Synthetic Leather Market: Snapshot
Synthetic leather is a man-made artificial leather that looks like natural leather. It is also known as faux leather. Its surface is treated and dyed with certain additives to provide them a natural look just as natural leather. Nowadays synthetic leather has gained widespread popularity and is often used as a substitute for real leather because it is less expensive and does not require any real animal hide. Synthetic leathers are available in a variety of colors, leading to them being used in a wide number of industries such as footwear, automobile, garments, and fashion accessories such as bags, wallets, etc. In addition, synthetic leather is cheaper than natural leather and superior to real leather in terms of its diversity in looks and use; therefore it has become the popular choice for many manufacturers active in the automobile and footwear industry.
Polyurethane Synthetic Leather Likely to Dominate Global Market
The global synthetic leather market can be categorized in terms of product type and end-users. On the basis of product type, the market can be split into polyurethane (PU) and polyvinyl chloride (PVC). Polyurethane type is dominating the market due to its superior physical properties over polyvinyl chloride. PU type synthetic leather is more environmental friendly than PVC type and has high tensile strength and is more breathable. However, in some countries such as India, Ethiopia, and Tanzania, PVC type synthetic leather is still dominating as it is much cheaper than polyurethane type leather. Demand for polyurethane type synthetic leather is expected to expand significantly during the forecast period due to stringent regulations on tanning agents such as phthalates and slaughtering of animal in developed economies. Moreover, characteristic features of polyurethane synthetic leather, such as high durability and gloss, are some of the other factors fuelling the market.
Rising Environmental Restrictions on Natural Leather Leads to Growing Demand from Automotive Industry
In terms of end-users, the global synthetic leather market can be split into automobile, furnishings, sporting goods, garments, footwear, industrial fabrics, and other such as bags, wallets etc. In terms of revenue, automobile held a major share of more than 40% in global synthetic leather market. Rising demand for low VOC emission from interior automobile materials coupled with stringent regulations on CO2 emission in the natural leather tanning industry are pushing manufacturers to opt for revolutionary materials further anticipated to drive the synthetic leather market. Footwear is also one of the prominent segment of the market which is expected to grow at a significant pace during forecast period. Rising fashion trends coupled with increasing sports activities are expected to increase the demand for sportswear and garments in turn boosting the demand for synthetic leather over the forecast period.
Asia Pacific to Dominate due to Rising Disposable Income of High Population
In terms of geography, the global synthetic leather market can be segregated into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. In terms of consumption, Asia Pacific is the leading regional market for synthetic leather due to growth of the automobile and footwear industry.
Demand for synthetic leather in Asia Pacific is expected to rise significantly due to the rising population and disposable income in the region. Furthermore, rising joint ventures and capacity expansion by various manufacturers and emphasis on reducing carbon emission in China are also influencing the market positively in the region. North America and Europe are mature markets for synthetic leather. Rising regulations on animal slaughtering due to efforts by various NGOs such as PETA are pushing manufacturers to adopt environment-friendly materials which in turn is boosting the demand for synthetic leather in the region.
The Middle East and Latin America are also likely to be profitable regions for synthetic leather manufacturers in the coming years. This is primarily due to rising investment by various leading automakers such as Ford, Nissan, and Renault. Africa is the least lucrative region as most countries are still underdeveloped, leading to a lack of skilled labor force. However countries such as South Africa and Kenya are expected to provide lucrative opportunities for the synthetic leather market during the forecast period due to the rising disposable income of the middle class and rising investment by numerous automakers in the region.
Key players operating the market include Kuraray, Asahi Kasei Corporation, SAN FANG CHEMICAL INDUSTRY CO., LTD., Toray Coatex Co. Ltd., H.R. Polycoats Pvt. LTD., ALFATEX, and FILWEL CO., LTD.
Synthetic leather is a man-made fabric treated and dyed so that it resembles real leather in terms of its appearance. Synthetic leather employs polyurethane or polyvinyl chloride in its formulation and provide natural leather appearance. They are much cheaper and environmental friendly than natural leather. PU synthetic leather are much more flexible than PVC type and are breathable in nature.
The report estimates and forecasts the synthetic leather market on the global, regional, and country levels. The study provides forecast between 2016 and 2025 based on volume (Million square meters) and revenue (US$ Mn) with 2016 as the base year. The report comprises an exhaustive value chain analysis for each of the product segments. It provides a comprehensive view of the market. Value chain analysis also offers detailed information about value addition at each stage. The study includes drivers and restraints for the synthetic leather market along with their impact on demand during the forecast period. The study also provides key market indicators affecting the growth of the market. The report analyzes opportunities in the synthetic leather market on the global and regional level. Drivers, restraints, and opportunities mentioned in the report are justified through quantitative and qualitative data. These have been verified through primary and secondary resources. Furthermore, the report analyzes global average price trend analysis of synthetic leather.
The report includes Porter’s Five Forces Model to determine the degree of competition in the synthetic leather market. The report comprises a qualitative write-up on market attractiveness analysis, wherein application and countries have been analyzed based on attractiveness for each region. Growth rate, market size, raw material availability, profit margin, impact strength, technology, competition, and other factors (such as environmental and legal) have been evaluated in order to derive the general attractiveness of the market. The report comprises price trend analysis for synthetic leather between 2016 and 2025.
Global Synthetic Leather Market: Segmentation
The study provides a comprehensive view of the synthetic leather market by dividing it into product type, end-user, and geography. The synthetic leather market has been segmented into polyurethane (PU) and polyvinyl chloride (PVC). End-user segments have been analyzed based on historic, present, and future trends, and the market has been estimated in terms of volume (Million square meters) and revenue (US$ Mn) between 2016 and 2025.
Regional segmentation includes the current and forecast demand for synthetic leather in North America, Europe, Asia Pacific, Latin America, and Middle East (ME), and Africa. Additionally, the report comprises country-level analysis in terms of volume and revenue for end-user and product type segments. Key countries such as the U.S., Germany, France, the U.K., Spain, Italy, India, China, South Africa, Kenya, Nigeria, Tanzania, Mexico, and Brazil have been included in the study. Market segmentation includes demand for individual end-users and products in all the regions and countries.
Global Synthetic Leather Market: Competitive Dynamics
The report covers detailed competitive outlook that includes market share and profiles of key players operating in the global market. Key players profiled in the report include Kuraray, Asahi Kasei Corporation, San Fang Chemical Industry Co., Ltd., Toray Coatex Co. Ltd., H.R. Polycoats Pvt. Ltd., Alfatex, And Filwel Co., Ltd. Company profiles include attributes such as company overview, number of employees, brand overview, key competitors, business overview, business strategies, recent/key developments, acquisitions, and financial overview (wherever applicable).
Secondary research sources that were typically referred to include, but were not limited to company websites, financial reports, annual reports, investor presentations, broker reports, and SEC filings. Other sources such as internal and external proprietary databases, statistical databases and market reports, news articles, national government documents, and webcasts specific to companies operating in the market have also been referred for the report.
In-depth interviews and discussions with a wide range of key opinion leaders and industry participants were conducted to compile this research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. This helped in validating and strengthening secondary research findings. Primary research further helped in developing the analysis team’s expertise and market understanding.
The global synthetic leather market has been segmented as follows:
Synthetic leather Market – Product Type Analysis
- Polyurethane (PU)
- Polyvinylchloride (PVC)
Synthetic leather Market – End-user Type Analysis
- Sporting goods
- Industrial fabrics
Synthetic leather Market – Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East
- Rest of Middle East & Africa
- South Africa
- Rest of Africa
- Latin America
- Rest of Latin America