Market Intelligence: A slow start to 2026
Our latest Market Intelligence newsletter suggests the global leather industry has entered 2026 at “a very subdued pace”, with weak order intake and limited activity across much of the supply chain, particularly in Europe.
Ongoing geopolitical uncertainty continues to weigh heavily on confidence, making planning increasingly difficult and dampening demand for leather-based products.
The report says also that financial pressure is becoming more visible, highlighted by administration for a European automotive leather producer, Wollsdorf, and growing concern about whether this signals a wider trend. It points out that events such as this can sway banks and credit insurers towards tightening their scrutiny of the sector, adding further strain for companies reliant on external financing.
Market fundamentals are also shifting, as raw material costs increasingly dominate price formation, while traditional quality differentiation loses influence. With political uncertainty delaying investment and long-term decisions, few expect a meaningful recovery in the near term, unfortunately.
The full report is available here.
