Synthetic Leather Market Analysis, Size, and Forecast 2024-2028:
North America (US and Canada), Europe (France, Germany, Italy, and UK), Middle East and Africa (Egypt, KSA, Oman, and UAE), APAC (China, India, and Japan), South America (Argentina and Brazil), and Rest of World (ROW)

Synthetic Leather Market Size 2024-2028

The synthetic leather market size is valued to increase USD 25.3 billion, at a CAGR of 9.42% from 2023 to 2028. High demand from developing economies will drive the synthetic leather market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 57% growth during the forecast period.
• By Product - PU-based segment was valued at USD 23.30 billion in 2022
• By End-user - Footwear industry segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 96.07 billion
• Market Future Opportunities: USD 25.30 billion
• CAGR from 2023 to 2028 : 9.42%

Market Summary

• The market represents a dynamic and evolving industry, driven by innovations in core technologies and applications. With a growing emphasis on customization and sustainability, synthetic leather has gained significant traction, particularly in developing economies. According to industry reports, The market is projected to account for over 50% share of the leather market by 2025. However, market growth is not without challenges, including fluctuating raw material prices and regulatory compliance. Key applications include automotive, fashion, and furniture, with the automotive sector leading the market growth.
• As of 2021, the automotive segment is estimated to hold approximately 40% market share. Despite these challenges, the market continues to unfold with new opportunities, such as advancements in biodegradable synthetic leather and increasing demand from the electronics industry.

What will be the Size of the Synthetic Leather Market during the forecast period?

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How is the Synthetic Leather Market Segmented ?

The synthetic leather industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • PU-based
  • PVC-based
  • Bio-based
• End-user
  • Footwear industry
  • Furnishing industry
  • Automotive industry
  • Bags industry
  • Others
• Application
  • Footwear
  • Automotive
  • Furnishing
  • Clothing
  • Bags & Wallets
  • Sports Goods
  • Other Applications
• Geography
  • North America
    • US
    • Canada
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • Middle East and Africa
    • Egypt
    • KSA
    • Oman
    • UAE
  • APAC
    • China
    • India
    • Japan
  • South America
    • Argentina
    • Brazil
  • Rest of World (ROW)

By Product Insights

The pu-based segment is estimated to witness significant growth during the forecast period.

PU-based synthetic leather, also recognized as bi-cast or split leather, is experiencing significant market expansion due to its ease of maintenance, waterproof properties, and softness, surpassing other synthetic leather types. Weighing less than natural leather, it offers versatility in texture and color options, making it a preferred choice in footwear, clothing, and automobile industries. The increasing trend of veganism and sustainability has led many consumers to opt for synthetic leather, which resembles genuine leather. PU-based synthetic leather boasts impressive durability features, such as tear resistance and extended product lifespan, ascertained through rigorous testing like flexural strength and abrasion resistance. These attributes are crucial for industries that require high-performance materials.

Additionally, PU-based synthetic leather is resistant to UV rays, ensuring colorfastness and reducing the need for frequent replacement. Manufacturing advancements, such as microfiber manufacturing, non-woven fabrics, fiber reinforcement methods, and PU coating techniques, have contributed to the evolution of synthetic leather. Eco-friendly alternatives, like cellulose-based materials, bio-based polymers, and plant-based materials, are also gaining popularity, as sustainability certifications become increasingly important. Waste reduction strategies, such as textile recycling technologies, are also being integrated into the manufacturing process to minimize environmental impact. PU leather properties, including coating formulations, surface coating adhesion, and material tensile strength, are continually being analyzed and optimized to enhance its performance and appeal to businesses and consumers alike.

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The PU-based segment was valued at USD 23.30 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 57% 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.

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The market in the Asia Pacific (APAC) region is experiencing significant growth, surpassing other global markets. This expansion is primarily driven by the burgeoning industries of footwear, apparel, automotive, furnishing, and bags, which increasingly utilize synthetic leather. Key contributors to this growth include China, Japan, and India. Among these, China holds a prominent position as the leading manufacturer of synthetic leather. The shift towards eco-consciousness among Chinese consumers, who are favoring synthetic leather products over animal-hide alternatives, is a significant factor fueling the market's expansion. Additionally, the demand for affordable leather imitation products, such as bags, apparel, and automotive accessories, is another driving force.

Market Dynamics

Our researchers analyzed the data with 2023 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 global synthetic leather market is defined by continuous product innovation and shifting sourcing priorities as manufacturers balance performance, cost, and sustainability. Market participants focus on polyurethane foam density impact on durability and microfiber composition effects on tensile strength to enhance end-product longevity, while coating thickness influence on abrasion resistance and embossing roller design influence on grain pattern are central to achieving desired aesthetics and wear performance. Recycling methods for pu leather scraps and bio-based polyurethane production process reflect a broader move toward circularity and lower lifecycle environmental impact. Comparative material assessments, such as comparison of polyester and polyamide fibers in synthetic leather and comparison of pvc and polyurethane leather alternatives, inform material selection and cost optimization strategies.

Producers are also investing in testing and certification, applying assessment of flame retardant coating efficiency and testing methods for antimicrobial coating efficacy to meet stricter product safety expectations, and undertaking analysis of synthetic leather material lifespan to guide warranty and quality assurance programs. Process improvements include optimization of production process for cost reduction and methods to improve synthetic leather durability, alongside techniques for enhancing the flexibility of synthetic leather and effect of coating formulation on water resistance. Emerging research explores new approaches to create bio-based polymers and cellulose-based synthetic leather production techniques, while adoption of environmental certifications for sustainable synthetic leather supports market differentiation and supplier compliance. This multidimensional evolution positions the market toward higher value applications and more sustainable supply chains.

What are the key market drivers leading to the rise in the adoption of Synthetic Leather Industry?

• Developing economies' substantial demand significantly drives the market. 

• Synthetic leather holds significant demand in emerging economies, including China, India, Brazil, South Africa, and Indonesia. This trend is predominantly driven by its extensive usage in industries such as apparel, bags, and footwear. China is a leading player in The market, fueled by the burgeoning consumer product manufacturing sectors. The escalating industries of automotive, footwear, and bags, which are propelled by increasing economic activities and rising disposable income in emerging markets, particularly China, are fueling the demand for synthetic leather.
• For instance, the National Bureau of Statistics of China reported a 3% increase in per capita disposable income of urban residents in 2022. This growth is expected to continue, further boosting the demand for synthetic leather.

What are the market trends shaping the Synthetic Leather Industry?

• Synthetic leather customization is gaining popularity as the latest market trend. The customization of synthetic leather is an emerging market trend.

• The customization of synthetic leather is an evolving trend in the global market, predominantly driven by luxury consumer product manufacturers. This process involves tailoring design, color, luster, and texture to meet specific user requirements. Over the past five years, customized synthetic leather has witnessed significant adoption across various sectors, catering to the increasing demand for personalized products. companies, such as Toray, a leading player in the synthetic leather industry, offer customization options in pattern, design, luster, texture, and prints.
• Through advanced digital techniques like laser printing and cutting, they enable traditional embossing methods. The versatility and adaptability of synthetic leather have contributed to its growing popularity, making it a preferred choice for numerous applications.

What challenges does the Synthetic Leather Industry face during its growth?

• The volatile pricing of raw materials poses a significant challenge to the industry, impeding its growth. 

• Synthetic leather manufacturing relies heavily on the prices of crude oil and forest products for raw materials, leading to market volatility. Polymer films and silicone are key substrates in production, but the prices of petroleum-derived raw materials like PVC and PU, which are extensively used, are directly influenced by crude oil costs. This dependence creates challenges for companies, particularly in the face of increasing competition from emerging economies.
• The price fluctuations of these raw materials significantly impact the synthetic leather industry, requiring continuous adaptation and innovation.

Exclusive Technavio Analysis on Customer Landscape

The synthetic leather market forecasting 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 synthetic leather market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Synthetic Leather Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, synthetic leather market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AIR WATER INC. - The subsidiary FILWEL of this corporation specializes in providing synthetic leather solutions to various industries, utilizing advanced technology and innovative materials. FILWEL's offerings contribute significantly to the company's diversified product portfolio.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• Zhejiang Yongfa Synthetic Leather Co. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Synthetic Leather Market

• In January 2024, German synthetic leather manufacturer, Stahl, announced the launch of its new sustainable PU leather product, EcoCalf, at the International Leather Fair in Shanghai. This eco-friendly alternative, made from recycled materials, marked a significant stride in the synthetic leather industry's move towards sustainability (Stahl press release).
• In March 2024, LG Chem, a leading global chemical company, and Adidas, the renowned sports footwear brand, joined forces to develop and commercialize high-performance synthetic leather for footwear. This strategic partnership aimed to create eco-friendly, durable, and lightweight materials for athletic shoes (Adidas press release).
• In May 2024, Toray Industries, a Japanese chemical and textile company, announced a USD300 million investment in its synthetic leather production facility in Thailand. This expansion was expected to increase the company's global synthetic leather production capacity by 30% (Toray Industries press release).
• In February 2025, the European Union passed the Single Use Plastics Directive, banning the use of single-use plastics in various sectors, including fashion and footwear, by 2025. This regulatory move created a surge in demand for synthetic leather alternatives, as they are often considered more sustainable than their real leather counterparts (European Parliament press release).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Synthetic Leather Market insights. See full methodology.

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Research Analyst Overview

• Synthetic leather, a versatile and resilient alternative to natural leather, continues to gain traction in various industries due to its numerous advantages. One significant development in this market is the emphasis on enhancing tear resistance and product lifespan through rigorous testing, such as tear resistance testing and flexural strength analysis. Moreover, eco-friendly alternatives are increasingly popular, with life cycle assessments driving the adoption of cellulose-based materials, microfiber manufacturing, and non-woven fabrics. Fiber reinforcement methods, like fiberglass and Carbon Fiber, and PU coating techniques contribute to the durability and surface coating adhesion of synthetic leather. Manufacturers are also exploring innovative PU leather properties, such as bio-based polymers and PVC leather alternatives, to reduce waste and improve sustainability.
• Sustainability certifications, like GOTS and OEKO-TEX, are gaining importance in the market, reflecting the industry's commitment to eco-friendly practices. Water resistance ratings and abrasion resistance are essential performance indicators, with advancements in textile recycling technologies and chemical composition analysis enabling the production of high-performance synthetic leather. The manufacturing process optimization of fibers like polyester, polyamide, polyurethane, acrylic, and bio-based materials continues to drive innovation in the synthetic leather industry. Comparatively, the adoption of surface coating adhesion technologies has led to improvements in colorfastness assessment and synthetic leather durability, ensuring high-quality products that meet the evolving demands of consumers and industries.
• The ongoing research and development in this sector underscore the dynamic and continuously unfolding nature of the market.

What are the Key Data Covered in this Synthetic Leather Market Research and Growth Report?

• What is the expected growth of the Synthetic Leather Market between 2024 and 2028?

  • USD 25.3 billion, at a CAGR of 9.42%

• What segmentation does the market report cover?

  • The report is segmented by Product (PU-based, PVC-based, and Bio-based), End-user (Footwear industry, Furnishing industry, Automotive industry, Bags industry, and Others), Geography (APAC, North America, Europe, South America, and Middle East and Africa), and Application (Footwear, Automotive, Furnishing, Clothing, Bags & Wallets, Sports Goods, and Other Applications)

• Which regions are analyzed in the report?

  • APAC, North America, Europe, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • High demand from developing economies, Fluctuating raw material prices

• Who are the major players in the Synthetic Leather Market?

  • 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 Research Insights

• The market encompasses a diverse range of processes and techniques, including finishing processes, production efficiency enhancements, and various embossing techniques. According to industry data, the global synthetic leather production reached 1.5 million metric tons in 2020, with an estimated growth rate of 5% per annum. This expansion is driven by advancements in production methods, such as PU foam processing, which increases material consistency and reduces waste. Additionally, the market prioritizes quality control metrics, with texture analysis and dimensional stability assessment playing crucial roles.
• Environmental impact assessments are also integral, leading to the adoption of sustainable production methods and the integration of antimicrobial and flame retardant coatings. Cost optimization and performance testing are ongoing priorities, with heat resistance, pigment dispersion, and wear resistance key performance indicators. Regulatory compliance, including dyeing techniques and chemical resistance, is another critical aspect of the market's evolution.

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