Updated Mar 28, 2023 19:07

Sheepskin and Lambskin Market in Russia

Market Overview
The Russian sheepskin and lambskin market expanded sharply to $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, recorded a mild increase. Over the period under review, the market reached the maximum level at $ in 2012; however, from 2013 to , consumption stood at a somewhat lower figure.

In value terms, sheepskin and lambskin production soared to $ in estimated in export price. Over the period under review, production, however, continues to indicate resilient growth. The most prominent rate of growth was recorded in 2011 with an increase of %. Sheepskin and lambskin production peaked at $ in ; however, from to , production stood at a somewhat lower figure.

The average yield of sheep or lamb skins (without wool) in Russia declined to kg per head in , which is down by -% on the previous year's figure. Overall, the yield continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in with an increase of % against the previous year. Over the period under review, the average sheepskin and lambskin yield hit record highs at kg per head in 2007; however, from 2008 to , the yield stood at a somewhat lower figure.

In , number of animals slaughtered for sheepskin and lambskin production in Russia totaled heads, stabilizing at the year before. This number increased at an average annual rate of +% from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2008 with an increase of % against the previous year. The number of animals slaughtered for sheepskin and lambskin production peaked at heads in 2018; however, from 2019 to , producing animals remained at a lower figure.


Consumption
In , the amount of sheep or lamb skins (without wool) consumed in Russia shrank slightly to tons, flattening at the previous year. Overall, consumption continues to indicate a mild shrinkage. Over the period under review, consumption reached the peak volume at tons in 2011; however, from 2012 to , consumption failed to regain momentum.

The value of the sheepskin and lambskin market in Russia rose remarkably to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, showed a slight increase. Sheepskin and lambskin consumption peaked at $ in 2012; however, from 2013 to , consumption stood at a somewhat lower figure.


Market Forecast
Depressed by shrinking demand for sheepskin and lambskin in Russia, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Trade Balance
Russia remains a net importer of sheepskin and lambskin; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.