Leather chemicals are primarily used in various stages of leather production. They improve the overall quality of the finished product, which is further used in several end-user industries. Demand for leather chemicals is primarily led by growth in the automotive, apparel, and footwear industries globally. Leather chemicals play an important role in enhancing features of leather such as appearance, water resistance, and heat resistance. Leather is extensively used in the automotive industry as a preferred choice of material for interiors. This is a key driver for the leather market, and, subsequently, for the leather chemicals market. The leather chemicals industry is likely to expand in tandem with the automotive industry across the globe. Growth of the footwear industry is another major driver for the leather chemicals market. Footwear is one of the most dominant end-user segments of the leather industry. Leather is used in the production of shoe soles, whole shoes, boots, women’s footwear, etc. Increasing population and rising disposable income are expected to be the major factors driving demand for leather chemicals in the next few years.
With over 40% share, tanning & dyeing chemicals was the largest segment of the leather chemicals market at the end of 2013. It plays an important part in increasing durability of leather and also protects it from decomposition. Chemicals used in this process include calcium hydroxide, cyanides, and amines. Chromium complexes are employed in tanning to produce stretchable leather, which is used in the manufacture garments and handbags. The processes that entail tanning & dyeing process include beamhouse operations, soaking, liming, and pickling. Demand for tanning and dyeing chemicals is anticipated to increase significantly, particularly in emerging economies such as China, India, and Brazil.
Beamhouse chemicals were the other major segment in the leather industry in 2013. The processes involved between curing and tanning are called beamhouse operations. These are the most important processes in leather production. Chemicals used in beamhouse operations include biocides, swell regulating agents, soda ash, chromium sulfate, and formic acid. The market for beamhouse chemicals is anticipated to witness strong growth over the next few years due to rising demand for leather in various end-user industries such as footwear, apparel, and automotive. The leather chemicals industry exhibits a high degree of backward integration, as many major producers of leather chemicals are engaged in its upstream activities. This backward integration of some of the key market participants provides them with a distinct competitive advantage in terms of product quality and market dominance.
In terms of volume, Asia Pacific and Europe were the major markets for leather chemicals in 2013; Asia Pacific accounted for the largest market share of approximately 40% in the same year. Of late, the leading manufacturers of leather chemicals are focusing higher on capacity expansion in Asia Pacific due to rising demand for leather chemicals in the region. Recent growth in automotive and footwear industries is anticipated to be the major factor driving demand for leather chemicals Asia Pacific. Increasing demand for leather in the automotive industry in emerging and developed economies is likely to be the major driver for the leather chemicals market in the near future.
Of late, the usage of environment-friendly products has increased due to regulations imposed by various governing bodies across the globe. Opportunities are available for new players in leather chemicals market, particularly in Asia Pacific and RoW. Several new entrants are keen to establish themselves in the market. Key players operating in the leather chemicals market include BASF SE, Stahl Holdings b.v., Clariant International Ltd., Bayer AG, TFL Ledertechnik GmbH & Co. KG, Lanxess AG, Elementis plc, Heim Leather Chem GmbH, Schill + Seilacher GmbH, DyStar Singapore Pte Ltd., Rock Chemie Co., and Wei Tai Leather Co., Ltd.
Demand for leather chemicals is primarily led by growth in the automotive, apparel, and footwear industries across the globe. Asia Pacific dominates the global market for leather chemicals. This report by Transparency Market Research analyzes, estimates, and forecasts the demand for leather chemicals on a global and regional level for a six-year period from 2014 to 2020. The study also provides information on restraints, drivers, and opportunities along with their impact on the overall market during the forecast period. The report segments the market based on applications and regions and offers estimates and forecasts for each segment. 
The study analyzes the product value chain, from feedstock to end use. It also evaluates the market based on Porter’s five forces model, which analyzes the degree of competition by considering factors such as bargaining power of buyers and suppliers, and threat from substitute products and new entrants. The report includes a detailed competitive landscape of the leather chemicals market.
Prices of leather chemicals vary across regions. Pricing for each application varies according to region while estimating and forecasting market revenue on the global basis as different end-users use different types of products. Regional average price has been considered while breaking down the market by end application in each region. Size of the global leather chemicals market has been presented in terms of volume and revenue. Market volume is mentioned in Kilo Tons and market revenue is represented in US$ Mn. Market numbers are provided based on product types for the global as well as regional market. Both domestic and captive sales of leather chemicals have been considered. Market numbers are provided based on product types along with market size and forecast for each major product type in the context of the global as well as regional markets. Numbers provided in the report are derived based on demand for leather chemicals in various end-user industries across various regions. All prices have been considered as FOB prices. Market revenue has been calculated based on sales and consumption trends. All US$ exchange rates are as of 2013. Prices have been kept constant throughout the forecast period for calculating the market size.
Market estimates for this study are based on volumes, with revenues derived through regional pricing trends. Prices of commonly utilized grades of leather chemicals have been considered, and customized product pricing has not been included. Costs of the most commonly available leather chemicals have been considered. Market data for each segment is based on production volumes and corresponding revenues. Prices considered for calculation of revenue are average regional prices obtained through primary quotes from numerous regional suppliers, distributors, and direct-selling regional producers, based on manufacturer feedback and application requirement. We have used the bottom-up approach by considering individual application segments and integrating these to arrive at the global market. Product segments have been further bifurcated using the top-down approach to derive the regional product market consumption. The study covers manufacturers of leather chemicals. We have not included unorganized sectors of the market due to lack of secondary or primary data on this segment.
The report provides a decisive view on the leather chemicals market by segmenting it based on product types. Product segments analyzed in the report include tanning & dyeing chemicals, beamhouse chemicals, and finishing chemicals. Regional segmentation includes the current and forecast volumes and revenues for North America, Europe, Asia Pacific and Rest of the World (RoW). The segmentation includes volume and revenues for individual applications across these regions.
Leading manufacturers profiled in the report include BASF SE, Stahl Holdings b.v., Clariant International Ltd., Bayer AG, TFL Ledertechnik Gmbh & Co. KG, Lanxess AG, Elementis plc, Heim Leather Chem. Gmbh, Schill + Seilacher GmbH, DyStar Singapore Pte Ltd., Rock Chemie Co., and Wei Tai Leather Co. Ltd. These companies are profiled in detail with features such as company overview, financial overview, business strategies, and recent developments.
Leather Chemicals Market - Product Segment Analysis
  • Tanning & dyeing chemicals
  • Beamhouse chemicals
  • Finishing chemicals
Leather Chemicals Market - Regional Analysis
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)