Italy’s leather sector slows the downturn and looks to 2026 with greater confidence

After a challenging 2024, Italy’s leather supply chain showed tangible signs of stabilisation in 2025. Data released by Confindustria Accessori Moda point to a gradual easing of revenue losses throughout the year, with the third quarter marking the mildest decline since the downturn began. The full-year forecast of a 3.2% contraction represents a clear improvement on the previous year, when sector revenues fell by 8.6% to just over €30 billion. Turnover is now expected to close slightly above €29 billion.

Production stabilising, still below pre-crisis levels

On the production side, the rapid economic survey highlights improved sentiment among companies. The share of respondents reporting a negative trend in output volumes fell to 50%, from 64% in the first quarter. Official Istat data confirm the trend: industrial production in leather goods and related activities declined by 11.8% in the first nine months, a figure less severe than the earlier drops.

Exports under pressure, Europe and the US holding up

Exports remain a weak spot. In the first eight months of 2025, overseas sales totalled €16 billion, down 4.1% year on year. Europe showed relative resilience (+0.4%), with Germany growing and France declining, while Asia weighed heavily on performance, particularly China (-25.1%). The United States held up in value terms (+2.6%), alongside strong growth in markets such as the United Arab Emirates and Turkey.

Employment still adjusting

In the third quarter, authorised hours of wage supplementation fell sharply (-20.5% year on year), although the cumulative figure for the first nine months remains slightly above 2024 levels. Estimates point to a 2.8% decline in the number of companies and a 2.6% drop in employment compared with the end of last year, indicating that the adjustment phase is not yet over.

Key challenges: sustainability, skills, and new markets

“The recovery is still fragile, but it is real,” said Giovanna Ceolini, President of Confindustria Accessori Moda. “Many companies continue to struggle, despite the extraordinary resilience shown by the sector.” Among the main priorities highlighted are compliance with new EU sustainability regulations, investment in skills – particularly digital and technical – and stronger internationalisation strategies. In this context, the international fashion trade fairs scheduled in Italy in February are seen as a crucial driver for the sector, supported by ICE in attracting international buyers.