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- Turkey’s Leather Industry Targets $5 Billion in Exports & Brazil’s Leather Exports Grew 12.5% Reaching $1.2 Billion
Turkey’s Leather Industry Targets $5 Billion in Exports & Brazil’s Leather Exports Grew 12.5% Reaching $1.2 Billion
Spain’s Leather Industry Struggles While Footwear Sector Sees Strong Growth in 2024 | Trump’s Tariffs Could Push Footwear Prices to $110 Can U.S. Domestic Manufacturing Compete with China? and more in this week's global leather industry news.
Arshad Leathernews.org
January 19, 2025
Good Morning & Welcome to our weekly newsletter! Here, we bring you the entire week's global news, insights, market research & analysis, expert insights and facts from the global "leather, footwear, and leather goods" industry.
In a simplified and easy-to-understand manner, saving you time while keeping you informed & updated under 5 minutes every Sunday at 11am.
In case you missed it, here’s a look at what happened in the Global Leather, Footwear & Leather Goods Industry last week.
LEATHER INDUSTRY NEWS
Turkey's leather sector is bouncing back! After an 18% export drop in 2024, industry leaders are rolling out bold strategies to hit a $5B export target. Key moves include boosting production and tackling soaring imports.
Quick Highlights:
Footwear exports down 21.9%, creating a $1.1B trade gap.
Imports increased from 25 Million to 70 Million pairs!
New taxes on components like soles and uppers proposed.
Despite setbacks, the leather industry remains Turkey's 4th most valuable exporter. Economic reforms could fuel a strong comeback.
Spain's leather industry shows a split recovery. While footwear exports are up by 10.9%, the tanning sector struggles with declining exports.
Raw leather exports: ↓ 7.7% | Semi-finished: ↓ 32.4% | Finished: ↓ 6.1%
Finished leather imports ↑ 4%, mainly from Italy (+19.6%)
Footwear exports boom: Italy ↑ 42.2%, Germany ↑ 5.9%
Footwear imports rise: Vietnam ↑ 32.3%, China ↑ 7%
Spain leans on Asian suppliers for affordability and Italy for premium products. The footwear sector shines, but tanning faces tough times.
A massive fire broke out on Jan 17, 2025, at a leather goods warehouse in Dhaka’s Hazaribagh area, raising alarms over fire safety in commercial buildings. The blaze started around 2:14 PM and spread rapidly across multiple floors.
Fire controlled after 2.5 hours with 11 firefighting units.
Support from BGB, the army, and local volunteers.
No casualties reported so far; investigations ongoing.
Walsall Leather Museum's future is uncertain as the council plans to move it to a new town centre site. This move has sparked backlash, with 4,300+ people signing a petition to stop the proposed sale and closure.
Petition aims for 5,000 signatures to halt the relocation.
Museum houses 2,000+ artifacts showcasing Walsall's leather legacy.
Community hub with workshops, exhibitions, and events.
Councillors promise to preserve the collection, but locals fear losing this historic space.
Brazil's leather industry ends 2024 stronger than ever. Exports hit $1.26B, up 12.5%, with volume growth of 22.3% in size and 38.8% in weight. Key drivers? Sustainability and global market expansion!
Vietnam imports up 69.8%, now Brazil's 4th largest market.
Launch of CICB Raw Material Guide for traceable sourcing.
March 2025: CICB Sustainability Forum on Life Cycle Assessments.
Brazil is leading in sustainable leather production and global reach. Exciting times ahead!
Jaguar Land Rover (JLR) takes a bold step towards sustainability by joining the Leather Working Group (LWG). This move strengthens JLR's commitment to ethical leather sourcing and environmental responsibility.
Aligns with JLR's Reimagine strategy for eco-friendly practices.
Focus on transparency, social responsibility, and full material traceability.
Supports industry-wide improvements in sustainable leather production.
Andrea Debanne, JLR's Chief Sustainability Officer, emphasizes the goal to set new benchmarks in environmental and social impact.
FOOTWEAR INDUSTRY NEWS
The American footwear industry braces for impact as the FDRA urges the Trump administration to rethink tariff hikes. With over 99% of shoes imported, rising duties could spike prices and burden consumers.
U.S. pays $4B annually in footwear import duties.
Average duty rate: 20%; proposed hike could reach 60%.
Domestic production covers only 25 Million pairs vs. 2.5 Billion imports.
Higher tariffs may push sneaker prices from $100 to $110—or even $160! Industry leaders warn this could fuel inflation and hurt consumers.
The Leather Sector Skill Council (LSSC) has inaugurated a new office at the Central Footwear Training Institute in Chennai. This initiative aims to strengthen India’s leather workforce and industry standards. Founded in 2012, LSSC plays a vital role in training and employment across various leather sub-sectors.
New Balance has made huge strides in 2024, reaching $7.8 billion in annual sales—20% up from last year. As it competes with Nike and Adidas, the brand has benefited from digital engagement and strong retail partnerships. CEO Joe Preston aims for $10 billion soon
INDUSTRY INSIGHTS & ANALYSIS
The US is Raising Tariffs on Chinese goods. INDIA, Are We Ready to Step in? Here's FIEO's 3 Marketing Strategies to Utilize Rs.750 crore (~$90 Million) in the Next 3 years
I recently came across this article on Business Standard
Ahead of the Budget, Indian exporters are urging the finance ministry to implement a strategic marketing scheme worth ₹750 crore (~$90 Million)
This initiative will help to seize a unique opportunity and generate an additional $25 billion in exports to the US over the next 3 years
How?
Because of the Golden Opportunity in the US Market
The FEDERATION OF INDIAN EXPORT ORGANISATIONS (FIEO) pointed out an opportunity created by the US decision to raise taxes on goods imported from China
We spoke about this a month ago too
With China facing increasing trade barriers Indian exporters see a chance to step into the spotlight in sectors where China has historically been dominant.
The targeted sectors include electronics, electrical equipment, FOOTWEAR, textiles, garments, furniture, automotive parts, toys & chemicals.
Among these, consumer electronics such as mobile phones & electrical components are expected to lead & contribute an estimated $10 billion in additional exports.
FIEO President Ashwani Kumar stressed the importance of India increasing its presence in the US market.
He suggested utilizing the proposed ₹750 crore marketing scheme over 3 years to:
[1] Organize exhibitions showcasing Indian products.
[2] Facilitate buyer-seller meetings to build partnerships.
[3] Collaborate with large US retailer associations to boost product visibility.
“This focused marketing initiative can position India as a key supplier, helping us achieve $25 billion in incremental exports by the end of three years.”
In addition to marketing efforts, exporters are advocating for increased incentives for research & development.
FIEO has requested a tax deduction for R&D spending under.
This measure will encourage innovation & help Indian exporters develop competitive, cutting edge products.
“Some much needed reforms in export import policy have been proposed by the Indian sector and hope these will be accepted and announced in the upcoming Budget . A wild thought - maybe a return of 80 HHC to give impetus to exports?”
With these strategic proposals Indian exporters are setting the stage for a transformative leap in global trade.
If supported in the upcoming Budget, these initiatives could not only boost exports but also strengthen India's position as a reliable trading partner for the US.
Honestly, the ball is now in the government’s court to turn these bold ideas into actionable policies.
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❓ Last week we saw that Vietnam's leather & footwear industry is projected to hit $27 billion this year. Do you think India has what it takes to surpass both China & Vietnam in this race, or will Vietnam maintain its edge?
Here’s the Link to Last Week's Newsletter
Gruppo Mastrotto Secures €25 Million ESG-Linked Loan | How Borno State in Nigeria is Reviving Its Economy Through Leather Industry Transformation
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Written & Published by Arshad | Leathernews.org
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