Synthetic Leather Market

Updated on : October 10, 2024

Synthetic Leather Market

The global synthetic leather market was valued at USD 68.7 billion in 2023 and is projected to reach USD 88.0 billion by 2028, growing at 5.1% cagr from 2023 to 2028. Synthetic leather, also known as artificial leather, is a manufactured material designed to mimic the texture and, in some cases, the look of real leather. It is typically produced from a range of synthetic materials like polyurethane (PU) or polyvinyl chloride (PVC), serving as an eco-friendly and often more cost-efficient alternative to genuine leather. Despite not being derived from animal hides, synthetic leather closely replicates the texture and appearance of real leather through a combination of polymers, fabric backing, and specialized coatings. This versatile material finds applications in various industries, including footwear, furnishing, automotive, clothing, bags, purses & wallets, and others.

Synthetic Leather Market Forecast & Trends

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Synthetic Leather Market Dynamics

Driver: Growing demand from the footwear industry

The footwear sector stands as the primary consumer of synthetic leather, with expectations of continued growth. This expansion is notably evident in regions like Asia Pacific, South America, and Europe, contributing to a favorable outlook for the synthetic leather market. The surge in urbanization and a rising appetite for contemporary and stylish footwear labels are key drivers behind this market upswing. As the demand for fashionable footwear continues to grow, it propels the synthetic leather industry, making it a dynamic and thriving segment with a bright future.

Restraints: Harmful effects of PU and PVC on humans

The raw materials used in synthetic leather production, notably polyurethane (PU) and polyvinyl chloride (PVC), pose significant health and environmental risks. PU, an isocyanate, has the potential to harm both human and animal health and the environment. It can lead to lung irritation and asthma attacks, as well as skin irritation and breathing difficulties, particularly in workers at PU manufacturing facilities exposed to its fumes. On the other hand, PVC contains toxic carcinogens like vinyl chloride monomer, phthalates, and dioxin. Dioxin, especially, is highly toxic and released when chlorine-containing plastics like PVC are incinerated. These toxic characteristics of PU and PVC present substantial constraints to the synthetic leather industry.

Opportunities: Focus on development of bio-based synthetic leather

The development of bio-based synthetic leather offers an environmentally friendly alternative without harmful traits. Manufacturers should prioritize the commercialization of synthetic leather crafted from natural fibers like flax, cotton, and blends with plants such as palm, soybean, and corn. A noteworthy newcomer in the synthetic leather market, "Pinatex," utilizes pineapple leaves, leveraging their robust and flexible fibers. Pineapple leaves, previously considered waste, are now repurposed into valuable products like shoes, handbags, and accessories. With increasing governmental and environmental regulations in the European Union and North America against toxic chemicals, bio-based synthetic leather presents a promising opportunity for the industry.

Challenges : Non-biodegradability of synthetic leather

Synthetic leather is crafted from petrochemicals, rendering it non-biodegradable and unsustainable. It undergoes an exceedingly slow decomposition process and can contribute to the generation of micro-plastics. PVC and polyurethane are the primary materials employed in the production of synthetic leather, but they face criticism for their carbon-intensive environmental impact and the absence of biodegradability. Polyurethane synthetic leathers, for instance, take up to hundreds of years to fully decompose. While they present a safer option for incineration due to their lower levels of Volatile Organic Compounds (VOCs) compared to vinyl, genuine full and top-grain leather, composed of organic materials, biodegrade in just 50 years. According to experts, synthetic leather does not degrade like authentic leather and cannot be "upcycled" into another synthetic leather item. This inherent non-biodegradability poses a significant challenge in the case of synthetic leather.

Synthetic Leather Market Ecosystem

Prominent companies in this market include well-established synthetic leather manufacturers. These businesses have been in business for a while and have an extensive range of products, pioneering technologies, and strong international sales and marketing networks. Top companies in this market include Kuraray Co., Ltd. (Japan), San Fang Chemical Industry Co., Ltd. (Taiwan), Teijin Limited (Japan), NAN YA PLASTICS CORPORATION (Taiwan),  Wanhua Chemical Group Co., Ltd. (China), Mayur Uniquoters Limited (India), FILWEL Co., Ltd. (Japan), Zhejiang Hexin Holdings Co., Ltd. (China), Alfatex Italia SRL (Italy), and H.R. Polycoats Private Limited (India).

“Based on type, PU-based synthetic leather is estimated to be the largest type for synthetic leather market in 2022, in terms of value.”

The synthetic leather industry is expanding rapidly because of several major factors. The versatility, cost-effectiveness, durability, and environmental advantages of PU-based synthetic leather make it the largest type in the synthetic leather market, catering to a wide range of end-use industries such as footwear, furnishing, automotive, clothing, bags, purses & wallets, and others. PU-based synthetic leather is highly durable, capable of withstanding wear and tear, ensuring its long-lasting performance. Concerns about the environment and ethical considerations further boost its popularity, as it aligns with sustainable and cruelty-free choices.

“Based on end-use industry, footwear segment is estimated to be the largest market for synthetic leather market, in terms of value, in 2022.”

The footwear sector is prepared to retain its supremacy in the synthetic leather market in the projected period, influenced by a multifaceted set of factors. Its dominance is driven by a synergy of economic, aesthetic, and ethical considerations. Synthetic leather emerges as a cost-effective choice for footwear manufacturers, seamlessly combining affordability with quality and style. Its inherent durability is essential, as it withstands the rigors of daily usage, preserving its form and visual appeal over time. The ability to personalize synthetic leather further fortifies its standing in the footwear industry. Consequently, the synthetic leather market within the footwear segment is poised for growth in the forecasted period.

“Asia Pacific is estimated to be the largest region in synthetic leather market in 2022, in terms of value.”

The Asia Pacific region's leading status in the synthetic leather market results from a blend of economic, industrial, and cultural forces. Rapid economic growth and urbanization have boosted consumer spending and altered lifestyles, driving demand for synthetic leather goods like shoes, bags, and clothing. It has also evolved into a significant synthetic leather manufacturing hub, with countries such as China, South Korea, and Taiwan producing a substantial global share, thanks to cost-efficient production. Robust manufacturing infrastructure, established supply chains, and a skilled workforce further bolster the synthetic leather industry's expansion in the region.

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Synthetic Leather Market Players

The key players profiled in the report include NAN YA PLASTICS CORPORATION (Taiwan), Teijin Limited (Japan), San Fang Chemical Industry Co., Ltd. (Taiwan), Kuraray Co., Ltd. (Japan), and Wanhua Chemical Group Co., Ltd. (China) among others, are the key manufacturers that holds major market share in the last few years. A major focus was given to collaborations, partnerships, and new product development due to the changing requirements of users across the world.

Read More: Synthetic Leather Companies

Synthetic Leather Market Report Scope

This report categorizes the global synthetic leather market based on type,  end-use industry and region.

Based on type, the synthetic leather market has been segmented as follows:

• PU-based Synthetic Leather
• Microfiber Leather
• PVC-based Synthetic Leather
• Bio-based Synthetic Leather

Based on end-use industry, the synthetic leather market has been segmented as follows:

• Footwear
• Sports Shoes
• Formal Shoes & Boots
• Sandals & Slippers
• Furnishing
• Chairs
• Sofas
• Bean Bags & Others
• Automotive
• Seats
• Steering Wheel Covers
• Door Trim, Knob, & Gear Bot Covers
• Clothing
• Jackets
• Belts
• Tops, Pants, & Others
• Bags, Purses & Wallets
• Bags
• Purses
• Wallets
• Others
• Sports
• Electronics
• Medical

Based on region, the synthetic leather market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Middle East & Arica
• South America

Recent Developments

• In 2022, Kuraray Co., Ltd., and Nissha Co., Ltd. collaborated to create Material Insert Technology utilizing synthetic leather known as CLARINO, and subsequently introduced this product for sale with a focus on the mobility and consumer electronics sectors.
• In 2023, San Fang Chemical Industry Co., Ltd. has announced intentions to invest around USD 100 million, which is equivalent to NT$ 3 billion, in constructing a new synthetic leather plant in Vietnam. The facility is scheduled to be finished by 2024, and it will have an annual production capacity of 2 million sq. meters. This will help the company to expand its production capacity.

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