According to Lineapelle’s economic note, the January-March 2021 quarter was “extensively negative for the average turnover indices of tanneries, with often persistently double-digit drops”. The sharp price increases in raw and semi-finished leathers further complicated the situation, with very few exceptions.
In detail, the balance sheet of medium-large cowhides registers -8% on an annual basis, small cowhides -7% and sheep and goats -20%. The negative trend involves the rest of Europe: Germany loses a -10.5% average on cowhides, Spain -18% on sheep and goats and France a -18.3% average on all types of leathers.
Lineapelle’s economic note also outlines the picture of the intended uses of leather. The growth forecasts of the luxury segment are cautious but tend to be optimistic, with all the luxury brands returning above pre-pandemic levels. On the other side, the balance of European footwear is still in deep red, which shows widespread double-digit losses in the main producing countries, with the exception of Germany. Outside the EU, Chinese losses are attenuated, but India, Brazil and Vietnam are still decreasing. The leather goods sector appears to be less penalised than footwear, with lower overall losses and some slight increases in France which are more decisive in Germany. Although not brilliant, the upholstery segment holds well in comparison with the quarter of 2020 while the automotive sector shows a marginal recovery on the European market. France is in the lead with + 21%.