Leather Chemicals Market

• Increasing consumer preferences for various leather products drive market growth.

The market for leather chemicals is growing largely due to the popularity of purchasing various leather products. The demand for luxury items, such as handbags, shoes, and accessories made of leather, has increased as a result of rising disposable income and shifting lifestyle preferences. In emerging economies like China and India, where the middle class is growing quickly, this trend is particularly obvious. In the automobile sector, leather is frequently used for interiors of cars, trucks, and other vehicles. The need for leather chemicals is rising along with the demand for automobiles.

Numerous leather products with better quality, durability, and attractiveness may now be produced due to the development of new, cutting-edge leather production technologies. The demand for leather goods has expanded, increasing the demand for leather chemicals.

Leather chemicals are typically applied on skins to improve leather texture and make leather usable for additional applications while preventing microbial-induced degradation. Numerous products and applications employ leather, including apparel and footwear, in the textile and automotive industries. Due to the shifting demands of the fashion-conscious age, leather is used more frequently in the textile sector. Every year, the world's population grows, which boosts the textile sector. By 2025, the world's population is projected to increase to 8.1 billion, affecting how quickly the textile business expands. The largest producer and exporter of raw textiles and apparel worldwide is China.

China accounted for more than 41% of textile exports in 2021, followed by the European Union and India. 3.47 billion meters of textiles for garments were created in China in December 2022. The volume of monthly textile manufacturing was consistently greater than three billion meters. IBEF predicts that by 2025, the Indian textiles market will be worth $250 billion. India's textile industry accounts for 15% of its export revenue and is predicted to grow much more in the coming years.

These factors are expected to drive the growth of the market for leather chemicals in the textile sector during the forecast period.

Technological developments in tanning yards in industrialized nations have reduced chromium and sulfide content production in the effluent. Innovative tanyards in Eastern Europe utilize procedures successfully applied in the industry, namely direct recycling, which involves tanning hide material twice in the same chromium bath. The United Nations Industrial Development Organization report states that using the same chrome bath for tanning has reduced the amount of chromium in the wastewater produced by 21%. Additionally, to lower the chromium content in wastewater, some tanning firms are utilizing reclamation techniques.

This method uses sodium hydroxide in an acid that quickly precipitates, which helps reclaim 25–30% of the chromium content in the wastewater. Thus, it is projected that during the forecast period, finding new strategies to reduce the production of chromium content in wastewater would give lucrative prospects for growing the market.

July 2022 – It is now possible to find Evonik's EUDRACAP® enteric easy-to-handle capsules anywhere in the world following IPEC-GMP production standardization. These functionalized EUDRACAP® enteric capsules made for ready-to-fill forms help fasten complicated oral drug product launches by pharmaceutical firms that are complex. By providing a capsule that already has desired protection properties, companies can save time spent on intricate formulation development processes as well as speed up their drug development programs.

Emerging markets are becoming increasingly influential in the Global Leather Chemicals Market Industry. Countries in Asia-Pacific and Latin America are witnessing rapid urbanization and rising disposable incomes, leading to a surge in demand for leather products. This trend is expected to drive market growth, with the industry projected to reach 8.76 USD Billion in 2024. The expansion of the middle class in these regions is likely to result in higher consumption of leather goods, further bolstering the market. As manufacturers target these emerging economies, the potential for growth appears substantial, indicating a shift in global market dynamics.

The automotive industry plays a crucial role in the expansion of the Global Leather Chemicals Market Industry. Leather is a preferred material for vehicle interiors, offering luxury and comfort. As the automotive sector continues to evolve, with an emphasis on premium vehicles, the demand for high-quality leather is expected to rise. This trend is supported by the projected compound annual growth rate (CAGR) of 5.23% from 2025 to 2035, indicating a sustained interest in leather upholstery. The integration of leather in electric vehicles also presents new opportunities for market growth, as manufacturers seek to enhance the aesthetic appeal of their products.

The Global Leather Chemicals Market Industry experiences a notable surge in demand for leather goods, driven by consumer preferences for high-quality and durable products. As of 2024, the market is valued at approximately 8.76 USD Billion, reflecting a growing inclination towards leather in fashion, automotive, and furniture sectors. This trend is likely to continue, as the global population increases and disposable incomes rise, particularly in emerging economies. The demand for premium leather products is expected to propel the market further, indicating a robust growth trajectory in the coming years.

Sustainability emerges as a pivotal driver in the Global Leather Chemicals Market Industry. With growing awareness of environmental issues, consumers and manufacturers alike are prioritizing sustainable sourcing and production methods. This shift is prompting companies to invest in biodegradable chemicals and processes that reduce waste and pollution. As a result, the market is likely to witness a transformation, aligning with global sustainability goals. The anticipated growth in the market, reaching 15.4 USD Billion by 2035, suggests that companies adopting sustainable practices may gain a competitive edge, appealing to a broader consumer base.

Innovations in tanning technologies significantly influence the Global Leather Chemicals Market Industry. The introduction of eco-friendly and efficient tanning methods, such as chrome-free tanning, enhances the quality of leather while minimizing environmental impact. These advancements not only cater to the increasing regulatory pressures for sustainable practices but also improve production efficiency. As manufacturers adopt these technologies, the market is poised for growth, with projections indicating a market size of 15.4 USD Billion by 2035. This shift towards sustainable practices is likely to attract environmentally conscious consumers, further driving demand.

By region, the analysis offers market insights into North America, Asia Pacific, Europe, and the Rest of the World. The North American Leather Chemicals market is anticipated to lead the market throughout the forecast period. In North America, the leather industry has seen an increase in investment, leading to the establishment of new manufacturing facilities and R&D facilities. Because of this, the leather chemical market in this region is expected to grow. The market for leather chemicals in North America is expanding due to the rising demand for leather goods such as footwear, clothing, and accessories.

The demand for leather goods is anticipated to rise in the upcoming years due to rising disposable income and evolving fashion trends.

Further, the key countries considered in the market report are The US, Canada, France, German, the UK, Spain, Italy, China, India, Japan, South Korea, Australia, and Brazil.

Figure 2: LEATHER CHEMICALS MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe Leather Chemicals market accounts for the second-highest market share. In Europe, there has been an increase in market trends, such as the use of leather in shoes, clothes, gloves, and automobiles, which is projected to present new potential for market advancement throughout the forecasting period. Additionally, the region's demand for leather chemicals has increased due to advancements in the tanning industry, particularly in Germany. Further, the German Leather Chemicals market held the largest market share, and the UK Leather Chemicals market was the fastest-growing market in the European region.

The Asia-Pacific Leather Chemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to the abundance of tanneries, leather shoes are in high demand in China. For example, China produced 28% of the world's leather footwear, according to a report by the Council for Leather Exports. Current market trends have increased demand for leather finishing chemicals for footwear products. Moreover, China’s Leather Chemicals market held the largest market share, and the Indian Leather Chemicals market was the fastest-growing market in the Asia-Pacific region.

Key industry players are driving the growth of the leather chemicals market by making large R&D investments to diversify their product portfolios. Launching new products, contracts, mergers and acquisitions, increased investments, and cooperation with other organizations are significant market developments. Additionally, industry participants are taking several calculated steps to broaden their reach internationally. The Leather Chemicals industry must provide competitively priced goods if it is to grow and thrive in a more competitive and challenging market climate.

One of the key strategies used by manufacturers to serve customers and expand the market sector in the Leather Chemicals market is local production to reduce operating costs. Recently, the footwear industry has benefited greatly from the leather chemicals sector. Major corporations in the Leather Chemicals market, including Stahl Holdings B.V. (The Netherlands), Schill+Seilacher GMBH (Germany), Lanxess (Germany), Pulcra Chemicals GmbH (Germany), and others, are trying to surge market demand by spending on research and development processes.

Evonik Industries, a German chemical firm, sells various specialty and common chemical products. In 80% of its companies, it commands a top-to-third market position. The major markets of North America and Asia each account for about 25% of sales, while Europe generates about 45%. The business has four main divisions: performance materials, nutrition and care, smart materials, and specialized additives. TEGO® Disperse 658, a new environmentally friendly dispersion additive, was introduced by Evonik in June 2022.

The newest TEGO® dispersion agent in the portfolio is easily biodegradable, which raises the production of pigment and colored coatings' sustainability while still providing formulators with a high-performance profile on par with that of other comparable Evonik goods.

The manufacturer of specialty chemicals is Lanxess AG (Lanxess). This company produces and sells chemical intermediates, plastics, specialized chemicals, and additives. Agrochemicals, automotive, construction, aromas & flavors, pharmaceuticals, tire chemicals, electrical, electronics, leather processing, and water treatment are just a few industries where the company's products are used. It collaborates with universities and research centers to do R&D. Rhenogran, Aflux, Aktiplast, Vulcuren, Perkalink, and Rhenoshape are just a few of its well-known brands. To support the company's operations, a network of production sites is in place. It is present in Latin America, Europe, North America, and Asia-Pacific.

North Rhine-Westphalia, Germany's Cologne, serves as the home base for Lanxess. A collaboration between LANXESS and TotalEnergies was announced in January 2023 for the supply of bio-circular styrene. Through collaboration with TotalEnergies, the business could provide its clients with sustainably produced raw materials.