Our latest Market Intelligence newsletter went live on July 16. It offered a reflection on the state of the industry in Europe as the summer holidays bring businesses to a halt across the continent. By Leatherbiz.

It said “drastic changes” were occurring in the industry in Europe owing to “a toxic mix” of negative forces.

Production costs are high and the drop in demand for finished leather and leather products shows few signs of picking up.

In footwear, the ongoing retro trend is providing support for leather, but this is not being mirrored in more mainstream shoe segments, the newsletter said. In parallel, it insisted that there is a significant decline in the use of furniture and automotive leather, particularly in higher-quality articles.

On top of this, it said the industry remained exposed to “considerable political and bureaucratic obstacles”, making it harder for European tanners to compete with rivals in other parts of the world.