UK leather exports fall 14%, demand weakens across key sectors

The UK leather trade’s latest numbers point to a bench-level problem as much as a boardroom one: export value slid 14.08% to £159.5 million in 2025, while volumes fell only 2.14%. That gap matters to anyone buying hides, straps or finished goods, because it points to softer pricing and weaker demand rather than a simple collapse in output.

Leather UK’s 2025 industry report showed that imports were also under pressure, with import values down and import volumes falling even more sharply. In plain terms, that suggests imported material was landing at higher unit costs. For small makers, that is the kind of shift that shows up fast at the counter: fewer bargains, tighter margins and more pressure to choose between domestic stock and imported leather that may fill gaps but not necessarily at a friendly price.

The pain was not spread evenly. Raw material exports fell in value, but volumes rose slightly, which points to some appetite for lower-priced raw leather even as the overall market cooled. By contrast, the gains seen in part-processed leather exports in 2024 did not carry through into 2025. Leather UK’s sector still covers automotive, upholstery, shoe upper and sole, gloving, chamois, equestrian leather and wet blue leather, so this was not a narrow swing in one niche. It hit a specialist industry that depends on technical production and steady overseas demand.

The finished-goods side looked worse. Leather UK said handbags and wallets were the hardest hit categories, with values down nearly 25% and volumes down nearly 42%. The association linked that drop to the ongoing impact of Brexit and falling consumer confidence. That is the sort of demand shock leatherworkers feel twice: first in weaker orders, then in the sourcing choices that follow when stock moves slower and suppliers become more cautious.

The wider trade picture stayed grim. The UK remained a net importer of leather goods in 2025, with a trade deficit of just over £306 million. Leather UK has said the country exports more than 80% of its leather production and sells into more than 80 countries, which leaves the sector exposed when global pricing turns or trade frictions bite. The pattern also continued a run of weakness: in 2024, export values fell 6.7% even as volumes rose 2.3%, while imports fell 8.1% in value and 16.7% in volume.

For makers, the headline is not just a national trade number. It is a market where premium British output is still moving, but the path from tannery to bench is getting less forgiving, and imported material is likely to do more of the heavy lifting where domestic supply tightens.