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Leather industry continues to shrink

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The leather industry has shrunk at a compounded annual growth rate of 4.1 per cent in the last five years, according to a new report, with continued industry consolidation predicted.

IBISWorld’s Leather and Leather Substitute Product Manufacturing report values the industry at $542 million, with 2,372 employees at 519 businesses.

Reasons for the decline included a decreased demand for “leather tanning, fur dressing and leather product manufacturing” and in the downstream textiles sector.

There will be a predicted 2.5 per cent increase in 2013-2014, according to the report, but the industry will continue to struggle over the next half a decade.

“Consolidation is also projected over the next five years, in line with the industry's declining life cycle stage,” said analyst Spencer Little from IBISWorld.

Image: http://www.tigerproducts.com/

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