The UK leather and leather goods industry endured another challenging year in 2024, with export values down and import volumes falling sharply, according to Leather UK.
However, in the UK Leather & Leather Goods Industry in 2024 report, the association noted that signs of stabilising demand and some improvements in part-processed leather trade offer cautious optimism.
The total export value of UK leather goods fell by 6.7% in 2024, continuing the downward trend from 2023. Yet export volumes rose 2.3%, indicating increased demand at lower prices. Export volumes of part-processed leather grew modestly, but prices continued to drop, suggesting ongoing market pressure.
The situation for finished leather was more concerning. Exports dropped over 30% by volume, building on a nearly 25% fall the year prior. While higher unit prices partially offset the decline in value, the sustained loss in volume is a serious concern.
Imports into the UK also declined. Overall, import values were down 8.1% and volumes dropped 16.7%. Notably, part-processed leather imports fell over 30% in both value and volume. Finished leather imports decreased by 15% in volume, signalling potential downturns in domestic leather goods production.
Imports of raw bovine hides were essentially flat, breaking from previous years of steep decline and possibly signalling a market bottom. However, raw material imports overall continued to fall, particularly for ovine sources — a trend partly attributed to the 2023 closure of Pittards.
The EU continues to dominate UK leather trade, accounting for 86% of leather imports and 39% of UK exports by value. However, overall trade with the EU dropped 14.2% in 2024. The pending implementation of the EU Deforestation Regulation (EUDR) represents a significant risk to UK-EU trade in bovine leather and raw hides. This regulation could create major compliance and documentation hurdles for UK exporters, especially those sourcing from or exporting to Northern Ireland, which is subject to EU rules.
Finished leather exports to the EU declined across all categories, with bovine leather particularly hard-hit. Still, part-processed leather exports to the EU increased in both value and volume, despite lower average prices.
In 2024, China overtook Italy as the largest market for UK raw bovine hides (HS4101), with both countries receiving over £21 million (US$28.42 million) in exports. Meanwhile, Northern Ireland remained the top raw hide exporter to the UK, a role that has grown in significance. China also sharply increased its imports of UK sheepskins, while Turkey’s intake fell dramatically; a trend which Leather UK noted is potentially linked to regional instability stemming from the war in Ukraine and broader geopolitical tensions.
The U.S. continued to play a key role in finished leather trade. It was the second largest market for finished bovine leather exports and the top destination for finished leather of other animals. Imports from the U.S., however, fell by over 50% in certain raw categories.
The UK remained a net importer of leather goods in 2024, with the trade deficit widening to £699 million (US$946.13 million) – the highest level in three years. Exports fell by 13.6% in value and over 21% in volume, while imports surged by more than 10% in value and nearly 32% in volume. Export declines were observed across all leather goods categories, particularly in items such as trunks, handbags and apparel. Imports, on the other hand, rose in every category except apparel.
The Walpole, the UK’s luxury goods association, has pointed to Brexit as a key factor behind reduced exports, estimating that EU sales are 43% lower than they would be otherwise.
While there are signs of stabilisation in some parts of the market – particularly raw bovine hide imports and part-processed leather exports – the overall picture remains difficult for UK leather manufacturers and exporters.
You can find the full UK Leather & Leather Goods Industry in 2024 report on the
Leather UK website.
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