Leatherbiz Market Intelligence executive summary:
• Ongoing geopolitical tensions are resulting in higher transportation costs, longer lead times and significantly reduced planning reliability
• The near-total lack of visibility and planning reliability has led many market participants to postpone decisions and focus solely on what is absolutely necessary in the short term
• In plain terms: there is a near-complete paralysis in the market
• For an industry such as leather that is characterised by long supply chains, this represents a substantial and additional risk
• There is a risk that decisions affecting entire seasons will be made too late
• Rising production costs for leather continue to erode margins
• It is increasingly evident on a global scale that lower-grade hides, in particular, are being diverted away from traditional leather processing and used for alternative applications
• The industry is navigating a phase in which short-term volatility and long-term transformation are occurring simultaneously.
MARKET INTELLIGENCE
Amonth ago we wrote about the outbreak of a new conflict in the Middle East. It must be noted, quite soberly, that little has fundamentally changed in terms of our overall assessment. However, our hope at the time that this would be a short-lived escalation, with neither severe nor long-term consequences, has unfortunately not materialised. Although a ceasefire was officially announced, it has neither been consistently upheld nor has it led to any meaningful de-escalation. The Strait of Hormuz remains effectively constrained, tensions between Israel and Hezbollah persist, and between Iran, the US, and the Gulf States there is little indication of a stable or credible ceasefire or peaceful stability.
Against this backdrop, the geopolitical environment remains volatile and difficult to interpret. Ongoing negotiations, including those that took place in Pakistan, have so far provided no clear indication of a sustainable resolution. Instead, there is a growing sense that political decisions are being made on a short-term basis, lacking predictability and not necessarily guided by a coherent strategic intent. Agreements are reached, yet their reliability remains questionable. For markets, this translates into continued uncertainty, which is directly reflected in elevated energy prices, constrained logistics capacity, and an overall fragile global supply situation.
The impact on international shipping deserves particular attention. A significant portion of global capacity remains either
unavailable or only deployable at increased risk. The discussion around so-called ‘safe corridors’, subject to toll payments, highlights the absurdity of the current situation: free trade, historically based on open sea routes, would effectively be subject to controlled access; who exerts that control is not the point. For globally integrated industries such as leather, this results in higher transportation costs, longer lead times, and significantly reduced planning reliability.
Market developments over the past few weeks clearly reflect this environment. Overall activity in the raw material segment has declined noticeably, while order intake across the leather industry has fallen well short of typical and expected volumes. The near-total lack of visibility and planning reliability has led many market participants to postpone decisions and focus solely on what is absolutely necessary in the very short term. In plain terms: a near-complete paralysis of the market. In an industry characterised by long and often inflexible supply chains, this represents a substantial and additional risk.
The consequences of this hesitation extend far beyond the immediate situation. There is a real risk, one that applies not only to the leather sector, that decisions affecting entire seasons will be made too late. Production cycles that require long-term planning are disrupted, and delivery deadlines may no longer be met. The already observed disruptions in logistics further exacerbate this issue. One only needs to recall the stalled transport capacities around the Persian Gulf: vessels being offloaded in Africa, shipments
TUESDAY, APRIL 14 2026
temporarily stored there, while elsewhere ships, containers, and goods remain stuck for weeks. In some cases, delays now exceed four weeks, timeframes that are extremely difficult, if not impossible, to compensate for in seasonally driven markets.
Against this backdrop, the mildly positive sentiment with which we concluded our last edition must now be reassessed. The expectation of a short-term stabilisation has not materialised, and current market signals point more toward continued uncertainty than recovery.
Within this macroeconomic and geopolitical context, the question arises as to how global consumption, and the leather industry and its various segments in particular, are being affected. Over recent years, the industry has already undergone significant structural changes ranging from increasing polarisation between mass and luxury segments, to the growing relevance of alternative materials, shifting regional demand patterns and an intensified focus on sustainability and transparency. The current situation acts as an accelerator of these trends.
One of the key drivers remains the cost structure across the entire value chain. Rising energy prices directly impact production, particularly in energy-intensive processes within leather manufacturing. At the same time, costs for chemical inputs, logistics, and financing continue to increase. This cost pressure coincides with weak demand, especially in the mass market. Consumers are highly price-sensitive, increasingly shifting toward cheaper alternatives or postponing purchasing decisions altogether. All prices will most likely need to rise as a consequence of higher cost for everyone.
Within this context, a development that has been mentioned before, but has now gained significant momentum, deserves particular attention. It is the alternative use of hides as a protein source. Contrary to common perception, this is no longer a phenomenon limited to Asia. Rather, it is increasingly evident on a global scale that lower-grade hides, in particular, are being diverted away from traditional leather processing and used for alternative applications.
The underlying drivers are clearly economic. Persistently weak demand for mass-market leather has led to significant downward pressure on both finished leather and raw hide prices. In many cases, the achievable prices barely cover the costs of collection, preservation, and transportation. At the same time, food prices, particularly for protein, are rising. In such a context, the use of hides as a protein source or add-on becomes
increasingly economically viable.
This trend is further reinforced by current conditions. Rising production costs for leather continue to erode margins, while demand for affordable protein sources is increasing. As a result, a growing share of raw material is being diverted into alternative value chains. For the leather industry, this represents a structural shift on the supply side: the availability of hides, particularly in lowerquality segments, is decreasing or becoming more volatile.
This development has several implications. On the one hand, it exacerbates existing tightness in certain segments, particularly for the standardised raw materials used in mass production. On the other hand, it leads to further market segmentation. High-quality hides, or hides with special performances used for special, premium and luxury products, remain relatively stable in terms of availability and pricing. In contrast, lower-grade segments entering industrial mass production
experience greater volatility and increasing competition between different end uses.
At the same time, demand remains highly segmented. While the mass market continues to struggle, the luxury and specialty segment shows relative resilience. Leather benefits here from its positioning as a high-quality, durable, performing and natural material. However, even in this segment, requirements regarding transparency, sustainability, and traceability are still increasing, despite questionable benefits. Companies are not only expected to deliver high-quality products but also to credibly demonstrate the conditions under which they are produced.
Another relevant factor is the development of alternative materials. In recent years, considerable attention has been given to socalled ‘vegan’ alternatives. Under current conditions, however, it is becoming increasingly apparent that many of these materials are also highly dependent on energy and raw material inputs. Their competitiveness
Excellent –Bisphenol optimized syntans to achieve high leather quality
therefore depends not only on technological advancement but also on relative cost developments compared to leather.
At the same time, the perception of leather itself is evolving. While it has been subject to criticism in the past, there is now a growing recognition that leather is a by-product of the meat industry. In an environment in which resource efficiency and circular economy principles are gaining importance, this can be viewed as an advantage, provided the industry is able to communicate this argument in a consistent and credible manner.
Regionalisation of markets continues to advance. Companies are increasingly seeking to reduce their dependence on global supply chains by focusing on regional sourcing and production. This leads to a reconfiguration of trade flows and alters competitive dynamics. At the same time, new challenges arise in terms of quality assurance, standardisation, and scalability.
Overall, the picture that emerges is one of high complexity, characterised by both uncertainty and ongoing structural adjustment. The industry is navigating a phase in which short-term volatility and long-term transformation are occurring simultaneously. Decisions must be made under conditions of limited visibility, while the underlying framework continues to evolve.
In this context, it appears more appropriate to think in terms of scenarios rather than precise forecasts. A base scenario assumes that current uncertainty persists without a major escalation. In such a case, the continuation of existing trends can be expected: sustained cost pressure, differentiated demand, increasing alternative use of raw materials, and ongoing regionalisation.
A more optimistic scenario would require a gradual stabilisation of the geopolitical environment. This could lead to a partial normalisation of energy prices, improved supply chain stability, and a modest recovery in demand, particularly in the mass market. However, the structural shifts, especially regarding alternative uses of hides, would remain in place.
A downside scenario would involve further escalation of conflicts, with significant implications for energy supply, transport routes, and global trade flows. In such a case, severe disruptions on both the supply and demand side would be expected.
Regardless of which scenario ultimately unfolds, it is evident that the leather industry is increasingly operating within a framework defined not only by traditional market forces but also by new structural realities. The alternative use of hides as a protein source is not a short-term anomaly but a reflection of shifting economic incentives. Combined with geopolitical uncertainty, rising costs, and evolving consumer preferences, this creates a market environment that is significantly more complex and less predictable than in the past.
The coming months will determine the direction and intensity of these developments.
Until then, it remains essential to monitor key drivers closely, maintain flexibility, and continuously reassess underlying assumptions. Owing to a lack of market activity, we thought it was good to describe and discuss again the frame conditions of our industry.
We continue our analysis by turning to additional developments along the value chain, where the structural shifts outlined above are becoming increasingly visible in concrete market behaviour.
The reduced production of leather is naturally leading to a corresponding reduction in the availability of splits. These serve a dual function: on the one hand, as a secondary raw material within leather production itself, and on the other hand as a key input for the collagen and gelatine industries. The extent of this effect varies regionally, but it is already playing a significant role, particularly in Europe. In this context, recent market intelligence indicating that a major supplier to the collagen and gelatine industry has acquired a large and well-established leather plant in Slovakia is particularly noteworthy.
This facility, originally designed and structured for fully integrated leather production, is now expected to shift its operational focus. This development can be seen as a clear manifestation of the structural transformation we have been describing. While the plant will not exclusively be used in the future to convert raw hides into inputs for the collagen and gelatine industries, it is evident that the balance of use will shift. It will be a highly interesting test case to observe whether such a reweighting of production priorities within a traditional leather facility can be economically successful. In reality, similar configurations already exist across Europe. For some time now, a number of leather plants have been allocating part of their capacity to early-stage processing steps such as soaking, liming, and unhairing, effectively supplying semi-processed raw material to downstream industries rather than completing the full leather production cycle. Regardless of the specific outcomes of this latest development, it clearly illustrates the ongoing structural transformation within the value chain of hides as a by-product of the meat industry.
Turning to the market for sheepskins and lambskins, we observe a continuation, and indeed an intensification, of the trend that has been evident for some time. The shortage of wool, combined with a renewed interest in leather and shearling products within the apparel sector, remains clearly visible and is gaining further momentum. Skins that only a few months ago were either unsellable or could only be placed at very low prices are now attracting increasing interest, and prices are continuing their gradual upward trajectory. The primary driver of this development, however, remains the potential revenue derived from wool extraction. In this context, the role of the Chinese industry is particularly significant. Demand for wool remains strong, while prices for skins are still
comparatively low. At the same time, importing salted skins offers a fiscal advantage, as import duties are effectively applied to a single product rather than to multiple value components derived from it. This combination of factors creates a compelling economic incentive. Despite the broader global challenges outlined earlier, our current assessment is that this positive momentum in the sheepskin and lambskin segment is likely to persist in the coming months. While volatility cannot be ruled out, the underlying demand drivers appear sufficiently robust to support continued firmness in this market.
As for the concluding outlook section of this publication, it seems reasonable, given the prevailing conditions, to approach it with a certain degree of caution. Under circumstances that remain highly uncertain and difficult to interpret, any attempt to formulate precise forecasts for the coming months would inevitably be speculative.
Nevertheless, we remain convinced that the fundamental parameters supporting leather as a material have, for some time now, been more positive than negative. This, however, is far from a simple or uniform picture. The individual conditions and starting points of the various players along the value chain differ too significantly to allow for generalised conclusions. The current environment will not be universally favourable or unfavourable; rather, it will create opportunities for some while leaving others with very limited or no room for manoeuvre.
In this sense, the coming weeks and months are likely to be both highly challenging and, from an analytical perspective, particularly interesting. For the objective observer, the interplay of geopolitical uncertainty, structural market shifts, and evolving economic incentives will continue to provide a complex but revealing picture of an industry in transition.
US PERSPECTIVE
For the period ending April 2 there were exports from the US of 271,200 whole cattle hides. The destinations were primarily China (177,700 pieces), Mexico (29,600 pieces), South Korea (19,200), Brazil (19,000 pieces) and Thailand (15,700 pieces).
There were also exports of 141,700 wet blue hides. The destinations in this case were primarily Vietnam (59,300), Italy (38,600 unsplit), China (12,800 unsplit), Brazil (12,600) and Hong Kong (9,600 unsplit).
The most recent reports on hide prices have shown butt-branded steer hides weighing 62-64 pounds still at $20.50 each, but heavy Texas steers weighing 60-62 pounds at $10.50 per piece. Cow hide prices showed northern dairy cows at $7.50, south-west dairy cows at $7, northern branded cows at $2 and south-west branded cows at $1.50, with weights of 50-52 pounds in each case.
The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.
Actual Slaughter Under Federal Inspection
Cattle markets USA
Sales
last week came at the end of week, including Saturday. In the south on Saturday sales were from $248-$249. In the north most sales were at $250, and $388 dressed.
Packers’ margins suffered from both sides of the market, inputs and outputs. Box prices weakened while fed cattle prices rose. Ideas of a larger slaughter volume because of the JBS Greeley plant operating again were dashed as processing margins took a major
hit the past two weeks.
Beef demand will now transition from a historically soft seasonal period to the spring period that has featured improved demand. Demand normally improves following Easter. The high price of beef is always a threat or risk of damage to demand. To date it has been slight but there can come a tipping point and everyone is on the lookout for that point. Beef must suffer a loss of marketshare, not because of price, but simply because we are producing less beef.
The impact of larger cattle and higherquality grade percentages has been to provide consumers with increased volumes of higher-quality beef. Retail stores are reformatting the cuts and the marketing strategies to adjust to the new reality of beef offerings. Grading has reached an all time high.
Many areas are reporting hot dry weather that is forcing the remaining cattle on wheat fields to market. High prices and weather stressed grazing locations set the stage for movements. These cattle are moving into a marketplace hot for replacement numbers as empty pens occupy a large portion of the plains. Pasture operators are mirroring the feedlot model. Yearlings from grazing or growyards are entering the feedyards at heavier weights. Only the dairy cross calves are coming to feedyard locales at light weights.
While corn prices have moved lower, the corn basis is making gains. Corn prices have been stable most of this year and attention will now move to the upcoming crop, where most analysts expect a decline in corn acres. The most recent figures set corn acres at 95 billion acres, down by 3 billion from last year. The basis levels are changing with the rising energy cost that makes transportation more expensive. Corn basis levels in Guymon, Oklahoma, are at +$0.65, basis the May contract.
GERMAN PERSPECTIVE
This week: The situation in the Middle East remains a near-daily talking point in the news, with consequent effects on the financial and commodities markets. It is now very clear, in Europe and in overseas markets, that the high level of uncertainty is likely to be a greater factor affecting the markets than the facts themselves. However, the financial markets remain relatively unfazed by the uncertain overall situation.
Energy prices are rising everywhere, with the corresponding impact on sentiment and cost calculations. It takes a certain amount of
LATEST HIDE AND SKIN PRICES FROM GERMANY
time for everyone to form a clear picture of what impact energy prices might have on their entire supply chain and consumption. It is rather unlikely that any reliable conclusion can be reached, despite all the analysis. In such phases, it is hardly surprising that decisions regarding the procurement of raw materials and production are postponed for as long as possible.
This is also reflected in our market, where, although we did not expect much activity immediately after the Easter holiday, Easter week can safely be described as inactive. In particular, overseas markets, which we had regarded as more reliable in recent weeks, were disappointing. In China, falling prices for lime splits appear to be weighing particularly heavily, as well as dampening sentiment, which is affecting cost calculations. The weaker US dollar had also to be recognised and asking prices and revenues got more difficult to debate. In short, sentiment in the industrial mass production of leather has deteriorated rather than improved. Niche and specialist sectors are less affected by the general circumstances and so remain relatively untouched by the market sentiments. However, these small volumes do not really determine the market.
For sales last week, this meant that only small deals were concluded, and these were concentrated in Europe and, as ever, on the famous specialities. Otherwise, the situation was such that one could not even get annoyed about bids being too low, as there simply were none.
The kill: Slaughter numbers remain low. Prices for live cattle continue to fall, and as things stand at the moment, it does not look as though this is likely to change much in the coming weeks. Here too, the overall rise in energy prices and the general mood are playing a significant role. Price is once again a decisive factor in purchasing decisions, and this also applies to food in Germany.
What we expect: We simply can’t find any real arguments that could be used to point
to any significant new trends. Of course, prices for cattle hides should fall again under the current circumstances, but all of this naturally depends on how the slaughterhouse groups respond to the current market situation. Relatively low slaughter numbers are not yet creating any significant selling pressure, at least for the moment, but this certainly does nothing to change the underlying situation or the quite substantial stocks along the supply chain. So, there will probably be little change to the official price lists until, at some point, new decisions have to be made on how to deal with the situation. It is likely that, this time too, it will not only be the general market laws of supply and demand at play, but other forces may also come into effect.
FINISHING
competitors, and for the leather industry to do this in a co-ordinated way, is part of this. “Companies work independently of each other, which is natural,” he accepts. “But in other industries you see pre-competitive collaboration. In leather, we definitely have the opportunity to organise ourselves better.” In the face of claims from the producers of alternatives that their materials are more sustainable, the market, which is to say designers, brands and consumers, will decide. He says there are pros and cons for leather in having a history that spans millennia. “It has been around for ever because it is amazing,” he observes, “but we can also get into proper, technical discussions with them, with the data in hand,” he insists. “This has to improve our chances of success.”
Supplying innovative
Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century
Porsche reports 15% drop in Q1 sales
High-performance
Upheaval at Dolce & Gabbana
Co-founder of luxury brand Dolce & Gabbana, Stefano Gabbana, has left his role at the company, according to reports from Bloomberg. Milan-based business daily Il Sole 24 Ore has also reported the story.
The reports say Mr Gabbana has already left his role as president he and Domenico Dolce launched in 1985 and that Mr Dolce’s brother, Alfonso Dolce, has replaced him.
This change comes at a time when, according to the reports, the company is about to enter restructuring talks with banks. Bloomberg said Dolce & Gabbana aims to renegotiate debts of around €450 million and secure an injection of around €150 million in new funding.
The business media outlet hinted at property deals, similar to those Paris-based group Kering has negotiated in recent months, could be part of the discussions.
automotive brand
Porsche delivered 60,991 vehicles worldwide in the first quarter of 2026, down 15 per cent year on year.
The decline was attributed to limited product availability, including the end of combustion-engined 718 production, the prior-year ramp-up of the all-electric Macan and the removal of US tax incentives for electric and hybrid vehicles.
The Porsche 911 recorded a 22 per cent increase in deliveries, reflecting continued strong demand. North America remained the largest market with 18,344 units delivered, while China declined by 21 per cent amid challenging conditions.
The Porsche Cayenne was the best-selling model, with 19,183 deliveries. The Porsche Macan fell by 23 per cent, while the Porsche Panamera declined by 42 per cent due to a temporary product gap.
expectations and confirmed it will continue to prioritise its ‘value over volume’ strategy.
Strong growth for electric car orders in Germany
Germany produced just under 1.1 million passenger vehicles in the first quarter of 2026, down by 2% compared to the same period last year.
Industry association VDA said German original equipment manufacturers had exported just under 800,000 passenger cars over the three-month period, also down by 2% year on year.
In the first quarter of this year, the electric car market in Germany reached a volume of 235,800 units, an increase of 33% compared to the first three months of 2025. Of these, almost 160,000 were battery-electric vehicles, up by more than 40% year on year. Growth for plug-in hybrids was 19%, taking these vehicles to 76,100 registrations for the period. Fuel cell electric vehicles made up the total.
Porsche said the results were in line with
VDA said it was too soon to say if war in the Middle East and its effects on petrol and diesel prices had affected German consumers’ purchases of electric vehicles. It pointed out that there is, typically, a delay of several months between orders for new cars and their registration.
Brussels meeting hears leather’s EUDR case once again
AnItalian member of the European Parliament, Dario Nardella, has welcomed a suggestion from the European Commission that adjustments to the scope of the European Union Deforestation Regulation (EUDR) will help the manufacturing sector in Europe. But he has continued to insist that the leather sector should be excluded from EUDR requirements.
A former mayor of Florence, Dr Nardella organised a meeting on EUDR at the European Parliament in Brussels on April 8.
At the meeting representatives of the Commission said that adjustments to EUDR’s scope will help preserve the industrial competitiveness of key sectors, including leather, and ensure that the cost of compliance for manufacturing companies remains “proportionate and realistic”.
Afterwards, Dr Nardella, who represents central Italy in the parliament, said that leather and hides should be excluded from the scope of EUDR altogether.
He said: “EUDR is a fair regulation, but there is a risk here of penalising leather manufacturers. They could be obliged to show that their whole supply chain, from raw material to finished product, is compliant. This is an impossible ask; the bureaucratic burden would be too high.”
He said he wanted the Commission and other members of the European Parliament to understand that millions of hides will go to waste if they cannot become part of the production chain for fashion products. “This is the only way this material will have value,” he said.
British Pasture Leather teases tieup with UK denim brand
British Pasture Leather, which sources hides from pasture-fed cattle and farms whose practices align with regenerative principles, has teased a relationship with Welsh denim label Hiut, after supplying material for the back patches for a limited-edition collaboration with British cycling brand Rapha.
The Rapha jeans are made from a raw 12.5oz selvedge denim, manufactured in Hiut’s factory in Cardigan, Wales.
Rapha’s signature pink is seen in the selvedge yarns as well as the inside chain stitching, rivet and button.
“This is just the beginning of something special with Hiut Denim,” said British Pasture Leather.
Royal Smit & Zoon reports ESG progress for 2025
Royal Smit & Zoon has published its 2025 Sustainability Report, marking the company’s 12th annual update on progress towards its 2030 ESG targets.
The report outlines advancements linked to its strategy to “create a sustainable leather value chain, together”, with a focus on measurable impact across operations and the wider industry.
Among the headline achievements, the company reported that 92% of its product range is now ZDHC Level 3 certified across all production sites, while all locations hold ISO 9001, ISO 14001 and ISO 45001 certifications. In addition, its EU operations are powered by renewable energy or compensated natural gas, contributing to a global figure of 72%.
Royal Smit & Zoon also retained its EcoVadis Platinum rating for the third consecutive year and expanded the availability of life cycle assessment data to cover 50% of its core product range.
Beyond its own operations, the report highlights continued engagement across the leather value chain. The company delivered 82 guest lectures spanning tanneries, brands and educational institutions, while 99% of key suppliers are now covered by its Supplier Sustainability Scorecard. It also reported that 73% of its sales partners meet its ESG standards.
Chief executive officer Marc Smit said the report reflects the company’s focus on transparency and continuous improvement, adding that it is aimed at addressing areas where the greatest impact can be achieved.
The company said the report demonstrates ongoing progress while reinforcing the importance of collaboration in advancing sustainability across the leather sector.
Italian brands will need 75,000 new workers by 2028, Prada CEO says
Thechief executive of luxury brand Prada, Andrea Guerra, has said industrial artisan skills are the keystone of Made In Italy.
Speaking to business newspaper Il Sole 24 Ore, Mr Guerra claimed that by 2028, Italy’s luxury goods sector will need 75,000 workers
and that, at current levels, companies will only be able to call on half that number.
Asked what he would do to bridge the gap, the Prada chief executive said: “I see in young people a desire to have a different, better life, a life in which they feel less cut off. It’s up to us to create working conditions that can offer them this.”
Mr Guerra explained that companies involved in making high-end products must show young people that the work their craftspeople do is about much more than assembling parts. “It is about being part of a team,” he said, “a group in which they will find a whole set of different attitudes. It is about working in an environment in which the thing that is of greatest value is the human touch, human ingenuity.”
Dr Martens shifts to consumerfocused GM structure
DrMartens has announced a strategic restructuring, adopting a General Manager model for its key markets and
forming a new Executive Team to accelerate strategy execution.
The market-level structure is designed to bring decision-making closer to consumers. Internal promotions include Nick Duff as UK GM, Nathalie Schneider as France GM, Kristin Staeren as DACH GM, and Giorgio Trevisan as Italy GM. Yoichi Oikawa joins as Japan GM, while Paul Zadoff continues as President of Americas.
These six markets represent over 80% of the company’s global revenue.
CEO Ije Nwokorie will lead the newly formed Executive Team, which includes Giles Wilson (CFO), Carla Murphy (chief brand officer), Anna Duffiet (interim COO), Mike Stopforth (chief commercial officer), Paul Zadoff, Bridget Jolliffe (chief people officer) and Katherine Bellau (chief legal officer and company secretary). All Market GMs will report to the chief commercial officer, aiming for a more cohesive global commercial strategy.
Nwokorie said the restructuring reflects a shift to a consumer-first approach and
At Muno, innovation is our starting point. We transcend chemistry to design advanced low-impact, wet-end solutions that shape the future of performance.
positions the company to scale its business in the coming years.
Muirhead expands aviation capabilities with acquisition
Scottish Leather Group has announced the acquisition of Aerotech Systems Limited, as part of a strategy to expand the aviation capabilities of its subsidiary Muirhead.
Aerotech Systems holds UK Civil Aviation Authority Part 21G Production Organisation Approval, allowing it to manufacture certified aircraft components. Its integration into the group is expected to strengthen Muirhead’s in-house certification and production processes.
Scottish Leather Group said the move will enable Muirhead to offer a more streamlined, end-to-end solution for aircraft interior components, reducing lead times and simplifying supply chains for airlines and original equipment manufacturers.
Stephen Ritchie, sales director aviation at
Muirhead, described the acquisition as “a pivotal milestone for the business”, adding that “we can certify and deliver compliant aircraft interior components directly to our customers”.
With the addition of Aerotech Systems, Muirhead now has greater control over the full production process, from traceable raw hides through to certified seat cover manufacturing and assembly.
The group also stated that the acquisition supports its ongoing focus on innovation and lower-carbon manufacturing, while increasing capacity for its integrated seat cover services.
End of the road for leathergoods brand
Paris-based
leathergoods brand Phi 1.618 is closing down, at least for now. Founder, Juliette Angeletti, made the announcement on social media on April 7. Ms Angeletti, former international media lawyer, launched
the company in 2019.
She said she had not taken the decision lightly, explaining that, for her, Phi 1.618 had never been just an entrepreneurial venture. She said the brand had come about as the result of “a deep, personal conviction”.
She wanted to combine her interest in the Phi Golden Ratio, which ancient Greek thinkers believed gave the most aesthetically pleasing shapes, with a business idea to create a new leathergoods brand.
She wanted it to work to exacting standards, making its products, bags, belts and bracelets, in France from leather tanned in France, and all with a firm commitment to sustainability.
For this, she specialised in sourcing unused, surplus full-grain hides from tanners that supply much bigger luxury brands. She then worked with skilled artisans in France to to turn the leather into eye-catching products that reflected the Golden Ratio. This, principally, meant a rectangle with sides in the proportion of approximately eight:five, but often with triangles, circles and other shapes embedded into it.
She said: “Sometimes need time, then, after a period of silence, it may be possible for them to be reborn, perhaps in a more propitious context.”
European
car producers navigate problems to remain on
track
Global car markets showed positive trends in 2025, according to figures published by the European Automobile Manufacturers Association (ACEA).
Worldwide registrations rose 3.5% to 77.6 million units, driven by a 5.5% increase in China, supported by scrappage incentives and new energy vehicle policies.
North America recorded modest growth of 1%, reflecting an uncertain and volatile economic environment.
After a subdued start to the year, Europe recorded an increase in its overall registrations of 1.4%.
Germany produced 21% of cars sold in the EU, followed by Spain, Czechia, France and Slovakia. Together, EU-based manufacturers supplied 73% of Europe's cars.
Global car production grew by 4.2% to 78.7 million. Asia continued to dominate, accounting for 62.1% of total output, while the EU contributed 14.6%. European production remained relatively stable, hindered by persistently high energy costs and the impact of tariffs. In contrast, China’s output grew 10.4% on the back of strong policy support and expanding export volumes.
Despite the challenges, a third of European cars were sold outside the bloc. The UK, US and Turkey remained leading destinations, however, sales of EU-made cars in China continued to decline amid intensifying local competition.
In terms of macroeconomics, the EU is forecast to maintain a growth pace of 1.4% in 2026, with activity edging up to 1.5% in 2027. However, escalating Middle East tensions pose
a clear risk to the overall macroeconomic projections, with potential spillovers affecting trade, energy prices, inflation and growth, said ACEA.
Nitrogen cycles keynote at Leather Days
FILK Freiberg has announced Prof. Dr Thomas Scholten, professor of physical geography at the University of Tübingen, as the keynote speaker for the 14th Freiberg Leather Days.
His address will focus on nitrogen cycles and their influence on livestock farming. Prof. Dr Scholten, who leads the university’s working group on soil geography, is internationally recognised for his research on nutrient fluxes, sustainable land use and carbon and nitrogen cycles.
The keynote will examine the effects of nitrogen dynamics on agriculture, animal husbandry, and the environment, emphasising their relevance to the leather industry and the opportunities they present for sustainable raw material sourcing and production.
The Freiberg Leather Days, to be held in Münster, bring together industry professionals to discuss innovation, expertise and emerging challenges in the leather and tannery sectors. Registration is open for participants.
New Kering property deal worth more than €1 billion
Luxury group Kering has completed another property deal. It has formed a joint venture with Qatar-based private investment firm the Al-Mirqab Group. Al-Mirqab will own 80% of the equity and Kering the other 20%.
Kering has contributed a building on Milan’s Via Monte Napoleone to the assets of the new company. For this, it has received €729 immediately and will receive a further €432 million in five years’ time.
It is exactly two years since Kering acquired the building, which is at number 8 on one of the most iconic shopping streets in the world. It paid a reported €1.3 billion for it. The group has described the building as “an iconic eighteenth-century building and one of the largest properties on Via Monte Napoleone, a flagship position in the heart of the city’s luxury district”.
This follows property deals that Kering concluded in Paris and New York in 2025. It raised €837 million in a deal involving three properties in Paris with private investment group Ardian in January 2025.
In December, it concluded a similar deal with Ardian for a property on Fifth Avenue in New York, raising $690 million. In each of these cases, Ardian has acquired 60% of the properties, with Kering retaining the other 40%.
First Lady continues her support of LVMH initiative
The First Lady of France, Brigitte Macron, formally opened a new campus of an employment initiative in the centre of Bordeaux on March 31.
This initiative, LIVE (L’Institut des Vocations
pour l’Emploi), launched in 2019, with Brigitte Macron as its president and co-founder, with luxury group LVMH. The Bordeaux opening takes the total number of LIVE campuses to seven. There are other sites in Marseille, Reims, Le Havre, Roubaix, Valence and at Clichy-sousBois.
These facilities help people over the age of 25 who have been out of work for a year or more. LIVE offers them a platform for enhancing their skills, restoring their selfconfidence and building a new career.
LVMH said the Bordeaux campus would provide this support to two cohorts of 50 or 60 people per year, taking the total number of places available through the programme to 700 per year.
APIC celebrates Portugal’s Louis Vuitton recognition
Portugal’s national leather industry body
APIC has celebrated the recent appearance of ‘made in Portugal’ labels on some Louis Vuitton leathergoods.
APIC said that the Paris-based luxury brand’s decision to produce some of its leathergoods in Portugal and to celebrate the fact on its labels “cemented the country’s status as a centre of excellence”.
TFL strengthens operations with new COO
TFL has appointed Sandra Schneider as chief operating officer, effective April 1.
Ms Schneider brings more than 20 years of experience in operations, business development, and supply chain management, primarily within the chemical and pharmaceutical industries.
Before joining TFL, she was head of operations and supply chain additives at Clariant, and previously held senior roles at Evonik, Wacker Chemie, and the AIT Austrian Institute of Technology. Ms Schneider holds an engineering degree from Vienna University of Technology.
Interim CEO, Samer Al Jabi, said Ms Schneider’s expertise in operational excellence, production optimization, and process improvement will support TFL’s ongoing global development and performance enhancement.
Wilfred Buijs appointed COO of Royal Smit & Zoon
Wilfred Buijs has been appointed chief operating officer of Royal Smit & Zoon, succeeding René Weltevrede, who retired after more than 40 years in the leather industry, including two decades with the company.
Mr Buijs, who previously held senior roles at Kemira and Lanxess, has completed a global induction, visiting operations in China, India and Europe. Discussions with regional teams and partners provided insight into operational challenges, opportunities and the importance of collaboration across the value chain.
Acknowledging Mr Weltevrede’s legacy of trust, consistency and dedication, Mr Buijs said
his focus will be on driving performance, making targeted strategic decisions and strengthening collaboration across the company’s global network.
Farewell to Gustavo GonzálezQuijano
March 31 was Gustavo González-Quijano’s last day at COTANCE. He has stepped down as secretary-general of the leather industry’s main representative body in the European Union after almost 40 years in the role.
In a farewell message, Mr González-Quijano said he was grateful for the trust, collaboration and support he had received from colleagues in the leather industry across the decades. He said working in partnership with people in all parts of the leather sector had made the experience “enriching and memorable”.
He added that his intention is to continue to have Brussels as his base and, after a break, continue his work in the field of advocacy.
COTANCE had already announced Edoardo de Paola as his successor in the secretarygeneral role.
Strategic shift in Bentley Motors’ support for small charities
Luxury automotive group Bentley Motors has launched a new initiative to support charities working with vulnerable and underrepresented communities across the UK. It will work in partnership with an organisation called the Charities Aid Foundation to identify eligible, small charities to which it will donate sums of between £2,000 and £4,000.
The automotive company has called this new initiative the Bentley Advancing Life Chances National Fund. It has described the new fund as a strategic shift in its philanthropic activity in an effort to “respond more effectively to the evolving challenges facing grassroot organisations”. It said small charities face growing pressures in securing core funding.
Bentley’s director of government relations and sustainable luxury, Sally Hepton, commented: “Our new fund comes as a result of listening and adapting to the needs of charities and reaffirms our long-term commitment to creating meaningful social impact where it is needed most.”
Record attendance at 2026 LVMH career tour
Luxury group LVMH has confirmed the final tally of young people who engaged with it to investigate possible careers in leathergoods and other artisan skills during its 2026 Métiers d’Excellence (ME) tour.
This, the fifth edition of the tour, began with events in Paris in January and February, then moved to Lyon before holding events in Turin and Naples in late March.
LVMH has calculated that a total of 10,300 turned up to find out more about the work involved in creating leathergoods and other products for brands including Fendi, Dior, Celine and Louis Vuitton. It said this was a record attendance.
“The tour allows school-leavers, college students, people seeking career transitions and anyone interested in the world of luxury to know more about these professions,” LVMH said.
Adidas'
Lee joins LWG board
Adidas’ senior director of product development at adidas, Catherine Lee, has joined the Leather Working Group board.
She brings extensive experience in sourcing operations and material development, with strong expertise in aligning strategic sustainability goals, regulatory requirements and operational readiness, said LWG.
It added: “We would also like to express our sincere thanks to Jon Hopper, senior director of materials supply at VF Corporation, for his dedicated service as an outgoing board member, and for his invaluable contributions to LWG’s work over the past eight years.”
ASIA
China challenge remains for US beef exports
T
he US Department of Agriculture has reported US beef exports of 177,624 tonnes in the first two months of the year. Revenues from these exports were $1.5 billion. These figures represent a fall of 12% in volume and of 6% in value year on year.
Meat promotions non-profit the US Meat Export Federation (USMEF) said that figures for shipments to China accounted for the overall decline. Without China, it said, volumes would have shown an increase of 2% and values a rise of 10%.
USMEF also noted that the overall beef figures include offal, which it refers to as “variety meats”. It said that, on their own, exports of variety meats were up by 9% in volume compared to the same months in 2025 to reach 51,592 tonnes, while the increase in value was 43% year on year, reaching $232 million.
Fourth Hermès store opens in Beijing
Hermès has opened a new store in Beijing.
This is its fourth store in the Chinese capital; it opened the first in 1997.
The new store is in the city’s Sanlitun district. It stands five storeys high and has an open-plan layout inside.
Hermès’s equestrian collection is on the first floor, with shoes featuring on the second floor and leathergoods on the third.
THE AMERICAS
Workers return to JBS plant following strike action
Workers at a beef plant operated by JBS in Greeley, Colorado, have returned to work after the company agreed to resume negotiations, ending a three-week strike.
Reported by Reuters, the union
representing around 3,800 employees said talks will take place on April 9 and 10. The strike focused on wage demands linked to inflation and opposition to charges for replacing protective equipment.
Union president Kim Cordova said workers remain united in seeking improved terms, while JBS stated there has been no change to its offer but confirmed plans to restart and ramp up production.
The dispute comes amid tight US cattle supply and high beef prices and follows capacity reductions by Tyson Foods.
Weak demand drives Beyond Meat down
USbased Beyond Meat reported a 20% year-on-year fall in fourth-quarter revenue to $61.60 million ( € 56.80 million), missing expectations, according to Reuters.
The decline was driven by weaker demand and reduced sales to quick-service restaurant customers in the US and international markets. Earnings per share came in at a loss of $0.29 (€0.27).
Results were also impacted by restructuring charges, including product line reductions and asset write-downs, as well as higher material costs.
Beyond Meat expects first-quarter 2026 revenues of $57 million to $59 million (€52.50 million to € 54.40 million), citing continued market uncertainty.
A 2026 analysis by The Economist noted that sales of meat alternatives have stalled in key markets, with the sector shifting focus towards stabilising revenues and improving margins.
Push into backpacks for Peruvian brands
High demand for leather backpacks was part of the motivation for a recent design course at the Centre for Technological Innovation in Leather, Footwear and Related Industries (Citeccal) in Trujillo, Peru.
Citeccal, whose main focus is on small businesses, said it wanted to provide some impetus for the talented people already working in the leather sector in the region.
It said the course had helped people running leathergoods businesses to reinforce their skills, learn new design techniques as well as cutting, assembly and finishing skills specifically aimed at making “high-value products” such as backpacks.
These business leaders will now be able to produce backpacks that will stand out in the market for their professional finishing and individual styles, making their brands more competitive, Citeccal said.
JBS Couros advances sustainable leather processing
Leather manufacturing group JBS Couros has launched a new tanning model, Savetan, designed to improve environmental performance in leather production.
Developed under the Kind Leather brand, the technology optimises chromium fixation
during tanning, reducing water consumption by up to 16 litres per hide and cutting chemical use by 15% without affecting leather quality.
Initial operations at units in Pedra Preta (MT), São Luís de Montes Belos (GO) and Nova Andradina (MS) show additional efficiency gains, including a 65% reduction in sludge and residual chromium, a 52% drop in thermal energy use, and a 42% decrease in salt application. The company plans to expand Savetan across all tannery units by the end of 2026.
Ramon Torres, director of R&D at JBS Couros, said the technology simplifies and improves control of the tanning process while delivering ecological benefits. Sustainability director Kim Sena added that Savetan aligns with the company’s strategy to combine operational efficiency with resource preservation, meeting growing demands for transparency and socio-environmental responsibility.
Brazilian beef exports resilient despite Middle East tensions
Brazilian beef exporters are reporting limited disruption from the conflict in Iran, even as the near-closure of the Strait of Hormuz forces some rerouting and higher logistics costs, Reuters reported.
Industry group Abrafrigo said Brazil, the world’s largest beef exporter, has redirected shipments to markets including the US, the European Union, Chile, and Russia. Tighter global cattle supplies are supporting demand, cushioning the sector from Middle East instability.
China’s safeguard measures on beef imports are also affecting the market, restricting access to a 1.1-million-ton quota at lower tariffs, with higher duties applied above that threshold.
In the first two months of 2026, Brazil’s exports of fresh and processed beef, including offal and byproducts, rose 39% in value to $2.865 billion ( € 2.77 billion) and 22% in volume to 557,240 tons, Abrafrigo reported.
Emissions reduction for Brazilian wet blue
Anew sustainability report from Brazil’s national tanning industry body CICB gives an average figure of 0.75 kilos of CO2equivalent of carbon emissions per piece of wet blue.
It based its calculation on a sample of more than 11.5 million pieces of wet blue processed by tanners in Brazil in 2024. CICB said this was an improvement of 9.9% compared to its calculation for 2023.
“Monitoring, control and reduction measures for emissions are part of the routine of wet blue production in Brazil,” CICB added. “With the objective of minimising impacts and meeting environmental and regulatory requirements, tanneries have invested in more efficient technologies, filtration systems and improved operational practices.”
AFRICA
Sudan targets leather sector revival to cut losses
Sudan has announced plans to revive its leather sector in a bid to reduce significant annual losses caused by wasted animal hides and weak processing capacity.
Local reports say more than half of available hides are lost due to smuggling, limited tannery capacity and poor coordination between authorities.
Sudan produces about 22 million leather units annually but exports fewer than 7 million, despite having a large livestock base and an estimated $45 billion ( €41.4 billion) global market opportunity.
Minister of Animal Resources and Fisheries
Ahmed Al-Tijani Al-Mansouri said the sector could generate valuable foreign currency if properly developed, with a government plan covering around 40 projects focused on industrial growth.
The strategy aims to shift exports from raw hides to finished leather products, supported by new markets and potential partnerships with international fashion houses.
Recommendations from a Khartoum workshop included improving hide quality, expanding training programmes and rehabilitating tanneries, with proposals to engage global brands by September 2026.
Ethiopia leather sector targeted in new ILO initiative
The International Labour Organization (ILO), supported by the Government of Japan, has launched a one-year initiative to support a more sustainable and resilient leather, textile and garment sector in Ethiopia.
Implemented under the ONE ILO Siraye Program, the project will work with 40 factories across key industrial hubs to improve resource efficiency, reduce waste and energy use, and strengthen occupational safety and health through digital monitoring tools.
The initiative also includes a Women’s Leadership Development Program and will support policy dialogue to align sector development with climate targets. It runs from March 15, 2026, to March 14, 2027.
