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2025 brings questions to the Italian leather sector

Dec 27, 2024 Italy

Italy's tanning industry currently struggles with declining demand, rising economic pressures and labour challenges, while hopes for recovery hinge on global economic, political and trade stability

According to data from UNIC - Italian Tanneries, the Italian tanning industry continued to face significant challenges in 2024, with production volumes declining by 8.5% and turnover decreasing by 4.1% compared to 2023.

Over the past two years, the sector has seen a cumulative loss of 17.2% in production and 10.3% in turnover. UNIC has attributed this downturn to weakened consumer confidence, rising political and trade uncertainties and economic pressures.

Exports

Italian exports of finished leather also recorded declines, with volumes dropping by 5% and values decreasing by 2.7% between January and August 2024. However, specific markets showed growth, including France, Spain, China and Vietnam, which provided some resilience.

Regarding leather types, bovine hides performed relatively better than sheep and goat leathers, although the overall demand across customer segments remained weak.

Wages

Labour challenges further exacerbated the industry’s struggles. The use of the Wages Guarantee Fund (WGF) increased significantly across the leather chain, including tanning, footwear and leather goods. Between January and September 2024, the use of WGF rose by 140% compared to 2023 and 154% compared to 2022.

2025

The outlook for 2025 remains uncertain. UNIC noted that reliable forecasts are difficult to make, and potential recovery depends on improvements in global economic conditions and consumer sentiment.

Political developments, particularly in Europe and the United States, are expected to play a critical role in shaping trade and production trends. Despite these uncertainties, some analysts have expressed cautious optimism for the latter half of the year, particularly for high-end fashion markets, suggesting a modest potential recovery by year-end.

Italian Footwear Industry

According to the World Footwear Yearbook 2024 (more information available HERE), leather shoes are the most common type of footwear exported from Italy.

Image Credits: buyleatheronline.com

Italy Economy Exports International Trade Production Salaries and wages Tannery