PayPal CEO Daniel Schulman, has declared that he believes leather wallets will be gone by 2028. In a recent report published by Bloomberg, the evidence that the leather industry is in decline is clear to see. It is believed that younger generations are driving the interest to alternative materials.
Leather used to be a key material for shoe-making; however the increase in casual wear, changing styles and opinions around using animal skin for footwear has seen a drop in the demand.
In the report, Bloomberg wrote: “While the shift partly reflects an abundance of choices in materials, consumers cite growing discomfort with the slaughter of cattle and concern over the environmental impact of raising them by the millions.”
Hides and other by-products account for 44 per cent of an animal’s weight, but less than 10 per cent of the animal’s value according to government data. Bloomberg reports: “hides are the key ingredient in a global market for leather goods that was worth $93.2 billion in 2016.” However, the leather shoe market dropped by 12 per cent in 2016, and experts have predicted that it will continue to decline.
Dan Schulman, CEO of PayPal told analysts that ‘dead-cow’ wallets, will “be a thing of the past” as consumers choose more ethical options.
As people move away from using paper money, the need for wallets decreases, as contactless payments have revolutionised the way people purchase their shopping.