Aggregate data from China’s leading companies by turnover, international reach, and investment capacity do not point to a calm 2026. Quite the opposite: the leather and leather goods sector recorded a 5% year-on-year decline in revenue in the first half, to 330 billion yuan, or €42.2 billion. Over the same period, exports, worth more than €35 billion, fell by 5.4%, while imports, worth €6.8 billion, rose by 4.9%. According to the economic note published ahead of ACLE, the industry fair held in Shanghai from September 1 to 3, the supply chain is not alarmed. It sees the figures as evidence of structural transformation. After years focused on volumes and exports, the industry’s center of gravity is shifting toward the domestic market and added value.
China’s leather sector in 2026
The headline decline masks sharp differences across segments. Tanning, with revenue of €2.7 billion, posted the steepest fall: -12.8%, with positive signals only in the raw-hides trade. Leather footwear saw production volumes fall by 7.6% to 970 million pairs, while exports, worth €2.8 billion, declined by 8.7%, broadly in line with the overall footwear drop of 8.6%. The leather goods and travel items segment was also in negative territory (-5.3%), while leather apparel was the only segment to end the period in positive territory (+25%), with revenue of nearly €400 million.
Reasons for confidence
The slowdown, as noted, is not necessarily cause for alarm (or at least not entirely). In a context marked by “geopolitical conflicts and a weak global economy”, certainly not a favorable backdrop for business, the sector is undergoing structural transformation. The focus is shifting toward the domestic market and younger consumers, with the prospect of growth driven by higher quality. China’s GDP grew by 4.7% year on year in the first half: enough to ease concerns.
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