Artificial Leather Market Analysis

Global Artificial Leather Market Overview

Artificial Leather Market Size was valued at USD 30.31 billion in 2023. The Artificial Leather industry is projected to grow from USD 31.21 Billion in 2024 to USD 54.11 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.53% during the forecast period (2024 - 2032). Healthy growth of the footwear industry across the globe and increasing demand for Synthetic Leather in the fast-growing automotive industry are driving the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Artificial Leather Market Trends

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  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

Artificial Leather Market Segment Insights

Synthetic Leather Type Insights

The Artificial Leather market segmentation, based on type, includes PU, PVC and Bio-based. The PU segment held the majority share in 2021 contributing to around ~53-55% with respect to the  Artificial Leather market revenue. This is primarily owing to the rising demand from footwear industry across the globe. PU leather, often known as polyurethane leather, is synthetic leather composed of thermoplastic polymer that is used to make furniture or shoes. 100% PU leather is entirely synthetic and deemed vegan. Bicast leather is a form of PU leather that contains true leather below but a polyurethane covering on top. This form of PU leather uses the fibrous component of cowhide that is left over after creating real leather and coats it with polyurethane.

September 2021: Teijin Cordley Limited, a part of Japan's Teijin Frontier Group, created the most recent antiviral and antibacterial artificial leather, which includes a long-lasting antibacterial ingredient. Teijin Cordley began selling the latest antiviral synthetic leather in October of this year. Prior versions will be designed to produce children's bags, with succeeding iterations producing sporting equipment like as leather balls and shoes. The firm sold 30,000 meters in fiscal 2021 and plans to sell 580,000 meters in fiscal 2024.

Synthetic Leather Application Insights

The  Artificial Leather market segmentation, based on application, includes Furnishing, Automotive, Footwear, Accessories, Clothing, Electronics and others. The Footwear segment dominated the market in 2021 and Automotive segment is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the automobile sector has been increasing at a rapid pace in recent years, which has coincided with the expansion of e-vehicles. The Asia-Pacific automotive market is expanding at a rapid pace. Furthermore, the reduction of hazardous emissions to preserve the environment, enhance safety and comfort, and more affordable and fuel-efficient cars are some of the significant trends that run across the Asia Pacific automotive industry. Because of its excellent wear resistance and durability, synthetic leather is used to supply dashboard linings, gear boots, roof linings, and other parts in large trucks and carriers, passenger vehicles, motorcycles, and other locomotives. Hence, rising applications of Artificial Leather in Footwear and automotive will positively impact market growth.

September 2021-: Volvo Cars vowed to equip all of their future electric vehicles with leather-free materials in response to recent research detailing the future of sustainable luxury items. The historic automaker's new step stems from a desire to promote sustainability and animal welfare by employing high-quality recycled materials. Volvo is a multinational automaker making significant progress toward carbon neutrality and electrification throughout its various brands and manufacturing processes. This approval has further broadened the growth opportunity for the Artificial Leather industry.

Figure 2:  Artificial Leather Market, by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Synthetic Leather Regional Insights

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, MRFR 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.

Artificial Leather Key Market Players & Competitive Insights

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.

Key Companies in the Artificial Leather market include

• Kuraray Co. Ltd


• 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

Artificial Leather Industry Developments

September 2021- Teijin Cordley Limited, a subsidiary of Japan's Teijin Frontier Group, developed the latest antiviral and antibacterial artificial leather, including a long-lasting antibacterial agent. In October of this year, Teijin Cordley began to sell the most recent antiviral synthetic leather. Prior versions will be designed to make children's suitcases, with subsequent iterations designed to make athletic items like leather balls and shoes. In fiscal 2021, the company sold 30,000 meters, and in fiscal 2024, it intends to sell 580,000 meters.

May 2019- Teijin Frontier Co. Ltd., the Teijin Group's fibers and products converting company, created polishing pads made of the non-woven material 'NANOFRONT' to increase silicon wafer quality while cutting production costs. The ultra-fine nanofiber 'NANOFRONT' is constructed of a flexible, water-absorbent polymer with polyurethane resin.

Artificial Leather Market Segmentation

Artificial Leather Type Outlook

• PU


• PVC


• Bio-based

Artificial Leather Application Outlook

• Furnishing


• Automotive


• Footwear


• Accessories


• Clothing


• Electronics


• Others

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Mexico
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • South Africa
  
  
  • Rest Of Middle East & Africa