France’s leather industry is holding its ground in 2024, keeping a steady trade balance despite the tough global economy. But there’s a bit of worry about what 2025 might bring, as pointed out by Alliance France Cuir, the group that represents the entire leather supply chain in the country.

According to Alliance France Cuir, France is expected to retain its fourth place among the world’s largest leather exporters.

The industry generated a trade surplus of €5.8 billion between January and August 2024.

Raw leather exports experienced a 4% drop in value during the first eight months of the year.

While Italy and China showed growth of +3% and +8%, respectively, exports to major markets like Turkey (-56%), Spain (-47%), and Belgium (-7%) faced significant declines.

The overall revenue of French tanneries decreased by 4%, influenced by weakened international demand.

However, there was a bright spot as finished leather exports to Italy grew by +19%, contrasting with a -31% decline in exports to China.

“On average, we are selling leather at 40% less than in 2018, despite rising costs.”

Christophe Dehard, President of Alliance France Cuir

The accessory segment, including footwear and leather goods, presented a mixed picture in 2024.

• French footwear exports dropped by 3%, but sales to China doubled in quantity, resulting in a 60% increase in revenue.
  
• The luxury shoe market in China remains a promising area for growth.
  
• Overall, French shoemakers saw a 3% decline in revenue.
  
• The export of leather goods grew by a modest 2%, a slowdown compared to 5% growth in 2023.

While China contributed significantly to footwear export growth, it hindered the performance of handbags, with exports to China declining by 4%.

The outlook for 2025 raises concerns across the French leather industry. The global economic climate, coupled with fluctuating demand from key markets like China, could pose significant challenges. Alliance France Cuir has flagged China as a particular area of concern, especially regarding leather goods.

You can download Alliance France Cuir Report here