Raw sheep and lamb skins market in New Zealand

Earlier Report Observations

From 2018 to 2020, the domestic market volume for raw sheep and lamb skins experienced significant swings. In 2018, a sense of optimism among sheep and beef farmers provided a stable backdrop for production. The market volume then jumped sharply to 82,300 t in 2019, largely because exports of raw skins collapsed to just 5 t, keeping far more supply within New Zealand. This growth was partially reversed in 2020 as exports recovered, pulling the market volume down to 75,913 t.

The market contracted over the next two years, falling to 54,118 t in 2022 due to a sustained rise in exports and lower production. During this period, a key industry development was the emergence of high-value applications for skins, such as their use by luxury fashion brands and diversification into skincare and pharmaceutical co-products, signaling a strategic shift toward premium segments. A turnaround occurred in 2023, with the market volume rebounding to 65,886 t. This recovery coincided with New Zealand's ban on the export of live sheep by sea, implemented in April 2023, which increased domestic livestock processing and subsequently boosted the local availability of raw skins.

In the later years, the broader sheep industry navigated a complex environment. By 2024, farm profitability was pressured by high input costs and interest rates, while lamb prices saw support from some export markets. Entering 2025, the sector contended with record beef prices and strong lamb demand, but also faced new trade dynamics including U.S. tariffs, the implementation of the EU Deforestation Regulation, and consultations on updated animal welfare codes, all of which shaped the operating landscape for producers and processors.

Production raw sheep and lamb skins in New Zealand

In kind, 2018-2021, t

Globally, New Zealand ranked as the fourth largest producer of raw sheep and lamb skins between 2018 and 2021.

Top producers of raw sheep and lamb skins, 2018-2021

World map of production of raw sheep and lamb skins, 2018-2021

In 2021, New Zealand produced 80,434 tonnes of raw sheep and lamb skins, representing a 3.8% decrease compared to the previous year. Over the period from 2018 to 2021, production fell by 5.7%, which translates to an average annual decline of 1.9%. The most significant drop occurred in 2019, with a 4.2% decrease, while the largest increase was recorded in 2020, at 2.4%.

Annual dynamics of production in New Zealand in kind, 2018-2021, t

Exports raw sheep and lamb skins from New Zealand

Exports in kind, t

The market showed an unstable trend throughout this period. Exports peaked in 2018 and hit their lowest point in 2019, with a dramatic 4,305-fold swing between these years. In 2021, New Zealand's cross-border shipments of raw sheep and lamb skins totaled 15,615 tonnes, marking a substantial 97.7% increase from the prior year. The minimum value was recorded in 2019 at just 5 tonnes. The largest decline occurred in 2019, with a 100.0% drop, while the most significant increase was in 2020, soaring by 153,515.2%.

Annual dynamics of product's exports from New Zealand in kind, 2018-2021, t

Between 2018 and 2021, the country structure of exports in kind was highly concentrated, with China alone accounting for 92.0% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from New Zealand in kind, 2018-2021

Exports in value, K $ US

After a two-year decline, exports of raw sheep and lamb skins from New Zealand rebounded. In 2021, exports amounted to 23,521 thousand US dollars, up by 19.6% compared to the previous year. However, over the entire 2018-2021 period, exports decreased by 56.4%, with a compound annual growth rate (CAGR) of -24.2%. The minimum value was recorded in 2020 at 19,669 thousand US dollars, and the largest decline occurred that same year, with a 40.3% drop.

Annual dynamics of product's exports from New Zealand in value, 2018-2021, K $ US

From 2018 to 2021, the main destinations for New Zealand's exports of raw sheep and lamb skins in value terms were China, with 67.8% of exports, France at 5.5%, and Pakistan at 5.2%. Together, these three countries accounted for 78.5% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from New Zealand in value, 2018-2021

Imports raw sheep and lamb skins to New Zealand

Imports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Import volumes peaked in 2019 and reached their minimum in 2021, with a top-to-bottom ratio of 10.1 times. In 2021, New Zealand imported 61 tonnes of raw sheep and lamb skins, which is 65.2% lower than the previous year. The maximum value was recorded in 2019 at 613 tonnes. The largest decline occurred in 2020, with a 71.5% decrease, while the largest increase was in 2019, at 17.5%.

Annual dynamics of product's imports to New Zealand in kind, 2018-2021, t

Between 2018 and 2021, three principal markets—the United Kingdom, Iceland, and Germany—together accounted for 80.1% of total imports in kind of raw sheep and lamb skins to New Zealand.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to New Zealand in kind, 2018-2021

Imports in value, K $ US

Cross-border shipments of raw sheep and lamb skins to New Zealand declined for the third consecutive year. In 2021, New Zealand imported a total of 173 thousand US dollars of raw sheep and lamb skins, reflecting a steep drop of 42.7% from the year earlier. Over the period from 2018 to 2021, imports decreased by 82.5%, with a compound annual growth rate (CAGR) of -44.1%.

Annual dynamics of product's imports to New Zealand in value, 2018-2021, K $ US

From 2018 to 2021, the United Kingdom, with 36.7% of imports in value terms, Iceland at 32.5%, and Germany at 7.1%, continued to be the main suppliers of raw sheep and lamb skins to New Zealand. Jointly, they formed 76.3% of total imports in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to New Zealand in value, 2018-2021