Leather goods boost French leather industry but footwear and upstream sectors decline

Leather goods continued to drive overall growth in the French leather industry in 2025, with revenue of 6.14 billion euros, according to the economic report from Alliance France Cuir. In contrast, the upstream and footwear segments experienced significant declines in both value and volume amid new market dynamics.

Upstream in the industry, companies that collect and trade raw hides and skins are facing a widespread reduction in controlled slaughter. Unsurprisingly, this contraction in raw material supply has a direct impact on the business of the sector’s 73 companies, whose revenue fell by 4% to 259 million euros. Their average annual workforce remains just below the 500-employee mark.

For its part, the tanning and leather processing industry recorded a sharp decline in revenue, which plunged by 13% to 369.3 million euros. The 32 companies in this industrial sector employ a total of 1,332 people, a figure that is itself down from the previous fiscal year.

The Alliance also notes that French production shows divergent trends, with a 4% increase in finished bovine and calf leathers to 2.4 thousand metric tons, while finished sheep, goat, and exotic hides fell to 2.7 million pieces.

For its part, the footwear sector is experiencing turbulence, with domestic production falling to 10.1 million pairs. Revenue logically followed this downward trend, declining by 8.5% to reach a peak of 557.4 million euros.

This industry still relies on 84 companies and 3,208 employees, mainly concentrated in the Nouvelle-Aquitaine region, which alone generates 31% of the sector’s revenue. Above all, this sector could benefit from the growing popularity of dress shoes, as noted in particular by the IADS, the International Association of Department Stores. 

Leather goods as the driving force

As for leather goods, the outlook remains positive, with a 4% increase in revenue. This segment plays a major role in the sector’s economy and accounts for 86% of the industry’s total workforce, with 32,040 employees spread across 381 production facilities. Strong export performance, totalling 12.49 billion euros, reinforces the financial health of these companies.

This growth is highly concentrated, as the 49 largest companies- those with more than 200 employees- account for 91% of revenue and 80% of jobs. Production is largely dominated by the manufacture of handbags, which generates €4.72 billion in revenue for a total of nearly 17 million units produced.

The Île-de-France region remains the nerve centre of this market, home to one-fifth of the companies and accounting for 61% of total value. The sector’s regional presence also extends to the Auvergne-Rhône-Alpes, Nouvelle-Aquitaine, Provence-Alpes-Côte d’Azur, and Occitanie. Manufacturers are thus entering the coming months with a solid regional network to meet international demand, which required 4.45 billion euros in imports in 2025.

The monograph prepared by the Alliance France Cuir, along with its analyses focused on tanning and leather processing, footwear, and leather goods, are available on the confederation’s website.