Leather Chemicals Market Analysis

Global Leather Chemicals Market Overview

The Leather Chemicals Market Size was valued at USD 8.26 Billion in 2023. The Leather Chemicals industry is projected to grow from USD 8.76 Billion in 2024 to USD 13.17 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.24% during the forecast period (2024 - 2032). Increasing sports participation and the fashion industry's increased demand for leather items are the significant market drivers augmenting the growth of the market.

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

Leather Chemicals Market Trends

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  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.

Leather Chemicals Market Segment Insights

Leather Chemicals Product Insights

The Leather Chemicals market segmentation, based on product, includes biocides, surfactants, chromium sulfate, polyurethane resins, sodium bicarbonate, and others. The polyurethane resins segment is expected to lead the Leather Chemicals market during the forecast period. This is a result of increased polyurethane usage in the leather processing industry. They also create binders, basecoats, topcoats, and organic solvent-free finish formulations. Hybrid acrylic polyurethane polymers offer significantly improved formulations for finishes without solvents. In addition to their use in various formulations and processing, PU resins are utilized to create PU-based synthetic items due to their exceptional flexibility, high tensile strength, and resistance to abrasion and solvents.

The Surfactants segment is expected to be the fastest-growing segment of the Leather Chemicals market during the forecast period. Surfactants are a common component of the chemicals used in leather manufacturing in the leather industry. Surfactants, sometimes called surface-active agents, are substances that lessen the surface tension between two different types of fluids, such as liquid and solid. Wetting agents and emulsifiers are the two main uses of surfactants in manufacturing leather.

Figure 1: Leather Chemicals Market, by Product, 2022 & 2032 (USD Billion)

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

Leather Chemicals Type Insights

The Leather Chemicals market segmentation, based on type, includes beam-house chemicals, tanning & retanning chemicals, fatliquors, finishing chemicals, dyeing products, and others. The tanning & retanning chemicals category is expected to hold the major share of the Leather Chemicals market over the forecast period. Chemicals used in tanning and retanning are necessary steps in manufacturing leather. Retanning chemicals enhance the leather's strength, flexibility, and water resistance. Tanning chemicals are used to turn animal hides and skins into leather.

The dyeing products segment is expected to be the fastest-growing segment of the Leather Chemicals market throughout the forecast period. To improve the aesthetic appeal of leather items, dying is an essential procedure in the leather business. To obtain the required color and finish, the dyeing process uses a variety of chemicals kinds. Acid dyes, which can be dissolved in water, are frequently used to color wool, silk, and nylon. They're utilized to color leather in the leather business as well. Protein fibers respond best to acid dyes, which create vivid, bright colors.

Leather Chemicals End-User Insights

The Leather Chemicals market segmentation, based on the end-user, includes Footwear, Automotive, Textile, Upholstery, and Others. The footwear category is expected to hold the major share of the Leather Chemicals market over the forecast period. The rise in demand for leather used to make footwear, which is, in turn, boosting demand for the product in the footwear industry, is the reason for the demand. Basic components of footwear include leather, rubber, plastic, cloth, and metal. Many uses can be found for it, including coloring, tanning, and finishing leather. These compounds are also used to strengthen the crust and filling.

Leather Chemicals Regional Insights

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, MRFR 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.

Leather Chemicals Key Market Players & Competitive Insights

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.

Key Companies in the Leather Chemicals market include

• Stahl Holdings B.V. (The Netherlands)


• Schill+Seilacher GMBH (Germany)


• Lanxess (Germany)


• Pulcra Chemicals GmbH (Germany)


• Sisecam Group (Turkey)


• Buckman (US)


• Silvateam S.p.a (Italy)


• TFL Ledertechnik GmbH (Germany)


• Pidilite Industries Limited (India)


• Balmer Lawrie (India)


• QUIMSER, S.A. (Spain)


• Pon Pure Chemicals(India)


• DyStar Singapore Pte Ltd (Singapore)

Leather Chemicals Industry Developments

In January 2024, Pidilite Industries Limited joined forces with Italy’s Syn-Bios, a leading name in the sphere of leather tanning industry research and global promotion. Thus, Pidilite Industries Limited will take charge of selling and distributing Syn-Bios products in India, Sri Lanka, Bangladesh, Nepal and Vietnam. Both companies will also come together to provide holistic solutions for the leather industry through technical collaboration.

In June 2023, Zschimmer & Schwarz took over Samia by acquiring all of its shares that had been retained since 2019, when it held a majority interest of 60%. As such, Samia is now a wholly-owned subsidiary of the Lahnstein-based family business. The consolidated resources and expertise from Samia relating to leather auxiliaries will enable it to penetrate new international markets.

January 2023 - LANXESS and TotalEnergies signed an agreement on bio-circular styrene supply. This allows the company to be able to offer environmentally friendly solutions as well as raw materials for clients who have low carbon footprints.

October 2022: Texapel attained ZDHC Level 3 certification from Chem-MAP for their leather chemicals through its program called “Road Map to Zero”.

In 2024: BASF released new leather chemicals with advanced formulations for improved quality and sustainability.

In 2023: TFL Ledertechnik introduced innovative leather chemicals with enhanced performance and environmental benefits.

Leather Chemicals Market Segmentation

Leather Chemicals Product Outlook

• Biocides


• Surfactants


• Chromium Sulfate


• Polyurethane Resins


• Sodium Bicarbonate


• Others

Leather Chemicals Type Outlook

• Beam-house Chemicals


• Tanning & Retanning Chemicals


• Fatliquors


• Finishing Chemicals


• Dyeing Products


• Others

Leather Chemicals End-User Outlook

• Footwear


• Automotive


• Textile


• Upholstery


• Others

Leather Chemicals Regional Outlook

• 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
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America