Synthetic Leather Market By Type (PU Synthetic Leather, PVC-based Synthetic Leather, Bio-based Leather), By End-Use Industry (Footwear, Furnishing, Automotive, Clothing, Consumer Goods, Others) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

Industry Outlook

Synthetic leather market value is expected to witness a CAGR of 7.5% during the forecast period from 2018 to 2026. Synthetic Leather or artificial Leather is a leather-like plastic material that is a direct substitute for natural Leather in each and every end-use industry. These leathers are generally made using polyurethane and polyvinyl chloride and marketed under different names such as "faux leather," "artificial leather," "pleather," etc. Synthetic Leather finds promising end-use industry of natural Leather, which includes footwear, furnishing, automotive, clothing, consumer goods, and others. Footwear accounted for the largest demand share of synthetic Leather, and the demand for synthetic Leather is likely to rise in this segment on account of the surge in demand for footwear in the Asia-Pacific, Latin America, and Europe regions. Growing urbanization, rising disposable income, changing lifestyles, and growing demand for western and fashionable brands in developing economies in Asia-Pacific makes it the dominant region. North America closely follows Asia-Pacific in terms of synthetic leather consumption, with the U.S. being the market leader.

Growing demand from the footwear and automotive industries, cost-effectiveness, mitigation of the risk of animal killing, and greater flexibility than pure Leather in terms of designs and customization are some of the major factors driving the growth of synthetic Leather across the globe. However, a few negative effects of synthetic materials, such as emissions, non-biodegradability, and hazardous waste, combined with a lengthy manufacturing process, are expected to stymie market growth during the forecast period. The development of bio-based and plant-based Leather is expected to offer a lucrative growth opportunity for this market. Major players operating in the synthetic leather market include Kuraray Co. Ltd. (Japan), Toray Industries (Japan), Teijin Limited (Japan), San Fang Chemical Industry Co. Ltd. (Taiwan), Nan Ya Plastics Co. Ltd. (Taiwan), and Mayur Uniquoters Ltd. (India), among others.

PU Synthetic Leather Segment Dominates the Synthetic Leather Market by Type

PU synthetic leather dominated the synthetic leather market by type in 2017 and is expected to maintain its dominance throughout the forecast period. Demand for polyurethane (PU) Leather has been growing fast owing to its increasing adoption in sports and the packaging industry. Moreover, PU synthetic leather is also one of the substitutes for polyvinyl chloride (PVC) synthetic leathers that have a negative environmental impact, making it the fastest-growing segment during the forecast period. However, PVC-based synthetic Leather offers some superior advantages, such as higher flexibility, performance at low temperatures, and lower cost than PU synthetic leather.

Bio-based Leather is also projected to show a significant growth rate during the forecast period. Bio-based leathers are made from yarn made from tree fiber, so they are biodegradable and sustainable alternatives to pure Leather. The clothing industry is the primary consumer of bio-based Leather.

In 2017, footwear led the End-Use Industry Segment.

Footwear led the synthetic leather end-use industry market in 2017 and is expected to maintain its dominance throughout the forecast period. Growing disposable incomes and the changing lifestyles of consumers are driving the demand for synthetic Leather in the footwear industry. Countries with extreme climatic conditions require different kinds of footwear, and high-performance materials are also expected to increase synthetic leather consumption in the footwear industry. Rising demand for athletic footwear owing to concerns about personal health and an inclination towards different physical activities among the population, coupled with periodic sports events such as the Olympic Games, the Commonwealth Games, the Asian Games, the Cricket World Cup, etc., promote the demand for footwear across the globe, which in turn drives the demand for synthetic Leather from the footwear industry.

Clothing and automotive end-use industries are projected to witness a significant CAGR during the forecast period owing to changing fashion preferences leading to a rising inclination towards luxury products and increasing demand for lightweight Leather, which makes seats comfortable and resistant to cold and hot temperatures, respectively.

During the Forecast Period, Asia-Pacific will continue to be the dominant region.

Asia-Pacific was the largest regional market for synthetic Leather in 2017, and it is also expected to see strong gains in the coming years on account of flourishing end-use industries such as footwear, furnishing, automotive, etc., coupled with rising disposable income and economic growth. China and India account for the majority of synthetic leather demand in the Asia-Pacific. Asia-Pacific economies are characterized by favorable and liberal government regulations, rapid industrialization, and increasing westernization, which will significantly contribute to the growth of the artificial leather market in China, India, and Japan. China is the world's largest producer of Leather, followed by India in the Asia-Pacific region. Asia-Pacific is also identified as the fastest-growing region during the forecast period. North America closely follows Asia-Pacific in terms of market share, with the U.S. being the largest consumer in the region. Increasing demand for automotive upholstery and sporting goods is the key driving factor for synthetic Leather in the region.

New product development and expansion are among the preferred strategies adopted by key players in the synthetic leather market.

Companies are resorting to new product development as a major strategy to cater to consumer demand for natural and high-performance leather products and strengthen their market positions in the global synthetic leather industry. Consequently, the development of upgraded and customized bio-based products provides high growth opportunities for synthetic leather manufacturers. For instance, Teijin Cordley Limited, a subsidiary of Teijin's Group, introduced a new high-grade synthetic leather under the brand name Maestley in April 2016. The company expanded its line of Maestley products by adopting natural leather processing procedures. Expansion is also one of the key strategies being adopted by key players to cater to the ever-rising demand for synthetic Leather across the globe. To meet domestic demand for synthetic Leather in Italy and other European countries, as well as to keep competitors at bay, Toray Industries invested US$ 276.87 million in March 2017 for capacity expansion of its synthetic leather output in Italy. Key players operating the market include Kuraray Co. Ltd. (Japan), Nan Ya Plastics Co. Ltd. (Taiwan), Teijin Limited (Japan), San Fang Chemical Industry Co. Ltd. (Taiwan), Mayur Uniquoters Ltd. (India), Toray Industries (Japan), and Zhejiang Hexin Industry Group Co., Ltd. (China), among others.

Periods of History and Forecast

Each market segment is analyzed in our study for the period of 2016 to 2026, with 2017 as the base year, while the period from 2018 to 2026 is considered for the CAGR calculation.

Key questions are answered in this report.

  • What are the current market trends in the synthetic leather market, and what are the valuable opportunities for the players?
  • Which is the most lucrative region for investment?
  • What are the different government and environmental regulations governing this market across the world?
  • What are the market size and trends in emerging markets?
  • Which are the prime end-use industries for synthetic Leather across different geographies?
  • Which are the different types of synthetic Leather and their market sizes?
  • Which are the leading players and their market positions?

Frequently Asked Questions:

The market for Synthetic Leather Market is expected to reach US$ XX Mn by 2026.

The Synthetic Leather Market is expected to see significant CAGR growth over the coming years, at 7.5%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

Teijin Limited (Japan), San Fang Chemical Industry Co. Ltd. (Taiwan), Mayur Uniquoters Ltd. (India), Toray Industries (Japan), and Zhejiang Hexin Industry Group Co., Ltd. (China), are some of the major players in the global market.

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Published Date:  Nov 2018
Category:  Advanced Materials
Report ID:   59457
Report Format:   PDF
Pages:   120
Rating:    4.4 (56)
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