The Future of Ethiopian Leather Industry | Hermès Opens New Leather Goods Factory and more....

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 "leather, footwear, and leather goods" industry.

In a simplified and easy-to-understand manner, saving you time while keeping you informed and updated.

In case you missed it, here’s a look at what happened in the Global Leather & Footwear Industry last week.

LEATHER NEWS

The International Union of Leather Technologists and Chemists Societies (IULTCS) continues to promote innovation in leather science through its Young Leather Scientist Grants (YLSG), supporting emerging talent in the field.

The 2025 edition offers three grants:

  • The Basic Leather Research Grant (€1,500, sponsored by TYSON Leather), focusing on collagen research, innovative processing, and tannery waste treatment;

  • The Professor Mike Redwood Sustainability/Environmental Grant (€1,000, sponsored by Leather Naturally), encouraging advancements in sustainability and emissions management; and

  • The Leather Machinery/Equipment Grant (€1,000, sponsored by Italprogetti), aimed at enhancing leather production efficiency.

Applicants must be under 35 and submit their proposals by November 30, 2024, with winners announced on January 30, 2025.

Ethiopia, home to one of Africa's largest livestock populations, holds vast potential in its leather industry but faces significant challenges, including outdated machinery, traditional tanning methods, and a lack of skilled labor, which have hindered global competitiveness.

Environmental concerns due to harmful chemical usage in tanneries have further complicated the sector’s progress.

To address these issues, the Ethiopian government, in collaboration with private organizations, is implementing eco-friendly tanning practices, promoting recycling of leather by-products, and developing a ten-year strategy to boost production efficiency and reduce reliance on costly imported chemicals.

The shift toward vegetable tanning, skills development, and regional partnerships aim to strengthen exports and make Ethiopia a key player in global leather production.

US-based mycelium startup Ecovative has raised $28 million in its latest funding round, bringing its total capital raised to $145 million since 2019.

The new funds will support the expansion of Ecovative's innovative products, including MyBacon and Forager's alt-leather, which is grown using mushrooms in just nine days and produces half the emissions of traditional leather.

Designed to integrate into existing tannery infrastructure, Ecovative’s mycelium-based hides, known as AirLoom, have attracted interest from global fashion brands like PVH, Vivobarefoot, Veja, and Reformation.

CEO Eben Bayer aims to commercialize AirLoom by 2025, offering a scalable, eco-friendly alternative that could reshape the leather industry by meeting the growing demand for sustainable, animal-free materials.

A recent survey by the University of Sussex’s Institute of Development Studies has revealed alarming child labor conditions in Bangladesh’s leather industry.

Over 25% of workers in factories across Savar, Dhaka, and Bhairab are children under 18, some as young as eight. The study, which analyzed 880 workers, found that 237 children, driven by poverty and family hardships, are working in hazardous environments, exposed to chemicals, and earning as little as £30 a month.

Bangladesh's $2 billion leather export industry, the second-largest in the country, has struggled to shift away from child labor, with 34.6% of Dhaka’s slum children involved in the worst forms of labor.

Experts urge tighter regulations and government-business collaboration to address this crisis, as Bangladesh faces political instability following Prime Minister Sheikh Hasina's resignation.

Brazil’s footwear industry is facing a major downturn, with exports dropping 22.4% in volume and 20.4% in value from January to August 2024, according to the Brazilian Footwear Industry Association (Abicalçados).

Imports, on the other hand, increased by 12.1% in volume, though their value fell by 5.1%, leading to a 30% reduction in the trade balance. Contributing to the decline is reduced demand from key markets, with exports to Argentina plummeting 30.8% in August alone.

Asian countries, including China, Vietnam, and Indonesia, dominate Brazil's footwear imports, accounting for 90%, while imports from Cambodia and Myanmar surged by 82.1% and 168.7% in volume, respectively.

The U.S. remains Brazil's top footwear buyer, though it saw a 5.3% drop in volume and an 8.3% decline in value, highlighting ongoing global demand challenges.

Hermès has opened its 23rd leather goods factory in Riom, France, creating 280 local jobs and employing 250 artisans trained in the brand’s renowned craftsmanship.

Housed in a renovated historic building, the factory incorporates eco-friendly practices like material reuse and natural ventilation. This expansion is part of Hermès' strategy to ensure sustainable, responsible production and continue producing all collections in France.

The Riom site is also part of the Auvergne hub, which enhances artisan training through the École Hermès des savoir-faire. Hermès plans to open three more workshops in France, reinforcing its commitment to local communities and sustainability.

My First Ever LINEAPELLE FAIR, Milan, Italy

This photo is from my first ever Lineapelle fair last year in Milan, Italy.

With the 104th edition of Lineapelle wrapped up last week

I wanted to share a bit about my first experience.

It was truly surreal and unlike anything I had seen at other leather fairs.

Thanks!

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Written & Published by Arshad Khan | Leathernews.org

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