Today, with more than two thousand years of history, the tanning industry in Europe represents a strategic segment of the manufacturing sector, thanks to the combination of tradition and continuous innovation.
European leather leads in terms of quality, technology, innovation, productivity of the processing cycle, environmental performance and social accountability, design and style. Adding to that the beauty and appeal of European leather which is internationally recognized, all these features are an integral part of the success story of EU tanners.
The sector has traditionally been composed mainly by small and medium enterprises, but big multinational companies have not been missing. The average size of an EU tanning company is currently 21 employees and it is important to notice that the rate was 24 in the year 2000. This tendency seems to support the slogan "Small is beautiful", suggesting that those companies have been better in reacting to the big changes that the industry had to face since the beginning of the new millennium.
At national level European tanneries present different characteristics, depending on their productive specialization. The most important tanning sectors of southern Europe, such as Italy, Spain, France and Portugal, are mainly composed by small and medium enterprises and they are mostly specialized in the production of leather for the fashion industry. Such leather often needs an artisanal approach that big companies are not always able to provide. Conversely, the tanning sectors of central and northern Europe (Austria, Netherlands, Germany, Sweden, UK) present higher average dimensions of companies as scale economies play a key role for their productions.
The European leather production has always been characterized by its capability of processing the hides and skins of all the main animal typologies and of serving customers in all the main manufacturing applications. Europe's main output is bovine leather, accounting for over 80%, followed by sheep and goat leather. As a matter of fact, about 99% of the EU leather production constitutes the recycling of animal by-products, residues of the meat industry. Complementarily, the niche of exotic leather concerns a tiny share in terms of square meters (about 1% of the total) but it is quite relevant in terms of value. Such leathers are highly requested by clients of the luxury segment.
The principal destination use of leather has traditionally been the footwear sector, that is still the first client with a 38% share on the total. Nevertheless in recent years, other important destinations increased, such as leather goods (22%) and car interiors (13%).
Quality means value; EU tanners supply the top ranges of the market segments in all the main specializations and uses. Europe's share in the supply of clients in the top and high-end segment is 25% of total, followed by medium-to-high (34%).
Moreover, the use of European leathers acts as a driving force in the creation of value downstream. Its almost 8 billion Euro worth of leather generates a turnover of around 125 billion Euro for its customers, creating business and employment for over 40 thousand companies and 2 million people.
