Leather and Leather Substitute Product Manufacturing in Australia - Industry Market Research Report

Key downstream markets for the Leather and Leather Substitute Manufacturing industry are the clothing, furniture and automotive sectors. In recent years, these downstream markets have offshored their operations to take advantage of lower overhead costs. Countries like China and India have fewer regulations and source leather products nearby at competitive prices, so moving operations to these countries drastically improves companies' profit margins. Domestic manufacturers have transitioned to selling high-value products, focusing on premium hides and leather goods due to fierce competition from low-cost imports. Australian leather manufacturers rely heavily on international markets for both exports and imports. Exports are essential for the manufacturing supply chain, where manufacturers outsource a portion of leather processing to countries like China. Pandemic-related lockdowns and supply chain disruptions in global economic markets have severely disrupted the downstream vehicle manufacturing market. Vehicle manufacturers worldwide suffered from input delays, like semiconductor shortages, diminishing demand for leather interiors. Overall, industry revenue is expected to decline at an annualised 5.1% over the five years through 2023-24 to $419.9 million. This includes a current-year decline of 2.6%, largely due to developing international operations.

Industry firms primarily cut, tan, finish and dye leather and animal hides, skins and fur. Companies also produce sheepskin and slipe wool. Operators also manufacture leather or synthetic leather handbags, wallets, suitcases, saddles and harnesses. The industry excludes leather clothing and footwear manufacturing. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.