So far, the devastation in Europe has had little effect on American pocketbooks. But for at least some consumers, that appears about to change. Europe, and in particular, Britain, is a major supplier of animal hides for luxury leather products in the United States like car upholstery, furniture, fine jackets and high-end handbags. A sudden drop in beef consumption because of concerns about mad cow disease means far fewer animals are being slaughtered for meat. The surge in prices is already placing cost pressure on tanneries from Korea to Italy that many in the leather industry expect to see reflected soon in American markets, especially for luxury goods.
Leather is a particularly global product.
Hides from Argentine cows may be tanned in China, sewed into bomber jackets in Korea and then shipped to Japan for sale. But not all hides are equally prized. In the world market, European hides are more highly valued because the animals are raised in a way that leaves the skins with fewer blemishes. Other luxury products whose prices are expected to go up include high-end cars with fancy leather interiors. Designer fashions will probably take a hit as well.