Sri Lanka: Leather Market 2022

Leather Market Size in Sri Lanka

In 2021, the Sri Lankan leather market decreased by -29.7% to $X, falling for the second year in a row after two years of growth. In general, consumption recorded a pronounced decline. As a result, consumption reached the peak level of $X. From 2015 to 2021, the growth of the market failed to regain momentum.

Leather Production in Sri Lanka

In value terms, leather production stood at $X in 2021 estimated in export price. In general, production, however, enjoyed a strong expansion. The most prominent rate of growth was recorded in 2018 with an increase of 51%. As a result, production attained the peak level of $X. From 2019 to 2021, production growth remained at a somewhat lower figure.

Leather Exports

Exports from Sri Lanka

In 2021, leather exports from Sri Lanka declined modestly to X tons, reducing by -2.6% against the year before. Overall, exports showed a deep downturn. The most prominent rate of growth was recorded in 2014 with an increase of 19%. Over the period under review, the exports reached the maximum at X tons in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

In value terms, leather exports declined to $X in 2021. Over the period under review, exports saw a deep downturn. The most prominent rate of growth was recorded in 2014 when exports increased by 9.7% against the previous year. The exports peaked at $X in 2012; however, from 2013 to 2021, the exports remained at a lower figure.

Exports by Country

Pakistan (X tons) was the main destination for leather exports from Sri Lanka, with a 8.5% share of total exports. Moreover, leather exports to Pakistan exceeded the volume sent to the second major destination, India (X tons), threefold. Turkey (X kg) ranked third in terms of total exports with a 1.3% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to Pakistan totaled +23.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: India (-33.1% per year) and Turkey (+12.2% per year).

In value terms, Pakistan ($X) emerged as the key foreign market for leather exports from Sri Lanka, comprising 14% of total exports. The second position in the ranking was taken by Turkey ($X), with a 6.3% share of total exports. It was followed by India, with a 2.1% share.

From 2012 to 2021, the average annual growth rate of value to Pakistan amounted to +16.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Turkey (+7.3% per year) and India (-34.3% per year).

Export Prices by Country

In 2021, the average leather export price amounted to $X per ton, falling by -2.7% against the previous year. Overall, the export price, however, continues to indicate a slight increase. The most prominent rate of growth was recorded in 2015 when the average export price increased by 49%. As a result, the export price reached the peak level of $X per ton. From 2016 to 2021, the the average export prices remained at a somewhat lower figure.

There were significant differences in the average prices for the major overseas markets. In 2021, the country with the highest price was Turkey ($X per ton), while the average price for exports to the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Malaysia (+10.5%), while the prices for the other major destinations experienced more modest paces of growth.

Leather Imports

Imports into Sri Lanka

In 2021, approx. X tons of leather were imported into Sri Lanka; reducing by -37.3% against the previous year's figure. Overall, imports recorded a abrupt downturn. The most prominent rate of growth was recorded in 2014 when imports increased by 27% against the previous year. As a result, imports attained the peak of X tons. From 2015 to 2021, the growth of imports failed to regain momentum.

In value terms, leather imports declined notably to $X in 2021. Over the period under review, imports saw a abrupt decline. The growth pace was the most rapid in 2014 when imports increased by 14% against the previous year. As a result, imports attained the peak of $X. From 2015 to 2021, the growth of imports remained at a lower figure.

Imports by Country

In 2021, India (X tons) constituted the largest leather supplier to Sri Lanka, accounting for a 41% share of total imports. Moreover, leather imports from India exceeded the figures recorded by the second-largest supplier, Pakistan (X tons), fourfold. The third position in this ranking was held by Turkey (X tons), with an 8.1% share.

From 2012 to 2021, the average annual growth rate of volume from India was relatively modest. The remaining supplying countries recorded the following average annual rates of imports growth: Pakistan (-4.2% per year) and Turkey (+5.3% per year).

In value terms, Turkey ($X), India ($X) and Pakistan ($X) appeared to be the largest leather suppliers to Sri Lanka, together comprising 62% of total imports. These countries were followed by Japan, the United States, Brazil, Italy and the Netherlands, which together accounted for a further 23%.

Among the main suppliers, Japan, with a CAGR of +13.4%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced mixed trend patterns.

Import Prices by Country

The average leather import price stood at $X per ton in 2021, growing by 4.1% against the previous year. In general, the import price showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2018 an increase of 49%. As a result, import price reached the peak level of $X per ton. From 2019 to 2021, the average import prices remained at a lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2021, the country with the highest price was Turkey ($X per ton), while the price for the Netherlands ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Netherlands (+16.7%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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