IndexBox has published a new report: ‘China – Sheepskin and Lambskin – Market Analysis, Forecast, Size, Trends and Insights. A summary of the report’s key findings indicates that the revenue of the sheepskin and lambskin market in China amounted to $1,9 billion in 2018.

This figure reflects the total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Production in China

In 2018, sheep- and lambskin production in China totalled 544 000 tons. The total output volume increased at an average annual rate of 3,0% from 2013 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. The growth pace was the most rapid in 2016 with an increase of 4,6% year-on-year. Over the period under review, sheep- and lambskin production reached its maximum volume in 2018 and is expected to retain its growth in the near future.

Producing animals in China

The number of animals slaughtered for sheep- and lambskin production in China stood at 142 million heads in 2018, remaining stable against the previous year. This number increased at an average annual rate of 1,8% from 2013 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed in certain years. The growth pace was the most rapid in 2014 when the number of producing animals increased by 4,6% against the previous year. Over the period under review, this number attained its maximum level at 144 million heads in 2016; however, from 2017 to 2018, producing animals failed to regain its momentum.

Yield in China

The average sheep- or lambskin yield (without wool) in China totalled 3,842kg per 1 000 heads in 2018, approximately the same as the previous year. The yield figure increased at an average annual rate of 1,2% over the period from 2013 to 2018. Sheep- and lambskin yield peaked in 2018 and is expected to retain its growth in the near future.

Imports into China

In 2018, approximately 311 000 tons of sheep or lamb skins (without wool) were imported into China; jumping by 2,2% against the previous year. Over the period under review, sheep- and lambskin imports attained their peak at 313 000 tons in 2013; however, from 2014 to 2018, imports failed to regain their momentum.

In value terms, sheep- and lambskin imports totalled $406 million (IndexBox estimates) in 2018.

Imports by country

In 2018, Australia (147 000 tons) constituted the largest supplier of sheep- and lambskin to China, accounting for a 47% share of total imports. Moreover, sheep- and lambskin imports from Australia exceeded the figures recorded by the second-largest supplier, New Zealand (51 000 tons), threefold. The third position in this ranking was occupied by the United Kingdom (UK) (45 000 tons), with a 15% share.

From 2013 to 2018, the average annual growth rate in terms of volume from Australia was relatively modest. The remaining supplying countries recorded the following average annual import growth rates: New Zealand (6,1% per year) and the UK (-4,5% per year).

In value terms, Australia ($238 million) constituted the largest supplier of sheep- and lambskin to China, comprising 59% of total sheep- and lambskin imports. The second position in the ranking was occupied by New Zealand ($45 million), with a 11% share of total imports. It was followed by the UK, with an 8,7% share.

From 2013 to 2018, the average annual rate of growth in terms of value from Australia totalled -4,1%. The remaining supplying countries recorded the following average annual import growth rates: New Zealand (-17,4% per year) and the UK (-22,5% per year).

Import prices by country

The average sheep- and lambskin import price stood at $1,305/ton in 2018, jumping by 1,9% against the previous year. Over the period under review, the sheep- and lambskin import price, however, continued to indicate a deep shrinkage. The growth pace was the most rapid in 2017 when the average import price increased by 5% against the previous year. Over the period under review, the average import prices for sheep or lamb skins (without wool) attained their peak figure at $2,230/ton in 2013; however, from 2014 to 2018, import prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Australia ($1,613/ton), while the price for the UK ($781/ton) was among the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Australia, while the prices for the other major suppliers experienced a decline. IndexBox