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.