Affected by weak domestic and international demand, the industry faced downward pressure. From January to June, the sales revenue of key enterprises in the national leather industry was approximately RMB 410.0 billion, down 0.8% year-on-year. Exports totaled USD 43.23 billion, a decrease of 7.8%, while imports reached USD 7.53 billion, down 13.6% compared with the same period last year.

Tannery

Key tanning enterprises reported sales revenue of RMB 27.0 billion, down 6.5% year-on-year. Leather production was 140 million square meters, a decline of 12.4%.

Imports of raw hides totaled 707,000 tons, valued at USD 580 million, down 6.2% and 16.4% respectively. Imports of semi-finished leather reached 313,000 tons, valued at USD 470 million, up 1.7% in volume but down 10.8% in value. Imports of finished leather were 18,000 tons, valued at USD 280 million, down 16.5% in volume and 19.2% in value.

Footwear

The sales revenue of key footwear enterprises exceeded RMB 260 billion, an increase of 0.6% year-on-year. Production of leather shoes reached 1.23 billion pairs , down by 3.2%.

Exports of footwear products reached 4.50 billion pairs, valued at USD 21.70 billion, down 0.3% in quantity and 7.2% in value year-on-year. Imports totaled 90 million pairs, valued at USD 2.64 billion, down 11.6% in quantity and 9.7% in value. Specifically, exports of leather shoes amounted to 250 million pairs, valued at USD 3.59 billion, up 0.3% in quantity but down 4.5% in value. Imports of leather shoes were 25 million pairs, valued at USD 1.12 billion, down 20.8% in quantity and 18.8% in value year-on-year.

Leather Garments

The sales revenue of key leather garment companies was RMB 3.0 billion, up 12.6%. Exports totaled USD 48.73 million, down 14.5%, while imports were USD 49.31 million, down 9.8%.

Bags

The sales revenue of key bag enterprises was RMB 53.0 billion, down 2.5%. Exports of bags and cases reached USD 15.97 billion, a decline of 11.2%, while imports were USD 2.54 billion, down 14.8%.

Challenges and Opportunities

From January to June 2025, China’s GDP grew by 5.3%. Overall, the economy remained stable with steady improvement, household incomes continued to rise, and progress was made in high-quality development, however the international environment remains complex and volatile.

The leather industry faces several challenges:

• Weak Market Demand: In the international market, the external environment continues to undergo profound changes, with intensifying geopolitical conflicts and a rise in trade protectionism. In particular, the United States’ implementation of “reciprocal tariffs” has dealt a heavy blow to the global economy and trade. Domestically, while consumption is recovering, its momentum remains insufficient and consumer confidence needs strengthening. Imports and exports will continue to face pressure.

• Competition from Alternatives: Textile fabrics, synthetic materials, and other substitutes are competing strongly with natural leather. Sports and leisure consumption is rising, and the preferences of younger consumers are shifting. The leather industry must accelerate its adaptation to these market and consumer changes.

At the same time, there are new opportunities:

• Domestic Market Potential: The Chinese government has introduced multiple measures. While raising household incomes and strengthening consumption momentum, it is also actively implementing a strategy of expanding domestic demand, with greater emphasis on “quality,” “efficiency,” and “innovation.” This will further unlock domestic demand potential and bring opportunities for the development of the leather industry.

• Technological Innovation: Advances in science and technology has laid a solid foundation for a new round of high-quality development in the leather industry. It enables leather to better meet changing market and consumer demands in terms of fashion, functionality, and sustainability, thereby enhancing its competitiveness. At the same time, significant progress has been made in treatment of waste water, solid waste, and air pollution in the industry. Digitalization and intelligent manufacturing are being actively promoted, and the overall quality of industry development continues to improve.

• Leather Promotion: The leather value chain is paying increasing attention to promotion. CLIA has always regarded this as a priority. In 1994, it launched the Genuine Leather Mark certification, widely promoting leather’s natural, eco-friendly, fashionable, and durable qualities. This year, the label was redesigned and upgraded with traceability features. Each year, the Genuine Leather Mark Cup fashion design competitions for garments, footwear, bags, and materials encourage designers and students to deepen their understanding and use of leather. The Leather&fur My Attitude short video contest has been held for several years, using platforms such as Douyin, Xiaohongshu, and Kuaishou to attract widespread attention with strong results. CLIA has also launched its official video channel, Leather Talk, and partnered with enterprises and production regions to organize promotional campaigns, such as Leather Fashion Weeks and collaborations with the China Consumers Association and AutoHome with leather promotion column. Internationally, CLIA works with Leather and Hide Council of America and other global organizations to promote leather. Such efforts across the value chain help stimulate leather consumption and support sustainable development.

Predictions

Although competition from synthetic materials, textiles, and other substitutes will intensify in the future, China’s leather industry is accelerating its pace of technological innovation, increasing investment in product R&D and design. Leather is becoming greener, more fashionable, and more functional, with broader application scenarios, thereby continuously strengthening the competitiveness of leather and leather products. At the same time, CLIA will work together with the entire industry chain to further strengthen consumer-oriented promotion of leather, in order to better stimulate the consumption of leather and leather products.

Looking ahead to 2025, China’s leather industry will face both opportunities and pressures. Domestic demand will continue to recover, while international markets, particularly the U.S., will remain under strain. Overall, the industry is expected to remain stable, with production holding steady and the decline in imports and exports narrowing. The market will increasingly favor enterprises with strong R&D and innovation. China’s leather industry will continue to play a vital role in supporting global development.