Italy's Tanneries Face Prolonged Downturn

Italy's tanning industry continues to experience a significant downturn, now in its fourth year. In the first half of 2026, UNIC, the Italian tanners' association, reported a 6.4% decline in turnover and a 5.2% reduction in production volumes compared to the previous year. This ongoing slump is largely influenced by global geopolitical uncertainties and persistent inflation, which collectively dampen consumer spending on various products.

Overall Italian leather exports saw a 4.9% decrease in value during the same period. While a few markets like France, Portugal, Turkey, and Cambodia showed stable or positive results, major export destinations including Spain, Germany, China, and the U.S. experienced declines. The challenges are compounded as luxury brands struggle with customer loyalty after implementing significant price hikes and, in some instances, compromising on quality.

Exhibitors at the recent Lineapelle trade show noted that suppliers have found it difficult to maintain competitive pricing for their business-to-business clients. For example, one executive mentioned that while his company increased prices by only 1%, brands raised theirs by 8%, suggesting that final consumer price increases were not solely driven by raw material or processing costs. Despite these challenges, some companies within the supply chain reported performance in line with the previous year.