Saudi Arabia: Leather Market 2022

Leather Market Size in Saudi Arabia

The Saudi leather market expanded rapidly to $X in 2021, surging by 8.1% against the previous year. Overall, the total consumption indicated a notable expansion from 2012 to 2021: its value increased at an average annual rate of +3.3% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, consumption decreased by -6.9% against 2019 indices. Leather consumption peaked at $X in 2019; however, from 2020 to 2021, consumption remained at a lower figure.

Leather Production in Saudi Arabia

In value terms, leather production rose sharply to $X in 2021 estimated in export price. In general, production, however, showed a pronounced descent. The most prominent rate of growth was recorded in 2017 when the production volume increased by 13% against the previous year. Leather production peaked at $X in 2012; however, from 2013 to 2021, production remained at a lower figure.

Leather Exports

Exports from Saudi Arabia

After three years of decline, shipments abroad of leather increased by 25% to X tons in 2021. In general, exports, however, showed a deep contraction. The most prominent rate of growth was recorded in 2017 when exports increased by 70%. Over the period under review, the exports hit record highs at X tons in 2013; however, from 2014 to 2021, the exports remained at a lower figure.

In value terms, leather exports skyrocketed to $X in 2021. Overall, exports, however, recorded a drastic downturn. The pace of growth was the most pronounced in 2017 when exports increased by 27% against the previous year. The exports peaked at $X in 2013; however, from 2014 to 2021, the exports remained at a lower figure.

Exports by Country

India (X tons) was the main destination for leather exports from Saudi Arabia, accounting for a 6.8% share of total exports. Moreover, leather exports to India exceeded the volume sent to the second major destination, Italy (X tons), sixfold. The third position in this ranking was held by Portugal (X tons), with a 1% share.

From 2012 to 2020, the average annual growth rate of volume to India amounted to -26.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Italy (-25.1% per year) and Portugal (-26.6% per year).

In value terms, India ($X) remains the key foreign market for leather exports from Saudi Arabia, comprising 4% of total exports. The second position in the ranking was held by Italy ($X), with a 1% share of total exports. It was followed by Turkey, with a 0.9% share.

From 2012 to 2020, the average annual growth rate of value to India amounted to -36.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: Italy (-33.2% per year) and Turkey (-27.1% per year).

Export Prices by Country

In 2020, the average leather export price amounted to $X per ton, remaining constant against the previous year. In general, the export price showed a abrupt shrinkage. The pace of growth was the most pronounced in 2016 when the average export price increased by 16% against the previous year. The export price peaked at $X per ton in 2012; however, from 2013 to 2020, the export prices stood at a somewhat lower figure.

Prices varied noticeably country of destination: the country with the highest price was Turkey ($X per ton), while the average price for exports to India ($X per ton) was amongst the lowest.

From 2012 to 2020, the most notable rate of growth in terms of prices was recorded for supplies to Turkey (+6.0%), while the prices for the other major destinations experienced mixed trend patterns.

Leather Imports

Imports into Saudi Arabia

In 2021, approx. X tons of leather were imported into Saudi Arabia; rising by 47% against 2020. Overall, imports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 with an increase of 442% against the previous year. As a result, imports attained the peak of X tons. From 2020 to 2021, the growth of imports failed to regain momentum.

In value terms, leather imports expanded slightly to $X in 2021. In general, imports, however, saw a noticeable contraction. The most prominent rate of growth was recorded in 2014 with an increase of 71% against the previous year. As a result, imports attained the peak of $X. From 2015 to 2021, the growth of imports failed to regain momentum.

Imports by Country

In 2020, China (X tons) was the main leather supplier to Saudi Arabia, accounting for a 201% share of total imports. Moreover, leather imports from China exceeded the figures recorded by the second-largest supplier, India (X tons), twofold. The third position in this ranking was taken by Germany (X tons), with a 41% share.

From 2012 to 2020, the average annual growth rate of volume from China amounted to +53.9%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+15.6% per year) and Germany (+39.0% per year).

In value terms, the largest leather suppliers to Saudi Arabia were Italy ($X), Sudan ($X) and China ($X).

Among the main suppliers, China, with a CAGR of +49.0%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average leather import price stood at $X per ton in 2020, with an increase of 73% against the previous year. In general, the import price continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 an increase of 417% against the previous year. As a result, import price reached the peak level of $X per ton. From 2018 to 2020, the average import prices remained at a lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Italy ($X per ton), while the price for Yemen ($X per ton) was amongst the lowest.

From 2012 to 2020, the most notable rate of growth in terms of prices was attained by Sudan (+40.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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