Our latest Market Intelligence newsletter reflects on the APLF exhibition, by Leatherbiz.

Which took place in Hong Kong from March 12-14. It concludes that the event provided no new insights but served “to confirm what we already knew”.

Large, established leather manufacturers may not be completely satisfied with their order books at the moment, but overall “production capacity utilisation” is still relatively stable for them, the report says. Smaller companies that are involved in producing special leather of various kinds, materials that clearly stand out from the general offering, are also doing well.

The situation is difficult for medium-sized producers, who are neither in a position to deliver these special products, nor able to keep up with the prices of larger companies.

Trade tensions, weak demand in the Chinese domestic market and geopolitical uncertainties are also having a negative impact on demand for leather, Market Intelligence says, but the main problem remains clear. Overall demand for leather is shrinking and the material itself has lost its appeal for many.