The Turkish leather and leather products sector has seen a significant decline, with exports falling by $530 million over the past three years, from $2.06 billion to $1.53 billion. Meanwhile, imports surged from $1.81 billion to $2.42 billion, turning a $245 million trade surplus in 2022 into an $895 million deficit by the end of 2024.
Speaking at a press conference at the Aegean Exporters’ Association, Erkan Zandar, President of the Aegean Leather and Leather Products Exporters’ Association, highlighted the severe downturn across all sub-sectors, including footwear, leather goods, finished leather, and leather garments. “We have regressed to the export levels of seven years ago,” Zandar stated.
Exports Plummet Across All Sub-Sectors
In 2024, Turkish leather exports dropped 18% compared to the previous year, falling to $1.53 billion. The footwear sector was hit hardest, with exports declining by 22% to $877 million. The footwear sub-industry also suffered major losses—38% nationwide and 44% in the Aegean Region.
Other key declines include:
- Leather and fur garments: Down 18% to $193 million
- Leather goods: Down 12% to $239 million
- Finished leather and fur: Down 3% to $214 million
The industry’s struggles have also impacted employment, with a 25% decline in the last quarter of 2024.
Currency Policy Worsens Export Conditions
Zandar pointed to Türkiye’s economic policies as a key factor in the sector’s decline. He noted that while inflation surged by 45% in 2024, the Turkish lira’s devaluation against the dollar was only 20%, making Turkish exports significantly more expensive. “If the exchange rate had kept pace with inflation, the dollar should be at 52.3 TL today. This would have allowed us to maintain our export levels,” he said, adding that current policies are driving up imports while reducing Türkiye’s export competitiveness.
Hope for Recovery and Industry Resilience
Despite these challenges, Zandar expressed support for the 10% additional customs duty on footwear imports introduced on December 31, 2024, calling it an opportunity for local manufacturers. He also emphasized that unlike other textile and apparel sectors that have moved production to countries like Egypt, the Turkish leather industry remains committed to domestic production.
“To survive, we must increase efficiency and reduce production costs from 62% to 50-55%, and eventually to 40%,” he said. “We aim to enter 2025 and 2026 with a stronger, more sustainable production strategy.”
Call for a Leather Industrial Zone in İzmir
Halil Gündoğdu, Vice President of the Aegean Leather and Leather Products Exporters’ Association, called for an organized industrial zone in İzmir to strengthen the sector’s export potential and competitiveness under the European Green Deal framework.
Meanwhile, board member Mustafa Arıoğul warned that 2025 would be particularly tough for leather garment producers, as rising costs continue to pressure businesses. “For the last three years, we’ve had to increase prices continuously. Now, we’re trying to hold prices steady to retain customers, but 2025 will be a very challenging year,” he stated.
With rising competition and economic pressures mounting, Türkiye’s leather industry faces an uphill battle. However, industry leaders remain determined to adapt and sustain their presence in global markets.
