The market for leather - Germany

1.1 Introduction

The market for leather in Germany is a key segment of the economy, as leather is used in many areas, such as:

• The manufacture of footwear
• The leather goods & apparel industry
• The interior decoration and automotive industry

There is a wide variety of leather types that are used and meet different consumer needs and expectations. Among these are:

• Full grain leather: a luxurious type of leather that comes from the top layer of animal hide and has not undergone any chemical treatment or surface sanding.
• Synthetic leather: a material made from polymers.

There are also ecological alternatives to traditional leather based on fruits or materials such as cork.

Globally, the annual growth rate of the leather market varies between 2.5% and 4%, depending on the different regions of the world, according to estimates. The Asia Pacific region dominates the market due to the presence of several tanneries and manufacturers of leather products, especially in China and India. In addition, the footwear segment accounts for the largest share of demand, closely followed by leather goods.

In Germany, the leather market is experiencing moderate growth (especially in the animal leather segment). A distinctive feature of the German market is that demand for leather products for automotive interiors and furniture is higher than in other European countries. In fact, German customers appreciate the quality and especially the durability of leather products. However, a trend has been emerging among younger generations for more than ten years: consumption of genuine leather is declining in favor of vegetable alternatives.

In Germany, leather is mainly imported, but there are also tanneries like WeinheimerLederGerberei. Luxury leather goods companies like MCM use leather in the vast majority of items they offer in their catalog.