Trade

Chinese leather sectors contract in 2025

Mar 26, 2026 China

China’s leather sector experienced a broad downturn in 2025, recording declines in revenue and trade activity. This reflects the ongoing pressure on the global supply chain

According to data released by the China Leather Industry Association at APLF on the 13^th of March, the country’s tannery sector recorded a year-on-year revenue fall of 9.8% in 2025 among enterprises with an annual turnover above RMB 20 million (approximately 2.9 million US dollars).

This was accompanied by weaker raw material inflows, with imports of raw (wet salted) hides and skins totalling 1.42 million tonnes and valued at 1.13 billion US dollars, a decline of 4.7% in volume and 15.8% in value compared to 2024.

Meanwhile, imports of semi-processed leather reached 581,000 tonnes, worth 0.84 billion US dollars. This represented a year-on-year decline of 6.1% in volume and 18.1% in value. Imports of finished leather fell more sharply still, reaching 36,000 tonnes (worth 570 million US dollars), representing a decline of 15.6% in volume and 15.7% in value.

This downturn spanned the entire leather value chain in 2025. Total sales revenue of major companies fell by 13.1% year-on-year, while China’s leather exports amounted to 82.72 billion US dollars, representing a 10.9% decrease. Imports also fell by 10.2% to 15.53 billion US dollars, which, according to CLIA, indicates lower domestic consumption.

Despite the contraction of the sector, China’s macroeconomic performance remained stable, with GDP growing by 5% year-on-year. However, industry representatives identified ongoing geopolitical tensions, trade tariffs and rising energy costs following the war in Iran as key risks to global demand.

Looking ahead, the association expects that policy measures aimed at boosting domestic consumption, including increasing the residents' income, will help support a gradual recovery.

Source: chinaleather.org

Image Credits: aboodi vesakaran on Unsplash

China Exports Imports International Trade Leather Organisations Tannery Trade