Italian leather industry closes 2024 with 30 billion euro turnover, down 8.6 percent

Milan - With approximately 10,000 active businesses, the Italian leather industry closed 2024 with a total turnover of 30 billion euros. This represents an 8.6 percent decrease compared to the previous year. The negative trend was also confirmed in the first six months of 2025, with a further 5.3 percent decline compared to the same period in 2024.

'Confindustria Accessori Moda' is the federation that brings together the associations representing the key sectors of the Italian leather supply chain. These include footwear with 'Assocalzaturifici', leather goods with 'Assopellettieri', leather and fur clothing with 'Aip' and tanning with 'Unic Concerie Italiane'. Confindustria Moda Accessories announced today the results of its survey on the sector's performance in 2024 and forecasts for 2025.

Export data

In terms of exports, the first five months of 2025 saw a 4.8 percent year-on-year decline. Turnover stood at 10.2 billion euros. However, a less negative signal was recorded in the April-May two-month period, with a contraction contained at -3.4 percent.

A closer look at the data by geographical area shows that exports to the European Union were stable (-0.2 percent). This was despite contrasting dynamics in the main markets, such as France (-4.3 percent) and Germany (+7.9 percent). Contractions outside the European Union were more pronounced. This was particularly true in Asian markets, with -26.7 percent in China, -10.9 percent in Japan, and -14.4 percent in South Korea. The decline in flows to multinational hubs in Switzerland continued (-24 percent). Encouraging growth signals came from the United Arab Emirates (+33.8 percent) and Turkey (+13.6 percent).

As a key outlet for Made in Italy exports, the US market remains a key topic of discussion. This is particularly true following the Trump administration's decision to set 15 percent tariffs on imports from the European Union. This measure will have negative effects on the leather sector, significantly impacting company margins and the competitiveness of Italian businesses.

“The data paints a complex picture, with critical issues that characterised both the close of 2024 and the first part of 2025. The challenges are many: from the slowdown in global demand to the weakness of some Asian markets, to the introduction of the 15 percent tariff by the United States. This risks penalising our exports in a key market,” said Giovanna Ceolini, president of Confindustria Moda Accessories. “In this difficult economic and geopolitical context, commitment to internationalisation remains a priority. The trade fairs currently underway and collaboration with the Ministry of Foreign Affairs and International Cooperation, with activities such as the Italian Fashion Days in the World, are a concrete opportunity.”

Giovanna Ceolini Credits: Confindustria Accessori Moda

“Finally, training is another essential pillar for the future of our supply chain, which we will continue to work on. It is crucial today to bring young people closer to the business world with adequate and specific tools to foster initial contact with work so that they acquire the necessary skills to build the future of Made in Italy,” Ceolini added.

Despite a 3.5 percent decline in 2024 (exports equal to almost 3 billion euros), the sector has so far shown resilience. In the January-May 2025 period, sales to the US grew by +1.4 percent year-on-year. Istat data for the month of June alone show a significant acceleration (+15 percent), probably linked to the anticipation of shipments before the new customs tariffs came into effect. While the first half of the year therefore closes with an estimated growth of +3.5 percent, the real effect of the tariffs on the second half can only be measured with data after August. This is especially true in relation to the possible impact on margins and the competitiveness of Italian companies.

Employment figures

The negative signals on the production front are also reflected in employment. At the end of June 2025, the number of employees fell to just under 140,000, with a 2.3 percent contraction compared to December 2024. At the same time, there was a decrease of around 200 active businesses (-two percent) in the supply chain.

The use of wage integration tools slightly improved. In the second quarter of 2025, just under 30 percent of companies declared that they had resorted to social safety nets. This percentage was slightly lower than in the first two months (35.4 percent) and also compared to the April/June 2024 period (33.3 percent). However, according to INPS data, the total number of hours of wage supplementation in the first half of the year stood at around 20.3 million hours, an increase of 12.8 percent compared to the first six months of 2024.

This article was translated to English using an AI tool.

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