Global Synthetic Leather Market By Product (PU Synthetic Leather, PVC Synthetic Leather, and Bio-based Leather), By Application (Footwear, Clothing, Furnishing, Automotive, Wallets, Bags, & Purses), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast: 2023-2032

Report Overview

The global synthetic leather market size is expected to be worth around USD 64.6 billion by 2032 from USD 32.8 billion in 2022, growing at a CAGR of 7.2% during the forecast period from 2023 to 2032.

This market growth is expected to be driven by the global rise in synthetic leather demand from the footwear sector. Natural leather replacements are also in demand due to the high price of natural leather.

PVC (polyvinyl chloride) leather is another type of synthetic leather that is rapidly gaining popularity. It can be used for shopping bags, cosmetic bags, and wallets, as well as purses, luggage bags, and travel bags.

It can be used in a variety of applications, including clothing, footwear, upholstery, and other application areas, where a leather-like appearance is needed. Over time, manufacturing processes have changed so that the shell coating can be applied over a synthetic blend.

Key Takeaways

• Market Growth and Size: The global synthetic leather market is expected to reach approximately USD 64.6 billion by 2032, showing significant growth from USD 32.8 billion in 2022, with a Compound Annual Growth Rate (CAGR) of 7.2% during the forecast period.
• Driving Factors: Footwear Sector Demand: The rise in synthetic leather demand is primarily driven by the global footwear sector, which seeks natural leather replacements due to the high cost of genuine leather. PVC Leather Popularity: Polyvinyl chloride (PVC) leather is gaining popularity for various applications, including shopping bags, wallets, and purses, due to its affordability and versatility.
• Manufacturing Advantages: Low Manufacturing Costs Synthetic leather is more cost-effective to produce compared to natural leather, leading to increased investment and market penetration. Environmental Concerns Natural leather production is associated with environmental pollution, especially in the tanning process. This has fueled demand for synthetic leather due to government regulations and environmental legislation.
• Application Insights: Footwear Dominance is the dominant application segment, accounting for over 28.4% of global revenues in 2022. It is driven by increasing incomes and robust economic growth, particularly in emerging countries.
• Product Analysis: PU Synthetic Leather controlled more than half of the market share in 2022, offering benefits such as durability, environmental-friendliness, and resistance to sunlight.
• PVC Synthetic Leather: The market share for PVC synthetic leather is slowing down due to its use of toxic chemicals and less appealing properties in comparison to PU.
• Environmental Concerns and Health Issues: The growth of synthetic leather faces challenges due to environmental and health concerns associated with materials like polyurethane and polyvinyl chloride. These materials can lead to allergies, diseases, and environmental pollution.
• Regional Dominance: Asia Pacific region dominates the market, accounting for over 39.2% of global revenues in 2022. Key growth-driving countries include South Korea, India, and China.
• Opportunities: Sustainability Synthetic leather is considered more sustainable than natural leather, and companies are exploring options like using recycled materials and eco-friendly alternatives to appeal to the growing vegan population.
• Key Players: Some of the prominent companies in the synthetic leather market include Kuraray Co. Ltd., H.R. Polycoats Pvt. Ltd., Alfatex Italia SRL, and others. These companies are using strategies like joint ventures and mergers to increase market share.

Drivers

Low manufacturing costs and awareness about animal rights are driving this market

Natural leather is made from animal skins and requires the slaughter of animals. Many laws and rules have been adopted by various governments to protect animal rights. Natural leather producers have faced significant obstacles due to animal rights legislation.

Increasing public awareness about animal abuse has prompted demand for leather alternatives. Due to the widening gap between supply and demand in natural leather, manufacturers are increasingly switching to synthetic leather.

A key reason synthetic leather is being adopted is the lower manufacturing costs. Synthetic leather is cheaper than natural leather and is easier to make. This has led to increased investment in synthetic leather which will help in market penetration.

The environment is polluted by natural leather manufacturing, especially tanning. The cost of synthetic leather is another key factor in the rise in demand. The demand for synthetic leather has increased due to government regulations and environmental legislation. The variables discussed above will likely drive synthetic leather demand over the forecast period.

The footwear industry has experienced substantial growth due to increasing demand from developing countries. The global recession has slowed customer spending in some European countries and the Us. China, India, and South Korea have expressed great interest.

This will likely significantly impact the market for synthetic leather from Asia. More foreign investment will stimulate industrial penetration in developing countries over the forecast period. The wallets, purses, & bags market is set to experience significant growth due to its high demand.

Synthetic leather is lightweight, breathable, and waterproof, making them easy to clean. Synthetic leather has been widely used in purses, wallets, and bags over the past few years. Synthetic leather has become very popular due to its softness and durability. Shoe brands must consider the rising middle class as a potential growth driver for this market.

Restraints

Allergies, diseases, and other side effects are major concerns

Polyvinyl chloride, polyurethane, and other synthetic leather raw materials are harmful to the environment, animals, and humans. Polyurethane isocyanate can cause asthma attacks and aggravation of the lungs. It can cause irritation to the epidermis, making it harder to breathe.

Polyurethane fumes are commonly inhaled by workers in polyurethane production facilities. This can cause nausea, vertigo, and vomiting. Polyvinyl chloride contains phthalates, dioxin, and vinyl chloride monomers, which are toxic carcinogens.

Dioxin, a poisonous and dangerous chemical, is released when chlorine-containing compounds have been charred. The toxic effects of polyurethane as well as the polyvinylchloride production process have hampered the growth of synthetic leather. The negative effects of polyurethane, polyvinylchloride, and polyvinylchloride will likely limit this market’s growth over the forecast period.

Product Analysis

PU synthetic leather controlled more than half of this market share in 2022

In terms of product, this market is divided into PU synthetic leather, PVC synthetic leather, and bio-based leather.

The PU synthetic leather segment was the largest and accounted for more than 53% of global revenues in 2022. This segment has seen promising growth in terms of product variety, quality, and yield. Polyurethane can be dried, cleaned, and torn more effortlessly than real leather. It is waterproof and lighter than genuine leather. It is also resistant to sunlight.

Polyurethane is also an eco-friendly alternative to vinyl-based products because it does not emit dioxins. These key factors are expected to increase its demand.

The PVC synthetic leather market share segment is slated to slow index growth over the forecast period. PVC was created as the first synthetic leather market growth in 1920 and was made using carcinogenic toxic chemicals. It proved to be an excellent raw material for household and furnishing applications.

PVC was a tough competitor to PU because it has a sticky texture and cannot retain body heat. PVC’s demand in the bag and clothing application segments declined as a result.

Bio-based products are made of polyester polyol with 70-75% renewable content. It is more flexible and resistant to scratches than PVC and PU. Global market leaders are working with polyol producers to develop new products. In the coming years, this segment is expected to continue to grow owing to robust industrialization and continuous R&D initiatives.

Application Analysis

Consumers from developing countries are also opting for synthetic leather for footwear

On the basis of application, this market is divided into footwear, clothing, furnishing, automotive, and wallets, bags, & purses. The footwear segment dominated this market and accounted for over 28.4% of global revenues in 2022.

This product is becoming more like genuine leather in terms of replacing many of leather’s applications in handbags and briefcases, as well as car furnishings and clothing. The demand for footwear has increased due to increasing incomes and robust economic growth factors, particularly in emerging countries. This segment is also affected in part by the variations in climatic factors that can occur across different regions.

These conditions require different types and styles of footwear. Synthetic Leather is widely used for shoe linings, uppers, and soles. It can be used for formal shoe uppers, casual shoes, flip-flops, soccer boots, and sandals. This raw material price is cost-effective, durable, and environmentally friendly. Synthetic leather shoes are more resistant to water than real leather shoes. Real leather shoes can stain from exposure to certain elements.

Synthetic leather shoes can be worn for longer periods of time when running or walking. The footwear segment growth is expected to be driven by the growing trend of athleisure, which has seen more people incorporating athletic shoes into their daily lives.

Synthetic leather is three times more affordable than those prepared from animal hide. This also helps to boost this segment’s growth. Synthetic leather is now more affordable than animal hide in the furnishing industry trends.

Consumers are increasingly choosing vegan leather products due to advancements in textile technology. Synthetic leather is the best choice for textile purposes. PU synthetic leather is also used for clothing, where it is implemented as a spandex-making material and to add buoyancy to competitive swimsuits.

A wide range variety of synthetic leather materials are available on the market to cater to the needs of various industries, including the furnishing sector. These artificial leather materials can also be used for marine furnishing because they are saltwater-resistant.

Synthetic leather can be used on cars, trucks, and motorcycles as it is lighter than animal hide. Because it is non-sticky and soft, polyurethane is the most popular material used by automotive industry experts.

The wallets, purses, and bags market is set to experience substantial growth due to its high demand. Synthetic leather is lightweight, breathable, and waterproof, making it easy to clean. Synthetic leather has been widely used in purses, wallets, and bags over the past few years.

Synthetic leather has become very popular due to its softness and durability. This market is driven by the lower price of synthetic leather. Baggit, Solo, and ZARA are just some of the many brands that use synthetic leather to make a variety of stylish and fashionable bags.

Кеу Маrkеt Ѕеgmеntѕ

By Product

• PU Synthetic Leather
• PVC Synthetic Leather
• Bio-Based synthetic leather

By Application

• Footwear Sector
• Clothing
• Furnishing
• Automotive Sectors/Vehicles
• Wallets, Bags, & Purses

Opportunities

The “Go-Green” motto will help this market in the forecast period

Synthetic leather is much more sustainable than natural leather. To promote sustainable development, some companies are trying to make synthetic leather from recycled materials. These companies are looking to use recycled microfibers of polyester as raw materials to make their products.

To reduce pollution, they are also looking at water-based polyurethane. These chemicals can be used to make leather coatings. The market for synthetic leather will be able to take advantage of the growing vegan population and the availability of eco-friendly options during the forecast period.

Regional Analysis

Asia Pacific dominates this market share due to its increasing population and disposable income

The Asia Pacific was the dominant regional market, accounting for more than 39.2% of global revenues in 2022. APAC’s major growth-driving countries are likely to be South Korea, India, and China. This market will have many growth opportunities due to increasing disposable incomes and booming population figures.

China is a major sales & production market for leather. The coronavirus outbreak has severely affected the country’s production output. To prevent the spread of this virus, many manufacturers have shut down or reduced their production capacity.

The slowdown or halt in production, restrictions on supply and transportation, and a slowdown of infrastructure are all expected to adversely affect the demand for synthetic leather in end-use applications in the near future. Because of the high saturation of large domestic fashion brands, North America’s market is expected to slow down.

Due to increasing concerns raised by animal rights groups such as PETA and WWF, the leather market has experienced a slowdown in growth. This has led to an increase in demand for synthetic leather products in the region. Due to the growth of the automotive and consumer appliances industries in Europe, this market indexed significant growth.

The region’s governments are now trying to find long-lasting, durable, bio-based products in the midst of global crises. This is expected to lead to an increase in the demand for synthetic leather.

Key Regions and Countries

• • North America
    • The US
    • Canada
    • Mexico
  • Western Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Portugal
    • Ireland
    • Austria
    • Switzerland
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • The Czech Republic
    • Greece
    • Rest of Eastern Europe
  • APAC
    • China
    • Japan
    • South Korea
    • India
    • Australia & New Zealand
    • Indonesia
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Vietnam
    • Rest of APAC
  • Latin America
    • Brazil
    • Colombia
    • Chile
    • Argentina
    • Costa Rica
    • Rest of Latin America
  • Middle East & Africa
    • Algeria
    • Egypt
    • Israel
    • Kuwait
    • Nigeria
    • Saudi Arabia
    • South Africa
    • Turkey
    • United Arab Emirates
    • Rest of MEA

Key Players Analysis

Only a few companies possess large production capacities of synthetic leather. They are mainly located in Asia Pacific. Companies use strategies like joint ventures and mergers & acquisitions to increase market share and revenue.

Winner Nippon Leatherette Pvt. Ltd. is constantly involved in the development of products that can replace genuine leather for a variety of applications.

Кеу Маrkеt Рlауеrѕ

• Kuraray Co. Ltd.
• H.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
• Asahi Kasei Corporation
• Zhejiang Hexin Holdings Co., Ltd
• Zhejiang Hexin Industry Group Co., Ltd.
• Fujian Polytech Technology Corp.
• Toyobo Co Ltd.
• Mayur Uniquoters Ltd.
• H.R. Polycoats Pvt. Ltd.
• Daewon Chemical Co Ltd.
• Phool.co
• Malai Eco
• Other Key Players

Recent Developments

• Stahl Holdings BV introduced Stahlite systems based upon specialty polymers in March 2021 to make lightweight automotive leathers. The Stahlite can reduce the weight of synthetic leather by up to 30% when compared to traditional leather materials.
• Indian startup Phool.co created artificial leather using leftover temple flowers in 2020. The company claims this leather, which is animal-free, will be a game changer in the overall fashion industry.
• Malai makes synthetic leather from agricultural wastes generated by the coconut industry. The company focuses on providing organic and sustainable leather.

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