A Strategic Case Analysis of the U.S. Leather and Hide Industry

The global leather and hide industry faces increasing sustainability pressures and growing competition from synthetic and bio-based alternatives. This study presents a strategic case analysis of the U.S. leather and hide industry, examining the competitive and sustainability challenges facing small- and medium-sized enterprises (SMEs) and their strategic pathways for long-term viability. Drawing on sustainability transitions theory, the study employs a qualitative case-study approach based on semi-structured interviews with five senior industry experts. Data were analyzed thematically and interpreted through PESTEL, Porter’s Five Forces, and SWOT frameworks. Four interconnected themes emerged: (1) trade pressures and supply-chain fragmentation; (2) sustainability as compliance, cost, and communication challenge; (3) leather under pressure: the rise of alternative materials; and (4) repositioning for survival: premiumization, technology, and regulatory adaptation. The findings indicate that sustainability is not primarily a production-level technical challenge; rather, key barriers lie in upstream operations and sustainability communication. The industry remains export-oriented for raw hides, while wet-blue and finished leather compete in specialized niche markets where differentiation is essential. Externally, the sector is most strongly shaped by substitute materials, increasing demand for credible sustainability data, and animal welfare concerns. Internally, most notably, it faces high capital intensity, elevated costs, and persistent supply-chain fragmentation. The study contributes to sustainability transitions and SME research while offering practical implications for industry and policy stakeholders.