MILAN — As the economic challenges mount, luxury leather supply chain firms are forging new collaborations, enhancing the sector with scientific and technological solutions.
Working together to find further synergies between technology and materials was emphasized as the only way to endure the complex economy mired by inflationary, trade and currency pressures, leaders said at the Lineapelle exhibition, which took place at Rho-Fiera Milano fairgrounds Sept. 23 to 25. Organizers of Italy’s leather trade show expressed caution for the rest of the year, after the sector saw a 6 percent decline in the number of companies in 2024.
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“These [companies that went out of business] were mostly subcontractors, who are certainly the most vulnerable. There have also been voluntary closures due to profitability that has become increasingly reduced — or, in some cases, costs that have exceeded revenue,” said Fulvia Bacchi, Lineapelle’s chief executive officer.
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The three-day event amped up its tech appeal through a series of projects and discussions, culminating in events like AI Materiality and other talks providing an in-depth, 360-degree exploration of the impact of artificial intelligence tools on the fashion industry.
Mauro Bergozza, president of Simac Tanning Tech, Italy’s consortium for machinery and technology for the footwear, leather goods and tanning industries, underscored the importance of collaboration.
“The synergy between Simac Tanning Tech and Lineapelle and between technology and materials represents a virtuous model for the entire Made in Italy sector. Collaborating allows us to strengthen our leadership and look to the future with confidence, promoting a supply-chain system vision that goes beyond the individual supply chain and markets,” he said in a statement.
Lineapelle gathered a global network of companies across the leather supply chain. About 1,150 accessories, components, fabrics, synthetic and model firms from 109 countries presented their fall 2026 collections at the fair, which remains a global reference for luxury hides. The number of visitors to the fair fell, however, to 21,433 from 23,800 recorded in September 2024 and 24,977 in February 2025.
Where Science, Tech and Fashion Merge
Nutley, N.J.-based Modern Meadow featured prominently, and demonstrated how the worlds of science and fashion are evolving. Testament to this was its Innovera material made using a blend of plant-based proteins, biopolymers and post-consumer waste that emulate the look and feel of luxury leather.
Its CEO is David Williamson, a Ph.D. who has a background in material science and biotechnology, and has experience in the cosmetics industry. The firm, which was started in 2015, originally began experimenting with collagen, but later found that the production costs were too high. Working with plant-based materials rendered Innovera a viable alternative to leather.
“We like to work with tanneries with value but we don’t want to price so high we exclude consumers,” Williamson said at the fair. “Our goal is to create a material to help tanneries win in the marketplace.”
Modern Meadow said it has the capability to commercially produce more than 500,000 square meters a year of this material, simplifying existing supply chain issues and shortening existing production processes, allowing designers and leather experts to produce bespoke materials for products across the furniture, automotive, apparel and fashion accessories industries.
Inflation, Energy Costs and Currency Woes
During the first nine months of 2025, Italian tanneries were struck by inflation, rising energy costs and the weakening U.S. dollar against the euro. Production declined 4 percent and exports dipped 3.5 percent, Bacchi told WWD.
“Currently, there are no signs on the horizon suggesting a short-term change in this trend,” she said, adding that revenues generated from the leather goods supply chain reached 4.1 billion euros in 2024, which is in line with revenues from last year. Inflation will undoubtedly impact research and development across the board, Bacchi warned.
According to Eurostat, these challenges echo beyond the leather sector. European footwear production dropped by 6 percent in the first half of the year compared to the same period in 2024, while production of leather goods declined by as much as 10 percent. Italy’s top 20 trade partners for leather include the U.S., which saw exports fall 11 percent in 2024 and China, which plunged 29 percent.
Reducing Waste
Tolentino, Italy-based Conceria del Chienti said it is currently invested in enticing new clients through its waste-reduction measures that have the potential to streamline the production process, by selling leather measured in square meters. The company positions itself as the first strategic partner capable of supplying leather already cut into components, ready to go directly into production.
Amid difficult economic times, Conceria del Chienti’s CEO Marco Lupa said it’s imperative to showcase innovations that will propel the sector forward.
“In a market demanding flexibility, efficiency and a concrete approach to sustainability, we have chosen not just to innovate the process, but to transform the business model. Offering finished components means becoming a technological partner for our clients, sharing the risk and working together to optimize the entire supply chain,” he said.
Joining Forces
OBI Officina, a Florence-based firm, which produces high-quality, exclusive accessories for the industry and processes valuable materials such as gold, bronze and silver, is one such company included in the wave of consolidation taking over the sector.
In 2023, it joined fashion accessories firm Altofare, which posted aggregated revenue of about 150 million euros last year. Boosted by the acquisition, OBI Officina will make 700,000 euros in investments to digitally enhance its artisanal business in the near term, CEO Paolo Calamandrei said.
“At the moment, the company is providing significant support to luxury brands in prototyping. The numerous changes in designers and the market uncertainty are driving brands to rely on the most advanced laboratories to explore new product solutions,” he said.
MinervaHub, which was established in 2022 to protect and support Italian manufacturers in the country’s supply chain, is home to 25 companies, among them tanneries like Pisa-based Conceria Zuma Pelli Pregiate, bijoux for fashion firm Deadema and hi-tech heel manufacturer LTM.
At Lineapelle, LTM showcased a new computerized data system and machinery that measures the life of a heel. “This shoe has walked 9,238,880 steps, which is 4,600 kilometers, which means it has a lifespan of 20 years,” explained LTM’s CEO Federico Lombardi, who has degrees in both electronic engineering and mechanical engineering.
“You buy a pair of [Christian] Louboutins today, you use them for 20 years, you treat them perfectly, you treat the leather, you resole it, you can give it to your granddaughter, you can use it for your whole life because it has no end,” he said, underscoring the parallel between durability and sustainability.
Looking ahead, MinervaHub’s CEO Alessandro Corso, formerly chief financial officer of Salvatore Ferragamo, said the company’s success is intrinsically tied to sharing know-how and values.
“We’ve become an industrial group and that means sharing values, sharing ideas, sharing projects, innovation, and a way of interacting with the customer. So, we’re not just the sum of many entities; we want to be the product of many entities,” he told WWD at the fair.
In terms of trends, embellished hides, layered with unexpected materials and studs, were paramount.
MinervaHub creative director Jacopo Tonelli, for example, said he took technical aspects of the hub’s core firms to produce something totally new this season.
“We developed a free-climbing ballet flat, embroidered with lace to transition it into an evening shoe, blending technical sportswear with the elegance of hand embroidery. All our products are fully designed and developed within Minerva,” he emphasized.
The Winter Edition of the Lineapelle trade show will take place Feb. 11 to 13.