Market Intelligence: materials rethink could favour leather
Our latest Leatherbiz Market Intelligence, with the exclusive Leather Pipeline insight report, became available on July 6. This latest report reflects on the fall and rise of raw material prices since the arrival of covid-19 and predicts that another change is on the way.
Owing to the logistical difficulties in shipping raw materials and finished goods from continent to continent at the moment, the report says leather can win business back from synthetic alternatives.
Alternative materials are likely to face price-hikes and shipping delays because of the situation in global transport. “It is quite conceivable that leather will be perceived as a material that is available in most regions and can, therefore, be planned in more quickly,” the report says. “The greatly increased prices of many other products and raw materials and the massive delays in delivery must lead to a rethink in the purchasing departments of manufacturers. We are convinced that there will have to be a rethink.”
It said this will require a re-evaluation in the use of materials and will give leather an opportunity to regain its position. However, it warns that management teams in large companies “are no longer characterised by flexibility and adaptability” and that, therefore, it is difficult to predict exactly when such a re-evaluation will take place.
Image: Port of Hamburg/Michael Lindner
