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Leather Pipeline: From oversupply to raw material shortage?

We are well accustomed to hearing about the material stocks that have built up at different points along the pipeline as a result of falling demand for leather, but the latest edition of our exclusive market intelligence report warns that this abundant supply of hides and skins will not last forever. This could spell danger for those manufacturers who depend on specific qualities of material.

According to the Leather Pipeline, which can be read in full here, a lack of demand from the leather industry has led a growing number of hide producers and processors to seriously consider giving up trying to prepare hides for this sector. Perhaps rightly in some cases, many now feel that destroying hides is a more economically viable option. 

The report points out that an unfortunate consequence of this would be the shrinking of the hide and skins market, which would in turn mean less raw material for the industry to make leather from. This would not just affect lower grade selections, it continues, as it would also have an impact on the supply of raw materials for those leather producers who focus on sectors from which there is still strong demand. 

The report says: “Those leather manufacturers and leather users who depend on specific qualities are well advised not to believe that sufficient raw material and leather will always be available to them.”

It goes on to urge them to “make sure their supply is secured” and suggests that we may arrive at a situation whereby there is an oversupply of lower quality raw material but a shortage of hides and skins for higher end purposes. 

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