Synthetic Leather Market to Grow by USD 25.3 Billion (2024-2028), with AI-Driven Insights on Rising Demand from Developing Economies – Technavio

NEW YORK, Oct. 4, 2024 /PRNewswire/ — Report with market evolution powered by AI – The Global Synthetic Leather Market size is estimated to grow by USD 25.3 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  9.42%  during the forecast period. High demand from developing economies is driving market growth, with a trend towards customization of synthetic leather. However, fluctuating raw material prices  poses a challenge – Key market players include AIR WATER INC., Akea Srl, Alfatex Italia Srl, Anhui Anli Material Technology Co. Ltd., Asahi Kasei Corp., Colence Pvt. Ltd., H.R. Polycoats Pvt. Ltd., Kolon Industries Inc., KURARAY Co. Ltd., Lederplast Spa, Marvel Vinyls Ltd., Mayur Uniquoters Ltd., Nan Ya Plastic Corp., San Fang Chemical Industrial Co. Ltd., Teijin Ltd., Toray Industries Inc., Uniroyal Global Engineered Products Inc., Winner Nippon Leatherette Pvt. Ltd., Zhejiang Hexin Industry Group Co. Ltd., and Zhejiang Yongfa Synthetic Leather Co. Ltd..

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Market Driver

The customization trend in synthetic leather is gaining traction worldwide, particularly among luxury consumer product manufacturers. This involves customizing the design, color, luster, and texture of synthetic leather. Over the past five years, customized synthetic leather has become increasingly popular across various industries. Vendors like Toray are responding to this trend by offering a wide range of customization options, including pattern, design, luster, texture, and prints. Customers can even opt for traditional techniques like gliding and embossing through digital methods such as laser printing and cutting. While customized synthetic leather products are more expensive than standard ones, the ability to create personalized items is driving market growth. Thus, customization is a significant trend fueling the expansion of the global synthetic leather market. 

The Synthetic Leather market, also known as Artificial Leather, is experiencing significant growth due to its cost-efficient and durable nature. Two primary materials, Polyurethane (PU) and Polyvinyl Chloride (PVC), dominate the industry. However, eco-conscious consumers are driving a trend towards bio-based synthetic leather made from natural fibers like flax, cotton, and even pineapple leaves. Bio-based materials offer ethical considerations, reducing health and environmental risks associated with traditional synthetic leather production. Pinatex, made from pineapple leaves, is a popular alternative. However, concerns over non-biodegradability and micro-plastics remain. The market spans various sectors, including footwear, furnishing, clothing, bags, purses, and wallets. Fashionable footwear and upholstery are significant markets. Durability, breathability, waterproof, washable, and stain-resistant properties make synthetic leather attractive. Ethical considerations and personalization are also key trends. Manufacturing requires a skilled workforce and raises concerns over carbon emissions, volatile organic compounds, and animal-friendly alternatives. Sustainable materials, such as vegan materials and eco-friendly bio-mass balanced synthetic leather, are gaining traction. In conclusion, the Synthetic Leather market is evolving, driven by cost-efficiency, durability, and eco-consciousness. Companies must navigate health, environmental, and ethical considerations while adapting to consumer trends and demands. 

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Market Challenges

• The synthetic leather market faces significant challenges due to the volatility of raw material prices. Crude oil and forest products heavily influence the cost of substrates like polymer film and silicone, which are essential for manufacturing synthetic leather. Petroleum derivatives, the primary raw materials, are subject to price fluctuations based on the cost of natural gas and crude oil. In 2019, the average crude oil price was USD64.4 per barrel, but it dropped to USD41.96 per barrel in 2020 and rose to USD70.68 per barrel in 2021. These price changes forced manufacturers of petroleum derivative-based products to increase their prices. The unpredictable nature of raw material costs poses a significant challenge to the growth of the global synthetic leather market.
• The synthetic leather market faces several challenges in its quest for sustainability and ethical production. Bio-based synthetic leather, made from natural fibers like flax and cotton, offers a more eco-friendly alternative to traditional petroleum-based materials. However, the production of Pinatex from pineapple leaves and other bio-based materials still poses challenges in terms of scalability and cost. Non-biodegradable synthetic leather, such as PVC, contributes to micro-plastics pollution and carbon-intensive production processes. Volatile Organic Compounds (VOCs) are a concern for both production and end-use applications. Upcycling and personalization are trends driving demand for synthetic leather, but ethical considerations and the need for a skilled workforce can pose challenges. Vegan materials, including synthetic leather, are gaining popularity, but ensuring durability and consumer trust remains a challenge. Sustainable materials, such as agricultural wastes, are being explored for use in upholstery, automotive upholstery, marine furnishing, and textile applications. These materials must be breathable, waterproof, washable, stain resistant, and abrasion resistant. Bio-mass balanced production and reducing carbon emissions are important considerations for the industry. Animal-friendly alternatives to natural leather are gaining traction in the footwear sector, but consumer education and distribution networks are necessary for widespread adoption. Faux leather and imitation leather continue to dominate the market, but the shift towards bio-based materials and ethical production is gaining momentum. Consumer appliances and textile applications are also potential growth areas for synthetic leather.

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Segment Overview 

This synthetic leather market report extensively covers market segmentation by  

1. Product 

• 1.1 PU-based
• 1.2 PVC-based
• 1.3 Bio-based

End-user 

• 2.1 Footwear industry
• 2.2 Furnishing industry
• 2.3 Automotive industry
• 2.4 Bags industry
• 2.5 Others

Geography 

• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 PU-based-  The Synthetic Leather Market is growing due to increasing demand for eco-friendly and affordable alternatives to natural leather. Key players in this market include BASF SE, Toray Industries Inc., and WL Plastics. These companies produce synthetic leather through processes like coating, laminating, and casting. Synthetic leather is used extensively in industries like automotive, fashion, and furniture due to its durability and versatility. Market growth is driven by factors like rising consumer awareness, technological advancements, and expanding applications.

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Research Analysis

Synthetic leather, also known as artificial leather, is a sustainable and cost-efficient alternative to traditional animal-derived leather. It is made from various materials such as polyurethane (PU) and polyvinyl chloride (PVC). The production process of synthetic leather is eco-friendly, using renewable content like plant-based polyester polyol, agricultural wastes, and bio-based materials. Synthetic leather is widely used in various industries, including footwear, furnishing, and clothing, due to its lightweight, scratch-resistant, breathable, and waterproof properties. It is also an excellent choice for vegan fashion and consumer appliances, as it aligns with the values of animal rights organizations promoting the use of vegan materials and sustainable materials. The market for synthetic leather continues to grow, with applications extending to marine furnishing and upholstery.

Market Research Overview

Synthetic leather, also known as artificial leather, is a popular alternative to natural leather made from materials like Polyurethane (PU) and Polyvinyl chloride (PVC). These materials offer cost-efficiency, durability, and versatility, making them suitable for various industries, including footwear, furnishing, clothing, bags, purses, wallets, and fashionable footwear. However, concerns regarding health risks and environmental impacts, such as micro-plastics, volatile organic compounds, and carbon-intensive production processes, have led to the exploration of eco-friendly alternatives. Bio-based synthetic leather made from natural fibers like flax, cotton, and pineapple leaves, as well as agricultural wastes, is gaining popularity. These materials are breathable, waterproof, washable, and stain resistant, while being lightweight, scratch-resistant, and vegan. Upcycling and personalization are also key trends, requiring a skilled workforce and ethical considerations. Distribution networks and textile applications continue to expand, with synthetic leather used in automotive upholstery, marine furnishing, consumer appliances, and footwear sector as natural leather replacements. The use of bio-based materials, such as Pinatex and PVC leather, and bio-mass balanced production processes, can help reduce carbon emissions and create animal-friendly alternatives.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Product
• PU-based
• PVC-based
• Bio-based
• End-user
• Footwear Industry
• Furnishing Industry
• Automotive Industry
• Bags Industry
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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