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The synthetic leather market size is estimated to grow at a CAGR of 9.44% between 2022 and 2027. The synthetic leather market size is forecast to increase by USD 23.52 billion. The growth of the market depends on several factors, including high demand from developing economies, the availability of a wide range of products, and the shift of consumer preference from animal hide to synthetic leather products.
This synthetic leather market report extensively covers market segmentation by product (PU-based, PVC-based, and bio-based), end-user (footwear industry, furnishing industry, automotive industry, bags industry, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The shift of consumer preference from animal hide to synthetic leather products is notably driving the market growth, although factors such as fluctuating raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The shift of consumer preference from animal hide to synthetic leather products is notably driving market growth. Leather is a premium or luxury material for shoes, clothing, and bags. However, a significant portion of the sales in the apparel, accessory, and footwear industries are made up of synthetic leather or fabric. These goods are also reasonably priced. These goods are sold on the market in a variety of colors, patterns, and textures but do not include leather as a raw material.
Due to changing lifestyles and the availability of a wide range of synthetic leather products, consumers are switching from favoring animal-hide leather products to synthetic leather products. One of the most important markets for both synthetic and animal-hide leather is the footwear sector. It is observing a decline in the demand for leather footwear as well as a change in consumer preference from footwear made of animal hides to footwear made of synthetic leather. Additionally, growing environmental concerns are making people choose synthetic leather over animal-hide leather in consumer goods. Such factors will drive the growth of the global market during the forecast period.
The customization of synthetic leather is an emerging trend in the market growth. Design, color, luster, and texture can all be modified through customization. Customized synthetic leather has grown in popularity among numerous application industries over the past five years. Users can alter synthetic leather products to suit their requirements. To meet the expanding demand for customization, vendors are introducing a wide range of products made of synthetic leather. For instance, Toray, a significant supplier in the international market, allows customers to choose their own pattern, design, luster, texture, and prints. Customers can also choose traditional gliding and embossing using digital processes like laser printing and cutting.
Customers can create synthetic leather products that suit their needs due to customization. As a result, these items cost more than standard leather goods. Hence, the trend toward customization is fueling the market's expansion by making room for new purchases. Therefore, these factors will drive the growth of the market during the forecast period.
Fluctuating raw material prices are major challenges impeding market growth. Since the cost of crude oil and forest products is so closely correlated with the price of raw materials used to make synthetic leather, the price of these materials is extremely unstable. Synthetic leather is primarily made using materials like silicone and polymer film. Fluctuations in the prices of raw materials, including polymers such as PVC (polyvinyl chloride) and PU, are directly related to fluctuations in the price of crude oil. Vendors are facing challenges from fluctuating prices for petroleum-based raw materials and rising local manufacturer competition, particularly in emerging economies.
For instance, the average price of crude oil was USD 64.4 per barrel in 2019, USD 41.96 per barrel in 2020, and reached USD 70.68 per barrel in 2021. The producers of products based on petroleum derivatives were forced to raise prices as a result of this growth. Thus, fluctuating raw material prices can be one of the major challenges in the growth of the global market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Synthetic Leather Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alfatex Italia Srl - The company primarily focuses on providing high-performance sustainable coated fabrics for the automotive, marine industry, and residential homes. The key offerings of the company include synthetic leather solutions for industries such as marine, automotive, and medical.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the PU-based segment will be significant during the forecast period. Depending on the production method, PU-based synthetic leather is also known as split leather or bi-cast leather. Compared to other types of synthetic leather, it is soft, waterproof, and simple to maintain. The growth of this segment is being driven by these benefits.
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The PU-based segment was valued at USD 22.49 billion in 2017 and continued to grow until 2021. PU-based synthetics are lightweight and can be made in a variety of colors and textures. It is primarily utilized in the clothing, footwear, and auto industries. Synthetic leather made from PU has a leather-like appearance. As a result, many consumers are converting from animal-hide leather to synthetic leather. Furthermore, other advantages that are propelling the demand for PU-based synthetic leather are it resists fading because of its resistance to ultraviolet (UV) rays, contrary to leather made from animal hide, it doesn't dry out over time, and it can also be washed. Thus, these factors are expected to drive the growth of the PU-based segment in the global market during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is anticipated to expand primarily as a result of the rapid expansion of sectors using synthetic leather, including footwear, apparel, automotive, furnishings, and bags. The most important market for synthetic leather producers is China. This is because growing environmental concerns are leading consumers in the nation to prefer synthetic leather products over those made of animal hides. The high demand for inexpensive leather imitation goods like bags, clothing, and auto accessories is one of the additional factors propelling the market's expansion in China. Moreover, China is the most prominent market for manufacturers owing to the availability of cheap labor, low operational costs, and improved business operation standards. As a result, these nations have high rates of product adoption from application industries. Hence, such factors are boosting the demand for synthetic leather.
The growth of the manufacturing industries in APAC is further fueled by the region's favorable manufacturing and industrial environments and ease of doing business. The number of international companies opening operations in APAC is growing as a result of the region's favorable business and economic conditions and rising demand for goods like bags, clothing, cars, and shoes. With the rising affordability of purchasing end products like automobiles, apparel, accessories, and luxury goods due to rising disposable income, changing lifestyles, and rapid urbanization, the demand for products from the application industries in APAC is growing quickly. Therefore, the aforementioned factors are expected to fuel the market growth in APAC during the forecast period.
In 2020, COVID-19 negatively impacted the growth of the market in the region. However, with the initiation of large-scale vaccination drives, the lockdown restrictions were lifted in 2021, which led to the resumption of operation in all segments, including the textile and manufacturing sectors. This has increased the demand for textiles products such as synthetic leather in the region. Such factors are expected to drive the growth of the regional market during the forecast period.
The synthetic leather market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global synthetic leather market as a part of the global specialty chemicals market. The global specialty chemicals market covers products and companies engaged in high-value-added chemicals used in the manufacturing of a wide variety of products, including, but not limited to, fine chemicals, additives, advanced polymers, adhesives, sealants, specialty paints, pigments, and coatings. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Synthetic Leather Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.44% |
Market growth 2023-2027 |
USD 23.52 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.73 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, France, and Italy |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Water Inc., Akea Srl, Alfatex Italia Srl, Anhui Anli Material Technology Co. Ltd., Asahi Kasei Corp., Colence Pvt. Ltd., H.R. Polycoats Pvt. Ltd., Kolon Industries Inc., KURARAY Co. Ltd., Lederplast Spa, Marvel Vinyls Ltd., Mayur Uniquoters Ltd., Nan Ya Plastic Corp., San Fang Chemical Industrial Co. Ltd., Teijin Ltd., Toray Industries Inc., Uniroyal Global Engineered Products Inc., Winner Nippon Leatherette Pvt. Ltd., Zhejiang Hexin Industry Group Co. Ltd., and Zhejiang Yongfa Synthetic Leather Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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