Leather and leather products are the most widely traded and universally used commodities in the world. Formal trade in these products was close to US$43 billion in 1994-96 and it is estimated that informal trade and business amount to equivalent values. The total value of trade (including leather shoes with leather uppers) is close to three times the value of the meat trade and more than three times that of the sugar trade.

 

The total footwear output in the year 1995  in terms of value was estimated to be  US $ 60 billion

 

Footwear production from 1995 to 2003 rose by 30 % to 13 billion pairs of shoes i.e. on an average more than two pairs of shoes for each inhabitant in this World.

 

It is forecasted that by the year 2010 footwear sector expect the global output to go up by another approx. 15 % to reach 15 billion pairs.

 

The US is the country with the highest per capita shoe consumption in the World, since each inhabitant buys an  average 6.7 pairs a year. At the other extreme, are Asian countries, where demand is 0.4 pairs in Vietnam and 0.7 pairs in India. In Europe and in the case of Hungary, the yearly demand is around 4.8 pairs/year. In absolute terms, China has the highest consumption, due to its population of more than 1.3 billion people. Last year the Chinese bought a total of 2,656 million pairs, even though on average each person only buys 2.7 pairs/year. In the Middle east, the average is 4.5 pairs in Saudi Arabia and 4.2 in Israel, while in Asia the Japanese purchase 4.5 pairs each and the South Koreans 3.4 pairs. In MERCOSUR, Argentina's average is 2.2 pairs and in Brazil 2.8 pairs. In Canada, consumption is currently 3.8 pairs per year.

 

 

The U.S.A  is the world's largest importer of footwear. The U.S. accounts for about 40 percent of footwear imports. In 1998, Americans spent approximately $38 billion to purchase more than 1.1 billion pairs of shoes

 

 

China accounts for about 68.3 percent of all footwear imports into the U.S

 

 

European production of footwear has dropped by 19% (to 1.158 billion pairs in 2003) while over the same period Asian output has grown by 48% (to 9.85 billion pairs in 2003). This means that Asia currently accounts for 76% of global shoe productions and the figures are rising.

 

 

EU countries have experienced a strong footwear import growth: by 16.8% to 1.29 billion pairs in 2003. At the same time, exports to third (non-EU) countries were down by 13.5% to 190.8 million pairs.

 

 

 

 

 

 

 

European footwear production has been continuously shrinking since 1995 - by 19 to 1.2 billion pairs. In 2003 alone footwear production in 15 EU states decreased by 11.4 % to 710 million pairs while exports were down by 13.2.. according to the Confederation of German Footwear Manufacturers.

 

The Asia continent accounts for a 76 % share in global footwear production - and figures are rising. According to estimates of the Confederation of German Footwear Manufacturers China managed to consolidate its No. 1 position as the world's largest manufacturing country (with a total output of roughly seven billion pairs) in 2003. China is followed at a considerable distance by India (over 750 million) and Brazil (642 million). Next to China and India only Turkey succeeded in increasing its output figures (more than 215 million). All other countries report stagnating or declining figures. Above all Italy (producing some 330 million) - the only European manufacturer ranking among the top 10 - posted landslide drops.  Being the world champion in exports, China also continued to set the pace in 2003 selling more than 4.3 billion pairs abroad (according to conservative estimates..

 

 

China was able to increase its imports per pairs to the 25 EU countries by +65% from 458 million pairs in 2003 to 756 million pairs in 2004. Even when comparing this data of 2003 with only 15 member countries, there is still an increase of 41%. Vietnam increased its exports to the 25 EU member countries by +13.2% from 230 million pairs to 261 million pairs. Romania showed small increases of its exports to the 25 EU member countries from 59 to 61 million pairs. Indonesia's exports increased from 44 million pairs by +19.9% to 53 million pairs.

And India could increase its exports to the 25 EU member countries by +28.8% from 35 million pairs to 45 million pairs

 

 

In 1996 65% of all leather was converted into 4539 million pairs of shoes with leather uppers. The remaining light bovine leather was used for the production of garments, furniture and travel goods FAO (1998). The production of shoes with leather uppers grew by 30% between 1979 and 1996. During this period production rose in developing countries by 160% and their share of global output grew from 35% to 71%. The expansion in leather shoe production was greatest in the Far East and to a lesser degree in Latin America. Production declined in all developed regions

 

 

The implication of GLOBALIZATION is very prevalent in Global Leather and Footwear industry.  Recent UNIDO studies on the global leather and footwear industry indicate that in the economy of globalization, the comparative advantages of nations are exploited and integrated with the main objective of seeking cost efficiency and value added productivity. A dominant characteristic of the economy of globalization is a continuous drive for performance competitiveness among countries and companies and even among units inside the company. The factors of production in this economy are very flexible and can be shifted easily from one place to another (i.e. leading to a foot-lose character of the industry).