Turkiye’s leather and fur apparel sector delivered a rare bright spot in 2025 even as the wider leather industry struggled with falling exports and rising costs.
Sector data shows leather and fur apparel exports jumped 17.2% to $226.6 million last year. This growth came at a time when total leather and leather goods exports slipped 5.3% to $1.44 billion.
Industry leaders say the United States continues to be a key market. One in every 4 leather jackets sold in the US is made in Turkiye which underlines the country’s strong position in premium apparel.
Guven Karaca said 2025 was a tough year for exporters due to high inflation and high interest rates. He said these pressures hurt competitiveness and weakened demand at home while exporters were forced to absorb rising costs.
“Our products find buyers but it is harder to sell with high financing and inflation costs.”
–Guven Karaca, Chairman,
Istanbul Leather and Leather Products Exporters’ Association
Despite the overall slowdown leather remains one of Turkiye’s most valuable export sectors by unit price. The average export value reached $13.9 per kilogram placing the sector 4th after jewelry, defense and aviation and ready-to-wear apparel.
Export performance across segments was mixed.
Footwear exports fell 11.7% to $774.8 million.
Leather accessories grew 3.1% to $247.4 million.
Processed leather and fur exports dropped 9% to $195 million.
Leather and fur apparel exports jumped 17.2% to $226.6 million last year bringing the overall Turkey’s leather industry exports to $1.44 billion.
Trade figures show a sharp shift over recent years. A surplus of $566 million in 2021 narrowed steadily before turning into a deficit of over $1.1 billion in 2024. The deficit stayed above $1 billion during January to November 2025 driven by rising imports and weaker price competitiveness.
The European Union remained the top destination with a 40.7% share of exports. The Middle East followed with 12% then former Eastern Bloc countries at 11.7% and the Americas at 8.4%.
Germany, Italy, Iraq and the United States were the leading individual markets.
Karaca said cost pressures are now an indirect export tax. Over the past year the US dollar rose 21.6% against the lira while inflation reached 30.9%. This gap pushed up production costs and made Turkish goods more expensive than Asian and even some European competitors.
Industry representatives say the sector is not expecting a quick rebound. The outlook for 2026 depends on broader economic stability rather than short term incentives or support schemes.
