The global economy continues to face numerous challenges. From the lingering effects of the pandemic to geopolitical conflicts in Ukraine, the Middle East, and the Red Sea, the recovery of international trade has been slower than expected. Additionally, tensions in the US-China trade war and challenges in the Indo-Pacific region have further complicated global commerce.
These issues have had a noticeable impact on supply chains, logistics, and economic growth across various sectors, including the leather industry.
Despite this, China’s economy remains a powerhouse, posting a 5.0% GDP growth in the first half of 2024—surpassing most major economies, with only India growing at a faster pace.
This continued economic strength places China’s leather industry in a favorable position to attract more international trade and investment.
Key industries such as automotive and furniture manufacturing have played a critical role in the resurgence of the Chinese economy, directly influencing the demand for leather goods.
The automotive sector alone saw robust sales in 2023, with over 30 million units sold. In the first half of 2024, more than 13.8 million units were manufactured, reflecting an increased demand for leather seating and interiors.
Meanwhile, China’s furniture sector also posted impressive results, generating US$35.12 billion in turnover in the January-May 2024 period, marking an 18.1% increase over the previous year.
This demonstrates the expanding role of leather in both the automotive and furniture industries, bolstering the need for quality materials and skilled labor within the leather sector.
According to the China Leather Industry Association (CLIA), revenue for China’s leather industry which includes (leather, footwear, and associated sectors) grew by 5.2% year-on-year in the first half of 2024, with total turnover reaching US$44.92 billion and net profit came in at US$1.9 billion.
This growth is particularly encouraging, considering the difficulties faced by many sectors over the last few years. The positive trajectory is expected to further energize the ACLE 2024 event, as manufacturers and buyers seek to capitalize on new opportunities.
The continued expansion of China’s leather industry is evident in its increasing import volumes as well.
In the first half of 2024,
China’s overall import volume rose with a 3.6% year-on-year increase.
Leather Industry Raw Material Imports
- Raw material imports grew by 3.6% year-on-year, with 747,000 tons of raw hides imported amounting to US$690 million—an increase of 6.8% over 2023.
- Semi-finished leather imports also increased, with 310,000 tons brought in and US$520 million in value, reflecting a 23.3% increase.
- The demand for finished leather grew by 8.9% amounting to US$350 million in value, indicating a strong market appetite for higher-quality materials.
These figures point to a rapidly evolving sector that is not only recovering but also expanding its global footprint.
The ACLE 2024 (September 3-5) will play a critical role in this expansion by facilitating partnerships and promoting the exchange of technological and market knowledge.
In conclusion, despite the global economic challenges, China’s leather industry has shown remarkable resilience and growth in 2024. Driven by strong performances in the automotive and furniture sectors, as well as increasing imports of raw materials, the industry is well-positioned for further expansion. As China continues to solidify its role as a key player in international trade, its leather industry stands to benefit from new opportunities and sustained demand in the global market.
For more information and event details, visit www.aclechina.com.
