Synthetic Leather Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Synthetic Leather Market grew at a CAGR of 4.3% between 2017-2021 and is estimated to be US$ 30,748.9Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 4.6% and is expected to reach a valuation of US$ 48,211.0Mn by 2032 end.

Globally rising demand from the footwear industry is anticipated to be a major driver of market expansion. Another aspect that has fueled the need for natural alternatives is the high price of genuine leather. Another significant type of synthetic leather that has gained popularity is PVC leather, used for a wide range of products such as shopping bags, cosmetic bags, wallets, suitcases, purses, and travel bags.

It is utilized in many applications, such as fabrics, shoes, clothing, furniture, and others, where a leather-like finish is necessary, but the material is unsuitable, unusable, or prohibitively expensive. Over the past few years, the manufacturing procedure for the shell coating applied on top of the synthetic polymer blend has changed.

Market Dynamic

NO ANIMAL KILLING INVOLVED

Over a billion animals are killed yearly for their skin and skins, claims People for the Ethical Treatment of Animals (PETA). Genuine leather is primarily produced in developing nations like China and India, where regulations protecting animals are not sufficiently implemented.

However, strict rules will probably be implemented in Asia Pacific and the rest of the world, boosting demand for genuine leather replacements. As a result, businesses are concentrating on synthetic leather, also known as an alternative to real leather. Synthetic leather produces ingredients made of synthetic materials rather than actual animal skins.

HARMFUL EFFECTS OF PU AND PVC ON HUMANS

The environment and the health of people and animals are negatively impacted by the raw ingredients used to make synthetic leather, such as polyurethane (PU) and polyvinyl chloride (PVC). As an isocyanate, PU can potentially injure the lungs since it aggravates the airways and triggers asthma symptoms. In addition to irritating the skin, it makes breathing difficult owing to lung infection. Polyurethane fumes, frequently exposed to employees at PU production factories, can cause several health problems, including nausea, upset stomachs, and dizziness.

Dioxin, phthalates, and vinyl chloride monomer (VCM) are only a few hazardous carcinogens in PVC. Dioxin is a highly dangerous and destructive substance that is typically released after the burning of chlorine-containing polymers. Consequently, the manufacture of PVC and PU is hazardous.

FOCUS ON THE DEVELOPMENT OF BIO-BASED SYNTHETIC LEATHER

There are no detrimental characteristics in producing synthetic leather made from biomaterials. Manufacturers should concentrate on commercializing artificial leather using natural fibers like flax or cotton blended with palm, soybean, corn, and other plants. Pineapple leaves are used in “Pinatex,” a novel synthetic leather product.

These leaves’ fiber offers the tensile strength and flexibility required for manufacture. Since pineapple leaves are seen as a waste product, they can be upgraded into valuable items without requiring a lot of resources. The market is already flooded with Footwear, wallets, and other accessories made of pineapple fibers.

Market Segments Covered in Report

By Type:

• PU Synthetic Leather
• PVC Synthetic Leather
• Bio-based Leather

By Application:

• Furnishing
• Automotive
• Footwear
• Wallets, Bags & Purses
• Clothing
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is the demand in the PU Synthetic Leather sector high?

The market’s largest sector by revenue, comprising more than 55.0% of the total, was PU synthetic leather. Its product quality, diversity, and yield progress have been encouraging. Compared to actual hides, polyurethane is more easily torn and lighter, softer, and waterproof. Sunlight does not affect it either.

Additionally, because it doesn’t generate dioxins, it is a more environmentally friendly alternative to products made of vinyl. All of these elements are anticipated to increase its demand further.

Why is the demand for Footwear increasing in the foreseen period?

The footwear category dominated the market with more than 30.0% of the total revenue generated worldwide. Its use is becoming more similar to genuine leather, replacing applications in handbags, briefcases, furniture for cars, and clothes. The demand for Footwear has been spurred by rising income levels and economic expansion, particularly in emerging economies. Additionally, the industry is driven by variances in regional climates, which call for various styles of Footwear.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With almost 54.0% of global sales, the Asia Pacific region dominated the industry. The major economies in APAC likely to drive growth are South Korea, China, and India. Population growth and rising disposable income will open up many business opportunities. In terms of both production and sales, China is one of the major markets for leather.
• Due to the saturation of major domestic fashion companies, the market in North America is predicted to grow slowly. Growing worries from animal rights groups like PETA, WWF, and a few others have increased leather sector restrictions.

Competition Analysis

Few businesses, mostly in the Asia Pacific, with significant production capacities dominate the synthetic leather market. To boost their revenues and expand their market shares, companies frequently employ techniques like joint ventures, mergers and acquisitions, production capacity expansions, and new product development.

A list of some of the key suppliers present in the market are:

• Kuraray Co., Ltd.
• R. Polycoats Pvt. Ltd.
• Alfatex Italia SRL
• Filwel Co., Ltd.
• Yantai Wanhua Synthetic Leather Group Co., Ltd.
• San Fang Chemical Industry Co., Ltd.
• Mayur Uniquoters Limited
• Teijin Limited
• Nan Ya Plastics Corporation

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.

• Report Includes

  Market Size Data

  • Global market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and region
  • Regional level market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and country
  • Country level market share data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment
  • Market attractiveness analysis based on market share index and CAGR index for each of the segments and regions
  • Incremental dollar opportunity generated in the forecast period would be indicated
  • Key Takeaways, Recommendations, and key investment pockets for the relevant segments would be highlighted

  Market Background

  • Macroeconomic factors that impact the market developments
  • Market dynamics (Drivers, Restraints, Opportunities) that positively or negatively influence market growth
  • Supply Side and Demand Side trends – trends witnessed from buyers and suppliers side
  • Production and Consumption Gap Analysis – analysis of gap between production and consumption in any geography to fulfil unmet demand
  • Trade analysis and analysis of key supply and demand hubs
  • Identification of hotbed opportunities existing in the market
  • Porter’s and PEST analysis to understand the business environment of the geography
  • Regulatory scenario – Identification of key sector specific and trade regulations, and assessment of whether it helps or hinder market development & growth

  Pricing Analysis

  • Regional-level product pricing analysis to set and benchmark your current or future product offerings across each product type
  • Historical and projected pricing trends of the product which helps in determining the product’s price and/or services beneficial for companies product lifecycle
  • Cost teardown analysis and key factors impacting pricing

  Value Chain Analysis

  • Country-wise list of raw material suppliers
    • Raw material price trends and buyers’ sentiment
    • Overview of Intelligent Sourcing Technique
    • Raw material procurement requirements
    • Vendor selection criteria
  • Country-wise list of product manufacturers
  • Country-wise list of distributors/traders
  • Country-wise list of end-users
    • End-Users/Customers consumption mapping
    • Key End-Users/Customers client list
  • Country-wise list of other key channel partners
  • Average profitability margins
  • Regional value chain dynamics

  Competition Analysis

  • Market shares and production capacities of key players
  • Tier structure analysis of market
  • Comprehensive competition dashboard representing the top 10-15 players in the market
  • Individual company profiles of top 15 to 20 manufacturers
    • Business Overview
    • Product Portfolio
    • Key Financials
    • Recent Developments
    • SWOT Analysis
    • Strategies

Country Coverage
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific

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