annual rate of growth in terms of value in China was relatively modest. The remaining consuming countries recorded the following average annual rates of market growth: Turkey (+2.3% per year) and Mongolia (+9.3% per year).

The countries with the highest levels of sheepskin and lambskin per capita consumption in 2022 were Mongolia (15 kg per person), New Zealand (12 kg per person) and Chad (1.9 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the key consuming countries, was attained by Australia (with a CAGR of +20.4%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Sheep Or Lamb Skins (Without Wool)

In 2022, after ten years of growth, there was decline in production of sheep or lamb skins (without wool), when its volume decreased by -4.8% to 1.9M tons. The total output volume increased at an average annual rate of +1.2% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being observed throughout the analyzed period. The pace of growth appeared the most rapid in 2021 when the production volume increased by 4.1%. As a result, production attained the peak volume of 2M tons, and then fell in the following year. The general positive trend in terms output was largely conditioned by a modest increase of the number of producing animals and a relatively flat trend pattern in yield figures.

In value terms, sheepskin and lambskin production fell slightly to $2.9B in 2022 estimated in export price. In general, production recorded a perceptible curtailment. The most prominent rate of growth was recorded in 2021 when the production volume increased by 9.8%. Over the period under review, global production hit record highs at $4.2B in 2013; however, from 2014 to 2022, production stood at a somewhat lower figure.

Production By Country

The country with the largest volume of sheepskin and lambskin production was China (576K tons), comprising approx. 30% of total volume. Moreover, sheepskin and lambskin production in China exceeded the figures recorded by the second-largest producer, Australia (178K tons), threefold. The third position in this ranking was held by New Zealand (83K tons), with a 4.3% share.

From 2012 to 2022, the average annual growth rate of volume in China totaled +2.2%. In the other countries, the average annual rates were as follows: Australia (+0.2% per year) and New Zealand (-0.0% per year).

Yield

In 2022, the global average yield of sheep or lamb skins (without wool) shrank modestly to 3.2 kg per head, dropping by -3.6% compared with the previous year. Over the period under review, the yield continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2021 with an increase of 1.5%. Over the period under review, the average sheepskin and lambskin yield hit record highs at 3.4 kg per head in 2016; however, from 2017 to 2022, the yield stood at a somewhat lower figure.

Producing Animals

The global number of animals slaughtered for sheepskin and lambskin production dropped modestly to 609M heads in 2022, stabilizing at the previous year's figure. This number increased at an average annual rate of +1.9% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The most prominent rate of growth was recorded in 2017 with an increase of 3% against the previous year. The global producing animals peaked at 617M heads in 2021, and then fell slightly in the following year.

Imports

World Imports of Sheep Or Lamb Skins (Without Wool)

In 2022, supplies from abroad of sheep or lamb skins (without wool) increased by 11% to 349K tons, rising for the second year in a row after three years of decline. Overall, imports, however, continue to indicate a mild downturn. The pace of growth appeared the most rapid in 2017 with an increase of 46%. Over the period under review, global imports hit record highs at 446K tons in 2013; however, from 2014 to 2022, imports remained at a lower figure.

In value terms, sheepskin and lambskin imports rose remarkably to $342M in 2022. In general, imports, however, showed a deep contraction. The pace of growth was the most pronounced in 2021 when imports increased by 28%. Global imports peaked at $1.2B in 2013; however, from 2014 to 2022, imports remained at a lower figure.

Imports By Country

In 2022, China (252K tons) was the main importer of sheep or lamb skins (without wool), mixing up 72% of total imports. It was distantly followed by Turkey (59K tons), constituting a 17% share of total imports. The following importers - Spain (6.7K tons) and Poland (5.3K tons) - each amounted to a 3.4% share of total imports.

China experienced a relatively flat trend pattern with regard to volume of imports of sheep or lamb skins (without wool). At the same time, Poland (+7.0%) displayed positive paces of growth. Moreover, Poland emerged as the fastest-growing importer imported in the world, with a CAGR of +7.0% from 2012-2022. Spain experienced a relatively flat trend pattern. By contrast, Turkey (-1.4%) illustrated a downward trend over the same period. China (+7.2 p.p.) significantly strengthened its position in terms of the global imports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($208M) constitutes the largest market for imported sheep or lamb skins (without wool) worldwide, comprising 61% of global imports. The second position in the ranking was held by Turkey ($57M), with a 17% share of global imports. It was followed by Spain, with a 4.9% share.

In China, sheepskin and lambskin imports plunged by an average annual rate of -9.7% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Turkey (-15.3% per year) and Spain (-8.9% per year).

Import Prices By Country

In 2022, the average sheepskin and lambskin import price amounted to $979 per ton, remaining constant against the previous year. Overall, the import price recorded a deep slump. The most prominent rate of growth was recorded in 2021 when the average import price increased by 25% against the previous year. Over the period under review, average import prices reached the peak figure at $2,811 per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

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 Spain ($2,491 per ton), while Poland ($708 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Poland (-8.9%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Sheep Or Lamb Skins (Without Wool)

In 2022, the amount of sheep or lamb skins (without wool) exported worldwide dropped to 286K tons, reducing by -14.9% against 2021 figures. Over the period under review, exports saw a pronounced reduction. The growth pace was the most rapid in 2021 when exports increased by 37% against the previous year. Over the period under review, the global exports attained the peak figure at 446K tons in 2013; however, from 2014 to 2022, the exports remained at a lower figure.

In value terms, sheepskin and lambskin exports reduced slightly to $361M in 2022. Overall, exports saw a abrupt setback. The most prominent rate of growth was recorded in 2021 when exports increased by 33% against the previous year. Over the period under review, the global exports reached the maximum at $1.2B in 2013; however, from 2014 to 2022, the exports remained at a lower figure.

Exports By Country

In 2022, Australia (131K tons) represented the key exporter of sheep or lamb skins (without wool), mixing up 46% of total exports. It was distantly followed by the UK (46K tons), New Zealand (22K tons), South Africa (14K tons) and Ireland (13K tons), together mixing up a 33% share of total exports. Spain (8.6K tons), Greece (8.6K tons), France (8.4K tons) and Italy (5.2K tons) took a minor share of total exports.

From 2012 to 2022, average annual rates of growth with regard to sheepskin and lambskin exports from Australia stood at -2.5%. At the same time, Ireland (+3.2%), South Africa (+1.5%) and Greece (+1.2%) displayed positive paces of growth. Moreover, Ireland emerged as the fastest-growing exporter exported in the world, with a CAGR of +3.2% from 2012-2022. The UK and Italy experienced a relatively flat trend pattern. By contrast, New Zealand (-2.5%), France (-3.1%) and Spain (-15.1%) illustrated a downward trend over the same period. While the share of Australia (+5.2 p.p.), the UK (+4.3 p.p.), Ireland (+2.3 p.p.) and South Africa (+1.9 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Spain (-7.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Australia ($171M) remains the largest sheepskin and lambskin supplier worldwide, comprising 47% of global exports. The second position in the ranking was held by Spain ($34M), with a 9.5% share of global exports. It was followed by New Zealand, with an 8.1% share.

In Australia, sheepskin and lambskin exports contracted by an average annual rate of -8.2% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Spain (-12.5% per year) and New Zealand (-7.9% per year).

Export Prices By Country

In 2022, the average sheepskin and lambskin export price amounted to $1,262 per ton, growing by 12% against the previous year. Overall, the export price, however, continues to indicate a abrupt decrease. Over the period under review, the average export prices reached the maximum at $2,598 per ton in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Spain ($3,970 per ton), while the UK ($558 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Spain (+3.1%), while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Market Intelligence Platform