China Artificial Leather Market

The China artificial leather market is witnessing strong growth, fueled by increasing demand from industries such as automotive, fashion, footwear, and furniture. Driven by rising consumer preferences for affordable, cruelty-free, and sustainable materials, artificial leather, especially PU-based alternatives, has become a popular choice due to its durability, aesthetic versatility, and lower environmental impact compared to traditional leather. China’s position as a global manufacturing hub, supported by its advanced production capabilities and government initiatives promoting green manufacturing and eco-friendly innovation, further accelerates this trend. The market is also benefiting from the shift toward bio-based and water-based artificial leather solutions, aligning with the country’s broader environmental and industrial policy goals.

Different Artificial Leather manufacturers are adopting numerous business development strategies for strengthening their position in the market. On January 2025, In January, Kolon Industries launched a new division that consolidates its capabilities in the automotive materials and components sector. This division integrates the automotive materials business acquired through a merger with Kolon Glotech, along with existing operations responsible for key industrial materials such as Whainon (a PET spunbond), Shamude (a premium PET suede), and Gionic (a PU-coated composite material). Whainon, which has been in production since 1985, is used in various automotive applications including carpets, headliners, and industrial filters, and has helped the company build a strong presence in both domestic and international markets. Shamude, a lightweight and temperature-resistant artificial leather made from PET suede, is widely favored by luxury car brands for use in seats, dashboards, door panels, and headliners, and currently commands over 90% of the domestic market for automotive PET suede. Gionic, a product integrated through the Kolon Glotech merger, features multiple PU layers applied to synthetic leather or fabric, allowing for diverse design options in color, gloss, and texture. It is already being used in major domestic electric vehicle models and is expected to play a key role in Kolon’s growth within the evolving automotive materials market.

The rising demand for sustainable materials is a key driver of growth in China's artificial leather market, reflecting global environmental consciousness and local policy support. As consumers and industries become more eco-aware, there's a growing preference for materials that offer leather-like properties without the environmental and ethical drawbacks of animal-based products. In China, this shift aligns with the government’s push for greener manufacturing and reduced carbon footprints, creating a favorable environment for innovation in sustainable artificial leathers. One of the clearest indicators of this trend is the increasing investment in bio-based artificial leather, made from bio-based plastic (PBS). These materials are gaining traction as they offer biodegradability and lower environmental impact compared to traditional PU (polyurethane) or PVC-based leathers, which are petroleum-derived and not biodegradable. For example, several Chinese manufacturers are now exploring cactus leather due to its durability, flexibility, and eco-friendliness, with pilot projects already underway in provinces like Guangdong and Zhejiang.
 
Additionally, leading brands and manufacturers in China are responding to this demand by developing new lines of eco-friendly artificial leather products. Companies like San Fang Chemical and Nan Ya Plastics are investing in R&D for low-emission production technologies and materials that meet both domestic and international sustainability standards, such as OEKO-TEX and Global Recycled Standard (GRS). The automotive and fashion industries—both major consumers of artificial leather—are especially active in this transition, with EV makers like BYD and NIO increasingly using vegan leather interiors to enhance their environmental branding.

Many global, regional, and local vendors characterize the China Artificial Leather Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major players in the market include Zhejiang Hexin Holdings Co., Ltd, Anhui ANLI Material Technology Co., Ltd, Kolon Industries, WanHua New Materials Technology Co., Ltd, San Fang Chemical Industry Co., Ltd, Nan Ya Plastics Corporation, Waltery Synthetic Leather, Fujian Polytech Technology Co., Ltd, Boze Leather, Quanshun Leather and others strategic market developments and decisions to improve operational effectiveness.