Introduction
The global synthetic leather market is poised for significant growth, with projections indicating it will reach approximately USD 64.6 billion by 2032, up from USD 32.8 billion in 2023, reflecting a robust CAGR of 7.2% during the forecast period from 2023 to 2032. This expansion is primarily driven by the rising demand for cost-effective and sustainable alternatives to natural leather, particularly in the automotive, fashion, and furnishing industries. Synthetic leather’s advantages, such as durability, ease of maintenance, and environmental benefits, contribute to its growing popularity.
Recent developments in the market highlight a trend towards eco-friendly and bio-based synthetic leathers. For instance, companies like General Silicones have introduced vegan silicone leather products, catering to the increasing consumer preference for cruelty-free options. Additionally, technological advancements in production processes have enhanced the quality and aesthetic appeal of synthetic leather, further boosting market growth.
However, the market faces challenges such as competition from natural leather and regulatory concerns related to the environmental impact of synthetic leather production. The COVID-19 pandemic also temporarily disrupted supply chains, impacting market dynamics. Despite these hurdles, the market’s growth is supported by increasing disposable incomes, particularly in emerging economies, and the continuous innovation in synthetic leather products to meet diverse consumer needs.
The synthetic leather market has witnessed several significant developments in recent times, driven by advancements in material science and the growing demand for sustainable and cost-effective alternatives to natural leather.
Kuraray Co. Ltd. has made strides in developing eco-friendly synthetic leather materials. They introduced Trosifol® EVA, a bio-based synthetic leather made from sugarcane, enhancing sustainability in the market. Kuraray has also been active in forming collaborations and partnerships to push the boundaries of sustainable synthetic leather production.
H.R. Polycoats Pvt. Ltd. continues to innovate in the synthetic leather domain, focusing on producing high-quality polyurethane (PU) and polyvinyl chloride (PVC) based synthetic leathers. Their products cater to various industries, including automotive, footwear, and furnishings, emphasizing durability and cost-effectiveness. Alfatex Italia SRL has expanded its product offerings by incorporating advanced manufacturing techniques to produce synthetic leather for high-end applications. Their recent developments include laminated and vinyl-coated fabrics used in residential, marine, and automotive upholstered furniture, enhancing the company’s market presence.
Statistics
- In the past, leather has been the essential component of the fashion industry, used in 41% of shoes, 17% of furniture, and 13% of automobile products and other leather goods.
- China holds a dominant position in the global leather export market, making for 25% of total exports in 2023.
- About 2.3% of high-end leather goods for women are made of vegan materials.
- Over the past five years, China’s artificial synthetic leather production has shown a year-on-year decline. Compared with 3.29 million tons in 2019, it is expected to have dropped nearly 30% of the output, and the output value has fallen from nearly 100 billion yuan to less than 80 billion yuan.
- According to the statistics of customs import and export data, in 2023, the total export of China’s artificial leather synthetic leather was 1.24 billion meters, down 1.59% year-on-year, and the total export value of 2.99 billion U.S. dollars in 2023, down 7.14% year-on-year, which indicates that in 2023, China’s artificial leather synthetic leather exports showed a trend of lower volume and price.
- From the analysis of products, the total export of PVC synthetic leather is 494 million meters, accounting for 40.23%, and the total export of PU synthetic leather is 723 million meters, accounting for 58.88%.
- Based on the customs import and export data, China imported 0.31 billion meters of artificial leather synthetic leather products in 2023, down 13.89% year-on-year, with a total import value of USD 310 million, and an average import unit price of USD 10.11 per meter, down 3.53% year-on-year.
- Leather is a natural product created by altering the protein compositional structure of animal skins and hides through physical and chemical treatments. With an approximate annual trade value of $100 billion per year.
- The global greenhouse gas emissions of 12%–14.5% are responsible for the livestock sector. Among these, 65% are responsible for cattle farming.
- bacterial strain was isolated using customized media consisting of 1.3% nutrient broth media mixed with 1.8% urea broth media along with 5% glucose and 0.15% citric acid.
- The Amazon rainforest in Brazil is home to over 1 million Indigenous people, protectors of one of the most biodiverse places on earth. Brazil also has the largest cattle herd in the world, with over 215 million animals. 80% of bovine leather from Brazil is exported, accounting for $1.1 billion of revenue in 2020.
- However, satellite data links one of the biggest exporters of leather in Brazil to 200K acres of deforestation in the Amazon in the last two years (fact at 2021). Scientists predict that the loss of just 4% more rainforest in the Amazon will cause a ‘tipping point’ and irreversible global consequences.
- Despite this in December 2013, the Council for Leather Exports requested the Government of India to consider formulating a specific package for brand promotion to the extent of about 2% of their export turnover, enhancement of duty-free limit from 3% to 5%, and other outrageous and needless funding benefits.
- According to the United Nations Food and Agriculture Organisation, the sector is responsible for about 14% of all greenhouse emissions from human activity. Cattle rearing alone represents about 65% of those emissions.
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Emerging Trends
The synthetic leather market is witnessing significant trends driven by technological advancements and evolving consumer preferences. One notable trend is the increasing adoption of bio-based and sustainable materials. Companies are focusing on developing synthetic leathers from plant-based sources and recycled materials to meet the rising demand for eco-friendly products. This shift is largely fueled by growing environmental awareness and the vegan fashion movement, which advocates for cruelty-free alternatives to animal leather.
Another key trend is the enhanced performance of synthetic leather. Innovations in manufacturing processes have led to the creation of synthetic leathers that are more durable, breathable, and visually appealing. These materials are now widely used in various applications, including automotive interiors, footwear, and fashion accessories, where their superior qualities offer significant advantages over natural leather.
The market is also benefiting from the rapid expansion of e-commerce, which has made synthetic leather products more accessible to a global audience. The convenience of online shopping and the availability of a diverse range of synthetic leather goods have contributed to increased consumer adoption.
Additionally, the automotive industry is a major driver of synthetic leather demand, as manufacturers seek cost-effective and customizable materials for car interiors. Synthetic leather offers ease of maintenance and a wide array of design possibilities, making it an attractive choice for car manufacturers.
Use Cases
Footwear Industry: Synthetic leather is extensively used in the footwear sector, dominating the market due to its affordability, durability, and the ability to offer a variety of colors, patterns, and textures. This material is ideal for creating shoes that meet the fashion demands of consumers while aligning with sustainability and animal welfare concerns. The footwear segment remains the largest end-use industry for synthetic leather.
Automotive Interiors: The automotive industry utilizes synthetic leather for vehicle interiors, including seats, steering wheel covers, and door trims. This material provides a cost-effective and customizable option that is easy to maintain. The rising demand for luxury and electric vehicles has significantly boosted the use of synthetic leather in automotive applications.
Fashion and Accessories: In the fashion industry, synthetic leather is used to produce a wide range of items such as jackets, belts, bags, purses, and wallets. Brands like Zara and Kenneth Cole leverage synthetic leather to offer stylish and trendy products that cater to eco-conscious consumers. The material’s lightweight, breathable, and waterproof properties make it an attractive alternative to natural leather.
Furniture and Upholstery: Synthetic leather is popular in the furniture industry for making sofas, chairs, and other upholstered items. It provides an affordable, durable, and aesthetically pleasing alternative to natural leather, making it a preferred choice for both residential and commercial furniture.
Electronics: The electronics industry uses synthetic leather for covering and protecting devices such as laptops, tablets, and smartphones. Its ability to safeguard against scratches and impacts while offering a sleek appearance makes it a favored material for tech accessories. For instance, Hewlett-Packard introduced the “Elito Folio” laptop with a bio-based synthetic leather cover, showcasing the material’s growing appeal in electronics.
Key Players Analysis
Kuraray Co. Ltd. is a prominent player in the synthetic leather market, known for its innovative and sustainable products. The company has developed advanced synthetic leathers like Clarino™, which are produced without organic solvents, emphasizing environmental sustainability. Kuraray’s synthetic leather products are used in various applications, including footwear, automotive interiors, and fashion accessories. Their commitment to sustainability is further demonstrated by initiatives to reduce greenhouse gas emissions and transition to bio-based raw materials as part of their long-term vision.
H.R. Polycoats Pvt. Ltd. is a leading manufacturer of synthetic leather in India, specializing in high-quality PU and PVC-based products. Established in 1995, the company operates five advanced production plants, supplying sectors such as automotive, footwear, and furnishings. H.R. Polycoats emphasizes innovation and sustainability, adhering to ISO 9001:2015 and IATF 16949:2016 standards. Their products are known for durability and cost-effectiveness, making them a preferred choice in both domestic and international markets, spanning over 20 countries.
Alfatex Italia SRL is a prominent manufacturer of high-performance synthetic leather, focusing on sustainability and innovation. Established in 1989, the company produces a wide range of coated and laminated fabrics for various industries, including automotive, marine, and healthcare. Their eco-friendly products, such as HelianthuSkin, reflect their commitment to sustainability. With advanced antimicrobial treatments like Ultra-Fresh, Alfatex ensures durability and hygiene in its products, catering to both domestic and international markets.
Filwel Co. Ltd., based in Japan, is a key player in the synthetic leather industry, known for integrating recycled PET materials into their products. Their offerings cater to diverse sectors, including automotive, electronics, and fashion. Filwel’s focus on sustainability and innovation has led to the development of high-quality synthetic leathers that meet stringent environmental standards. The company’s strategic approach emphasizes durability, aesthetic appeal, and eco-friendliness, making it a significant contributor to the global synthetic leather market.
Yantai Wanhua Synthetic Leather Group Co. Ltd., established in 1995, is a leading manufacturer of polyurethane (PU) synthetic leather in China. The company produces a wide range of synthetic leather products, including PU resin and artificial leather, used in various sectors such as automotive, furniture, and construction. The company emphasizes technological innovation and sustainability, catering to both domestic and international markets.
San Fang Chemical Industry Co. Ltd., headquartered in Taiwan, is a prominent player in the synthetic leather market. The company specializes in the production of high-performance PU and PVC synthetic leathers, widely used in footwear, automotive interiors, and fashion accessories. San Fang is recognized for its commitment to innovation and quality, continuously developing advanced materials that meet industry standards. The company exports its products globally and focuses on sustainable manufacturing practices to reduce environmental impact.
Mayur Uniquoters Limited, established in 1994, is a leading manufacturer of synthetic leather in India, specializing in PVC and PU-coated fabrics. With a production capacity of 48.6 million linear meters annually, Mayur caters to various industries, including automotive, footwear, and furnishings. The company supplies to major automotive brands like Chrysler, Ford, and Hyundai, and has a significant global presence. Their innovative approach and adherence to high-quality standards have positioned them as a key player in the synthetic leather market.
Teijin Limited, a prominent Japanese company, has made significant strides in the synthetic leather market with a strong focus on sustainability and innovation. Their ECOPET® and ECOPURE® series incorporate recycled PET materials, offering eco-friendly alternatives. Teijin’s products are widely used in the automotive and fashion industries due to their durability and high performance. The company’s commitment to R&D and strategic expansions has reinforced its position as a leader in the synthetic leather industry.
Nan Ya Plastics Corporation, part of Formosa Plastics Group, is a major player in the synthetic leather market, producing high-quality PVC and PU synthetic leather. The company leverages advanced manufacturing technologies to cater to diverse applications in the automotive, furnishings, and fashion industries. With a strong focus on sustainability, Nan Ya Plastics integrates eco-friendly practices in its production processes, ensuring high durability and cost-effectiveness of its products.
Asahi Kasei Corporation is a leading manufacturer in the synthetic leather industry, known for its high-performance products that cater to automotive, fashion, and furnishing applications. The company’s innovative synthetic leather, particularly its environmentally friendly and durable variations, meets stringent industry standards. Asahi Kasei continues to expand its market presence through technological advancements and sustainability initiatives, solidifying its position as a key player in the synthetic leather market.
Zhejiang Hexin Industry Group Co., Ltd., established in 1984, is a prominent player in the synthetic leather market. The company specializes in the production of polyurethane (PU) and microfiber synthetic leather, serving diverse industries such as automotive, fashion, and furnishings. With 11 subsidiaries, Hexin integrates advanced Japanese microfiber technology through its joint venture, Hexin Kuraray, to produce high-performance synthetic leather closely mimicking genuine leather. Committed to sustainability and innovation, Hexin has developed a comprehensive supply chain within China, bolstering its market leadership.
Fujian Polytech Technology Corp., established in 1994, is a leading manufacturer in the synthetic leather industry, specializing in PU and PVC synthetic leather. The company operates five advanced production lines and focuses on high-quality, environmentally friendly materials, including water-based and oily resin PU and silicone leather. Fujian Polytech caters to various applications such as automotive, furniture, and fashion accessories, ensuring adherence to international standards like ISO 9001 and ISO 14001. Their products are known for their durability and versatility.
Toyobo Co., Ltd., a renowned Japanese company, has made significant strides in the synthetic leather market by leveraging its expertise in advanced materials. Toyobo focuses on developing high-performance synthetic leathers for diverse applications, including automotive interiors, fashion, and sports equipment. Their products are celebrated for their superior quality, durability, and environmental compliance. Toyobo continues to innovate by integrating cutting-edge technologies to produce sustainable synthetic leather alternatives.
H.R. Polycoats Pvt. Ltd., founded in 1995, is a major player in the synthetic leather industry, known for producing high-quality PU and PVC-based synthetic leathers. The company operates five plants dedicated to synthetic leather production, serving sectors such as automotive, footwear, and furnishings.
Daewon Chemical Co., Ltd., established in 1974, specializes in the production of polyurethane synthetic leather, serving markets like consumer electronics, automotive interiors, footwear, and sporting goods. With manufacturing facilities in Osan and Gimhae, South Korea, the company also exports to China and Taiwan. Daewon Chemical emphasizes innovation, developing eco-friendly products like their wet-type PU items used by global brands such as Nike and Adidas.
Phool. co, an Indian startup, innovatively converts floral waste into “Fleather,” an eco-friendly alternative to animal leather. By collecting floral waste from temples, Phool. co-creates sustainable synthetic leather, gaining recognition for its environmental impact and innovative approach. This material is biodegradable and caters to the fashion industry, promoting cruelty-free and eco-conscious products.
Malai Eco, founded by Susmith C S and Zuzana Gombosova, is a sustainable materials company based in Kerala, India. They produce a unique vegan and compostable leather-like material from bacterial cellulose grown on waste coconut water. This innovative material, known as Malai, is durable, flexible, and eco-friendly, making it suitable for fashion accessories, footwear, and interiors. Malai promotes circular economy principles by transforming agricultural waste into valuable resources, emphasizing sustainability and local sourcing.
Conclusion
The synthetic leather market is set for robust growth, driven by increasing demand from various sectors such as footwear, automotive, fashion, and furniture. Advancements in manufacturing technologies and a shift towards sustainable and eco-friendly materials are significant contributors to this expansion. The market’s versatility, cost-effectiveness, and alignment with consumer preferences for cruelty-free products position it favorably against natural leather. With the Asia-Pacific region leading in production and consumption, and continuous innovation enhancing product quality and applications, the synthetic leather market is poised to reach new heights in the coming years.
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