Türkiye’s leather and leather products sector closed 2025 under challenging global conditions and mounting cost pressures, while announcing its targets for 2026. Güven Karaca, Chairman of the Board of the Istanbul Leather and Leather Products Exporters’ Association (İDMİB), emphasized that the environment of high interest rates and inflation has seriously weakened exporters’ competitiveness, saying: “Today, as exporters, we are trying to export not only our products, but also interest rates and inflation.”
While Türkiye’s total exports increased by 4.5% to USD 273.4 billion in 2025, the leather and leather products sector recorded exports of USD 1.44 billion, down 5.3% year-on-year. Karaca noted that despite the US dollar appreciating by 21.6% against the Turkish lira during the year, inflation remained at 30.9%, making Türkiye more expensive compared to rival Asian and European countries and complicating price competition.
Despite these challenges, the sector maintained its position as Türkiye’s fourth most valuable export sector after jewelry, defense–aviation, and ready-to-wear, with an average export unit price of USD 13.9 per kilogram. Among sub-segments, footwear exports declined, while saddlery and leather and fur apparel products posted growth.
Karaca also drew attention to the deterioration in the sector’s foreign trade balance. After posting a surplus of USD 566 million in 2021, the sector faced a foreign trade deficit exceeding USD 1.1 billion in 2024 and surpassing USD 1 billion in the first 11 months of 2025. High production costs and the shift of domestic brands toward imports have also reduced capacity utilization.
Regarding expectations for 2026, support for labor-intensive sectors and protective measures against imports stand out. Karaca stated that easing access to production and investment—alongside declining interest rates—will be critical for the sector.
Meanwhile, the European Union remains the sector’s main market with a 40.7% share, while the United States holds a notable position. One out of every four leather jackets produced in Türkiye is exported to the U.S. Germany, Italy, Iraq, and the United States are among the top export destinations.
Sector representatives agree that if the disinflation process becomes permanent and financing conditions improve, the leather and leather products sector can regain growth momentum in 2026 and beyond.
