PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1453907
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1453907
According to Stratistics MRC, the Global Synthetic Leather Market is accounted for $68.7 billion in 2023 and is expected to reach $111 billion by 2030 growing at a CAGR of 7.1% during the forecast period. Synthetic leather is a man-made material designed to resemble genuine leather. It is typically composed of a fabric base layer coated with polyurethane (PU) or polyvinyl chloride (PVC) to create a leather-like appearance and texture. Synthetic leather offers a cost-effective alternative to genuine leather, often with improved durability, water resistance, and ease of maintenance. It is widely used in various industries, including fashion, automotive, furniture, and footwear, providing consumers with a cruelty-free and more sustainable option compared to traditional leather products.
Rising demand from the footwear industry
Synthetic leather offers a cost-effective alternative to genuine leather without compromising on quality, making it an attractive option for footwear manufacturers seeking to reduce production costs while maintaining product standards. Additionally, advancements in technology have led to the development of synthetic leather materials that closely mimic the look, feel, and durability of genuine leather, further enhancing its appeal to footwear companies and consumers alike. As a result, the rising demand from the footwear industry is expected to continue driving the growth of the synthetic leather market.
Non-biodegradability of synthetic leather
Synthetic leather is composed of petroleum-based polymers like polyurethane (PU) or polyvinyl chloride (PVC), which are not biodegradable. This lack of biodegradability means that synthetic leather products persist in the environment for extended periods after disposal, contributing to pollution and waste accumulation in landfills and oceans. As a result, the disposal of synthetic leather products presents environmental challenges, as they do not break down naturally and may release harmful chemicals or micro plastics into the ecosystem. These factors hamper market demand.
Cost-effectiveness
The production process for synthetic leather can be more efficient and less labor-intensive compared to traditional leather tanning methods, leading to lower manufacturing costs. Additionally, synthetic leather materials can often be produced in larger quantities and with greater consistency, further reducing production costs and improving economies of scale. Unlike genuine leather, synthetic leather typically requires less maintenance and upkeep, saving consumers both time and money over the product's lifespan. As a result, cost-effectiveness is a key driver in the synthetic leather market, fueling its widespread adoption.
Emergence of alternative materials
Advancements in textile engineering have led to the development of bio-based polymers and natural fibers that mimic the look, feel, and performance of synthetic leather while being more sustainable and eco-friendly. These alternatives pose a competitive threat to synthetic leather by appealing to environmentally conscious consumers and industries seeking to reduce their carbon footprint and environmental impact. The availability of alternative materials is a significant factor hindering market expansion.
Covid-19 Impact
The COVID-19 pandemic has had a significant impact on the synthetic leather market. During the initial phases of the pandemic, lockdowns, travel restrictions, and manufacturing shutdowns led to a decline in production and consumption across various industries, including footwear, automotive, and furniture, which are major consumers of synthetic leather. Moreover, the closure of retail outlets and decreased consumer spending resulted in reduced demand for footwear and other synthetic leather products.
The footwear segment is expected to be the largest during the forecast period
The footwear segment is estimated to hold the largest share. Synthetic leather offers footwear manufacturers a versatile and sustainable alternative to traditional leather, addressing consumer demand for cruelty-free and environmentally-friendly products. Moreover, synthetic leather footwear often boasts enhanced performance characteristics such as water resistance, abrasion resistance, and colourfastness, making it particularly appealing for active and outdoor footwear applications.
The bio-based segment is expected to have the highest CAGR during the forecast period
The bio-based segment is anticipated to have lucrative growth during the forecast period. Bio-based synthetic leather is produced using renewable resources such as plant-based polymers, agricultural by-products, or recycled materials, reducing reliance on fossil fuels and minimizing environmental impact. Bio-based synthetic leather offers several environmental benefits compared to its petroleum-based counterparts. Moreover, bio-based synthetic leather retains many desirable properties of traditional synthetic leather, such as durability, flexibility, and versatility in design, making it a viable option for a wide range of applications.
Asia Pacific commanded the largest market share during the extrapolated period. Countries like China, India, Japan, and South Korea are among the key contributors to the synthetic leather market in Asia Pacific. China, in particular, dominates both production and consumption due to its large manufacturing base and export-oriented economy. The country's robust footwear and automotive industries drive substantial demand for synthetic leather. Furthermore, the presence of key market players and ongoing technological advancements are further boosting market expansion in the Asia-Pacific region.
North America is expected to witness profitable growth over the projection period. The region's strong presence in industries such as footwear, automotive, and furniture contributes significantly to the demand for synthetic leather products. The automotive industry in North America is increasingly adopting synthetic leather for interior applications, driven by its durability, ease of maintenance, and cost-effectiveness compared to genuine leather. Moreover, the region's focus on reducing carbon footprints and promoting sustainable practices has led to a growing demand for bio-based synthetic leather alternatives.
Key players in the market
Some of the key players in the Synthetic Leather Market include Nan Ya Plastics Corporation, Kuraray Co., Ltd., San Fang Chemical Industry Co., Ltd., United Decoratives Pvt. Ltd, Alfatex Italia SRL, R. Polycoats Pvt. Ltd., Filwel Co., Ltd., Yantai Wanhua Synthetic Leather Group Co., Ltd., Vortex Flex Pvt. Ltd, Shakti Tex Coaters Pvt. Ltd. and General Silicones Co., Ltd..
In April 2023, General Silicones Co., Ltd., a Taiwan-based silicone products manufacturer, announced the launch of vegan synthetic leather, namely Compo-SiL (SL series). This series is designed for business that is manufacturers of bags, wallets, backpacks, and shoes and are seeking vegan leather supplies.
In January 2022, Kuraray Co., Ltd., and Nissha Co., Ltd. collaborated to create Material Insert Technology utilizing synthetic leather known as CLARINO, and subsequently introduced this product for sale with a focus on the mobility and consumer electronics sectors.