According to the German footwear and leather goods trade association, HDS/L, the German leather goods industry faces a challenging second half of 2024, with sales falling and both imports and exports declining, reflecting broader economic pressures.
The leather and leather goods manufacturing sector, excluding footwear and clothing, saw a significant turnover decline during the first half of the year.
From January to June, total sales were approximately €220 million, of which €99 million stemmed from the domestic market. In the same period of 2023, total sales reached €260 million, with €117 million generated domestically, marking a decline of more than 15 percent, HDS/L said.
“Many of the issues are self-inflicted: inflation, increasing red tape, and uncertainty over a flood of new regulations are impacting businesses and consumers alike,” said HDS/L’s General Manager, Manfred Junkert. “We expect the promises of streamlining bureaucracy and implementing reforms to finally lead to action.”
Despite the downturn, the number of employees in the industry remained stable, as did the number of registered companies.
In the first half of the year, around 2,800 people were employed in companies with over 50 employees, similar to the previous year, HDS/L said.
From January to June 2024, leather goods imports, excluding clothing and shoes, stood at €1.83 billion, down by 6 percent from €1.95 billion during the same period in 2023.
Over this period, Italy remained the top European leather goods supplier to Germany, with imports valued at €240 million, down by 9.1 percent from €264 million a year earlier.
Imports from Asia also decreased slightly. Imports from China stood at €782 million, down by 3.3 percent year-on-year, while imports from Vietnam dropped by 16 percent to €168 million and imports from India fell by 4.3 percent at €112 million.
German exports of leather goods, including the re-export of imported products, reached €1.24 billion in the first half of 2024, a 0.81 percent increase, highlighting the industry’s growing focus on international markets. The top two markets for German leather goods exports were Poland, up by 19 percent to €157 million, and France, down by 5.2 percent to €109 million.
