The leather industry generates an incredible amount of leather and leather goods that are used by millions of people around the world every day. For function and fashion, leather is one of the most popular materials available.
The leather industry has a long history dating back hundreds of years. It is a $100 billion manufacturing sector that produces leather hides and goods all around the world. The most popular hides are from cows, sheep, goats, and pigs. The most popular products are shoes, clothing, and upholstery.
So many people, and so many countries, are involved in the processing and production of leather goods. It’s an amazing world trade that yields products most of us use on a daily basis. Let’s take a closer look.
What is the Leather Industry?
The leather industry is a global manufacturing sector that produces the raw, processed, and finished materials used to make leather goods. Animal hides are used to produce the leather. The hides are generally the waste product of the food industry. The animals used for hides, when treaded humanely and well-cared for, are a renewable resource. Leather is one of the most traded products globally, with the export value of hides and skins exceeding $5 billion annually.
History of the Leather Industry
While leather working has been around for nearly 400,000 years, the formal leather industry is a more recent development, dating from around 1100 CE. During the Middle Ages, leather guilds began to form.
The field of leather craft required a fair amount of knowledge to tan, process, dye, and work with the leather. It also required specialized tools to work with. Thus, it was important to create a way to keep this information within groups, and guilds of leather workers were created. This helped to develop a means by which to pass knowledge on to future generations. It also helped to protect that knowledge and the livelihoods of leather crafters.
Around the 1700’s, global trade routes were well established by the world powers at the time. Mainly, Great Britain, France, and Spain. They would generally drive the leather industry, through production and trade of hides around the world.
When the Industrial Revolution came around in the early 1800’s, the need for leather skyrocketed. The material was needed for footwear and clothing, for belts than ran the many new machines, and for the exponential increase in leather goods made. More leather goods could be made faster, all due to the machines, run by leather belts.
Communities would grow around tanneries. The formal relationships between hide skinners, tanneries, leather workers, and consumers would grow deeper and more defined. The leather industry was a core part of culture and the global way of life.
In modern times, leather has competition from rubbers and plastics. Though, the industry is ever-advancing along with the latest technologies in processing and producing some of the finest materials in the world. The relationships within the industry have evolved as well. Trade associations, similar to the leather guilds of Medieval Times, continue to strengthen the industry. They work to form networks of partners that create and deliver leather all around the world.
If you’re looking for a deep history of leather, click here for the article I wrote about that.
Key Groups of the Leather Industry
Like any large collaboration of professional organizations in a production sector, the leather industry has it’s key parts. Each plays an important role within the production, processing, and sale of leather hides and leather goods.
Leather Industry Farmers/Ranchers
Farmers and ranchers maintain a large count of animals. They most often include cows, pigs, sheep, and goats. The animals are primarily utilized for the food industry, the hides becoming a by-product that then is used as a raw material source of for the leather industry.
For a sense of scale, there are approximately 100 million cattle on average across farms in the United States. Each year, about 12 million will be sent to meat packers for processing into food and other materials.
Leather Industry Meatpackers
Meatpackers perform the role of processing animals. They will take the animals who have been farm or ranch-raised, and turn them into the various materials that will be used by other industries.
This usually involves separating all of the parts. The most important part for the leather industry is the hide. The hides are removed from the animals, usually by machinery that ensures as even and consistent removal as possible. The hides are then preserved using a number of various techniques, depending on the type of hide and it’s goal intended use.
Once preserved, the hides are sold to the Tanneries for tanning.
Leather Industry Tanners
Tanners purchase hides from the meatpackers. This can be a global trade. For example, tanneries around the world might seek quality hides from a country that grows healthy animals that yield top-notch hides. If an USA meatpacker were to sell hides to an Asian market, special shipping arrangements and conditions would be necessary to ensure the raw hides make it there successfully.
Tanners can also purchase hides locally. For example from nearby states. This happens frequently in the USA where large sources of fresh hides are relatively close to the tanneries. The hotter travel time is a benefit, and certainly makes these relationships in the leather industry more mutually beneficial.
Once they receive the hides, tanners will tan them, turning the raw hides into finished leather. The tanning process is generally 25 steps, among which they can vary greatly in chosen method, chemicals used, and time involved.
Tanned leather can be available in all different thicknesses, colors, textures, and finishes. Once prepared and finished, these leathers can be sold in the marketplace. Usually, it is to large resellers.
Leather Industry Resellers
When tanned leather begins to enter the marketplace in the leather industry, it is usually though large resellers. They purchases finished leather hides in bulk from leather tanneries. With large volumes of inventory, they can offer hides for sale to other, smaller resellers.
These resellers might be smaller, regional leather hide resellers who will again sell the hides to larger shops or other industries that require leather in volume. They might also be leather shops that specialize in retail leather hide sales. Smaller shops like this are usually the places that leather workers will get their leather from.
A leather shop can offer a wide range of hides. They might specialize in reselling hides from a particular region. They might also offer a diverse selection of hides from regions around the world. Their offerings can also include hides from different animals, different grades, different finishes, and different qualities. Most anything a leather crafter might want is available for sale.
Leather Industry Crafters/Customers
The leather crafter is often one of the main customers of hides from leather resellers. Other industries that utilize leather as a raw material for their processes also buy in bulk from resellers.
When a leather crafter is planning a project, they’ll usually determine what type of leather is best to use for the specific work they’ll be doing. Having a wide range of options, qualities, and price points available, the crafter can purchase hides or cuts of hides from a reseller.
With leather in hand, they can begin work and craft some incredible leather goods that can last years and years.
Types of Animal Leather
Leather can be made from the hides of most any animal large and small. Generally, the animals most commonly used for leather production around the world include cows, goats, sheep, and pigs.
Some of the more common exotic leathers include alligator, buffalo, camel, deer, horse, and snake. Availabilities will often differ by region, and market preference. Volume of exotic hides available along with cost are also usually factors related to availability.
Leather Industry Global Production Statistics
Worldwide leather production and consumption varies considerably by country. Some produce more leather than they consumer, and export it for profit. Others consume more leather and leather goods, serving as large importers of leather hides and leather goods. Let’s check out some of the more broad production counts of production, importing, and exporting.
Leather Industry Top Leather Producers
It is interesting to get an idea of how the leather industry produces around the world. Based on leather production data from 2015 from the International Council of Tanners, we can take a look at the top 10 producers.
Leather Industry Top Leather Producers – 2015
| |||
| Rank | Country | Production (mil of sq. ft.) | % of All Production |
| 1 | China | 5,962 | 24.9 % |
| 2 | Brazil | 2,260 | 9.4% |
| 3 | Russia | 1,652 | 6.9% |
| 4 | India | 1,516 | 6.3% |
| 5 | Italy | 1,503 | 6.3% |
| 6 | Korea | 1,144 | 4.8% |
| 7 | Argentina | 804 | 3.4% |
| 8 | United States | 719 | 3.0% |
| 9 | Mexico | 642 | 2.7% |
| 10 | Turkey | 529 | 2.2% |
| All Others | 7,245 | 30.2% | |
| World Combined | 23,976 | 100% | |
China, by a significantly large margin, represents about 25% of global leather production. The United States is about 3%. Leather industry production can often represent focuses of regional economies. Increases or decreases over time, often decades, can also reflect changes to environmental, cultural, or economic preferences of leather producing countries.
Leather Industry Top Bovine Exporting Countries
These represent the countries that export the most bovine (cow and bull) hides and skins, by dollar value. Numbers are based on 2014 information from the Food and Agriculture Organization of the United Nations (FAO).
Leather Industry Top Bovine Exporting Countries | |||
| Rank | Country | Export Value (Million USD) | % of Global Export Value |
| 1 | United States | 1,353.6 | 26.0% |
| 2 | France | 446 | 8.6% |
| 3 | Germany | 431 | 8.3% |
| 4 | Australia | 377.1 | 7.3% |
| 5 | Canada | 245.4 | 4.7% |
| 6 | United Kingdom | 225.6 | 4.3% |
| 7 | Italy | 221 | 4.3% |
| 8 | Spain | 186 | 3.6% |
| 9 | Netherlands | 179.2 | 3.4% |
| 10 | Ireland | 147.6 | 2.8% |
| All Others | 1,383.9 | 26.6% | |
| World Combined | 5,196.4 | 100% | |
The United States is a clear leader in the overall exports of leather hides and skins, by a large marking. They make up 26% of the total global export market. The next closest is France, producing over 8% of the global leather exports.
Leather Industry Top Bovine Importing Countries
These represent the countries that import the most bovine (cow and bull) hides and skins, by wet-salted weight. Numbers are based on 2014 information from the Food and Agriculture Organization of the United Nations (FAO).
Leather Industry Top Bovine Importing Countries | |||
| Rank | Country | Volume (thousand tons) | % of All Volume |
| 1 | China | 1,071.1 | 38.9% |
| 2 | Italy | 401 | 14.6% |
| 3 | Republic of Korea | 136.2 | 4.9% |
| 4 | Germany | 111.3 | 4.0% |
| 5 | Mexico | 98.1 | 3.6% |
| 6 | Netherlands | 92 | 3.3% |
| 7 | Austria | 91.2 | 3.3% |
| 8 | Thailand | 86 | 3.1% |
| 9 | USA | 52.4 | 1.9% |
| 10 | Slovakia | 50 | 1.8% |
| All Others | 564.8 | 20.5% | |
| World Combined | 2,754.1 | 100% | |
China, by far, imports the most bovine hides and skins in the world. They are also one of the largest finished leather producers in the world. It is clear from looking at these values that China puts a priority on leading the leather industry in leather production.
Leather Industry Production of Leather Shoes
These represent the countries that produce the largest number of leather shoes. Shoe and footwear production is the largest global consumer of leather material. Numbers are based on 2014 information from the Food and Agriculture Organization of the United Nations (FAO).
Leather Industry Production of Leather Shoes | |||
| Rank | Country | Volume (millions of pairs) | % of All Volume |
| 1 | China | 1,847.6 | 40.5% |
| 2 | Italy | 302.2 | 6.6% |
| 3 | Mexico | 296.4 | 6.5% |
| 4 | India | 193.4 | 4.2% |
| 5 | Brazil | 190.2 | 4.2% |
| 6 | Indonesia | 145 | 3.2% |
| 7 | Vietnam | 140.5 | 3.1% |
| 8 | United States | 86.6 | 1.9% |
| 9 | Turkey | 84.6 | 1.9% |
| 10 | Spain | 74.8 | 1.6% |
| All Others | 1204.5 | 26.4% | |
| World Combined | 4,565.8 | 100% | |
China produces the world’s largest number of shoes per year at over 40%. This is by a significant margin. Next is Italy with under 7%. China is positioned as a very strong producer of leather footwear.
Leather Industry Imports of Leather Shoes
These represent the countries that import the largest number of leather shoes. Shoe and footwear production is the largest global consumer of leather material. Numbers are based on 2014 information from the Food and Agriculture Organization of the United Nations (FAO).
Leather Industry Imports of Leather Shoes | |||
| Rank | Country | Volume (millions of pairs) | % of All Volume |
| 1 | United States | 595.2 | 26.9% |
| 2 | Germany | 165.5 | 7.5% |
| 3 | China | 163.3 | 7.4% |
| 4 | United Kingdom | 152.2 | 6.9% |
| 5 | Italy | 129.7 | 5.9% |
| 6 | France | 110.4 | 5.0% |
| 7 | Belgium | 101.4 | 4.6% |
| 8 | Russian Federation | 70.1 | 3.2% |
| 9 | Netherlands | 69.7 | 3.1% |
| 10 | Canada | 44.3 | 2.0% |
| All Others | 614.1 | 27.7% | |
| World Combined | 2,216.2 | 100% | |
The United States is a very large importer of leather shoes, the largest in the world comprising 26.9% of the market. It is interesting as the US exports the most leather in world, while also importing the most finished shoes.
Leather Industry Exports of Leather Shoes
These represent the countries that export the largest number of leather shoes. Shoe and footwear production is the largest global consumer of leather material. Numbers are based on 2014 information from the Food and Agriculture Organization of the United Nations (FAO).
Leather Industry Exports of Leather Shoes | |||
| Rank | Country | Volume (millions of pairs) | % of All Volume |
| 1 | China | 1,000.2 | 46.3% |
| 2 | Italy | 132.1 | 6.1% |
| 3 | India | 118.7 | 5.5% |
| 4 | Vietnam | 111.4 | 5.2% |
| 5 | Germany | 81.7 | 3.8% |
| 6 | Indonesia | 75.8 | 3.5% |
| 7 | Belgium | 65.6 | 3.0% |
| 8 | Portugal | 59.3 | 2.7% |
| 9 | Spain | 49.1 | 2.3% |
| 10 | Turkey | 48.7 | 2.3% |
| All Others | 418.2 | 19.4% | |
| World Combined | 2,160.8 | 100% | |
China, along with being the world’s largest exporter of finished leather, is also the world’s largest exporter of leather shoes. They comprise 46.3% of all leather shoe exports globally. The nearest country in volume is Italy, with just over 6%.
Leather Industry Leather Produced by Animal Type
Here is a look into the weight of leather produced by some of the most popular types of animals. This is based on data from the FAO, average from 2012-2014, across the world.
Leather Industry Leather Produced by Animal Type | ||
| Animal Type | # of Hides (millions) | Total Weight (tons) |
| Bovine & Buffalo | 364.3 | 7,200,186 |
| Sheep & Lamb | 550 | 454,703 |
| Goat & Kid | 486.3 | 380,598 |
| Totals: | 1,400.6 | 8,035,487 |
Bovine and buffalo hides make up a significant portion of the average annual leather production volume.
Leather Industry Leather Produced by Animal Type
Here is a very high level look at the general distribution of animal types across average global leather production. The numbers are based on 2015 data from the International Council of Tanners (ICT).
Leather Industry Leather Produced by Animal Type | |
| Animal Type | % of All Leather |
| Cattle & Buffalo | 67% |
| Sheep/Lamb | 12% |
| Pig | 11% |
| Goat/Kid | 10% |
| Others | < 0.5% |
Cattle and buffalo leather is by far the most produced, and used, around the world.
Leather Industry Commercial End Uses – Global Leather Market
Here is a very high level look at the general distribution of the products that leather is used in production for. The numbers are based on 2015 data from the International Council of Tanners (ICT).
Leather Industry Commercial End Uses – Global Leather Market | |
| Product | % of All Leather |
| Shoes/Footwear | 47% |
| Automobile Upholstery | 17% |
| Furniture Upholstery | 10% |
| Clothing | 10% |
| Gloves | 4% |
| Other Leather Goods | 12% |
Each year, shoes and footwear comprise the products that use the most leather worldwide.
Leather Industry Association and Trade Groups
There are many trade groups and industry associations around the world that are established to help serve and grow the leather industry. Some are regional or country-specific, while others are overarching associations of associations that help guide more global initiatives. Here are some of the most popular ones.
Leather Industry Association and Trade Groups | ||||
| Abbrev. | Name | Description | Country | Website |
| AHSLEA | Australian Hide, Skin and Leather Exporters’ Association | A voluntary trade Association whose membership comprises the major exporters of Australian cattle hides, calf skins, sheep and lamb skins, kangaroo skins and goat skins. | Australia | http://www.ahslea.com.au/ |
| BTA | Bangladesh Tanners Association | Bangladesh Tanners Association (BTA) is a non-profit Association of Leather Industry in Bangladesh. | Bangladesh | http://www.tannersbd.com/ |
| CLE | Council for Leather Exports | An autonomous non-profit company registered under the Indian Companies Act, 1956 entrusted with export promotion activities and development of the Indian leather industry. | India | http://leatherindia.org/ |
| CNC | Conseil National du Cuir | A professional organization of leather producers and users in France. | France | https://conseilnationalducuir.org/ |
| COTANCE | Confederation of National Associations of Tanners and Dressers of the European Community | The representative body of the European Leather Industry. It is a non-profit organization established in order to promote the interests of the European tanning industry at international level. | Belgium | https://www.euroleather.com/ |
| ICHSLTA | International Council of Hide, Skin & Leather Traders Associations | To promote the use of hides and skins products to the global leather industry. The Council sets out guidelines and gives advice on production, grading and marketing to improve reliability and understanding throughout the world. | Hong Kong | http://www.ichslta.com/ |
| ICT | International Council of Tanners | ICT is the membership organisation of the world’s leather trade associations. It meets regularly to discuss relevant topics affecting or influencing the global leather industry. | United Kingdom | https://leathercouncil.org/ |
| IULTCS | International Union of Leather Technologists and Chemists Societies | Establishing and maintaining a network of global contacts within the leather industry that have a legitimate interest in and an authoritative platform to express opinions on issues affecting the industry. | United Kingdom | http://www.iultcs.org/ |
| LIA | Leather Industries of America | A leather trade association that serves its members by providing environmental, technical, education, statistical and marketing services — all at the direction of its membership and to the benefit of the leather industry. | United States | https://www.leatherusa.com |
| LWG | Leather Working Group | To develop and maintain protocols that assess the environmental compliance and performance capabilities of leather manufacturers and to promote sustainable and appropriate environmental business practices within the leather industry. | United Kingdom | https://www.leatherworkinggroup.com/ |
| PTA | Pakistan Tanners Association | An association that represents the leather industry in Pakistan, at the Federal level. | Pakistan | http://www.pakistantanners.org/ |
| SLTC | The Society of Leather Technologists and Chemists | A non-profit International Society serving the leather sector and dedicated to the future of the leather industry. | United Kingdom | http://www.sltc.org/ |
| UNIDO | Leather and Leather Products Industry Panel | A global forum for technical assistance programmes dealing with the leather-based industry sector. | Austria | https://leatherpanel.org/ |
| USHSLA | U.S. Hide, Skin and Leather Association | A full service industry trade organization devoted to the U.S. hides, skins and wet blue leather products industry. | United States | https://www.ushsla.org/ |
The Future of the Leather Industry
According to a 2010 report from the United Nations Industrial Development Organization (UNIDO), leather goods and trade products have any estimated global trade value of over $100 Billion.
The industry has grown smaller in recent decades due to the growing popularity of synthetic products such as plastic and rubber. Over time, tanneries have gone from small, localized operations to larger, regional tanning production facilities. also, the volume of tanneries has consolidated into fewer, larger companies.
Production processes continue to advance with technology. This allows for faster creation of higher-quality leathers and leather goods. The main markets for leather goods continue to be shoes, clothing, and upholstery. Also, fine leather is an incredibly versatile and cantonal material for small leather goods and accessories. There will likely always be a demand for finally crafted, high-quality leather goods.
Related Questions:
How much is the leather industry worth?
The leather industry is worth about $5 billion annually in the value of hides and skins. It it worth about $100 billion annually when considering the global trade of all leather goods and related trade products.
Is leather a by product of the meat industry?
Yes, leather is generally a by product of the meat industry. About 12 million cattle are processed annually in the USA for food production. The hides, unused for food, are a primary resource for the leather industry and leather production.
Other Resources:
- Leather Working Techniques and Insights For Better Crafting
- Tannery – Exploring the Magic of Where Leather is Made
- Leathersmith – Their Career Path and Working Lifestyle
- The Incredible History of Leather and Leather Craft
- Leather Craftsman – What They Do and Employment Stats
- Leatherworker – Learn What They Do and Is It a Fit For You
- Leather Craft Ideas – Inspiration for Your Next Great Project
- Leather Factory – Where Leather Is Made and Sold
- Leather Museums – A Look Into History, Heritage, and Style
- Leatherworker – Career Options, Inside Looks, and Successes