The Italian leather industry, a cornerstone of the nation’s economy, is grappling with notable challenges in 2024. According to UNIC’s (Italian Tanners’ Association) estimates, the first nine months of the year witnessed a production decline of 8.5% and a revenue drop of 4.1% compared to the same period in 2023.
When placed against 2022 figures, the downturn becomes even more pronounced, with production falling by 17.2% and revenue shrinking by 10.3% over two years. The ISTAT index, which tracks leather production, reveals a milder decline of 2.4% compared to 2023 and a 12.1% drop from 2022.
However, it’s worth noting that this data focuses only on larger tanneries with more than 20 employees, excluding the many small and medium enterprises (SMEs) that form the backbone of the industry.
Exports, a critical component of Italy’s leather sector, have also been impacted. From January to August 2024, exports of finished leather recorded a 2.7% decline in value and a 5% drop in square meters.
While overall figures are negative, certain markets showed positive results:
- France (+3%), the top importer of Italian leather.
- Spain (+20%), a key growth market.
- China (including Hong Kong) (+4%) and
- Vietnam (+23%) showed robust demand.
- Other positive performers include Germany (+5%) and
- South Korea (+7%).
However, several key markets reported significant declines:
- Romania (-12%) and Portugal (-15%) faced steep drops.
- Turkey (-20%) and Hungary (-13%) also struggled.
- United States (-3%) and United Kingdom (-3%) remained subdued.
Notably, Serbia maintained stable trade levels.
Breaking down production by animal origin, bovine leather showed comparatively less severe declines than sheep and goat skins.
However, all end-use sectors from fashion to furniture experienced notable slowdowns. Furthermore, revenue in Italy’s primary leather production districts continued to shrink, reflecting the industry’s broader struggles.
The industry’s reliance on Cassa Integrazione Guadagni (CIG), Italy’s wage supplementation scheme, underscores the challenging conditions. Data which includes the broader leather sector (including footwear and leather goods) revealed a staggering 140% increase in CIG usage compared to 2023 and a 154% rise from 2022.
For further insights and data, contact UNIC – Italian Tanneries Economic Service at economico@unic.it.
