Exports of the UK leather industry have almost reached pre-COVID levels. The total value of exports of £232.63 million in 2022 was up by 14.56% and almost matched the pre-COVID numbers of £234.68 million in 2019.
The statistical indicators come from Leather UK's latest report UK Leather & Leather Goods Industry in 2022.
A look at the Numbers: The rise in 2022 exports was solely based on increased demand for finished leather, with export volumes up by 12.72% and values by 41.02%, and in spite of falls in the values and volumes of raw materials and part-processed leathers.
- Imports showed a similar pattern, up 17.69% year-on-year at £146.92 million, and exceeding
pre-COVID levels (£129.26 milion in 2019). - Imports of part-processed leathers increased dramatically in both value and volume, while finished leather imports increased in value but fell in volume, possibly suggesting per unit increase in price for finished leathers balanced by falling demand.
- However, there was a significant fall in raw material imports, largely associated with bovine hides; these fell by 70.73% and 55.60% in value and volume, respectively.
- Export markets for raw materials remained concentrated with the five largest markets, accounting for over 90% of the value of trade in each raw material category.
- As in previous years, Italy and China were by far the most important markets, accounting for over 78% of exports of bovine hides albeit slightly reduced from 2021 (81%).
- China and Turkey continued to be the largest export destinations for bovine skins, taking nearly 84% of exports on a value basis. While volumes remained largely unchanged, the value of bovine exports grew by 16.70%.
- Imports were also dominated by the five largest sources The Northern Ireland and the Republic of Ireland remained the largest source of bovine raw materials accounting for 82.69% of the value of total imports, but down from over 96% in 2021.
- The total values for both imports and exports of raw materials decreased markedly in 2022, compared to 2021.
- Overall, the value and volume of UK finished leather exports in 2022 increased by 41.02% and 12.72%, respectively, compared to 2021. The USA and Romania remained the top two destinations for finished bovine leather.
- The value of UK finished leather exports increased by over 41%, a near full reversal of the fall in 2021, largely due to a 44% fall in the value of finished bovine leather exports as UK leather exports continued to be dominated by bovine leather.
- In 2022, the UK was again a net importer of leather goods. The trade deficit increased in 2022, compared to 2021, up to £498 million (cf. £314 million in 2021).
- The value of leather goods exports in 2022 was £514.47 million (up 2.66% over 2021) as against imports of £1013.11 million (up 22.26% over 2021)
- Export values increased for almost all the HS codes considered, with the exception apparel, in spite of falling volumes for several product categories.
- Overall export value was up by 2.66%, against a fall in volumes of 5.01% Imports also grew in value and volume. However, the increase in value far outstripped that in volume, possibly due to inflationary changes.
