Inflation and high interest rates in export markets, as well as record numbers of imported shoes and the spread of counterfeit products. These were the problems of the Turkish leather industry in 2024, which closed with -18% in exported value. The Turkish government has intervened and associations representing the leather industry are hopeful for this year.
Turkish supply chain’s 2024
The Turkish leather industry exported $1.52 billion of goods in 2024, down 17.9% from 2023. High inflation in Turkey and high interest rates in its target markets, which have also shifted consumption habits, were among the main problems faced by the industry. According to Güven Karaca, president of the Istanbul Association of Exporters of Leather and Leather Products (IDMIB), inflation has generated higher production costs. Therefore, local brands have preferred to import products rather than produce them (source: Ekonomist).
Government raises duty
Turkish Footwear Industry Association (TASD) President Berke Içten confirmed how importing about 70 million pairs of shoes in 2024 was a challenge for the industry. Içten pointed out that the 10% duty increment on footwear imports, announced on December 31 by the Ankara government, offers a great opportunity for Turkish manufacturers. According to Fuardergisi.com.tr, Içten reiterated how the proliferation of fake shoes is one of the main problems. Allegedly, it causes “a $1 billion loss for the industry”.
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