Italy’s leather goods industry recorded a difficult Q1 2026, with revenue falling 3.5% in the first three months of 2026 as weaker exports and sluggish domestic demand continued to weigh on the sector according to the latest report released by the Confindustria Accessori Moda Research Centre for Assopellettieri.
The report said the industry’s contraction, which continued throughout 2025, has not yet ended. Despite the slowdown, the Italian leather goods industry generated nearly €11.4 billion in revenue during 2025, including €9.7 billion from exports, remaining one of the country’s leading fashion sectors.
Leather goods exports totalled €2.35 billion between January – March 2026, the first quarter of 2026, down 3.7% compared with the same period last year. Export volumes fell 12.4% by weight, while the average export price increased 9.9% to just under €160 per kg.
EU markets remained stable with exports rising 0.6%, while exports to non-EU markets declined 6.1%, although they continued to account for more than 60% of total export value.
France remained the largest export market, recording 1.9% growth, while exports to Spain increased 5.7% followed by the United States, where exports increased 7.5%.
Exports to the Far East continued to weaken, declining 4.5%, with Japan and South Korea recording double-digit declines.
Export to the West Asia region fell sharply from a 35% decline during the first two months of the year to a cumulative decline of 45.3% after plunging 72% in March. Exports to Russia also declined 19.1%.
Among product categories, handbags remained broadly stable with a marginal decline of 0.2%. The category accounted for 72% of total leather goods exports worth €1.7 billion during the quarter.
Travel goods increased 0.7%, while smaller product categories performed significantly worse. Exports of small leather goods (SLG), including wallets, key holders and pocket accessories, declined 12.7%, while belts fell 11.7%.
At the same time, Imports declined 9.9% in value to €827.6 million, while import volumes remained stable. China remained Italy’s largest supplier, accounting for 60% of imported volumes and recording one of the lowest average prices at €10.14 per kg.
The combined effect of imports and exports resulted in a trade surplus of €1.52 billion, remaining largely unchanged from the first quarter of 2025.
At the end of March, the sector had 4,223 active companies, down 1.7% compared with December 2025. The largest declines were recorded in Campania and Tuscany region.
Employment also declined by 595 workers, or 1.3%, leaving the industry with a total workforce of 46,803. Veneto and Lazio were the only regions to record employment growth.
A survey conducted among Assopellettieri members showed that only 10% of companies expect business conditions to improve during the second quarter of 2026, while 35% expect conditions to worsen.
Companies forecast revenue to decline by 2% during the April to June period, with first-half H1 2026 revenue expected to fall 2.8%.
The biggest concerns reported by businesses were rising energy costs, cited by 80% of respondents, followed by transport and insurance costs at 75% and raw material costs at 70%.
“Half of the companies in our survey closed the first three months of the year in contraction, while both the number of active companies and employees continues to decline. Even more significant is the employment outlook. The share of entrepreneurs who fear they may need to reduce their workforce has increased from 4% at the end of 2025 to 15% today, clearly reflecting the level of uncertainty companies are facing.”
– Claudia Sequi, President, Assopellettieri and MIPEL
She said Assopellettieri will continue supporting businesses through the industry’s ongoing transformation while representing their interests before institutions. She added that concrete industrial policy measures are needed to restore growth, pointing to the National Industrial Strategic Plan for Italy’s fashion system, presented to the government in April, as a roadmap to strengthen the competitiveness of the sector.
Assopellettieri also confirmed that the 130th edition of MIPEL will take place from 13 to 15 September at Fiera Milano Rho.
