The rapidly growing collagen industry is changing the economics of leather production. Bovine hide splits are increasingly being bought for the production of collagen used in supplements, beauty products, food and medical applications. The result is reduced availability and rising prices for split suedes widely used in affordable and mid-range footwear.
As many know a cattle hide is thick enough to be divided into several layers. The upper, grain-bearing layer if quality is good enough can become full-grain leather or, when used flesh-side out, high-quality reverse calf suede or a sturdy reverse cow roughout leather. Then especially for hides that has a bit lower quality one usually make several leathers of, for example a corrected grain leather of the upper part (where grain is sanded and covered with a plastic layer) and the loser inner corium part can become split suedes. This is what nowadays is usually only called suede and used in large quantities in the shoe industry.
This flesh split is also rich in collagen. If removed before tanning, it can instead be processed into gelatin, collagen peptides, sausage casings and pharmaceutical or cosmetic ingredients. As those markets grow, collagen producers are prepared to pay more for suitable bovine splits.
Raw hides that can become a lot of different things.
According to recent market reporting from Leatherbiz, two forces are currently putting particular pressure on split hides: the strong fashion trend for suede (so yes, shoe industry is doing it to ourselves in part as well) and demand from collagen producers. The latter removes raw material from leather production and creates a new price floor for something tanneries and shoe manufacturers have long regarded as a readily available by-product.
Leather is already a by-product of meat production, while different parts of the hide supply many other industries. Tanneries don’t control how many cattles are slaughtered, and now have to compete with companies whose finished collagen products can have much higher margins than a relatively inexpensive shoe upper.
The collagen market is also much wider than the jars associated with skin, hair and nails. Bovine collagen is used in dietary supplements, functional food and drinks, cosmetics, medical products, pet nutrition and artificial sausage casings. Especially growing in popularity is collagen drinks or collagen powders you mix in other drinks for smoother skin (no scientific evidence it actually works, but as you know that doesn’t necessarily matter in the beauty industry as long as one thinks it works…). Market estimates vary, but broadly agree that the sector is expanding. Grand View Research, for example, expects the global bovine-collagen market to almost double in value between 2024 and 2030.
Collagen powder is a growing “health” trend. Picture: Vitalabo (Top picture: Tannery Row )
For shoe manufacturers, the consequences are straightforward: split suede costs more, lead times increase and obtaining the desired colour, thickness and quantity becomes more difficult. I’ve heard it directly from several people in the industry, that they’ve seen a big change for split suedes in recent years, and some have been informed explicitly that it’s due to the bovine collagen industry increasing their purchases. Large brands may secure supplies through long-term agreements, while smaller companies ordering modest volumes are likely to feel the shortage more acutely.
You don’t have to be afraid that suede shoes to disappear. Shoe industry is used to battling various changes in demand from other industries, which sometimes also tend to go back and forth. For example, 10-20 years ago the car industry’s use of leather for seats and the high prices they could pay for leather was a big competitor, nowadays plastic “leather” (often promoted as “vegan leather” or similar) has taken over a lot of that and the car industry buys much less leather today.
Split suede is used for basically all lower-priced suede shoes, and is most common also int the midrange level.
Higher costs will probably be partly absorbed by tanneries and manufacturers and partly passed on through retail prices. Some brands may reduce their range of suede colours, reserve certain qualities for more expensive lines or quietly change material specifications.
The development is a reminder that leather prices are not determined by the footwear industry alone. A trend for collagen drinks and beauty products can now influence what a shoe factory pays for brown split suede. What was once considered a low-value secondary layer of the hide has become sought-after raw material – and the shoe industry will have to adjust accordingly.
Interesting how the shoe industry battle with others that one wouldn’t ever think of buying leather.
Liam Thornton: Yeah, compared to some the shoe industry is big, compared to others it’s the same or even small.