Skin of its teeth: The industry struggles as competition from substitutes intensifies

The Leather, Hide and Skin Wholesaling industry sells products derived predominantly from bovine, sheep and exotic animals, such as ostrich. The industry is highly dependent on trends and activities in downstream leather product manufacturing industries such as footwear, furniture and leather goods manufacturers. The industry is highly fragmented and comprises of numerous smaller players, with no company holding market share above 5%.Over the five years through 2018-19, IBISWorld expects operators to have endured tough operating conditions, with revenue forecast to decline at a compound annual rate of 1.8%...read more.

Industry Statistics & Market Size
Revenue
£408.3m
Annual Growth 14-19
-1.8%
Forecast Growth 19-24
Profit
Employment
1,257
Businesses
134
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Operators have had to contend with volatile leather prices and downward pricing pressures
  • British wholesalers have to compete with high-quality products sourced abroad
  • Firms focusing on the UK luxury market are expected to perform well over the next five-year period
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the industry are relatively low due to low start-up costs and limited government and licensing requirements. It is generally inexpensive to establish a new leather wholesaling company, while additional set-up costs can be minimal for new firms. These include transportation and associated costs, which can be outsourced.The level of technological change is also low. The vast majority of operators are small, local firms, with an estimated 90% of firms employing fewer than 10 people, and no firm has more than 50 employees. This suggests that investment in technology and IT infrastructure is unattractive as its benefits are limited. Lik...purchase to read more.

    Additional Insights for the Leather, Hide & Skin Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Leather, Hide & Skin Wholesaling Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Ability to control stock on hand
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Demand from footwear manufacturing and Downstream demand from manufacturing in the Leather, Hide & Skin Wholesaling industry impact industry performance..

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    What's in this report

    What is the Leather, Hide & Skin Wholesaling Industry?

    Companies in this industry wholesale hides, skins and leather. They sell these products to downstream companies, such as apparel and furniture manufacturers.

    Industry Products
  • Bovine leather - prime cattle
  • Bovine leather - adult cattle
  • Sheepskins and sheep leather
  • Exotic leathers, skins and furs
  • Industry Activities
  • Hide wholesaling
  • Skin wholesaling
  • Leather wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from footwear manufacturing
  • Downstream demand from manufacturing
  • Number of livestock slaughtered
  • Public concern over environmental issues

  • Current Performance
  • Downstream demand
  • Pricing pressures
  • Wholesale bypass and substitute products
  • Profit
  • Market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Wholesale bypass
  • Substitutes
  • Potential challenges
  • Table: Leather, Hide & Skin Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Leather, Hide & Skin Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Footwear Manufacturing
  • Office & Shop Furniture Manufacturing
  • Sporting Goods Manufacturing

  • Key Selling Industries
  • Dairy Cattle Raising
  • Tanning and Dressing of Leather; Dressing and Dyeing of Fur

  • Products & Services
  • Bovine leather - prime cattle
  • Bovine leather - adult cattle
  • Sheepskins and sheep leather
  • Exotic leathers, skins and furs
  • Other
  • Chart: Leather, Hide & Skin Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Levels of disposable income
  • Manufacturing activity
  • Consumer taste and preferences
  • Wholesale bypass

  • Major Markets
  • Footwear manufacturers
  • Furniture manufacturers
  • Handbag, wallet and other leather goods manufacturers
  • Automotive and other transport manufacturers
  • Clothing manufacturers
  • Other
  • Chart: Major Market Segmentation for the Leather, Hide & Skin Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities and depreciation Other
  • Chart: Cost Structure Benchmarking – Sector vs Leather, Hide & Skin Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Leather, Hide & Skin Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Leather, Hide & Skin Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Leather, Hide & Skin Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Full-Grain Leather
  • Hides that have not been sanded, buffed or snuffed to remove imperfections. High-quality leather furniture and footwear are often made of full-grain leather.
  • Tanning
  • The upstream processing of animal skins to make leather.
  • Vertical Integration
  • The degree of vertical integration is the extent to which a firm owns its upstream suppliers and its downstream buyers. Wholesalers are commonly owned by manufacturers or retailers.
  • Wholesale Bypass
  • The process by which manufacturers avoid wholesalers and establish direct relationships with retailers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Leather, Hide & Skin Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Leather, Hide & Skin Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Leather, Hide & Skin Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Leather, Hide & Skin Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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