Forecast data for 2025 was mostly negative, and the reports at the halfway point of 2026 don’t describe an improving situation. The situation for Turkey’s leather supply chain remains difficult. In some ways, it reflects a local expression of an international trend: demand for leather products is weak, and all manufacturing countries are paying the price. Turkey, however, also has to absorb the repercussions of its own problems, such as the influence of the currency and its relationship with Asian competition.
The background
The forecast figures, as mentioned, show that 2025 was already negative: exports across the entire leather and leather goods supply chain (USD 1.44 billion) recorded a -5.3%. Looking at the individual segments as reported by the trade press, finished leather (-9%) and leather footwear (-11.7%) are struggling. Leather accessories (+3.1%) and apparel (+17.2%) are in positive territory, but together they don’t offset the foreign turnover of shoes alone. By June, meanwhile, reports tell us that even one of the two end-use destinations that was still performing well in 2025 has stopped growing.
The state of Turkey’s leather supply chain
Indeed, according to The Sauer Report, among the sectors in greatest difficulty, alongside footwear, are leather and fur apparel: demand, especially in Europe, is said to have shrunk. This is a broader issue than outerwear manufacturing alone. In Turkey, two problems appear to be converging. On the one hand, the deterioration in raw material quality, since the share of animals imported live is said to have increased (and therefore coming from countries with farming practices that don’t comply with local standards). On the other, the country is suffering from pressure from Asian competition: rising production costs make it more expensive and, therefore, less attractive than Vietnam, China, Indonesia (or even Egypt). The result is that tanneries operating at full capacity are now increasingly rare, while small orders are growing in relevance.
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