title: “Italian Leather Industry Revenue Falls 6.4% in First Half of 2026” seo_description: “Italy’s tanning industry saw turnover fall 6.4% and production volumes drop 5.2% in the first half of 2026, extending a nearly four-year negative trend, with tanned leather exports down 4.9%.” seo_tags: [“Italian leather”, “tanning industry”, “Lineapelle”, “leather exports”, “Italy”, “market insights”] seo_slug: “italian-leather-industry-revenue-falls-6-4-percent” source_url: “https://leathernews.org/italian-leather-industry-revenue-falls-6-4-in-first-half-2026-due-to-geopolitical-uncertainty-and-inflation/”

Italian Leather Industry Revenue Falls 6.4% in First Half of 2026

Italy’s tanning industry recorded a 6.4% decline in turnover and a 5.2% fall in production volumes in the first half of 2026 compared with the same period last year, according to the latest Market Insights Report by Lineapelle. The findings confirm that the negative trend affecting the Italian tanning sector — and the wider international leather supply chain — has now continued for almost four years.

The weakness is linked chiefly to a difficult and uncertain global geopolitical situation and to continued inflation, both of which have eroded the purchasing power of consumers worldwide, particularly for fashion, furniture and automotive products. Italian exports of tanned leather also declined, falling 4.9% in value against the first half of 2025.

Among Italy’s 20 main export destinations, only four recorded no decline. Exports to France increased 8%, consolidating its position as the leading market for Italian leather exports, while Portugal remained stable. Türkiye rose 2% and Cambodia posted a striking 40% increase. Elsewhere the picture was broadly negative: Spain fell 4%, Vietnam 8%, Germany 2%, Romania 13%, China 8% (including Hong Kong), the United States 1%, Tunisia 11%, Serbia 14%, Albania 3%, Poland 21%, the UK 6%, South Korea 5%, India 20%, Hungary 21%, Slovakia 5% and Mexico 6%.

The report said performance across individual segments and production districts of the Italian tanning industry also remained broadly negative through the half. One of the few positive developments was an improvement in the quarter-on-quarter trend during the second quarter compared with the first quarter of 2026 — a hint that the rate of decline may be moderating even if recovery remains distant.

The data underscores the structural headwinds facing European leather producers: soft end-market demand, competition from lower-cost origins, and the lingering effects of inflation on discretionary spending. For Italy, whose tanneries are among the most prestigious and technically advanced in the world, the challenge is to defend premium positioning and specialisation — automotive, luxury leather goods, and high-end footwear — while waiting for demand to return.

Lineapelle’s own trade fair, held in mid-September, drew record international attendance, suggesting buyers are still investing in relationships and materials even as balance sheets tighten. Whether that translates into a genuine turnaround for Italian tanning in the second half will depend largely on macro conditions beyond the sector’s control.

Source: Leather News (leathernews.org), reporting on the Lineapelle Market Insights Report.