Leather industry continues to shrink

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/