Synthetic Leather Market

Market Overview:

The global synthetic leather market size reached US$ 37.6 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 48.41 Billion by 2028, exhibiting a growth rate (CAGR) of 4.20% during 2023-2028. Rising demand for sustainable alternatives due to ethical concerns and environmental awareness, advancements in manufacturing technologies, cost-effectiveness and versatility of synthetic leather, expanding retail channels, and stringent regulations are fueling the market growth.

Synthetic leather is a man-made alternative to traditional animal-derived leather. It is crafted using a combination of various synthetic materials, such as polyvinyl chloride (PVC) or polyurethane (PU), layered onto a fabric backing. The manufacturing process involves applying a layer of these synthetic materials to mimic the appearance and texture of genuine leather. This process allows for a wide range of customization in terms of color, texture, and pattern. Advantages of synthetic leather include its lower cost compared to genuine leather, as well as its resistance to fading, cracking, and water damage. It requires less maintenance and is considered more environmentally friendly due to reduced dependence on animal resources. Synthetic leather finds applications across industries, including fashion, furniture, automotive upholstery, and accessories. There are two primary types of synthetic leather: polyurethane (PU) leather and polyvinyl chloride (PVC) leather. 

The global synthetic leather market is influenced by the rising demand for animal-friendly and sustainable alternatives to genuine leather. This is further bolstered by significant advancements in manufacturing technologies, which have led to enhanced quality and aesthetics of synthetic leather products. Moreover, the cost-effectiveness and versatility of synthetic leather make it an attractive option for various applications, including automotive, fashion, and furnishings, thereby augmenting the market growth. Additionally, increasing consumer awareness about the environmental impact of traditional leather production and the expansion of retail channels, both online and offline, are stimulating the market growth. 

Synthetic Leather Market Trends/Drivers:

Rising demand for sustainable alternatives

The global synthetic leather market is experiencing a notable upswing due to the increasing demand for sustainable and animal-friendly alternatives to genuine leather. As consumers become more conscious of the environmental impact of traditional leather production, there is a growing preference for synthetic leather that offers comparable aesthetics and quality without ethical concerns. This shift in consumer sentiment is driving manufacturers to invest in research and development, resulting in synthetic leather products that closely mimic the look and feel of real leather. Moreover, the scalability of synthetic leather production makes it possible to meet the rising demand without compromising on environmental ethics, further solidifying its position in the market.

Advancements in manufacturing technologies

Advancements in manufacturing technologies are playing a pivotal role in shaping the growth of the global synthetic leather market. These technological innovations are addressing historical challenges such as durability, texture, and overall quality of synthetic leather. Manufacturers are employing cutting-edge techniques that enable the production of synthetic leather with enhanced tactile experiences, realistic grain patterns, and improved durability, which were once exclusive to genuine leather. These advancements not only cater to industries like automotive and fashion but also expand the potential applications of synthetic leather into areas such as luxury goods and interior furnishings. The seamless integration of technology in the manufacturing process is fostering consumer confidence in synthetic leather, contributing significantly to its market growth.

Cost-effectiveness and versatility

The cost-effectiveness and versatility of synthetic leather are driving factors behind its growing prominence in the global market. Synthetic leather offers an affordable alternative to genuine leather, making it a preferred choice for price-sensitive consumers and industries. Additionally, the versatility of synthetic leather allows it to be tailored to various applications without compromising on quality or aesthetic appeal. From automotive interiors to fashion accessories, synthetic leather's adaptability to diverse design requirements positions it as a versatile solution that suits a wide range of industries. This adaptability, combined with its lower price point, empowers businesses to offer high-quality products at competitive prices, attracting both consumers and manufacturers to embrace synthetic leather as a viable and pragmatic choice. 

Synthetic Leather Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global synthetic leather market report, along with forecasts at the global, regional, and country levels for 2023-2028. Our report has categorized the market based on type, application, and end use industry.

Breakup by Type:

• Bio-Based
• Polyvinylchloride (PVC) Based
• Polyurethane (PU) Based
   

Polyurethane (PU) based dominates the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes bio-based, polyvinylchloride (PVC) based, and polyurethane (PU) based. According to the report, polyurethane (PU) based represented the largest segment.

The growth of the polyurethane (PU) based segment can be attributed to several primary factors, which includes the remarkable balance it offers between aesthetics and durability, appealing to industries such as fashion, automotive, and furnishings. The segment benefits from the continuous advancements in manufacturing technologies, which have led to the production of PU-based synthetic leather with remarkably realistic textures and grain patterns, rivalling the characteristics of genuine leather. Additionally, the versatility of PU-based synthetic leather in terms of color options, finishes, and customization capabilities positions it as a favored choice for designers and manufacturers seeking to cater to diverse consumer preferences. Furthermore, the PU-based segment aligns with the rising demand for sustainable and eco-friendly alternatives, given its reduced reliance on animal-derived materials. 

Breakup by Application:

• Clothing
• Bags
• Shoes
• Purses and Wallets
• Accessories
• Car Interiors
• Belts
• Sports Goods
• Others
   

Shoes dominate the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes clothing, bags, shoes, purses and wallets, accessories, car interiors, belts, sports goods, and others. According to the report, shoes represented the largest segment.

The growth of the shoes segment is primarily steered by the shifting consumer preferences towards sustainable and cruelty-free options. As consumers increasingly seek products aligned with ethical and environmental considerations, synthetic leather offers a compelling alternative to traditional leather without compromising on quality. Moreover, technological advancements have greatly improved the aesthetics, durability, and performance of synthetic leather shoes, appealing to a wider customer base. In line with this, the cost-effectiveness of synthetic leather compared to genuine leather has made it an attractive choice for consumers seeking high-quality footwear at competitive prices. Additionally, the ability to customize synthetic leather for various styles and designs enhances its appeal. Furthermore, collaborations between footwear brands and designers are introducing innovative designs that resonate with modern consumers, further propelling the growth of synthetic leather shoes in the market.

Breakup by End Use Industry:

• Footwear
• Furniture
• Automotive
• Textile
• Sports
• Electronics
• Others
   

Footwear dominates the market

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes footwear, furniture, automotive, textile, sports, electronics, and others. According to the report, footwear represented the largest segment.

The growth of the footwear segment is primarily steered by the evolving consumer preferences and trends. Manufacturers are continuously adapting to these changing preferences by incorporating synthetic leather to achieve a diverse range of designs and textures. Moreover, the rising awareness of ethical and environmental concerns associated with traditional leather production has led consumers to seek more sustainable alternatives. Synthetic leather offers an attractive solution as it addresses these concerns without compromising on quality. Additionally, rapid urbanization and changing lifestyles contribute to a higher adoption of footwear, with rising disposable incomes in emerging economies further propelling market expansion. Additionally, advancements in materials and manufacturing technologies enable the production of footwear that combines aesthetics with durability and comfort. The surge in e-commerce platforms provides consumers with convenient access to a wide range of footwear, boosting segment reach.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest synthetic leather market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.  According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific region's remarkable growth in the synthetic leather market due to the region's burgeoning population and expanding middle class have fostered increased consumer spending, particularly in industries such as automotive and fashion where synthetic leather finds wide-ranging applications. Moreover, the manufacturing prowess of countries within the Asia Pacific, combined with advancements in production technologies, enables the production of high-quality synthetic leather products at competitive prices. Furthermore, the rising awareness of environmental sustainability has prompted a shift towards eco-friendly materials, bolstering the demand for synthetic leather as a viable alternative to genuine leather. Additionally, the region's strong presence in the textiles and apparel industry provides a conducive environment for the growth of synthetic leather in fashion and accessories. In line with this, the availability of skilled labor and the capacity for rapid industrialization further contribute to the Asia Pacific's substantial role in driving the growth of the synthetic leather market in the global arena.

Competitive Landscape:

The competitive landscape of the global synthetic leather market is characterized by dynamic interactions among industry participants. Companies are vying for market share through strategies such as product innovation, technological advancements, and strategic partnerships. Manufacturing excellence is a focal point, as firms aim to produce synthetic leather with improved quality, aesthetics, and environmental sustainability. Market players are increasingly focusing on customization capabilities to cater to diverse industry needs, enhancing their competitive edge. The expansion of distribution networks, both online and offline, remains a critical strategy to reach a wider consumer base. Moreover, investments in research and development are instrumental in shaping the market, with an emphasis on creating synthetic leather products that rival the tactile experience and visual appeal of genuine leather. This landscape underscores a commitment to meeting evolving consumer preferences while advancing production methodologies, resulting in a competitive arena poised for innovation and growth.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Asahi Kasei Corporation
• DuPont Tate & Lyle Bio Products Company LLC
• FILWEL Co. Ltd. (Air Water Inc.)
• H.R. Polycoats Pvt. Ltd.
• Kuraray Co. Ltd.
• Mayur Uniquoters Limited
• Nan Ya Plastics Corporation
• San Fang Chemical Industry Co. Ltd.
• Teijin Limited
• Zhejiang Hexin Holdings Co. Ltd.

Recent Developments:

• In August 2023, Teijin Limited unveiled plans to spearhead Japan's inaugural initiative to recycle release paper in artificial leather production.
• In April 2023, Kuraray Co. (Tokyo) announced partnership with PTT Global Chemical (PTTGC; Bangkok, Thailand) and Sumitomo Corp. (Tokyo) to open a manufacturing plant in order to upgrade and develop competitiveness in the Eastern Economic Corridor (EEC) region.
• In April 2023, Tate & Lyle PLC announced it had completed the sale of a controlling stake in a new company comprising its primary products business in North and Latin Americas.

Synthetic Leather Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the synthetic leather market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global synthetic leather market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the synthetic leather industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.