The 2026 Asia Pacific Leather Fair (APLF) concluded in Hong Kong on March 14th. Despite being the smallest in recent years, this year's exhibition, as a core industry exchange platform, signaled that: geopolitical conflicts continue to escalate, the global leather supply chain is facing high uncertainty, and the industry shows no clear signs of recovery in the short term.
I. Multiple Risks Overlap, Industry Under Pressure
The global trade environment remains volatile due to factors such as escalating tensions in Iran, fluctuating US tariffs, and prolonged conflicts in the Middle East and Ukraine. Rising energy prices further dampened consumer spending on non-essential consumer goods such as leather products. Coupled with three consecutive years of declining global finished leather sales and bottoming out of raw material prices, the industry as a whole is in a slump.
II. Exhibition Signals: Weak Short-Term Recovery, Strong Asian Demand
While APLF was considered a bellwether for industry trends, no significant signs of improvement in the global trade environment were observed during the exhibition. However, the Asian market demonstrated strong resilience: Asian buyers were significantly more active than their European counterparts; buyers from South Korea, Vietnam, and Indonesia showed strong interest in finished leather; and demand for leather raw materials and wet blue leather remained stable in mainland China.
Meanwhile, a structural recovery emerged in the market: driven by rising prices for high-density wool varieties, demand and prices for sheepskin and lambskin rebounded in tandem, becoming a bright spot in the industry.
III. Industry Voices: Cautiously Optimistic, Focusing on Asia
Letizia Luft, manager of the Brazilian Leather Industry Center (CICB), stated after a survey at the exhibition that most exhibitors were satisfied with the buyer inquiries. Despite concerns about geopolitical conflicts and travel disruptions for some exhibitors, demand from the Asian market (especially mainland China) provided crucial support for industry confidence.
Currently, South Asia and Southeast Asia have become the most active regions for global leather and leather products manufacturing. Against the backdrop of global supply chain uncertainty, cultivating the Asian market and grasping regional demand is becoming an important strategy for leather companies.
