UK leather industry faces decline
According to the recent UK Leather & Leather Goods Industry report, from Leather UK, the UK's high-end leather sector saw significant declines in imports and exports in 2023.
Exports dropped by 14.4% and imports by 20.7% compared to 2022, mirroring global trends of reduced demand amid economic challenges.
This downturn followed a 2022 spike due to post-pandemic demand. Raw material exports fell sharply in value, while part-processed and finished leather saw smaller declines. Bovine finished leather exports, making up 95% of the UK's finished leather exports, dropped 23% in volume and 14.5% in value.
Imports also declined, with raw material imports down nearly 40% in value. Bovine hide imports, the majority of UK leather imports, fell by 35.5% in value and 30% in volume.
Trade with the EU, a key partner, faced disruptions due to the upcoming EU Deforestation Regulation. The EU accounted for significant portions of UK exports and imports of various leather products.
The UK remains a net importer of leather goods, with a trade deficit shrinking to £562 million in 2023 from £645 million in 2022. Export values of leather goods fell by 6.7%, while volumes rose by 3.2%, indicating lower prices. Import values suggest rising costs per unit.
Despite challenges, the UK maintains a global market presence, exporting to over 80 countries, with trade concentrated among key partners. The industry will closely monitor regulatory changes and market demands moving forward.
The full report can be found here.
