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Leather Pipeline: Strong tanning groups eye successful future

Despite the first half of 2018 being “one of the most difficult six months in history” for many within the leather industry, the latest edition of our exclusive Leather Pipeline market intelligence report says it is not all bad news. 

At a time when the industry faces two major problems - congestion in the supply chain that has resulted in inventories that need to be cleared, and a supply of raw material that exceeds demand for leather in finished products – there are at least some signs of positivity, the report explains. 

“Collecting news from the past few months, we see that the strong and successful players are preparing for the future,” it says, pointing to indications that a number of large tanning groups are planning to expand their production capacity and to build new tanneries. “The strong players see the present situation as a great opportunity to prepare for a successful future,” it adds. 

Several luxury groups are also preparing for expansion, with plans in place to increase the production and turnover of their leather divisions. “As a result, we can expect quite significant growth in production, particularly in Europe,” the Leather Pipeline predicts, adding that for these luxury groups to commit to investing in expansion, they must be confident of finding a big enough market for their leather products.

The full Leather Pipeline market intelligence report can be accessed here.




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