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Leather & Leather Goods Manufacturing in Germany - Market Research Report (2013-2028)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: May 2023 WZ C15.10DE

Revenue

€700.0m

2023

€700.0m

Past 5-Year Growth

Profit

€XX.Xm

Employees

3,750

Businesses

55

Wages

€XXX.Xm

Leather & Leather Goods Manufacturing in Germany industry analysis

In Germany, the leather and leather goods manufacturing sector largely supplies the automotive, furniture and shoe industries and is thus also tied to these markets. Due to slowing economic growth, the automotive market and the market for luxury furniture upholstered in leather were already weakening in 2019. As a result, leather upholstery was much less in demand in both markets and was also partly replaced by alternative products. In 2020, demand for shoe leather also slumped, while the furniture market remained stable. In 2021, the industry suffered from further declines in demand from the automotive industry due to supply chain difficulties in car manufacturing. As a result, the leather industry had to contend with an average 6.5% decline in sales from 2018 to 2023. In 2022, however, the customer markets visibly recovered, which should also have a positive effect in 2023, which is why sales growth of 2.5%, to €700 million can be expected in the current year.

Trends and Insights

  • The automotive as well as the furniture industry are important sales markets for the leather industry. Their development is thus crucial for the success of leather manufacturers.
  • Cowhide is the most widely used leather in the world, as it is considered tear-resistant and durable. The necessary beef skin is a by-product of beef production. Since beef is a popular type of meat in Germany, a steady supply of raw hides is guaranteed.
  • Most companies in the leather industry are located in the southern region of Germany. The so-called South German raw material originating from the southern states is considered the best cowhide within Europe, which is due to the way it is kept and the type of cattle.
  • The industry players can compete with each other on the basis of the quality of their products. Likewise, the companies can benefit from economies of scale, provided that the machines for leather production are optimally utilized.
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Industry Statistics and Trends

Market size and recent performance (2013-2028)

Industry revenue has declined at a CAGR of 6.5 % over the past five years, to reach an estimated €700.0m in 2023.

Trends and Insights

The automotive market has a strong influence on leather and leather goods manufacturers

  • The automotive industry is the most important customer for leather goods, as automotive parts such as interior trim are often made of leather. Therefore, declining sales in the automotive market can have a negative impact on the sales of leather and leather goods manufacturers.
  • Additional trends and insights available with purchase
Leather & Leather Goods Manufacturing in Germany
Revenue (2013-2028)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The automotive sector remains the most important sales market for leather manufacturers

  • In Germany, the automotive sector will continue to be the most important customer for leather. It is used to cover car seats as well as high-quality interior trim for vehicles. Demand for leather therefore depends heavily on the success of German carmakers and how they will develop in the future. In the premium segment, the focus will continue to be on high-quality leather, which German manufacturers can sell at higher prices.

Biggest companies in the Leather & Leather Goods Manufacturing in Germany

Company
Market Share (%)
2023
Revenue (€m)
2023
Pangea Made GmbH
55.8
Gmelich + Söhne GmbH
15.4
Bader GmbH & Co. KG
4.2

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Leather & Leather Goods Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Cowhide and calfskin, Saddlery and Reconstructed leather from leather fibers. Cowhide and calfskin is the largest segment of the Leather & Leather Goods Manufacturing in Germany.

Trends and Insights

Cowhide and calfskin are the most popular types of leather in the automotive and furniture industries

  • Cowhide is the most widely used leather in the world, as it is considered tear-resistant and durable, and there are hardly any areas of leather use where cowhide cannot be processed.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The manufacture of leather and leather goods includes the tanning, dyeing and finishing of hides and skins for further processing in other industries, as well as the production of various finished leather goods such as suitcases, bags and saddlery. The manufacture of leather footwear and clothing does not belong to this industry.

What's included in this industry?

Products and services covered in the Leather & Leather Goods Manufacturing industry in Germany include Cowhide and calfskin, Saddlery, Reconstructed leather from leather fibers and Travel, and carry-on cases, briefcases.

Companies

Companies covered in the Leather & Leather Goods Manufacturing industry in Germany include Pangea Made GmbH, Gmelich + Söhne GmbH and Bader GmbH & Co. KG.

Purchase this report to view all 3 major companies in this industry.

Related Terms

Related terms covered in the Leather & Leather Goods Manufacturing industry in Germany include falzspäne, copper product and rawhides.

Industry Code

WZ 2008

WZ 15.1 - Leather & Leather Goods Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The automotive as well as the furniture industry are important sales markets for the leather industry. Their development is thus crucial for the success of leather manufactur...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2013-2022) and forecast (2023-2028)
  • Employees, including historical (2013-2022) and forecast (2023-2028)
  • Businesses, including historical (2013-2022) and forecast (2023-2028)
  • Profit, including historical (2013-2023)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Cowhide is the most widely used leather in the world, as it is considered tear-resistant and durable. The necessary beef skin is a by-product of beef production. Since beef i...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2023
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2023
  • Major market segmentation in 2023
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most companies in the leather industry are located in the southern region of Germany. The so-called South German raw material originating from the southern states is consider...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2023

Tables

  • Number and share of establishments in each region in 2023
  • Number and share of revenue each region accounts for in 2023
  • Number and share of wages each region accounts for in 2023
  • Number and share of employees in each region in 2023

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry players can compete with each other on the basis of the quality of their products. Likewise, the companies can benefit from economies of scale, provided that the...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2018-2023
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Pangea Made produces almost exclusively for the automotive industry, manufacturing leather for car interiors. During the pandemic, automakers faced declines in demand and sup...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2019 through 2023
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2023
  • Overview of Pangea Made GmbH's performance by revenue, market share and profit margin from 2017 through 2023
  • Overview of Gmelich + Söhne GmbH's performance by revenue, market share and profit margin from 2017 through 2023
  • Overview of Bader GmbH & Co. KG's performance by revenue, market share and profit margin from 2017 through 2023

Detailed analysis

  • Description and key data for Pangea Made GmbH, and factors influencing its performance in the industry
  • Description and key data for Gmelich + Söhne GmbH, and factors influencing its performance in the industry
  • Description and key data for Bader GmbH & Co. KG, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The chemicals used in the production of leather and leather goods must comply with the REACH directive. It regulates the registration, evaluation and authorization of chemica...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2013-2028) 
  • Assistance historical data and forecast (2013-2028) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Leather manufacturers can only keep their profit margins stable if they can pass on higher material, personnel and energy costs to their customers. The increased energy price...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2013-2028)
  • Revenue per Employee (2013-2028)
  • Revenue per Enterprise (2013-2028)
  • Employees per Establishment (2013-2028)
  • Employees per Enterprise (2013-2028)
  • Average Wage (2013-2028)
  • Wages/Revenue (2013-2028)
  • Establishments per Enterprise (2013-2028)
  • IVA/Revenue (2013-2028)
  • Imports/Demand (2013-2028)
  • Exports/Revenue (2013-2028)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2013-2028)
  • IVA (2013-2028)
  • Establishments (2013-2028)
  • Enterprises (2013-2028)
  • Employment (2013-2028)
  • Exports (2013-2028)
  • Imports (2013-2028)
  • Wages (2013-2028)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Leather & Leather Goods Manufacturing industry in Germany in 2025?

The market size of the Leather & Leather Goods Manufacturing industry in Germany is €700.0m in 2025.

How many businesses are there in the Leather & Leather Goods Manufacturing industry in Germany in 2023?

There are 55 businesses in the Leather & Leather Goods Manufacturing industry in Germany, which has declined at a CAGR of 1.7 % between 2018 and 2023.

How may import tariffs affect the Leather & Leather Goods Manufacturing industry in Germany?

The Leather & Leather Goods Manufacturing industry in Germany is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.

How may export tariffs affect the Leather & Leather Goods Manufacturing industry in Germany?

The Leather & Leather Goods Manufacturing industry in Germany is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.

Has the Leather & Leather Goods Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Leather & Leather Goods Manufacturing industry in Germany has been declining at a CAGR of 6.5 % between 2018 and 2023.

What is the forecast growth of the Leather & Leather Goods Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Leather & Leather Goods Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Leather & Leather Goods Manufacturing industry in Germany?

The biggest companies operating in the Leather & Leather Goods Manufacturing industry in Germany are Pangea Made GmbH, Gmelich + Söhne GmbH and Bader GmbH & Co. KG

What does the Leather & Leather Goods Manufacturing industry in Germany include?

Cowhide and calfskin and Saddlery are part of the Leather & Leather Goods Manufacturing industry in Germany.

Which companies have the highest market share in the Leather & Leather Goods Manufacturing industry in Germany?

The company holding the most market share in the Leather & Leather Goods Manufacturing industry in Germany is Pangea Made GmbH.

How competitive is the Leather & Leather Goods Manufacturing industry in Germany?

The level of competition is high and steady in the Leather & Leather Goods Manufacturing industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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