Russia has a large historic experience within leather sector. The Russian leather production was scaled down post which was exported as raw stock while a significant amount of leather products are imported (Gundogdu et al., 2016). The demand reached to over $210 million for the leather products. The primary leather import in Russia is increased to $260 million by the year of 2011. The growth rate is approximately 16.97 per cent per year. Global import share of Russia is 2.88 per cent for leather import amounting to $159.89 billion in the year of 2011. Russia’s share in the overall leather market is 25 per cent.
The leather and fur demand has risen in the previous decade. The market of leather is growing at a rapid pace with the forecast already in place of reaching 94.7 billion dollar revenue by the year of 2020. There is increasing demand for the leather goods along with leather luggage with the compound annual growth rate (CAGR) by 5 per cent. The majority of growth within the leather products market is viewed within the Asia region after Europe (Unal, 2016). The demand is ever rising for innovative designs that are new and trendy. The public is more inclined towards luxury fashion brands produced leather goods.
The European market share consists of 24,000 organizations operating within the leather industry of Europe with 400,000 employed individuals. The total annual turnover is indicated to be above 31 billion Euros which made up of the following markets. 3.8 percent EU member states within their local market, 60 per cent intra-EU and 35 per cent exports through extra EU. The overall turnover becomes more than 50 billion Euro upon considering the leather of kinds and manufacturing segments like interiors, garments and upholstered furniture. Europe holds the world share of 26.7 percent.
Market share in the world/export market
It is found through the research that approximately 22 per cent of the processing and production of small cattle leather is gained from Turkey but the industry of leather has an aim to drive it further. The present world trade figure is $225 billion within the leather industry wherein the contribution of Turkey is $5 billion which is expected by the sector to increase in future (Togan, 2016). The overall national export has increased to $150 billion with forecast of reaching over $500 billion by the year of 2023 through making $10 billion from the export of leather.
The next section will focus on the market around the Mediterranean region, particularly on France as this is where Elibol is going to be expanded.