31 August 2026
China Leather Industry H1 2026
Economic Performance, Structural Change and Market Outlook
Executive Summary
China’s leather industry faced significant pressure in the first half of 2026 amid weak global demand, raw-material price volatility and a complex external environment. Key enterprises recorded sales revenue of nearly RMB 330 billion, down 5.0% year on year. Exports declined 5.4% to US$40.9 billion, while imports rose 4.9% to US$7.9 billion.
Performance varied across segments. Tanning and footwear remained under pressure, while leather garments recorded strong growth. Raw hide and skin imports increased, but imports of semi-finished and finished leather declined. Looking ahead, the industry is expected to remain broadly stable but increasingly differentiated, with continued pressure on profitability and a stronger focus on higher-value, smarter and greener development.
Li Yuzhong (left), Chairman of the China Leather Industry Association, and Chen Zhanguang (right), Vice Chairman of the China Leather Industry Association, at the 2026 All China Leather Exhibition (ACLE).
Key Indicators
| Indicator | H1 2026 | YoY |
| Leather industry key-enterprise sales | Nearly RMB 330 bn | -5.0% |
| Industry exports | US$40.9 bn | -5.4% |
| Industry imports | US$7.9 bn | +4.9% |
| Tanning key-enterprise sales | Nearly RMB 21 bn | -12.8% |
| Light leather output | 140 million sq m | -6.5% |
| Leather footwear output | 970 million pairs | -7.6% |
| Leather garment key-enterprise sales | RMB 2.9 bn | +25.5% |
| Travel goods & luggage key-enterprise sales | More than RMB 42 bn | -5.3% |
1. Industry Overview
In the first half of 2026, the industry came under significant pressure amid weak global demand, fluctuations in raw material prices, and a complex and rapidly changing external environment. According to statistics, key enterprises in China’s leather industry recorded sales revenue of nearly RMB 330 billion, down 5.0% year on year. The industry’s exports totalled US$40.9 billion, down 5.4%, while imports reached US$7.9 billion, up 4.9%.
2. Tanning
Key tanning enterprises nationwide recorded sales revenue of nearly RMB 21 billion, down 12.8% year on year. Light leather output reached 140 million square metres, down 6.5%.
| Trade | Volumn | Value | YoY change |
| Raw hides and skins | 749,000 tonnes | US$600m | +7.0% volume / +2.9% value |
| Semi-finished leather | 295,000 tonnes | US$400m | -5.9% volume / -14.8% value |
| Finished leather | 18,000 tonnes | US$270m | -2.2% volume / -5.0% value |
3. Footwear Manufacturing
Key footwear enterprises nationwide recorded sales revenue of more than RMB 200 billion, down 6.1% year on year. Key enterprises producing leather footwear manufactured 970 million pairs, down 7.6%.
| Trade | Volumn | Value | YoY change |
| All footwear exports | 4.29 bn pairs | US$19.83 bn | -4.6% volume / -8.6% value |
| All footwear imports | 70m pairs | US$2.58 bn | -17.3% volume / -2.3% value |
| Leather-upper footwear exports | 240m pairs | US$3.28 bn | -3.3% volume / -8.7% value |
| Leather-upper footwear imports | 20m pairs | US$1.10 bn | -14.7% volume / -2.0% value |
4. Leather Garments
Key leather garment enterprises recorded sales revenue of RMB 2.9 billion, up 25.5% year on year. Exports reached US$68.68 million, up 41.4%, while imports reached US$64.76 million, up 31.3%. Leather garments were one of the strongest-performing major segments in the first half of 2026.
5. Travel Goods and Luggage
Key enterprises in travel goods and luggage recorded sales revenue of more than RMB 42 billion, down 5.3% year on year. Exports reached US$15.48 billion, down 3.1%, while imports rose 13.6% to US$2.88 billion.
6. Market Environment: Challenges and Opportunities
Macroeconomic backdrop
China’s GDP grew by 4.7% year on year in the first half of 2026. Domestic economic recovery and policies to boost consumption and stimulate domestic demand provide support for the leather industry. At the same time, geopolitical conflicts, weak global economic recovery, international trade frictions and overseas tariff barriers continue to constrain exports, while energy-price volatility and rising raw-material costs add pressure to business operations.
The industry is also expanding its global footprint. Cross-border e-commerce and overseas warehousing are developing rapidly, while China’s complete industrial system continues to support stable industry performance.
Changing consumer demand
Consumer demand has moved beyond volume-driven growth towards higher quality, greener development and greater differentiation. Younger consumers, Chinese cultural trends, green and low-carbon consumption and the expanding silver economy are reshaping the market. Demand is also increasing for personalised and premium products, as well as small-batch, fast-response and customised orders across footwear, bags, leather garments and fur garments.
Industrial transformation
The industry is accelerating its shift towards higher-end, smarter, greener and more integrated development. Products are moving beyond low-end contract manufacturing towards higher value-added offerings and stronger proprietary brands. AI and end-to-end digitalisation are increasingly supporting R&D, production and marketing, while cleaner production and low-carbon processes continue to expand.
7. Market Outlook
The long-term fundamentals supporting China’s leather industry remain positive, with the country’s very large domestic market providing a core foundation for high-quality development. Short-term pressures nevertheless persist. Production, sales and exports are expected to remain at low growth levels throughout 2026, while corporate profitability will continue to face pressure.
Looking ahead, the industry will place technological innovation at its core, deepen brand building and design R&D, and accelerate the development of new quality productive forces to support steady, high-quality development.
ACLE to Unite China’s Leather Industry
Despite Economic and Geopolitical Headwinds
The 25th edition of ACLE takes place from 3–5 September 2025 at the New International Expo Centre (SNIEC) in Shanghai. The fair occupies seven halls, covering 80,500 square metres, and hosts around 1,000 exhibitors from both China and overseas.
Exhibitors represent 27 countries and regions, supported by 17 national pavilions including Australia, Brazil (2), China (Fuxin, Haining, Pingyu, Wuji, Xinji, Susong, Zhaoyuan, Guanghe), France, Italy, Pakistan, Spain, Taiwan and Uzbekistan.
ACLE remains China’s leading leather industry event. Visitors can source everything from raw hides to finished leather, specialist chemicals, and manufacturing components. The fair covers the tanning, footwear, fashion accessories, automotive, and furniture sectors. It offers a premier platform for tracking global sourcing trends and meeting top suppliers.
This year’s build-up has been overshadowed by uncertainty stemming from the US “reciprocal tariff” policy. These measures have dented confidence in global trade, leather included. Yet ACLE’s organisers, APLF Ltd and the China Leather Industry Association (CLIA), stress that the show has navigated crises before. Since its 1998 launch it has weathered the 2000 dot-com crash, the 2008–2009 financial crisis, the collapse in hide prices, and the post-pandemic market turbulence when it returned in 2023.
The fair’s track record breeds confidence that ACLE will endure the current tariff war and continue serving the leather industries of China and Southeast Asia.
Economic backdrop
Since 2 April, when President Trump announced sweeping import tariffs on all US trade partners, commercial activity has been disrupted. This has slowed production planning in apparel, leather, leather goods, and footwear.
Both industry and consumers are adjusting to this “new reality”. The following table gives a snapshot of key economic indicators for major consumer markets:
| Economic Data June / July 2025 |
| Selected Countries/ Regions | Population | GDP | Manufacturing PMI | Consumer |
| China | 1.4 bn | +5.4 | 49.7 | +86 |
| Euro Area | 450 mln | +1.5 | 49.5 | -0.78 |
| ASEAN | 672 mln | +4.4 (Q1) | 49.2 | Mixed |
| USA | 335 mln | +2.0 | 52.9 | 60.7 |
| India | 1.5 bn | +7.4 | 58.4 | 95.4 |
Sources: Trading Economics, S + P Global
Asian economies are performing better than those in the West. China’s GDP growth in the second quarter of 2025 was confirmed at 5.2 per cent. This reinforces its position as ACLE’s main growth market.
Leather demand in China
The US has traditionally supplied Chinese tanneries with raw, wet-salted, and semi-finished hides. Tariffs have made these imports uncompetitive, opening the door for other exporting nations.
The CLIA half yearly report for 2025 indicates that China’s imports of raw hides and semi-finished leather slowed in this period due to weaker domestic and international demand for leather products.
However, Leatherbiz Market Intelligence (22 July) notes continued investment in raw materials, with an emphasis on lower-priced hides. Prices are at record lows due to oversupply, enabling China to secure materials cheaply.
In H1 2025, China imported:
- 707,000 tons of raw hides, an decrease of 6.2% from the last year. Such imports amounted to US$ 580 million, decreasing by 16.4% over the previous year
- Import of semi-finished leather were 313,000 tons in quantity, and US$ 470 million in value, up by 1.7% and down 10.8% respectively over the previous year.
- Import of finished leather were 18,000 tones in quantity, and US$ 280 million in value, down by 16.5% and 19.2% respectively over the previous year.
Despite fluctuating demand in H1 2025 due to external circumstances, China remains Asia’s main importer of leather of all types offering ample export opportunities to other leather producing nations.
China’s booming vehicle market
CAAM reports total vehicle sales in H1 2025 rose 11.4% to 15.65 million units. NEV sales surged 40% to 6.94 million units. June saw the year’s highest sales, driven by EV demand and competition between brands such as BYD and Geely. Passenger car sales are up 18.6% year-on-year and 13.9% month-on-month.
In both 2023 and 2024, sales surpassed 31 million units. Midway through 2025, this record is likely to be broken. Around 20–25% of new vehicles are fitted with leather seating, equivalent to 6–7 million units annually. This, along with furniture and upholstery, remains a strong driver of leather demand.
Ancillary and parallel events
ACLE 2025 will be supported by conferences, seminars, workshops, and fashion shows. These sessions, open to all, feature industry experts offering insights that can guide strategic decisions.
This year, the third edition of the International Tanning Industry Executive Summit will be held on the afternoon of Day 1 of ACLE on the Main Stage. Presentations will be made on the leather industries of China, USA, Brazil, Pakistan with a special contribution from the World Wildlife Fund (WWF).
The complete Event Agenda, with date, time and location, can be viewed on the fair’s web site: www.aclechina.com.
CLIA is also launching Moda China, run alongside ACLE, aimed at Chinese footwear brands and OEM suppliers. The crossover of visitors is expected to bring greater traffic and business opportunities to both shows.
Additionally, the UITIC Congress for footwear manufacturers and technicians was successfully held in Shanghai. Delegates will also visit ACLE and Moda China.
This press release can be read in conjunction with the CLIA report on H1 activity in China’s leather sector that will also be presented during the press conference.
The 2026 edition of ACLE will be held at the Shanghai International Exhibition Centre (SNIEC) from 1 – 3 September 2026. For more information, please visit www.aclechina.com