Indonesia: Composition Leather Market 2024

Composition Leather Market Size in Indonesia

In 2021, after three years of decline, there was significant growth in the Indonesian composition leather market, when its value increased by 23% to $X. Over the period under review, consumption, however, showed a dramatic setback. Composition leather consumption peaked at $X in 2012; however, from 2013 to 2021, consumption remained at a lower figure.

Composition Leather Production in Indonesia

In value terms, composition leather production shrank to $X in 2021 estimated in export price. Over the period under review, production, however, showed a pronounced setback. The growth pace was the most rapid in 2015 when the production volume increased by 70%. As a result, production attained the peak level of $X. From 2016 to 2021, production growth remained at a lower figure.

Composition Leather Exports

Exports from Indonesia

In 2021, overseas shipments of composition leather increased by 62% to X square meters, rising for the third year in a row after three years of decline. In general, exports continue to indicate significant growth. The pace of growth was the most pronounced in 2019 with an increase of 4,300%. The exports peaked in 2021 and are expected to retain growth in the near future.

In value terms, composition leather exports soared to $X in 2021. Overall, exports recorded a significant increase. The pace of growth appeared the most rapid in 2019 when exports increased by 4,534%. The exports peaked in 2021 and are expected to retain growth in the near future.

Exports by Country

Singapore (X square meters), the Philippines (X square meters) and Nigeria (X square meters) were the main destinations of composition leather exports from Indonesia, with a combined 98% share of total exports.

From 2012 to 2021, the biggest increases were recorded for Nigeria (with a CAGR of +120.1%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for composition leather exported from Indonesia were Singapore ($X), the Philippines ($X) and Taiwan (Chinese) ($X), with a combined 99% share of total exports. Nigeria and Vietnam lagged somewhat behind, together accounting for a further 0.6%.

Nigeria, with a CAGR of +100.3%, recorded the highest rates of growth with regard to the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average composition leather export price stood at $X per square meter in 2021, with an increase of 15% against the previous year. Over the period under review, the export price, however, showed a abrupt setback. Over the period under review, the average export prices hit record highs at $X per square meter in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

There were significant differences in the average prices for the major foreign markets. In 2021, amid the top suppliers, the country with the highest price was Singapore ($X per square meter), while the average price for exports to Nigeria ($X per square meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Singapore (+8.9%), while the prices for the other major destinations experienced a decline.

Composition Leather Imports

Imports into Indonesia

In 2021, the amount of composition leather imported into Indonesia skyrocketed to X square meters, growing by 43% compared with the previous year. Overall, imports, however, continue to indicate a slight slump. The growth pace was the most rapid in 2017 when imports increased by 95% against the previous year. Imports peaked at X square meters in 2019; however, from 2020 to 2021, imports remained at a lower figure.

In value terms, composition leather imports soared to $X in 2021. In general, imports, however, showed a deep downturn. Imports peaked at $X in 2012; however, from 2013 to 2021, imports failed to regain momentum.

Imports by Country

In 2021, China (X square meters) constituted the largest supplier of composition leather to Indonesia, accounting for a 56% share of total imports. Moreover, composition leather imports from China exceeded the figures recorded by the second-largest supplier, Italy (X square meters), threefold. Taiwan (Chinese) (X square meters) ranked third in terms of total imports with a 9.6% share.

From 2012 to 2021, the average annual growth rate of volume from China amounted to +4.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (-8.9% per year) and Taiwan (Chinese) (+46.8% per year).

In value terms, China ($X) constituted the largest supplier of composition leather to Indonesia, comprising 66% of total imports. The second position in the ranking was taken by Taiwan (Chinese) ($X), with a 9.6% share of total imports. It was followed by Italy, with a 7.2% share.

From 2012 to 2021, the average annual growth rate of value from China stood at -1.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Taiwan (Chinese) (+43.1% per year) and Italy (-5.0% per year).

Import Prices by Country

The average composition leather import price stood at $X per square meter in 2021, increasing by 23% against the previous year. Over the period under review, the import price, however, continues to indicate a noticeable setback. The pace of growth appeared the most rapid in 2016 when the average import price increased by 61%. As a result, import price reached the peak level of $X per square meter. From 2017 to 2021, the average import prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Japan ($X per square meter), while the price for Italy ($X per square meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Italy (+4.3%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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