Our newest Market Intelligence newsletter suggests that there may be life in the leather industry in Europe yet. By Leatherbiz.

The report, which is available in full here, says the industry in Europe is facing real difficulties. It describes leather as being just one choice in an ever-increasing range of material options that manufacturers have now.

Another important part of the current dynamic is what it calls “the disproportionate increase” in the cost of producing leather and other goods in Europe compared to other regions of the world.

“Overall, the industry has always had enough vigour and creativity to overcome disadvantages and obstacles,” it says.

It goes on to argue that signs of this comeback are already in evidence in niche and in high-value market segments, but it adds that this spark must now spread into mass leather production too.

According to Market Intelligence, the ongoing popularity of retro shoes with leather uppers is a good start and it insists that the step of transferring what has happened in this part of the footwear market to other applications “is nowhere near as big as many people think”.

It is clear about what needs to happen next for the momentum to keep spreading. It says: “The current generation of product developers and marketing managers, who today set the pace and direction for many companies, need to develop a new awareness of leather.”