In the first half of 2026, driven by green transformation, digital upgrading and foreign trade restructuring, China’s leather industry has maintained steady development amid structural adjustments. The sector is steadily shifting from a global manufacturing base to a high-value industrial hub, with continuous progress in standard-setting, high-end production and domestic market expansion, while also coping with challenges including stricter environmental regulations and intensifying international competition.
In Q1 2026, the total export volume of China’s leather products stood at 1.905 billion US dollars, a year-on-year drop of 4.22%, while imports rose by 4.6% to 387 million US dollars. Market trends varied across segments: leather apparel exports surged by 54.3%, emerging as a major growth driver. The ASEAN, EU, the Middle East and Central Asia have become key overseas markets, replacing traditional markets as primary export destinations. Domestic demand remains robust, with leather products for automotive interiors, home furnishings and high-end leather goods seeing strong market momentum.
Green development has become a core direction for the industry. Policies and national standards have been rolled out to promote cleaner production. Environment-friendly technologies such as chrome-free tanning and water-based finishing have been widely adopted. China has led the formulation of multiple international standards for leather and footwear testing, gaining greater global influence.
Digital and intelligent transformation is also accelerating. Technologies including AI pattern making, 3D virtual design and blockchain traceability have been applied throughout production and supply chains, greatly improving operational efficiency. Major industrial clusters across the country have optimized their positioning, focusing on high-end manufacturing, brand operation and featured product development.
Functional leather with flame-retardant, antibacterial and temperature-control properties sees growing output. Breakthroughs have been made in bio-based tanning agents and plant dyeing technologies. Traditional leather production bases are upgrading from OEM processing to high-end manufacturing and independent brand building, and high value-added products now account for an increasing market share.
The industry still faces pressures including order diversion from low-cost regions, rising environmental costs and insufficient brand premium. Going forward, green production, digital intelligence, diversified market layout and high-end brand development will be the mainstream trends. The industry will further phase out backward production capacity, accelerate industrial integration, and strive to transform China from a major leather producer into a powerful leather industry nation.
