Hide and seek: Industry revenue will continue to decline as new car sales decrease

Companies in the Leather Tanning and Finishing industry process, tan and finish animal hides using a variety of methods to increase the durability and versatility of the material. Over the five years to 2018, the industry has declined as a result of unprecedented leather price volatility. Over the five years to 2023, the industry is expected to experience modest growth as a weaker dollar drives export growth and the price of leather steadily increases...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Despite increased demand from the automotive market, the industry has been adversely affected by import competition
  • Increasing domestic demand served as a lifeline to industry operators
  • Manufacturers are using less substitutes and opting to incorporate leather into their end products
  • Industry Report - Industry Locations Chapter

    Leather tanneries are often located close to upstream suppliers of raw hides or close to downstream buyers. Enterprises choose these locations to reduce transportation costs and gain easier access to supplies and markets.Mid-AtlanticThe Mid-Atlantic region is estimated to account for the largest share of establishments at 21.8% in 2018. New York makes the greatest contribution for this region, accounting for 15.2% of establishments. This concentration is due to the significant number of livestock farms in New York that are able to provide the skin used for tanning and finishing. In addition, New York encompasses many downstream markets for leather shoes and handbags that are often considered luxury items...purchase to read more.

    Additional Insights for the Leather Tanning & Finishing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Leather Tanning & Finishing Industry are

  • Production of goods currently favored by the market
  • Ability to control stock on hand
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Price of leather and New car sales in the Leather Tanning & Finishing industry impact industry performance..

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    What's in this report

    What is the Leather Tanning & Finishing Industry?

    Companies in this industry are involved in the following activities: tanning, currying and finishing hides and skins; having others process hides and skins on a contract basis; and dyeing and finishing furs. Operators in this industry generally purchase or obtain raw skins from slaughterhouses and treat and dye them to create finished leather.

    Industry Products
  • Upper leather (including patent)
  • Wet blues (unfinished)
  • Upholstery leather
  • Garment leather
  • Contract or commission leather
  • Calf, sheep and other animal leather
  • Sole and accessories leather
  • Other (including furs)
  • Industry Activities
  • Tanning hides and skins
  • Currying hides and skins
  • Finishing hides and skins
  • Dyeing furs
  • Finishing furs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of leather
  • New car sales
  • Consumer Confidence Index
  • Trade-weighted index

  • Current Performance
  • Exports decline, but still dominate
  • Strong automotive demand
  • Volatile operations
  • Chart: Revenue Growth

  • Industry Outlook
  • Exports bounce back
  • Sustainable leather
  • New car sales
  • Industry operations
  • Table: Leather Tanning & Finishing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Leather Tanning & Finishing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Costume & Team Uniform Manufacturing
  • Shoe & Footwear Manufacturing
  • Leather Good & Luggage Manufacturing
  • Automobile Interior Manufacturing
  • Household Furniture Manufacturing
  • Athletic & Sporting Goods Manufacturing
  • Gym & Exercise Equipment Manufacturing

  • Key Selling Industries
  • Chemical Product Manufacturing
  • Dye & Pigment Manufacturing
  • Meat, Beef & Poultry Processing

  • Products & Services
  • Wet blues (unfinished)
  • Upper leather (including patent)
  • Upholstery leather
  • Garment leather
  • Other (including furs)
  • Calf, sheep and other animal leather
  • Contract or commission leather
  • Sole and accessories leather
  • Chart: Leather Tanning & Finishing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Apparel, footwear and accessories manufacturing
  • Exports - China
  • Exports - Mexico
  • Furniture, automobile and aircraft seating manufacturing
  • Exports - Other
  • Other
  • Chart: Major Market Segmentation for the Leather Tanning & Finishing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Leather Tanning & Finishing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Leather Tanning & Finishing Industry

  • Industry Globalization
    Lear Corporation,
  • Table: Lear Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Leather Tanning & Finishing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Leather Tanning & Finishing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • New Car Sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Process of preparing leather for boots, shoes and other products that involves scraping, beating, smoothing and coloring leather.
  • Finishing
  • Process of applying a finishing material to the leather's surface. This represents the final stage of leather processing.
  • Leather Tanning
  • Process of making leather from rawhide.
  • Offshore
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Outsource
  • To procure goods or services under contract with an outside supplier.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Leather Tanning & Finishing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Leather Tanning & Finishing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Leather Tanning & Finishing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Leather Tanning & Finishing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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