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Long valued for its durability, craftsmanship, and luxury appeal, leather remains a foundational material across industries ranging from fashion and furniture to automotive interiors and sporting goods. Even though we often associate leather with timeless style, the leather industry is undergoing significant changes.
In the United States, leather manufacturing is a relatively small but vital sector. With fewer than 900 companies nationwide, it accounts for tens of thousands of jobs and billions in annual sales. While some firms maintain traditional methods and serve niche luxury markets, others are embracing automation, digital design tools, and eco-conscious production techniques to stay competitive.
At the same time, the industry’s global footprint introduces new layers of complexity. With 25% of U.S. leather manufacturers importing raw materials and 50% distributing their finished goods internationally, the sector is highly exposed to global trade dynamics. This level of dependency means that tariffs, supply chain disruptions, and geopolitical tensions can significantly impact operations, pricing, and profitability. As a result, U.S. leather manufacturers must be both innovative and resilient to navigate an evolving market that is as challenging as it is full of opportunity.
In this article, we’ll explore the latest facts and statistics on this essential industry based on data collected by MNI and examine some key trends and innovations influencing the leather industry right now.
With a total of 869 companies, the U.S. leather industry is a relatively small and specialized field that employs over 50,000 people, according to data collected by MNI, compiler and publisher of the industrial business profiles that power IndustrySelect.Here are the latest statistics and trends in the industry:
• There are currently 869 leather & leather products manufacturers in the U.S.
• 48,951 workers are employed in the sector nationwide.
• Employment in the sector fell 1.9% in the past year.
• Average reported sales for America’s leather manufacturers stands at $23 billion
• 2% U.S. leather manufacturers are women-owned and another 1% report minority ownership.
• 50% of leather & leather products manufacturers distribute their products internationally, while 25% import raw materials.
• The South accounts for the most companies with 29%, followed by the Pacific/Mountain West with 26%. The Northeast region accounts for 24% and the Midwest 22%.
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The leather industry can be broken down into subcategories, but you should remember that many of these companies produce more than one type of leather goods.
Leather Goods
Leather goods comprise a broad category. Included are fashion accessories, sporting goods, vehicle interiors, and more.
Leather Footwear
The footwear industry has a strong demand for specialty products, ranging from full-grain leather to suede leather or nubuck leather.
Leather Gloves and Mittens
Leather gloves and mittens are popular fashion accessories. Consumers typically look for style, comfort, and quality.
Leather Luggage
Travelers seeking a luxury product often invest in leather luggage sets designed to last a lifetime.
Leather Handbags
Leather handbags are a timeless fashion staple. Handbags are a diverse subindustry in which you'll find luxury brands as well as budget-friendly options.
Leather Tanning & Finishing
Some manufacturers sell processed hides to businesses and artisans who specialize in designing and creating finished products.
The U.S. leather industry is entering a transformative stage where businesses willing to leverage technology and sustainable practices can gain a competitive edge while connecting with younger consumers.
With 25% of U.S. leather manufacturers importing raw materials and 50% distributing their finished goods internationally, the industry is highly exposed to fluctuations in global trade policy. This level of dependency means that tariffs, supply chain disruptions, and geopolitical tensions can significantly impact operations, pricing, and profitability.
Sourcing hides, chemicals for tanning, and specialty hardware from overseas often provides cost advantages, but it also introduces risk. Any disruption—from port delays to increased import duties—can cause supply bottlenecks or force companies to absorb higher input costs. On the export side, U.S. leather goods face increasing competition from lower-cost producers abroad, while trade restrictions or retaliatory tariffs can make American products less competitive in foreign markets.
To mitigate these risks, some manufacturers are diversifying suppliers, exploring domestic alternatives, or reshoring parts of their supply chain. Others are closely watching international trade agreements and lobbying for favorable trade terms to maintain access to essential raw materials and key markets. As the global trade landscape evolves, leather manufacturers must remain agile and informed to protect their margins and ensure long-term growth.
On a global scale, the leather industry could grow at a CAGR of 3.87% between 2024 and 2028. Experts believe that the U.S. will remain the largest market for these products.
The global fashion industry could grow at a rate of 2 to 4% in the next several years, but luxury goods will represent the largest share of this growth, giving leather goods makers an advantage.
Like in any other manufacturing sector, technology is transforming the leather industry. Early adopters can gain a competitive edge by building more streamlined and cost-effective processes that adapt to consumers' expectations with more flexibility.
Here are some of the key changes you should know about:
● Chromium salts are the most common material used in the tanning process, but a growing number of manufacturers are exploring biodegradable alternatives.
● Computer-aided design and generative AI are transforming the design process, allowing creatives to develop innovative products faster.
● These technologies are also opening up new possibilities in terms of customization and made-to-order products by putting design capabilities into the hands of consumers.
● Blockchain technology could transform the supply chain and allow manufacturers to track cattle hides more accurately for transparent sourcing.
● 3D printing is already making leather imprints more accessible, but future use cases could include 3D printing entire products with leather.
Consumers are increasingly considering environmental issues when making purchase decisions. As a result, innovative manufacturers are embracing new values that focus on sustainability and transparency.
This sustainable approach also allows manufacturers to connect with the growing vegan niche, an audience segment that would otherwise not consider leather goods.
Lab-grown leather is a groundbreaking technique that uses stem cells to grow animal skin. This process is much faster and more cost-effective than processing cattle hides.
Manufacturers are also exploring natural alternatives to create vegan leather, such as cork, mushroom, or recycled rubber. New competitors could appear on the market as these vegan alternatives grow in popularity, but we'll likely see established manufacturers expand their product catalog with these sustainable options.
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