Industry Outlook

Synthetic Leather market value expected to witness the CAGR of 7.5% during the forecast period from 2021 to 2029. Synthetic Leather or artificial leather is a leather like plastic material that are direct substitute of natural leather in each and every end-use industry. These leathers are generally made using polyurethane and polyvinylchloride and marketed under different names such as faux leather, artificial leather, pleather, etc. Synthetic leather finds promising End-use Industry in almost every end-use industry of natural leather that includes footwear, furnishing, automotive, clothing, clothing, consumer goods, and others. Footwear accounted for the largest demand share of synthetic leather, and the demand for synthetic leather is likely to rise in this segment on account surge in demand for footwear in Asia-Pacific, Latin America, and Europe region. Growing urbanization, rising disposable income, changing lifestyle, and growing demand for western and fashionable brands in developing economies of Asia-Pacific making it the dominating region. North America closely follow Asia-Pacific in terms synthetic leather consumption, with the U.S. being the market leader.

Growing demand from footwear and automotive industry, cost effectiveness, mitigate the risk of animal killing, greater flexibility than pure leather in terms of designs and customization are some of the major factors driving the growth of synthetic leather across the globe. However, few harmful effects of synthetic material such as emission, non-biodegradability, and hazardous waste coupled with extensive manufacturing process projected to hamper the growth of the market during the forecast period. Development of bio-based and plant-based leather expected to offer lucrative growth opportunity for this market. Major players operating in the synthetic leather market includes Kuraray Co. Ltd. (Japan), Toray Industries (Japan), Teijin Limited (Japan), San Fang Chemical Industry Co. Ltd (Taiwan), Nan Ya Plastics Co. Ltd. (Taiwan), and Mayur Uniquoters Ltd. (India) among others.

"PU Synthetic Leather Segment Dominate the Synthetic Leather Market by Type"

PU synthetic leather dominated the synthetic leather market by type in 2020 and expected to maintain its dominance throughout the forecast period. Demand for polyurethane (PU) leather has been growing fast owing to increasing adoption from sports and packaging industry. Moreover, PU synthetic leather is also one of the substitute to polyvinyl chloride (PVC) synthetic leathers that have negative environmental impact making it the fastest growing segment during the forecast period. However, PVC-based synthetic leather offers some superior advantages such as higher flexibility, performance in low temperature, and low cost than PU synthetic leather.

Bio-based leather also projected to show significant growth rate during the forecast period. Bio-based leather are made from yarn of tree fiber hence these are bio-degradable and sustainable alternatives to pure leather. Bio-based leather demand is coming majorly from clothing industry.

"Footwear Led the End-use Industry Segment in 2020"

Footwear led the synthetic leather end-use industry market in 2020 and expected to maintain its dominance throughout the forecast period. Growing disposable incomes, and changing lifestyles of consumers is driving the demand for synthetic leather in the footwear industry. Countries with extreme climatic conditions requires different kinds of footwear with high performance material also expected to increase the synthetic leather consumption in the footwear industry. Rising demand of athletic footwear owing to the concerns towards personal health and inclination towards different physical activities among the population coupled with periodic sports events such as Olympic, Commonwealth Games, Asian Games, Cricket World Cup, etc. promoting the demand for footwear across the globe which in turn driving the demand for synthetic leather from footwear industry.

Clothing and Automotive end-use industry projected to witness the significant CAGR during the forecast period owing to changing fashion preferences leading rising inclination towards luxury products and increasing demand for lightweight leather which makes seats comfortable and resistance to cold and hot temperatures, respectively.

"Asia-Pacific to Remain Dominant Region during the Forecast Period"

Asia-Pacific was the largest regional market for synthetic leather in 2020, also expected to see strong gains in coming years as well, on account of flourishing end-use industries such as footwear, furnishing, automotive, etc. coupled with rising disposable income and economic growth. Majority of the synthetic leather demand in Asia-Pacific comes from China and India. Asia-Pacific economies are characterized by favorable and liberal government regulations, rapid industrializations, and increasing westernization will significantly contribute to the growth of artificial leather market in China, India and Japan. China is the largest producer leather followed by India in the Asia-Pacific region. Asia-Pacific is also identified as the fastest growing region during the forecast period. North America closely follows Asia-Pacific in terms of market share, with U.S. being the largest consumer in the region. Increasing demand for automotive upholstery and sporting goods is the key driving factor for synthetic leather in the region.

"New Product Development and Expansion are among the Preferred Strategy Adopted by Key Players in Synthetic Leather Market"

Companies are resorting to new product development as a major strategy to cater the consumer varying demand pertaining to natural and high performance leather products and strengthen their market positions in the global synthetic leather industry. Consequently, development of upgraded & customized bio-based products provide high growth opportunities to synthetic leather manufacturers. For instance, Teijin Cordley limited a subsidiary of Teijin's Group introduced a new high grade synthetic leather under the brand named as Maestley in April 2019. The company expanded its series of Maestley products by adoption of natural leather processing procedures. Expansion is also one of the key strategy being adopted by key players to cater the ever rising demand for synthetic leather across the globe. To cater the domestic demand for synthetic leather in Italy and other European countries and to keep the competitors at bay Toray Industries invested US$ 276.87 Mn for the capacity expansion of its synthetic leather output in Italy in March, 2020. Key players operating the market includes Kuraray Co. Ltd. (Japan), Nan Ya Plastics Co. Ltd. (Taiwan), Teijin Limited (Japan), San Fang Chemical Industry Co. Ltd (Taiwan), Mayur Uniquoters Ltd. (India), Toray Industries (Japan), and Zhejiang Hexin Industry Group Co., Ltd.  (China) among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Synthetic Leather market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Synthetic Leather market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Synthetic Leather market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Synthetic Leather market?
• Which is the largest regional market for Synthetic Leather market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Synthetic Leather market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Synthetic Leather market worldwide?