Photo: Arthur Wang / Unsplash
China's leather industry faces major decline in 2025
The Chinese leather industry experienced a major downturn in 2025, recording a decline in revenue and trade activity. This reflects ongoing pressure on the global supply chain, according to Worldfootwear.com.
According to data released by the China Leather Industry Association at the Asia-Pacific Forum on March 13, revenue in the country's leather sector fell 9,8% year-on-year in 2025 among enterprises with annual turnover of more than 20 million yuan (approximately $2,9 million).
The decline in trade activity was accompanied by a weakening of raw material supplies: imports of raw (wet-salted) hides amounted to 1,42 million tons worth $1,13 billion, which is 4,7% less in volume and 15,8% less in value compared to 2024.
Imports of semi-finished leather products reached 581,000 tons worth $0,84 billion, down 6,1% in volume and 18,1% in value. Imports of finished leather declined even more sharply, reaching 36,000 tons ($570 million), down 15,6% in volume and 15,7% in value.
This downturn affected the entire value chain of the leather industry in 2025. Total sales revenue of large companies fell by 13,1% year-on-year, while China's leather exports totaled $82,72 billion, a decline of 10,9%. Imports also fell by 10,2% to $15,53 billion, which, according to the China Leather Industry Association, indicates a decline in domestic consumption.
Despite the sector's contraction, China's macroeconomic indicators remained stable, with GDP growing by 5% year-on-year. However, industry representatives cited ongoing geopolitical tensions, trade tariffs, and rising energy prices following the Iran war as key risks to global demand.
Looking ahead, the association expects that policy measures aimed at stimulating domestic consumption, including raising household incomes, will help support a gradual economic recovery.
The Chinese leather industry experienced a major downturn in 2025, recording a decline in revenue and trade activity. This reflects ongoing pressure on the global supply chain,...
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