According to official data from the China Leather Industry Association (CLIA) China’s leather sector is showing a mixed picture in the first half of 2025. Following our coverage of Chinese leather industry exports, footwear exports and leather goods and garments industry performance, this article dives deeper into what CLIA has identified as the key Challenges, Opportunities and Predictions for the industry.
China’s economy grew by 5.3% from January to June 2025, showing steady improvement in household incomes and high-quality development. Yet, the international environment remains complex and uncertain.
The leather industry is navigating several challenges. Weak market demand is a concern. Global trade faces pressure from geopolitical conflicts and the U.S.’s “reciprocal tariffs.”
Domestically, consumption is recovering but remains fragile and consumer confidence needs boosting.
Competition is also rising from alternatives. Textile fabrics, synthetic materials and other substitutes are gaining popularity.
Sports and leisure trends and younger consumer preferences are pushing the leather industry to adapt faster.
Despite these pressures, opportunities are emerging. The domestic market holds significant potential. The Chinese government is raising household incomes and expanding domestic demand with a focus on quality, efficiency and innovation. This creates room for growth in leather consumption.
Technological innovation is another key driver. Advances in science and digital manufacturing allow leather to meet changing consumer tastes in fashion, functionality and sustainability.
Improvements in waste treatment and pollution control are also helping the industry develop responsibly.
Leather promotion is gaining momentum. China Leather Industry Association (CLIA) continues to lead efforts, from the Genuine Leather Mark certification to fashion competitions and social media campaigns.
Collaboration with global organizations and enterprises further strengthens the industry’s visibility and appeal.
Looking ahead, competition from synthetic materials will grow, but China’s leather industry is investing heavily in R&D and design.
Leather is becoming greener, more fashionable and functional, which boosts its competitiveness. Consumer-focused promotion will continue to support growth.
In 2025, China’s leather industry is expected to remain stable. Domestic demand will recover, international markets will stay pressured and innovation-driven enterprises will lead. Overall, the industry will continue to play a key role in global leather development.
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