Artificial Leather Market

• HEALTHY GROWTH OF THE FOOTWEAR INDUSTRY ACROSS THE GLOBE

Synthetic leather is leather-like plastic products which are used across the footwear industry due to its soft and wear-resistant property. Some of the pros for Synthetic Leather are that they provide a brighter appearance than natural leather, soft texture, folding resistant, cheaper than natural leather, waterproof, and are also alkali and acid resistant. The chemical resistant property allows them to be used as footwear such as boots in the chemical industry and for another industrial purpose. Synthetic leather is also cost-effective and easier to produce compared to natural leather.

The major factor for the growth of synthetic leather in footwear industry is the obsoletion of natural leather which uses skin or hide of animals.

Thus, various government agencies have come up with various regulations to limit the slaughtering of animals for the production of natural leather, such as Directive 94/11/EC of European Parliament and Council (EU), Regulation (EU) No 1007/2011 of the European Union (EU), “40 CFR 425” of document citation “61 FR 35680” by the US Environmental Protection Agency (EPA), Legge 1112 and Legge 8 in Italy for the discipline of the use of the names "leather" and "fur" and of the terms that derive from them, Decreto 3289/1974 in Spain, Consumer Protection Act, 2008 (68/2008) in South Africa, and many others.

These regulations over the years has boosted the production of Synthetic Leather by the manufacturer to meet the increasing demand in all leather applications. Additionally, genuine leather used for shoe manufacturing must go through the chemical treatments which make them less eco-friendly and damage the biodegradability of the leather, while Synthetic Leather is used to produce vegan shoes, which also attends to the welfare of the animals. Synthetic Leather due to its long-term value are used across formal patent shoes, boots, sandals, slippers, sports gears as well as in women’s footwear.

Additionally, according to the United Nations Industrial Development Organization, the product industry of Synthetic Leather include footwear, handbags, leather garments, gloves, wallets, saddler, and upholstery among others, out of which footwear consumes more than 50% of the leather produced across the globe. Thus, the healthy growth of the footwear industry across the globe is likely to drive the growth of the Artificial Leather market revenue.

INCREASING DEMAND FOR SYNTHETIC LEATHER IN THE FAST-GROWING AUTOMOTIVE INDUSTRY

Synthetic Leather is used in automotive industry due to its high durability and premium texture. Synthetic Leather is used in various parts of a vehicle including steering wheel covers, door trims, knob covers, gear boot, sun visors, hoods, roof lining, and others. Synthetic Leather is used across cars, trucks, buses, motorcycles, agricultural vehicles, and others. The high elasticity of Synthetic Leather makes them extremely comfortable coupled with resistance towards hot and cold temperatures, alcohol, stains, and water makes them very durable and lowers the maintenance cost.

The PVC vinyl fabric for seat upholstery is one of the most widely used material in the automotive industry.

The automotive industry is growing at a significant rate during the past few years coupled with the growth of the e-vehicles in recent years. Automotive market has a significant growth rate in the Asia-Pacific region. The automotive market in Asia Pacific is one of the fastest growing sectors in recent years and which is expected to dominate the market during the next 10 years.

Moreover, the reduction of harmful emissions to provide protection to the environment, increase safety and comfort coupled with more economical and fuel-efficient vehicles are some of the major trends that runs through the automotive market in Asia Pacific. Synthetic Leather is used to provide dashboard linings, gear boot, roof linings, and other parts, due to its high wear resistant and durability, are used across heavy vehicles and carriers, passenger vehicles, bikes, and other locomotives. Additionally, the growth of autonomous or e-vehicles is further expected to boost the Synthetic Leather market.

For instance, 61% of the consumers in China and 48% in Japan, are likely prefer a hybrid-electric or a battery-electric transportation medium in their next vehicle. However, increase in consumption for petrol and diesel-based vehicle is still expected to propel the automotive market in the coming years. Thus, increasing demand for synthetic leather in the fast-growing automotive industry is likely to drive the growth of the Artificial Leather market revenue.

Figure 1: TOP 5 AUTOMOTIVE PRODUCERS IN ASIA PACIFIC, 2021

The Global Artificial Leather Market Industry is projected to experience substantial growth in the coming years. With a market value of 31.2 USD Billion anticipated in 2024, the industry is on a trajectory that suggests a robust expansion. Projections indicate that by 2035, the market could reach a value of 65.4 USD Billion, reflecting a compound annual growth rate of 6.96% from 2025 to 2035. This growth is likely driven by various factors, including increasing demand for sustainable materials, technological advancements, and expanding applications across industries. Such projections highlight the dynamic nature of the Global Artificial Leather Market Industry and its potential to adapt to changing consumer preferences and market conditions.

The Global Artificial Leather Market Industry experiences a notable surge in demand for sustainable materials, driven by increasing consumer awareness regarding environmental issues. As eco-conscious consumers seek alternatives to traditional leather, artificial leather, which often utilizes recycled materials, becomes an attractive option. This shift is reflected in the projected market value of 31.2 USD Billion in 2024, indicating a robust growth trajectory. Manufacturers are increasingly adopting eco-friendly production processes, which not only cater to consumer preferences but also align with global sustainability goals. This trend suggests that the Global Artificial Leather Market Industry is poised for substantial expansion as sustainability becomes a core value in consumer purchasing decisions.

The versatility of artificial leather contributes to its expanding applications across various industries, including automotive, fashion, and furniture. The Global Artificial Leather Market Industry benefits from this diversification, as manufacturers explore new uses for artificial leather in innovative products. For instance, the automotive sector increasingly incorporates artificial leather in vehicle interiors due to its durability and ease of maintenance. This trend is expected to drive the market's growth, with a projected compound annual growth rate of 6.96% from 2025 to 2035. As industries continue to recognize the benefits of artificial leather, the Global Artificial Leather Market Industry is likely to witness sustained demand across multiple sectors.

Technological advancements play a pivotal role in shaping the Global Artificial Leather Market Industry. Innovations in manufacturing processes, such as the development of bio-based synthetic materials and improved coating techniques, enhance the quality and durability of artificial leather. These advancements not only improve the aesthetic appeal but also reduce production costs, making artificial leather more competitive against traditional leather. As a result, the market is expected to grow significantly, with projections indicating a value of 65.4 USD Billion by 2035. This growth is indicative of the industry's ability to adapt and innovate, ensuring that the Global Artificial Leather Market Industry remains relevant in a rapidly evolving marketplace.

Regulatory frameworks increasingly support the adoption of eco-friendly products, positively impacting the Global Artificial Leather Market Industry. Governments worldwide are implementing policies that encourage the use of sustainable materials, which aligns with the growing consumer preference for environmentally responsible products. Such regulations not only promote the development of artificial leather but also provide incentives for manufacturers to invest in sustainable practices. This supportive environment is expected to facilitate market growth, contributing to the anticipated market value of 31.2 USD Billion in 2024. As regulatory measures continue to evolve, the Global Artificial Leather Market Industry stands to benefit from enhanced credibility and consumer trust.

The Global Artificial Leather Market Industry is significantly influenced by consumer preference for cost-effective alternatives to traditional leather. As consumers seek high-quality products at competitive prices, artificial leather emerges as a viable option that meets both aesthetic and budgetary needs. This trend is particularly evident in the fashion and accessories sectors, where artificial leather products are increasingly favored for their affordability and variety. The market's growth trajectory, with an expected value of 65.4 USD Billion by 2035, underscores the potential for artificial leather to capture a larger share of consumer spending. This shift in consumer behavior suggests that the Global Artificial Leather Market Industry is well-positioned for continued expansion.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America and Middle East & Africa. Asia-Pacific Artificial Leather market accounted for USD 15.31 billion in 2021 and is expected to exhibit an 7.71% CAGR during the study period. This is attributed to the robust growth of the footwear, automotive and furnishing industries in China, India, and Indonesia is fueling the demand for Artificial Leather.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  ARTIFICIAL LEATHER MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Artificial Leather market accounts for the second-largest market share due to rising electric mobility across major countries in the North American region. In addition, growing government support in the form of favorable initiatives and policies is expected to drive demand in the market. The growing consumer inclination toward safety and comfort features in vehicles is accommodated by the latest technologies like ADAS. Further, the USA Artificial Leather market held the largest market share, and was the fastest-growing market in the region

The Europe Artificial Leather Market is expected to grow at a CAGR of 8.09% from 2022 to 2030. This is due to stringent government regulations related to limiting the slaughtering of animals for the production of natural leather for application in vaious end-use applications such as in footwear and automotive industry are the key drivers of the regional market. Moreover, Germany Artificial Leather market held the largest market share, and was the fastest growing market in the European region.

The  Artificial Leather market is characterized by the presence of , regional, and local players. The market is highly consolidated, with all the players competing to gain significant market share. The key market players of Artificial Leather compete based on cost, product quality, availability of raw materials, and durability of the product. They are engaged in expanding their production capacity and investing in R&D activities to gain an edge over competitors. Furthermore, the growing popularity of Artificial Leather in smart electronics and electric vehicles is expected to offer lucrative opportunities to manufacturers in the coming years.

However, scarcity of raw materials is expected to hinder the growth of the market studied significantly.

Additionally, the adoption of various strategies by Artificial Leather industry such as expansion, R&D, agreements, acquisitions, collaborations, and investments is expected to help these players to gain maximum revenue and long-term growth during the review period. The key participants in the  Artificial Leather market are 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, Nan Ya Plastics Corporation, Zhejiang Hexin Industry Group Co.

Ltd, Teijin Limited, DuPont Tate & Lyle Bio Products Company, LLC, Gruppo Mastrotto SPA, Asahi Kasei Corporation, Toray Group.

Kuraray Co. Ltd (Kuraray) is a manufacturer and supplier of plastics, chemicals, elastomers and rubber, fabric, nonwoven fabric, manmade leather, hook and loop fasteners, and materials and products used in the dental industry. The company operates through six business segments, namely isoprene, vinyl acetate, functional materials, trading, fibers and textiles, and other business. The company sells its manmade leather products which could be used in accessories, garment, shoes, bags, consumer electronics, and furniture. It sells its products in various countries including Japan, China, Belgium, Germany, America, and Singapore.

Also, ContiTech AG (ContiTech) is a multinational producer and distributor of products, systems, and functional parts which are made from rubber, metal, polyamide, textile, and electronic components for plant and machine engineering, automotive industry, mining, and other industries. The company mainly has two groups which under which its sales all its products which are the rubber group and the automotive group. The rubber group is further sub-divided into Tires and ContiTech. The ContiTech division is further segmented into seven units. Under its surface solutions ContiTech provides its synthetic leather products.

The company has its presence across 544 locations and in over 60 countries, across regions including North America, Europe, Asia Pacific, and Latin America.