Leather supply chain: turnover down 8.6% in 2024

The preliminary turnover of the leather supply chain for 2024 records a decrease of 8.6% compared to 2023, with a drop in both exports and imports, also influenced by the uncertain economic and geopolitical context.

The leather supply chain of Confindustria Accessori Moda includes approximately 10 thousand companies

Italian leather supply chain of Confindustria Accessori Moda, which includes approximately 10,000 companies in the footwear, leather goods, tanning, fur and leather clothing sectors, presented the economic data for 2024 on the occasion of the inauguration of Micam Milano, Mipel, TheOneMilano special by Micam and Lineapelle, which take place at Fiera Milano Rho and are organized by the Federate associations (to which is added Milano Fashion & jewels, organized by Fiera Milano).

With numbers in hand, the estimated pre-consolidated turnover of companies in the leather supply chain reaches 30 billion euros, marking a decrease of 2.8 billion compared to 2023, reflecting a negative trend that involves all sectors of the supply chain.

"Made in Italy, as shown by export data, especially in some countries, continues to be appreciated and recognized throughout the world, thanks to the quality, design and excellence of our know-how. In this perspective, the agreement signed a few weeks ago with the Maeci, aimed at supporting the excellence and competitiveness of Italian companies in the world, acquires even greater importance", underlined, through a note, Giovanna Ceolini, president of Confindustria Accessori Moda.

"I would like to underline, however, that in a situation in which companies and workers are in extreme difficulty, support from the Government is necessary, with structured and long-term interventions, to sustain the sector and avoid losing manpower, workers and jobs", added Ceolini.

Import and export data

In 2024, exports reached 25 billion euros, recording a decrease of 8.2% compared to the same period of the previous year, while imports fell to 11.5 billion (-4.5% compared to 2023). The trade balance shows a positive balance of 13.5 billion euros, confirming a particularly difficult economic situation. Among the main destination markets for the sector's products, within the European Union, France recorded a decrease of 0.5% in the first ten months of 2024 compared to the same period of the previous year. Germany saw a decrease of 0.2%, while Spain and Poland showed an increase of 10.6% for both.

Outside the EU, exports to Switzerland fell by 59.1%, due to brands' continued logistical choice to replace transits in Swiss warehouses with direct shipments to final destination markets. The United States recorded a decrease of 3.9%, with an uncertain future due to possible new duties announced by the new administration. On the other hand, exports to Japan (+8.8%), Hong Kong (+4.8%) and the United Arab Emirates (+37.1%) increased. South Korea (-14.4%) and China (-9.5%) declined.

The difficulties of the sector are inevitably reflected in employment levels. After a 2023 with a weak (and partial) recovery (+1.8%), in 2024, according to data from Infocamere-Movimprese, a contraction of over 5,900 units is expected compared to December 2023 (- 4.1%), bringing the workforce to fall below 140,000 employees.

This article originally appeared on FashionUnited.IT, translated and edited to English.

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