S. America (June 02, 2002) - Leather is in fashion again, according to Andres Galperin, of South American tanner Sadesa with an annual 19 billion square foot demand. The main outlet is footwear which takes some two-thirds of supply followed by upholstery, clothing and leathergoods. Upholstery is the fastest growing sector. Interestingly, no one leather supplier controls more than 1.5 per cent of the total market.
Most leathers derive from bovine stock (64 per cent) followed by sheep (16 per cent), pig (11per cent) and goat (8 per cent). Availability of hides and skins increased by an estimated 14 per cent in the last decade and the growth rate for this decade is estimated at 18 per cent.
    Mr Galperin noted the steadily increasing importance of Asia in the global leather industry which consumes 62 per cent of global availability but currently only produces 52 per cent. Asia is therefore a net importer of leather but China is significantly increasing its production capacity to meet "local" demand.
Many Western and other tanners have established production capacity in Asia to service more effectively their clients. Among them is Sadesa who supply upper leather to major US footwear brands manufacturing in Asia. Indeed, 65 per cent of Sadesa's leather is used in Asia.
    It is why the company has set up two tanneries in Thailand in recent years and will be bringing on stream a new tannery in China this summer.