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Leather & Leather Goods Manufacturing in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: May 2024 WZ C15.10DE

Revenue

€657.9m

2024

€657.9m

Past 5-Year Growth

Profit

€XX.Xm

Employees

3,923

Businesses

52

Wages

€XXX.Xm

Leather & Leather Goods Manufacturing in Germany industry analysis

The leather and leather goods manufacturing industry in Germany largely supplies the automotive, furniture and footwear industries and is therefore also tied to these markets. Due to the slowdown in economic growth, the automotive market and the market for leather-covered luxury furniture were already weakening in 2019. As a result, leather upholstery was much less in demand in both markets and was also partially replaced by alternative products such as imitation leather. Demand for shoe leather also collapsed in 2020. In 2021, the industry suffered further declines in demand from the automotive industry due to supply bottlenecks in car manufacturing. In 2022, the customer markets recovered noticeably, but were unable to fully compensate for the sales shortfalls at the beginning of the five-year period. As a result, turnover in the leather industry fell by an average of 3.2% per year in the period from 2019 to 2024. In the current year, a slight decline in turnover of 0.1% to 657.9 million euros is expected due to falling demand from the furniture industry.

Trends and Insights

  • The automotive and furniture industries are important sales markets for the leather sector. Their development is therefore crucial to the success of leather manufacturers.
  • Cowhide is the most widely used leather in the world, as it is considered tear-resistant and durable. The cowhide required for this is a by-product of beef production. As beef is a popular type of meat in Germany, a constant supply of raw hides is guaranteed.
  • Most companies in the leather industry are located in the southern region of Germany. The so-called southern German raw material, which comes from the southern federal states, is considered the best cowhide in Europe, which is due to the way it is reared and the type of cattle.
  • The industry players can compete with each other based on the quality of their products. Companies can also benefit from economies of scale, provided that the machines for leather production are optimally utilised.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 3.2 % over the past five years, to reach an estimated €657.9m in 2024.

Trends and Insights

Falling livestock numbers increased the cost of leather production

  • The production of leather requires animal hides, which are a by-product of slaughtering. The availability of raw materials therefore depends heavily on the animal population - especially the cattle population, as cowhide is the most commonly produced material.
  • Additional trends and insights available with purchase
Leather & Leather Goods Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

The automotive industry remains the most important sales market for leather manufacturers

  • In Germany, the automotive industry will continue to be the most important consumer of leather. It is used to cover car seats and for high-quality vehicle interiors. Demand for leather therefore depends heavily on the success of German car manufacturers and how they develop in the future.

Biggest companies in the Leather & Leather Goods Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Pangea Made GmbH
64.7
Heller-Leder GmbH & Co. KG
58.3
Gmelich + Söhne GmbH
11.2

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Leather & Leather Goods Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Cowhide and calfskin, Saddlery and Reconstructed leather made from leather fibres. Cowhide and calfskin is the largest segment of the Leather & Leather Goods Manufacturing in Germany.

Trends and Insights

Cowhide and calfskin are the most popular types of leather in the automotive and furniture industries

  • Cowhide is the most widely used leather in the world, as it is considered to be tear-resistant and durable and there are hardly any areas of leather use in which cowhide cannot be processed.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The manufacture of leather and leather goods includes the tanning, dyeing and dressing of hides and skins for further processing in other industries as well as the manufacture of various finished leather goods such as suitcases, bags and saddlery. The manufacture of shoes and clothing made of leather is not part of this industry.

What's included in this industry?

Cowhide and calfskinSaddleryReconstructed leather made from leather fibresTravel and handbags, briefcases

Companies

Pangea Made GmbHHeller-Leder GmbH & Co. KGGmelich + Söhne GmbH

Purchase this report to view all 4 major companies in this industry.

Related Terms

FALZSPÄNECOPPER PRODUCTRAW SKINLEATHER

Industry Code

WZ 2008

WZ 15.1 - Leather & Leather Goods Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The automotive and furniture industries are important sales markets for the leather sector. Their development is therefore crucial to the success of leather manufacturers.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Cowhide is the most widely used leather in the world, as it is considered tear-resistant and durable. The cowhide required for this is a by-product of beef production. As bee...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most companies in the leather industry are located in the southern region of Germany. The so-called southern German raw material, which comes from the southern federal states...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry players can compete with each other based on the quality of their products. Companies can also benefit from economies of scale, provided that the machines for le...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Pangea Made produces almost exclusively for the automotive industry and manufactures leather for car interiors. During the pandemic, car manufacturers had to contend with dem...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Pangea Made GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Heller-Leder GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Gmelich + Söhne GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Pangea Made GmbH, and factors influencing its performance in the industry
  • Description and key data for Heller-Leder GmbH & Co. KG, and factors influencing its performance in the industry
  • Description and key data for Gmelich + Söhne GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The chemicals used in the production of leather and leather goods must comply with the REACH directive. It regulates the registration, evaluation and authorisation of chemica...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Leather manufacturers can only keep their profit margins stable if they can pass on higher material, labour and energy costs to their customers. The focus on the premium segm...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Leather & Leather Goods Manufacturing industry in Germany in 2024?

The market size of the Leather & Leather Goods Manufacturing industry in Germany is €657.9m in 2024.

How many businesses are there in the Leather & Leather Goods Manufacturing in Germany industry in 2024?

There are 52 businesses in the Leather & Leather Goods Manufacturing industry in Germany, which has declined at a CAGR of 1.8 % between 2019 and 2024.

Has the Leather & Leather Goods Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Leather & Leather Goods Manufacturing industry in Germany has been declining at a CAGR of 3.2 % between 2019 and 2024.

What is the forecast growth of the Leather & Leather Goods Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Leather & Leather Goods Manufacturing industry in Germany is expected to decline.

What are the biggest companies in the Leather & Leather Goods Manufacturing market in Germany?

The biggest companies operating in the Leather & Leather Goods Manufacturing market in Germany are Pangea Made GmbH, Heller-Leder GmbH & Co. KG and Gmelich + Söhne GmbH

What does the Leather & Leather Goods Manufacturing in Germany include?

Cowhide and calfskin and Saddlery are part of the Leather & Leather Goods Manufacturing industry.

Which companies have the highest market share in the Leather & Leather Goods Manufacturing in Germany?

The company holding the most market share in Germany is Pangea Made GmbH.

How competitive is the Leather & Leather Goods Manufacturing industry in Germany?

The level of competition is high and steady in the Leather & Leather Goods Manufacturing industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Footwear & Leather Goods Repair in Germany

Complementors

  • Clothing Manufacturing in Germany
  • Footwear Manufacturing in Germany
  • Motor Vehicle Manufacturing in Germany
  • Other Furniture Manufacturing in Germany

International industries

  • Global Handbag & Purse Manufacturing
  • Leather Good & Luggage Manufacturing in the US
  • Leather and Leather Substitute Product Manufacturing in Australia
  • Leather & Fur Processing in the UK
  • Luggage, Handbags & Harness Manufacturing in the UK

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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