The global synthetic leather market was valued at US$ 29.6 billion in 2019 and expected to grow at a compound annual growth rate (CAGR) of 4.6% during the forecast period from 2020 to 2027.
The global synthetic leather market size is projected to hit USD 40.5 billion by 2027, according to a new study by Precedence Research.
Increasing demand of footwear expected to be a major factor that propels the overall market growth for synthetic leather. Synthetic leather is a suitable alternative as it comprises of a cloth base that is coated with synthetic resins. Thus, synthetic leather completely serves the purpose of real leather by offering a leather-like finish, thereby anticipated to augment its demand across wide application area that includes footwear, fabrics, upholstery, clothing, and others. The production process of synthetic leather has evolved over the past few years to curb down the rate of hunting and protect the animal life.
The global demand for leather materials has seen a paradigm shift owing to its increasing application across automotive, furnishing, bags, clothing, and many others. Manufacturers have been focusing significantly to shit their sources for raw materials towards the Asian suppliers for example Vietnam and China because of low cost of labor & fright along with an abundance of raw material in the region. However, the recent spread of corona virus across the globe has drastically impacted the demand for synthetic leather because of several preventive measures undertaken by the governments of various regions to control the spread of the pandemic. This has resulted in sudden fall in the trade and demand of synthetic leather across the globe projected to have a negative impact on the growth of the market over the near future.
Polyurethane (PU) synthetic leather segment captured the largest value share of more than 50% in the year 2019. Further, the segment witnesses promising growth over the upcoming years owing to the product quality, yield, and variety. PU is softer, waterproof, and lighter than real and other types of synthetic leather; in addition, it can be dry cleaned as well as torn easily than real hides. It also does not get affected from the sunlight. In addition, the product type does not emit dioxins that make it an eco-friendly substitute for the vinyl-based products. Collectively all the above-mentioned factors expected to further augment the product demand.
Besides this, the PVC product segment expected to register slow growth over the analysis period. It was the very first type of synthetic leather that was initially produced using carcinogenic chemicals. It was proved to be an ideal material for furnishing and household applications. PVC was unable to maintain the body heat as well as gave a sticky feel when touched; while PU proved to be beneficial in these terms. Hence, the market demand for PVC decreased particularly in bags and clothing sectors.
Bio-based product expected to witness prominent growth over the forthcoming years owing to presence of polyester polyol that has 70% to 75% renewable content. Further, it is softer as well as has better scratch resistance properties compared to PU and PVC.
Footwear accounted for the maximum revenue share of more than 30% in 2019. Increasing income levels along with economic growth, especially in the developing countries has fueled the demand for footwear. In addition, the segment is also driven by the changing climatic conditions of different regions that require different types of footwear.
Rising athleisure trend of including athletic shoes in daily lifestyle also projected to flourish the growth of the segment. Further, the price of faux leather footwear is three times less compared to ones made from animal hide that again boosts the growth of the segment. In addition, furnishing industry is also one of the prime applications of synthetic leather because of its lower price than animal hides. However, Polyurethane (PU) is widely used in the automotive sector because of its non-sticky and soft touch properties compared to other products.
The Asia Pacific encountered the largest value share of more than 40% in the year 2019 and expected to maintain the same trend over the analysis period. India, China, and South Korea are the major countries that drive the growth of the market in the region. Further, increasing disposable income along with rising population across the region offers numerous opportunities for the market growth.
North America and Europe witness sluggish growth owing to the maturity of the market. In addition, the ongoing trade war between China and the U.S. along with drastic decline in the cross-border trade with the spread of the coronavirus pandemic that originated in Wuhan, China, has initiated trust issues between the two countries that further expected to negatively impact market growth in the upcoming years.
Key Companies & Market Share Insights
The market players in the synthetic leather are mainly focused towards regional expansion along with new product development. For instance, Kuraray Europe GmbH introduced new solvent-free man-made leather at the Première Vision 2019 that possesses properties similar to the natural leathers. These properties make it very suitable for several fashion creations.
Some of the prominent players in the synthetic leather market include:
Report Scope of the Synthetic Leather Market
|Market Size||USD 40.5 Billion by 2027|
|Growth Rate||CAGR of 4.6% from 2021 to 2027|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2021 to 2027|
|Segments Covered||Product, Application, Region|
|Companies Mentioned||Kuraray Co., Ltd., Nan Ya Plastics Corporation, Yantai Wanhua Synthetic Leather Group Co., Ltd., Mayur Uniquoters Limited, Teijin Limited,San Fang Chemical Industry Co., Ltd., Filwel Co., Ltd., and Zhejiang Hexin Industry Group Co., Ltd.|
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of product, application, and region:
By Regional Outlook
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