The European Union’s position as the UK leather industry’s most significant trading partner came under severe strain in 2024, with overall trade between the regions falling by 14.2%, according to the latest industry analysis from Leather UK.
This decline highlights growing concerns about regulatory disruption and market pressures that could fundamentally reshape the UK-EU leather trade relationship.
As we detailed in our recent article titled “UK Leather Industry Faced Tough Year in 2024 as Exports Fell Despite Rising Volumes”, the broader industry faced significant headwinds throughout 2024, with EU trade relationships representing a critical component of these challenges.
In 2023, the EU served as the destination for 62% of UK bovine raw hide exports, over 90% of part-processed leather exports, and 26% of finished leather exports.
The dependency flows both ways, with over 90% of raw hides, 68% of part-processed leather, and 89% of finished leather imported into the UK originating from EU countries.
This intricate web of trade relationships means that any disruption between the UK and EU markets poses significant challenges for manufacturers and suppliers on both sides of the Channel.
EU exports represented 38.6% of total UK leather exports in value terms during 2024, down from 42.1% in 2023 and 45.7% in 2022, indicating a concerning three-year decline in this crucial trade relationship.
Exports of raw materials to the EU decreased by over 17% in value terms, with all major categories showing significant falls
Total raw material exports to EU was £30.68 million value, 42.16 million kg volume (-17.15% value, -9.35% volume vs 2023)
In contrast to raw materials, the value and volume of part-processed leather exports to the EU increased, representing one of the few positive trends in UK-EU leather trade:
Total part-processed exports to EU was £20.00 million value, 10.55 million kg volume (+6.11% value, +23.81% volume vs 2023)
The finished leather market proved less dependent on the EU, with only 23% of export value directed to European markets (down from 26.8% in 2023).
However, even this smaller proportion showed significant declines:
Total finished leather exports to EU was £21.07 million value, 471,795 kg volume (-22.74% value, -37.17% volume vs 2023)
The EU’s position as a supplier to the UK market remained even more pronounced, accounting for over 86% in value terms of all raw material and leather imports in 2024, up from 84% in 2023.
However, this increase may reflect falling imports from other regions rather than genuine growth in EU trade.
Total UK imports from EU was £96.66 million value, 10.01 million kg volume (-5.58% value, -10.31% volume vs 2023)
Notably, imports of raw bovine hides from the EU remained almost unchanged from 2023, potentially suggesting a degree of stabilization in that specific market segment.
The impending EU Deforestation Regulation (EUDR), though delayed for 12 months at the end of 2024, represents perhaps the most significant threat to UK-EU leather trade relationships.
This regulation could bring extensive disruption to trade in raw hides and bovine leather between the regions.
This article is based on data and analysis from the “UK Leather & Leather Goods Industry in 2024” report published by Leather UK. All trade figures and statistical data referenced are sourced from this comprehensive industry report.
