Why is sheepskin so cheap?

Why is sheepskin so cheap?

In recent years, sheepskin market prices have continued to decline, which has attracted widespread attention inside and outside the industry. This article will analyze the reasons for the downturn in sheepskin prices from multiple perspectives such as supply and demand, production costs, and market trends. It will also interpret the deep factors behind this phenomenon based on the hot topics and content on the Internet in the past 10 days.

1. Imbalance between supply and demand

The primary reason for the decline in sheepskin prices is the imbalance between supply and demand. The following is a comparison of global sheepskin supply and demand data in the past 10 years:

As can be seen from the table above, global sheepskin production continues to grow, while demand growth is relatively slow, resulting in serious inventory backlogs. Especially after the COVID-19 epidemic, the global economic recovery is sluggish and consumer demand for leather products has declined, further exacerbating the contradiction between supply and demand.

2. Reduction in production costs

In recent years, sheepskin production costs have shown a downward trend. The main reasons include:

The decline in production costs has provided room for downward adjustments in sheepskin prices. Especially in terms of feed prices, due to sufficient global food supply, feed prices continue to fall, directly reducing breeding costs.

3. Substitutes impact the market

In recent years, artificial leather technology has advanced by leaps and bounds, which has had a strong impact on the natural sheepskin market. The following is a comparison of the market shares of artificial leather and natural sheepskin in the past five years:

As can be seen from the table, the market share of artificial leather has exceeded that of natural sheepskin. Especially in the fields of clothing, furniture and other fields, artificial leather is favored by more and more consumers because of its low price, stable performance, environmental protection and other advantages.

4. Impact of environmental protection policies

Increasingly strict environmental protection policies around the world have also had an important impact on sheepskin prices:

1. New EU regulations limit the content of harmful substances in leather products, increasing the cost of sheepskin processing;

2. China has intensified environmental inspections, leading to the closure of some small sheepskin processing companies;

3. Animal protection organizations call for reducing the use of leather, which affects consumer purchasing decisions.

5. Changes in consumption trends

According to the analysis of Internet hot spots in the past 10 days, consumer preferences are changing significantly:

Judging from the popularity of online discussions, the popularity of environmental protection and sustainable development concepts has led more and more consumers to choose to give up animal leather products. Although the retro trend has a certain positive impact on the sheepskin market, overall negative factors dominate.

6. Future Outlook

Based on a comprehensive analysis of the current market situation, it is difficult for sheepskin prices to rebound in the short term. Recommended related companies:

1. Adjust product structure and develop high value-added sheepskin products;

2. Strengthen investment in environmental protection technology and enhance product competitiveness;

3. Expand emerging markets and find new growth points;

4. Pay attention to changes in consumer trends and adjust marketing strategies in a timely manner.

The downturn in sheepskin prices is the result of a variety of factors. Only by accurately grasping the pulse of the market can we remain invincible in the fierce competition.