According to INSTAT data, in 2019 there were officially 245 shoe factories, with a total employment of more than 25, 600 people, or about 6% of total employment in the country.

The leather and shoe industry in the country owns about 20% of total exports, with 480 million Euros per year (in 2019). Whereas, for 2020, the weight occupied only by the import of raw and processed leather was 5, 778 tons and the weight in export was 3, 359 tons.

During 2020, due to the pandemic, Albania reduced exports with Italy, Kosovo and Spain and increased them with Germany, Greece and North Macedonia. While, the highest imports were from Greece, Germany and Serbia, and there was again a decline with Italy, China and Turkey. As a result of the situation with the global pandemic, during 2020, exports have declined in the textile and leather-footwear sector, as well as in other sectors of the economy. Despite this, the textile and footwear sector remains the first for exports to Albania.

According to an analysis made by the National Investment Development Agency (AIDA), on the development and sustainability of the sector, it is evident that the COVID-19 pandemic has created a new dynamic in the shoe market, which had started before it. The leather and footwear sector had entered a new cycle, due to the large stocks created by a substantial production in 2017. Many of the leather and footwear sector companies, during the pandemic time in order to cover costs were forced to adapt to the market by starting to produce disposable medical items for various international companies. In terms of market trends, in this sector, online commerce and population aging are bringing new opportunities in the production and marketing of footwear. With these changes, Albanian factories will have to adjust production, as demand is now based on a variety of shoes and sneakers, like never before.

Shoe firms are more advanced due to the history of their cooperation, with the best stylists of high quality Italian brands. Currently, some of the most exported products for the footwear sector are: boots, gym shoes, classic shoes, heels, soccer and sports shoes, sandals, sneakers, mountaineering shoes, safety shoes, orthopedic shoes.

To come to the aid of Albanian companies in the field of innovation and technology, during the period 2014-2019, AIDA has supported about 20 tailoring businesses, for the purchase of technological equipment and audit of innovative and technological capacities, through the Innovation Fund.

The advantages of trade with Albania are cheap labor; geographical proximity to European markets; positive, many years of experience with the most famous European firms; flexibility in the case of large and small orders; skilled labor; short deliveries on time to EU countries; relatively low transport costs in Europe; excellent foreign language skills; government support policies dedicated to this sector.

The contribution of this industry to foreign trade in Albania is of great importance, as this contribution brings export earnings and has shown a steady growth of up to 230%, since 1993, according to INSTAT data.

Some of the companies operating in the market have managed to produce full cycle, which includes design, modeling, purchasing of raw materials, production, export and retail and has a production capacity of 5,000 pairs of shoes per day.

The leather and shoe industry was of special importance for the Albanian economy during the period 1960-1990. Based on the centralized economy model, the country developed a sector for the entire chain, ranging from the provision of raw materials and processed and tanned leather, to complete production facilities. The production was aimed at the domestic market, fully meeting all its requirements.

After the ‘90s, the enterprises involved in the collection and production of leather and footwear products were privatized and, in most cases, they retained their destination. However, only a part of this chain was put back into operation, mainly due to the demand that came, mostly, from Italy for the subcontracting of services in Albania, in the form of tailoring industry. /j.p/p.s./