Natural leather is the skin that is peeled off from the animal body, that is, the rawhide has undergone a series of physical, mechanical and chemical treatments to become chemically resistant (acid, alkali, salt, solvent, etc.), bacteria, and mechanical strength. Substance, referred to as leather for short. Natural leather has the advantages of softness, wear resistance, high strength, high moisture absorption and water vapor permeability (comfort) due to the chemical properties of collagen itself and the intricate woven structure formed. The leather production process is relatively cumbersome. The process from raw leather to leather can be roughly divided into three stages: preparation, tanning, and finishing.
The Market Status and Prospect Forecast of the Natural Leather Industry
Natural leather can be divided into cow leather, pig leather, sheep leather, etc. according to the raw material skin. As of 2019, the market share of cowhide is 61.26%; the market share of pigskin is 20.33%; the market share of sheepskin is 14.87%. Leather products have been favored by people for hundreds of years, and are enduring for a long time. They are widely used in furniture, automobiles, clothing and other industries. With the improvement of people's quality of life, people's demand for leather products will increase, but natural leather products are usually expensive, and the low-end market penetration rate of leather products is not high. With the rapid economic development, the number of cars in various countries is increasing year by year, and many car owners will choose to buy cars with better quality natural leather seats. In recent years, new energy vehicles have developed rapidly, and many countries have adopted a lot of subsidy policies for the purchase of new energy vehicles. In the future, it is expected that the proportion of natural leather consumption in automobiles will increase.
With the development of social science and technology, artificial leather technology has become more mature, and the quality of products has been greatly improved. Especially in terms of artificial leather, it can be fake and real, and it is similar to natural leather in many aspects such as breathability, flexibility, feel and appearance, and the price It is far lower than natural leather. For ordinary consumers, although artificial leather cannot truly match natural leather in terms of air permeability and comfort, artificial leather is more cost-effective, and the low-end market for leather products is almost completely monopolized by artificial leather. As artificial leather is a petrochemical product, it is difficult to degrade naturally and has serious environmental pollution. In recent years, the global economic green development momentum has been rapid. Many countries have completed the transformation of high-quality production and manufacturing, resulting in serious development of inferior artificial leather. Blocked. And with economic development, people’s quality of life has been greatly improved. Many businesses have abandoned artificial leather to meet consumer demand. The natural leather market has developed rapidly, with a market value of 7.247 billion U.S. dollars as of 2019. For consumers, the biggest drawback of natural leather is that it is expensive. Animal skins are expensive. In 2019, the cost of raw materials accounted for 74.07% of the total manufacturing cost.
Natural leather was once referred to as "soft gold" during its heyday. Many luxury brands at home and abroad used natural leather for their luggage, shoes and clothing. Many brands' main natural leather hand-stitched products are highly regarded. Sought after. A bag of a top luxury brand has even been fetched to millions of prices. The prosperity of the downstream market of luxury goods has brought huge demand and capital to the natural leather market, which has greatly promoted the development of the natural leather industry. The high prices are beyond the reach of ordinary consumers in most developing countries with underdeveloped economies, and consumers of these luxury goods are mostly concentrated in developed countries such as North America and Europe. As of 2019, the market share of North America is 37.41%; the market share of Asia-Pacific is 22.03%; the market share of Europe is 17.58%.
With the rapid development of China's economy and the continuous improvement of people's purchasing power, it has now become a very potential luxury consumer market. At present, China is already the second largest leather grassland material production area after Europe, and it is also the largest fur retail market and the largest processing market. For developed countries in Europe and the United States, fur has been linked to animal protection in recent years, and the anti-fur movement has become more and more fierce. Many countries have initiated legislative proposals banning the trade of animal fur to prohibit fur trade. This is a fatal blow to the fur industry in developed countries in Europe and the United States, Which directly led to the slowdown in global natural leather growth, and the western fur market began to decline in 2012.
The Impact of COVID-19 on the Natural Leather Industry
In 2020, the new crown pneumonia epidemic is raging around the world, the economic situation is complex and severe, and the uncertainties of instability have increased. The impact on the fur industry also involves all major links and all entities in the industrial chain. In order to prevent cross-infection during the epidemic, different countries have carried out rounds of lockdowns and home quarantine around the world. People’s social activities are basically zero, and the use rate of leather products as non-essential daily necessities has been greatly reduced. Market supply and demand have generally decreased. Moreover, due to the control of the epidemic, trade has been stagnated or slowed down, import and export and logistics have also encountered difficulties, and most natural leather companies are facing the problem of supply chain disruption. After the epidemic, the fur industry will be on the road to recovery in the global economy.
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