After the decidedly unfavourable results of 2024, 2025 also closes with negative signs in the main variables, albeit with less marked declines due to the slowdown recorded in the second half of the year. The usual sample survey conducted by the Confindustria Accessori Moda Research Centre among companies associated with Assopellettieri shows, in fact, an average contraction in turnover of around -2.2% in the third quarter compared to the same period in 2024. This trend is undoubtedly less penalising than those of the first two quarters of the year (-7.7% and -6.0% respectively) . The cumulative figure for the first nine months shows a -5.3% decline in turnover, which initial forecasts for the end of the year place at around €11.4 billion for the entire sector, down -4.5% on 2024 (almost €540 million less).

EXPORTS

Starting with exports, which accounted for over 85% of the sector’s turnover in 2024, in the first eight months of the year (the latest period for which disaggregated data is available at the time of writing), leather goods worth €6.34 billion were sold abroad (down 7.6% on the same period in 2024) for 42.3 million kg (down 5.2%). As usual, these figures include both cross-border sales of goods manufactured in Italy and the pure marketing of previously imported items.

The average price per kg of exported goods stood at €149.85 (-2.5%), continuing the decline already seen in 2024, which indirectly shows how even products in the higher price ranges are suffering from the current economic situation.  Preliminary figures for September exports show an increase in value of just over 3% for leather goods compared to the same month in 2024, with a cumulative figure for the first nine months of around -6.5%, an improvement of one percentage point compared to the first eight months.

An examination of destinations confirms the less penalising trend of EU markets (-2.7% in value and -4.2% in KG) compared to non-EU markets, which instead show declines of around -10% in value (with -7.2% in KG) and, above all, are still significantly below (-23.3% in value) of 2019 levels.

Among EU partners, Germany stands out for its dynamism (+15.5%), ranking fifth in terms of value, while France (the largest market, whose figures also include production flows from Italian leather districts for French luxury brands) appears to be struggling (-3.2% compared to January-August 2024).  The other main EU members show more negative performances: while Spain limits its losses to -5.9%, for Poland, the Netherlands, Austria, Greece and Romania, i.e. the others in the top 25, the declines exceed -10% in value.

Even outside the EU, trends are rather mixed. Double-digit increases in exports were seen in the Middle East (+13.2% overall, thanks to the brilliant results achieved in the United Arab Emirates, +19.4%, and Qatar, +35.4%) and Turkey (+17.5%), despite the devaluation of the lira.

The trend in the US has been positive, at least so far, with a 4% increase in value in the first eight months of the year (with no change in KG).

The Far East and Russia, on the other hand, were the markets that suffered the most. The United Kingdom (-13.6%), Canada (-14%) and Australia (-9.4%) also recorded negative growth. In a nutshell, therefore, the picture is one in which unfavourable trends clearly prevail among the main outlet markets, both within and outside the EU.

IMPORTS

As regards imports, after the decline recorded in 2024 (-7.7% in value compared to 2023, according to data recently revised by ISTAT), in 2025, inflows began to grow again, recording +4.1% in value and +15.2% in KG in the first 8 months, with a decrease in average prices per KG of -9.6%. Goods worth €2.42 billion entered Italy (corresponding to 109.3 million kg, 14.4 million more than in the same period of the previous year, of which only 12% were made of leather).

China (+3.3% in value and +8% in kg) remained the leading supplier: in terms of quantity (kg), it accounts for over 55% of total imports. The average price of goods from China (€11.19 per kg) is one of the lowest among the main suppliers (surpassed only by Vietnam: €7.47).

An analysis of the list by origin shows a continuation of the strong growth trend in Spain, already evident in 2024, which could be explained by the logistical choices of some large distributors or e-commerce platforms.  As a result of export and import dynamics, the sector’s trade balance, while remaining largely in surplus for the first eight months at €3.92 billion, fell by 13.5% compared to January-August 2024.

DOMESTIC CONSUMPTION

As regards domestic consumption, with the exception of the positive contribution made in 2025 by foreign tourism – which recorded increases in arrivals and overall spending of around +4% and +5% respectively in the first nine months, according to Bank of Italy figures – there are few positive signs in what has been a disappointing scenario for some time now.

Once again, Italians’ purchasing decisions have been marked by caution: the ISTAT cumulative index relating to the value of retail sales in Italy of leather goods and footwear shows a -2.2% decline in the first nine months compared to the same period in 2024, increasing the gap with 2019 levels to -4.5% (already largely unsatisfactory). After a subdued first quarter (which closed at -4.4%) and a virtually flat second quarter (-0.3%), the third quarter saw a further decline (-2.4%, with a marked weakness in September, -5.8% year-on-year).  Not surprisingly, when asked about their company’s performance on the domestic market in the first nine months of the year, a significant 38% of leather goods manufacturers reported worse results than on foreign markets.

EMPLOYMENT

The prolonged unfavourable phase has penalised employment dynamics: in the first nine months of the year, the sector’s workforce showed a negative balance of -1,346 employees, down 2.8% compared to the final figures for 2024, with a simultaneous decrease in the number of active companies, which fell by 110 (-2.4%). The number of hours of authorised wage supplementation in the leather supply chain increased by +2.5%: despite the slowdown in the second and third quarters, the use of wage supplementation remains high (26.7 million hours in the first nine months, more than four and a half times the corresponding levels in 2019); the trend varied between districts (with a new peak in Tuscany, +57%) .

In recent years, sustainability has ceased to be a mere trend and has become a categorical imperative for the fashion industry. The need to reduce carbon footprints and limit the use of petroleum derivatives has prompted designers and materials engineers to explore unexpected frontiers, seeking solutions that combine aesthetics, comfort and respect for the environment. Thus, after Pinocchio, shoes are once again being made from wood, a natural resource that, when properly managed, offers incredible strength and, surprisingly, flexibility. One example is the Woowe brand, which has managed to combine Italian craftsmanship with a totally vegan approach. This brand produces luxury footwear using a very thin sheet of flexible wood. The result is an ethical shoe that is surprisingly soft, but also unique because it bears the grain of the trunk and the history of the tree from which it comes, demonstrating how sustainability can be combined with aesthetics and elegance to compete at the highest levels of international fashion.

Another example of green excellence that creates fashion from wood waste is DotZero, a brand of handmade sneakers made in Italy, in Florence, using waste material from wood processing and the paper industry. Wood and paper account for 94% of DotZero’s components. These products are processed to give the final material the mechanical and physical properties common to the plastics widely used today. The insole, on the otherhand, is made from a material composed of natural fibres derived from coconut food processing waste. This material is agglomerated with the addition of natural latex to create a real dough that is then rolled out and pressed.

Not only that: both brands deal with the ‘end of life’ of the product. Often, even shoes defined as sustainable end up in landfill once worn out, as the different materials they are made of (glues, plastics, fabrics) are difficult to separate. At Woowe, every part can be recycled and reused, promoting a circular economy, as is the case with DotZero, where shoes that have reached the end of their useful life can be returned to the brand’s team, which processes them to create new products, thus closing the circle perfectly.

The 12th edition of the annual 4sustainability event, which has become a regular fixture for professionals who want to discuss sustainable transition, was successfully concluded on 3 October 2025 at the Eurojersey production facility in Caronno Pertusella, in the province of Varese.

The protagonist of the initiative is Ympact, a brand of the Italian YHub Group that provides innovative services and IT platforms for responsible fashion and which, through the integration of skills, methods and technology, supports brands and supply chains in tracking and reducing the environmental and social impacts of production.

Ympact is the platform that implements the 4sustainability framework, which companies can use to measure their performance on key sustainability dimensions in the sector. It brings together the companies of the YHub group, which has seen the entry into the corporate structure of Foro delle Arti (Brunello Cucinelli SpA holding company), Matteo Marzotto, Federico Marchetti, Giorgio Armani SpA and Fondazione del Tessile Italiano.

The two co-founders of Ympact, Francesca Rulli (creator of the 4sustainability® framework) and Massimo Brandellero (founder of The ID Factory), commented: ‘This event, with over 500 participants, confirms the industry’s interest in shared paths towards responsible fashion: brands and supply chains are called upon to collaborate in tracking processes and products and monitoring environmental and social impact towards new models of sustainable production. With Ympact, we support brands and supply chains in this direction through expertise, methodologies and supporting technologies.’

Tracing Fashion to a Responsible Future

After introductory remarks by Rulli and Crespi, Valentina Boschetto Doorly (Associate Partner Italy, Copenhagen Institute for Futures Studies) outlined the four mega trends that characterise our historical period: climate change, demographic change, technology and artificial intelligence, and deglobalisation. In order to respond adequately to these four trends, it is necessary to track data, processes and supply chains – as outlined by Francesca Rulli and Massimo Brandellero – so as to enable the management of a responsible supply chain and production model based on harmonised frameworks and supported by experts and technology.

Digital Product Passport and Supply Chain Due Diligence

The Ympact system is designed to facilitate the adoption of the Digital Product Passport (DPP), made mandatory by the European Ecodesign Regulation (ESPR): a topic at the centre of the dialogue between Michele Zuccheri (Head of Business Development, Certilogo) and Carolynn Bernier (Coordinator, CIRPASS-2 consortium). But, in practical terms, how can we ensure that systematic data collection becomes the starting point for genuine improvement? This was the starting point for the debate between Elisa Gavazza (Southern Europe and Quality Management Director, ZDHC), Daniele Massetti (Regional Lead Italy, Apparel Impact Institute), Alessandro Barrani (Industrial Sustainability Manager, Prada) and Elisa Santi (Sustainability Manager, Beste), moderated by Ester Falletta (Technical Director, Consorzio Physis | Consultant, Ympact).

The discussion then turned to supply chain due diligence, comparing the consulting perspective, represented by Deloitte with Partner Franco Amelio, with whom Ympact has just launched a White Paper on good monitoring practices, and that of a brand of the calibre of Giorgio Armani. Rossella Ravagli, Sustainability Director at Giorgio Armani, emphasised how the supplier monitoring system must start with a significant commitment on the part of the company.

To consolidate its structure and reinforce long-established best practices, the Armani Group has streamlined its supplier base, imposed clear contractual clauses and carried out unannounced checks. Starting this year, the entire process is supported by the Ympact technology platform for data collection and traceability, aimed at digitising and optimising the procedures adopted.  

However, for monitoring systems to work, they must be harmonised with each other. Otherwise, suppliers risk being overwhelmed by heterogeneous, repetitive and purely compilative requests. Harmonisation is the concept that guides Ympact in defining 4s ETHIC, the new 4sustainability pillar through which suppliers can certify their compliance (environmental, social and reputational) in line with market demands, due diligence and the legality protocol. Luca Sburlati (President, Confindustria Moda), Paolo Tondi (Italy Certification Sales Manager, Bureau Veritas) and Andrea Sianesi (Professor of Operations and Supply Chain Management, Politecnico di Milano) discussed the topic.

Made in Italy and unfair competition

Luca Sburlati, president of Confindustria Moda, made it clear that the sector – which employs 1.2 million people in Italy and accounts for 5% of GDP, according to CDP – must face competition from Chinese giants, who can afford to offer rock-bottom prices thanks to their very low environmental and social standards and the absence of customs duties on small shipments. Made in Italy, currently under attack, can move from reactivity to proactivity by working together on a major plan for the next ten years. Three measures to be accelerated, he explained, are the extended producer responsibility (EPR) system, factory monitoring (including suppliers’ factories) and a common auditing system.

One of the most significant measures taken in recent months is the Memorandum of Understanding for the legality of procurement contracts in the fashion supply chain, signed at the Prefecture of Milan at the end of May. Andrea Sianesi, Professor of Operations and Supply Chain Management at the Politecnico di Milano, contributed to this project. Sianesi emphasised that, thanks to the collaboration of all stakeholders, the legality protocol has the potential to transform Made in Italy into a world champion of social sustainability, because it protects those who operate responsibly and isolates those who do not. However, for this mechanism to work in market terms, incentives for sustainable production are needed.