Record Performance from the Leather and Leather Products Sector

Record Exports in Leather and Leather Goods Sector Güven Karaca, Chairman of the Board of İDMİB, reported that the leather and leather goods sector achieved USD 182.4 million in exports in December, representing a 15.3% increase compared to the same period in 2021. Karaca reported that in the previous month, exports to the top three destinations were: Ukraine with a 1,200% increase to USD 31.7 million, Germany with a 10.5% decrease to USD 12.1 million, and Italy with a 13.4% decline to USD 8.5 million. Evaluating export figures across sub-product categories, Karaca stated: "In December, our highest-exporting sub-sector was the footwear sector with USD 106.7 million. We achieved a 33.1% increase in the footwear sector compared to the same month in 2021, setting an all-time export record. Regarding other product groups in the leather and leather goods sector compared to December 2021, export values and changes were as follows: saddlery products with a 41.5% increase to USD 37.1 million, semi-finished and finished leather and processed fur with a 33.6% decrease to USD 19.1 million, and leather and fur apparel with a 16.7% decrease to USD 17.8 million. In line with these figures, footwear and saddlery product groups reached their highest December export values. While our December 2022 leather and leather goods exports increased 15.3% by value, our exports declined 8% by volume. The increase in value-based exports paired with a decline in volume-based exports indicates rising production of higher value-added products in our sector," he said.

Germany, Italy and Ukraine were the top export destinations in 2022

Güven Karaca emphasized significant export growth in 2022 figures, stating: "Our sector achieved USD 2.057 billion in exports over the January-December period with a 19% increase. Thus, the leather and leather goods sector, which set an all-time period export record, surpassed the USD 2 billion threshold, an important milestone." he said. Noting record-breaking performance in the footwear sector, Karaca stated: "We again set a record in the footwear sector with a 21.2% increase compared to the same period last year, reaching USD 1.218 billion in exports. We achieved USD 320.2 million in exports in the saddlery product group with a 32.2% increase. During the same period, semi-finished and finished leather and processed fur achieved USD 277 million with a 2% increase, and leather and fur apparel reached USD 237 million with a 12.1% increase. The top three destinations for our exports over the 12 months were: Germany, where exports increased 22.7% to reach USD 164.2 million, Italy with a 48% increase to USD 145 million in exports, and Ukraine with a 322% increase to USD 88 million in exports. Exports to EU countries reached USD 807 million with a 24.5% increase," he said.

"The major issue we must address in the leather sector is additional labor"

Gürkan Gözmen, Chairman of the Board of TDKD, reported that the sector's growth target for 2023 is 20%. Gözmen noted they are feeling the effects of recession expectations, stating: "The major issue we must address in the leather sector is additional labor. The more additional labor we can obtain, the more we can increase our exports and the number of products we can sell to markets. The bottleneck we currently face is lack of additional labor. We must undertake certain measures to increase this workforce." he said. Source