Synthetic Leather Market Size, Share, Growth, Trends, Production, Revenue, Sales and Forecast 2020 to 2027

Published Date : Jan 2020 | No. of Pages : 180 Pages | Category : Chemical and Material

The global synthetic leather market size was valued at USD 29.1 billion in 2019.

The global synthetic leather market size is poised to reach USD 52.90 billion by 2027 and market is projected to expand at a strong CAGR of 7.7%, in terms of revenue during the forecast years 2020 to 2027.

Increasing scope of application for the product in footwear has been a major factor driving the growth. Growing importance and awareness about animal rights along with stringent laws regarding the usage of real leather is anticipated to further fuel the product demand.

The global demand has seen a paradigm shift due to rising application across furnishing, automotive, clothing, bags and others. Thus, manufacturers are focusing on increasing their production capacities. The global market is fragmented and is led by a few companies. This has resulted in high entry barriers as these manufacturers are emphasizing on forward and backward integration across the value chain to improve their efficiency and overall productivity.

Synthetic leather materials have superior properties, such as high gloss finish, durability, strength, UV resistance, and easy maintenance. Moreover, products made from faux leather are cheaper and thus, continue to attract consumers, especially from middle- and high-income level groups. However, in countries, such as Japan, the product is facing competition from Fumikodata, which is a replica of real leather and is a cruelty-free material. Polyurethane (PU) was the largest product category in 2017 and is expected to register the fastest CAGR over the forecast period.

PVC is anticipated to witness sluggish growth on account of its properties, such as sticky finish and lesser durability. Footwear application segment is expected to observe a considerable growth over the forecast period. Cheaper costs and fluctuating climatic conditions in several regions creates needs for different types of footwear. Rising disposable income levels in emerging regions are also fueling the demand for synthetic leather in the footwear segment. Rising use of athletic shoes in everyday life is further augmenting the product demand.

Further key findings from the repot suggest:

  • PU leather emerged as the largest product segment in 2019 and is estimated to generate revenue over USD 32.9 billion by 2027

  • Asia Pacific (APAC) is projected to witness the fastest growth over the estimated period owing to rapid economic growth across countries, such as India, China, Japan, and Korea

  • Rapid development of construction and automotive manufacturing industries in APAC is also fueling the product demand in the regional market

  • Countries, such as South Korea, Taiwan, China, and India, are emerging as leading producers of synthetic leather in the global market as a result of available of relatively cheaper raw materials

  • Key companies in the global synthetic leather market include Nan Ya Plastics Corporation, Mayur Uniquoters Limited, Alfatex Italia SRL, and Kuraray Co. Ltd.

Key Drivers of Synthetic Leather Market

  • Synthetic leather is more cost-effective as compared to traditional leather, which is boosting the synthetic leather market across the globe. Products manufactured from synthetic leather are usually inexpensive as compared to their traditional counterparts, as they are based on fibers rather than animal hides, which greatly reduces their prices. Various costs are involved in the production of traditional leather. Animals need to be taken care of, in terms of living conditions in order to avoid any damage to their skin. Any such damage can reduce the value of their hides. The animal-rearing activity requires a lot of investment, in terms of time and money, which increases the overall price of traditional leather.
  • Currently, very low amount of hide & skin qualify for high quality leather production, which restraints the supply of good quality traditional leather in the market and further escalates the prices of traditional leather. Once an animal is slaughtered, its hide is transported to the tannery. Processing of hides with chemicals involves considerable capital investment. Moreover, proper treatment of the waste generated from the leather industry also incurs high costs.
  • The cost of transformation of naturally processed leather into various products contributes to the final selling price of the product. However, synthetic leather does not involve high labor costs or costs related to the maintenance of animals. Synthetic leather also has significantly low preparation costs at various stages of manufacturing, which reduces the final selling price of the finished product in comparison with that of traditional leather. Thus, higher cost-effectiveness of synthetic leather as compared to its traditional counterpart, is expected to drive the demand for synthetic leather during the forecast period.
  • Synthetic leather is preferred over traditional leather for use in various applications, due to its resemblance to traditional leather, along with higher water resistance capability and availability over a wide range of colors, as compared to that of traditional leather
  • No animals are harmed or killed in the manufacturing of synthetic leather and hence, it is highly popular among animal right activists. Thus, enhanced durability and similar appearance of synthetic leather, as compared to that of traditional leather, are likely to drive the global synthetic leather market during the forecast period.

Rapid Expansion of Automotive Interior Materials Industry to Drive Global Market

  • Rapid rise in population and disposable income has been propelling the demand for passenger and commercial vehicles, especially in developing countries such as China and India. The total number of new cars and light commercial vehicles (LCVs) sold across the globe were 86.01 million units in 2018, up from 79.77 million units in 2015.
  • Thus, an increase in automotive sales and constant changes in consumer preferences in the automotive industry, especially in terms of automotive interior settings and looks, has been driving the demand for high-grade synthetic leather in the last few years
  • Traditional leather is heavy, expensive, and difficult to handle; consequently, it is being replaced by synthetic leather in automotive interior settings ranging from seat covers to dashboards
  • Synthetic leather is used in buses, trucks, cars, motorcycles, as it is highly elastic, comfortable, and resistant to high as well as low temperatures. Car owners are heavily investing in synthetic leather interiors to enhance the appearance of their cars as well as their driving experience.
  • Therefore, expansion of the automotive interior materials industry is anticipated to drive the global synthetic leather market during the forecast period

Shorter Lifespan Compared to Traditional Leather to Hamper Market

  • Synthetic leather has relatively shorter lifespan as compared to traditional leather, as prolonged exposure to heat and moisture degrade synthetic leather at a more rapid pace
  • Synthetic leather is chemically treated to make it resistant to sunlight, scratches, and fire; however, it becomes weak and susceptible to degradation, due to wear and tear. Synthetic leather is available at an affordable price, however, it requires high level of care and maintenance and needs to be protected from direct sunrays to extend its lifespan
  • In hot and humid environments, synthetic leather can easily degrade, as it is not breathable. Moist skin easily sticks to it on contact.
  • Moreover, synthetic leather can be more easily torn or punctured through misuse or other means, as compared to traditional leather
  • Unlike synthetic leather, traditional leather is known to have lifespan of 20–30 years if cared for properly 
  • Thus, shorter lifespan of synthetic leather is likely to act as a restraint to the market during the forecast period

Eco-friendly Materials and Processes to Offer Opportunities

  • Synthetic leather is more eco-friendly as compared to traditional leather; however, it can be made more eco-friendly and acceptable by changing certain aspects 
  • Companies are presently shifting their focus toward recycled products to manufacture synthetic leather in order to promote sustainable development. Synthetic leather manufacturing companies are trying to develop new technologies and processes in order to minimize harmful effects of their operations on the environment.
  • Companies are switching toward usage of recycled polyester ultra-fine microfibers as a raw material for their products. With this, they are not only preventing these microfibers from causing pollution, but are also reducing the demand for crude oil and petroleum-based products to a large extent. They are also minimizing the level of carbon dioxide (CO2) emitted from processing and manufacturing of virgin polyester fibers.
  • Companies are also shifting toward water-based polyurethane in order to reduce the burden on the environment as compared to typical organic solvents that contain dimethyl formamide (DMF). Water-based polyurethanes can be utilized as an excellent leather-coating chemical. They have inherent flexibility, resistance to abrasion, and better tensile property. Moreover, they have a lower rate of emission of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs), which makes them more useful in comparison with other solvents used for leather finishing. 
  • Manufacturers are also adopting the direct spinning method in place of the composite manufacturing method of extraction. In the direct spinning method, high-quality raw materials are spun directly into a thread, which is subsequently cut into short, ultra-fine microfibers. In the composite manufacturing method, organic solvents containing substances, such as trichloroethylene, are used. Trichloroethylene is carcinogenic in nature.

Market Participants

Few of the main businesses present in the global Synthetic leather market are Tejinin Ltd., Kuraray Co. Ltd., Nan YaPlastis Corp., H.R. PolycoatsPvt. Ltd., Yantai Wanhua Group Co. Ltd., Mitsubishi Chemicals Corp., Alfatex Italia, and Hanwa Chemical Corp.

Key Strategies Adopted by Companies

  • On July 31, 2019, Asahi Kasei Corporation announced that it would operate regional headquarters in Thailand in order to expand its presence in the market in ASEAN. The company also declared that ASEAN is not only an important region for manufacturing, but it is also becoming a key market, which it wants to capitalize on.
  • On July 17, 2019, Asahi Kasei Corporation announced plans to expand the production capacity of its Lamous artificial suede at its Nobeoka plant in Miyazaki, Japan, by 4 million square meters/year. This is expected to increase the company’s total production capacity to 14 million square meters/year upon completion in 2021.
  • In July 2018, Teijin Limited announced that it had agreed to acquire J.H. Ziegler GmbH, a leading supplier of automotive interior materials in Germany. The acquisition cost stood at around US$ 137.8 Mn (EUR 125 Mn). Ziegler GmbH provides advanced nonwoven lining structures, including materials with superior ventilation capabilities that not only help prevent wrinkles, but also maintain the luxurious appearance of traditional leather materials.

Asia Pacific to Dominate Synthetic Leather Market

  • Asia Pacific dominated the global synthetic leather market in 2018. The market in the region is estimated to expand at a significant pace during the forecast period, due to the rise in demand for sustainable and eco-friendly materials in the region. However, countries such as India and Vietnam consume PVC synthetic leather in large quantities, as it is inexpensive as compared to the PU synthetic leather. Increase in disposable income of the urban population is driving the footwear industry in Asia Pacific, wherein consumers are willing to pay more for premium products.
  • Europe is also a lucrative region in the synthetic leather market. Footwear and automobile industries in Europe are witnessing significant demand for synthetic leather. Countries in Europe such as Germany, France, and Italy have various manufacturing units that require synthetic leather as their raw material and hence, the demand for synthetic leather is estimated to remain stable in the near future.
  • North America is a moderately attractive region of the global market. Rapid rate of urbanization and developments in standard of living are key factors propelling the demand for synthetic leather in the region.

Market Segmentation

Market By Product

  • PU
  • PVC
  • Bio based

Market By Application

  • Furnishing
  • Automotive
  • Footwear
  • Bags & Wallets
  • Clothing
  • Others

Market By Geography

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Chile
    • Rest of Latin America
  • Middle East and Africa (MEA)
    • South Africa
    • Saudi Arabia
    • Rest of MEA

The Synthetic Leather market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Synthetic Leather market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Synthetic Leather market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Synthetic Leather market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Synthetic Leather market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Synthetic Leather capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Synthetic Leather by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Synthetic Leather market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Synthetic Leather market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Synthetic Leather market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Synthetic Leather industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Synthetic Leather market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Synthetic Leather market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Synthetic Leather market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Synthetic Leather market. These factors have benefited the growth of the global market for Synthetic Leather. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Synthetic Leather. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Synthetic Leather are as follows:

  • History Year: 2016-2019
  • Base Year: 2019
  • Estimated Year: 2020
  • Forecast Year 2020 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2016-2019) and forecast (2020-2027);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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