As a vital segment of traditional manufacturing, the leather products industry boasts a long history and extensive applications. Covering footwear, luggage, apparel, automotive interiors and other sectors, leather products are closely intertwined with people’s daily lives. Amid economic globalization, rapid technological advancement and profound shifts in consumer attitudes, the industry is undergoing unprecedented transformation and challenges, while also nurturing new development opportunities.

I. Analysis of the Current Development Status of the Leather Products Industry

(I) Industrial Structure and Regional Distribution

According to the 2025–2030 Consultative Report on Market Planning Research and Future Potential Forecast for the Leather Products Industry released by CRI Research, the industry has formed distinct regional agglomeration characteristics. Eastern coastal regions such as Guangdong, Zhejiang and Fujian have become core development hubs, leveraging their robust manufacturing foundations, complete industrial chain support and convenient transportation and logistics. These areas host numerous large-scale tanneries and renowned brands, leading in technological innovation, product quality and brand influence. Central provinces including Henan, Hubei and Hunan have witnessed rapid growth in recent years, actively undertaking industrial transfer from the east by virtue of abundant labor resources and improving industrial policies, emerging as new industry forces. Though starting later, western regions hold huge market potential thanks to rich raw material resources (e.g., high-quality cattle and sheep hides) and strong policy support. This regional pattern reflects the combined effects of resources, markets and policies, as well as the industry’s optimized spatial layout.

(II) Performance of Segmented Markets

Segmented markets of the leather products industry exhibit diverse development traits. Footwear leather, as the traditional dominant segment, commands a large market share. Driven by the rise of sports culture and consumers’ pursuit of healthy lifestyles, demand for natural leather in the sports footwear market continues to grow, with functional leather products featuring breathability, anti-slip and wear resistance particularly favored. Emerging markets such as automotive upholstery leather and furniture leather are growing rapidly. With the rapid development of the automotive industry and rising consumer demands for interior quality, the high-end automotive genuine leather interior market is expanding continuously. Demand for leather in the furniture sector is also increasing, as leather furniture is beloved by consumers for its luxurious and comfortable properties. In contrast, the traditional apparel leather market has faced pressure from synthetic material substitution, with its market share declining slightly; however, the high-end custom apparel leather segment maintains steady growth.

(III) Challenges Facing the Industry

The leather products industry confronts multiple challenges in its development. Stricter environmental protection policies impose enormous pressure on the sector. Traditional leather processing, especially tanning and dyeing, generates massive amounts of wastewater, waste gas and solid waste containing heavy metals like chromium, causing severe environmental damage. To achieve sustainable development, the government has issued a series of stringent environmental regulations and standards, requiring enterprises to reduce pollutant emissions and improve resource utilization efficiency. Additionally, intensified international trade frictions and rising trade protectionism have created export pressures for Chinese leather products, such as higher tariffs and increased trade barriers.

II. Analysis of Production and Sales Demand in the Leather Products Industry

(I) Changes on the Production Side

Notable changes have emerged on the production side of the leather products industry. As environmental requirements tighten, a large number of backward production capacities in the genuine leather sector have been forced to shut down due to environmental issues, impacting overall industry output. Meanwhile, enterprises are actively pursuing technological upgrading and industrial transformation, promoting eco-friendly tanning technologies such as vegetable tannin tanning and chrome-free tanning to mitigate environmental issues like chromium pollution. These green tanning technologies not only reduce negative environmental impacts but also enhance leather quality and performance. In intelligent manufacturing, digital upgrading and smart technologies are increasingly applied. For instance, AI design technology can rapidly generate personalized leather product design solutions based on market demand and consumer preferences; automated cutting equipment improves production efficiency and cutting precision while reducing raw material waste.

(II) Expansion of Sales Channels

Sales channels for leather products are continuously expanding. On mainstream e-commerce platforms like Taobao, JD.com and Pinduoduo, numerous merchants offer leather products across various brands and price points, enabling convenient comparison and purchase for consumers. Vertical e-commerce platforms such as China Leather Net focus on the leather industry, providing trading services for raw materials and finished products, along with industry news and supply-demand information, offering a professional trading platform for upstream and downstream enterprises. Social media platforms including WeChat and Douyin have become new marketing and sales channels, where enterprises attract consumer attention and drive purchases by releasing product videos and images. Moreover, the development of cross-border e-commerce brings new opportunities; as a major producer and exporter of leather products, China accounts for a large share of global export volume in this field.

(III) Shifts in Consumer Demand

Consumption upgrading has become a key force driving industry transformation. With the expanding middle class, consumer demand for leather products has shifted from mere functionality toward high quality, personalization and environmental friendliness. In the footwear market, consumers no longer settle for ordinary styles and quality, but prioritize brands, design and comfort, with growing demand for high-end sports shoes and luxury footwear. In the luggage sector, personalized custom products are favored, as consumers seek to showcase individual taste through unique designs. Meanwhile, rising environmental awareness has led to increasing consumer preference for eco-friendly natural leather products, with willingness to pay a premium for leather items produced via pollution-free, green processes.

III. Market Prospect Analysis of the Leather Products Industry

(I) Technological Innovation Driving Development

Technological innovation will be critical for the industry to break through bottlenecks and enhance competitiveness. In production processes, the promotion of eco-friendly tanning technologies will further reduce environmental pollution and improve leather quality. The R&D and commercialization of new materials such as bio-based leather and biodegradable leather are accelerating, bringing new development opportunities. These materials not only feature outstanding environmental performance but also match or surpass traditional natural leather in properties. For example, bio-based leather uses renewable resources like plant fibers and biopolymers as raw materials, reducing reliance on animal resources while delivering excellent physical and chemical stability. Biodegradable leather decomposes naturally after its service life, avoiding environmental pollution. In intelligent manufacturing, applications of AI, machine vision systems, VR/AR and other technologies will further boost production efficiency, product quality and consumer shopping experience.

(II) Green and Sustainable Development Becoming Mainstream

In the future, environmental sustainability will be the core driving force for China’s leather products industry. The government will continue to roll out policies supporting the green transformation of the leather industry, increasing subsidies for R&D and application of environmental technologies, and encouraging enterprises to adopt clean production technologies and eco-friendly raw materials. Enterprises will also prioritize green production, strengthening wastewater treatment, waste gas control and other environmental facilities to reduce emissions. Meanwhile, R&D and promotion of eco-friendly dyes and chemicals, as well as efforts to cut water and energy consumption, will become industry priorities. Green products such as biodegradable leather and eco-friendly tanning technologies will gradually dominate the market, meeting consumer demand for sustainable products.

(III) Obvious Trends of High-End Market and Branding Development

As consumers increasingly pursue quality and design, high-end customization services and personalized products will become key growth drivers. Enterprises will meet demands for uniqueness and personalization by offering custom leather goods and limited-edition products in collaboration with luxury brands. Leveraging digital technologies, enterprises can realize rapid customized production, designing and manufacturing one-of-a-kind leather products tailored to individual consumer needs. Brand building will also emerge as a core competitive advantage, as consumers demand high-quality, influential leather products and are willing to pay more for brand culture and quality.

(IV) Market Expansion and Industrial Upgrading

The leather products industry boasts broad prospects in market expansion and industrial upgrading. Domestically, with the deep implementation of the Western Development Strategy and rising household incomes, consumer demand for leather products in western regions will gradually be unleashed. Internationally, despite trade challenges, China, as the world’s largest producer and consumer of leather products, retains strong global competitiveness. The advancement of the Belt and Road Initiative will create more trade opportunities, promoting economic and trade cooperation with countries along the routes. Meanwhile, industrial clusters within the sector will further  the industrial chain, elevating the industry’s position in the global value chain.