Synthetic Leather Market Size, Share & Trends Report

Synthetic Leather Market Size, Share & Trends Analysis Report By Product (Bio-based, PVC, PU), By Application (Automotive, Footwear), By Region (APAC, Central & South America), And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-821-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 119

Report Overview

The global synthetic leather market size was valued at USD 31.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2021 to 2028. Globally increasing product demand from the footwear sector is expected to be a key factor propelling the overall market growth. Comprised of a cloth base coated with a synthetic resin, artificial leather serves as a suitable alternative, which is also augmenting its demand in various applications including fabrics, footwear, clothing, upholstery, and others where a leather-like finish is required, and the material is unusable, unsuitable, and cost-prohibitive. The production process has evolved over the past few years for the shell coating to go on top of the synthetic polymer blend.

U.S. synthetic leather market size, by product, 2016 - 2028, (USD Billion)

Moreover, the rising scope of application across various segments, such as furnishing, automotive, clothing, bags, and others, will drive the market growth. Manufacturers have been spreading their sourcing, shifting especially to Asian suppliers, such as China and Vietnam, owing to the abundance of raw material and availability of low-cost labor.

However, the global Covid-19 pandemic has adversely affected the market demand for synthetic leather owing to the several preventive measures taken by various governments to limit the spread of the disease. This has led to a decline in the demand and trade of synthetic leather across the globe and is expected to have a negative impact on market growth in the coming years.

However, emerging regional markets, such as China, India, Brazil, Malaysia, Thailand, and Vietnam, are expected to play a major role in global market growth due to high product demand. Extensive product usage in the footwear industry in these and several other Asian markets is expected to contribute to the growth of the global industry over the next few years.

Product Insights

The PU synthetic leather segment led the global market accounting for the largest revenue share of more than 59% in 2020. The segment will expand further at the fastest CAGR from 2021 to 2028. Polyurethane is waterproof and softer & lighter than real leather and can be dry cleaned and torn easily than real hides. It also remains unaffected by sunlight. In addition, it is an eco-friendly substitute for vinyl-based products as it does not emit dioxins. All these factors are expected to augment its demand further. The PVC product segment is expected to witness slow growth over the forecast period. PVC was the first form of synthetic leather created in 1920.

It was initially produced with carcinogenic chemicals and proved to be an ideal material for applications in furnishing and household items. PVC faced huge competition from PU as PVC gave a sticky feel and was unable to retain the body heat. As a result, its demand decreased in the clothing and bags application segments. Bio-based products are comprised of polyester polyol and have 70-75% renewable content. They are softer and have better scratch resistance properties than PU and PVC. Key companies in the global market are focusing on the development of new products through collaboration with polyols producers. Rapid industrialization and constant R&D will continue to supplement the segment growth in the coming years.

Application Insights

The footwear segment led the market accounting for the highest revenue share of more than 32% in 2020. Rising disposable income levels and rapid economic growth, especially in emerging nations, have fueled the demand for footwear, thereby augmenting product consumption. In addition, the segment is also led by variations occurring in climatic conditions of different regions, which requires the development of different types of footwear.

The increasing trend of incorporating athletic shoes in daily lifestyle is also expected to propel the segment growth. The price of faux leather footwear is three times cheaper than the ones made from animal hide, which also boosts the segment development. The furnishing industry is also one of the major application areas for the product. There is a wide range of materials available in the market that serve varied requirements of the furnishing industry, in terms of fabric color, texture, and look.

Global synthetic leather market share, by application, 2020 (%)

Moreover, such artificial alternatives can also be used in marine furnishing as it is saltwater resistant. The automotive segment is estimated to register the fastest CAGR from 2021 to 2028. Faux leather is also used in cars, trucks, motorcycles, buses, and agricultural vehicles as it is lighter than animal hides. Polyurethane is the most widely used material in the automotive sector as it is non-sticky and softer than other products.

The bags and wallets segment is also estimated to have significant growth over the coming years due to high product demand. The product usage enables the development of lightweight, breathable, scratch- & water-proof, and easy-to-maintain bags. With the evolving textile technology, consumers are preferring vegan fashion, which refers to adopting non-leather products. Thus, synthetic leather serves as the most suitable alternative in textile applications. The PU material-based products are also used in clothing to create spandex and to add buoyancy to competitive swimsuits.

Regional Insights

Asia Pacific dominated the market accounting for the maximum revenue share of over 42% in 2020. The regional market will expand further at the fastest CAGR from 2021 to 2028. China, India, and South Korea are expected to be the major revenue-generating economies in APAC. Rising disposable income coupled with increasing population will provide numerous growth opportunities to the market players. China is one of the prominent markets, in terms of product manufacturing and sales.

However, the global pandemic adversely affected the country’s manufacturing output. Several manufacturers have either closed or slowed down their operations to contain the spread of the disease. Limited production in the manufacturing industry due to a halt or slowdown in operations, limitations on the supply and transportation in the country, and infrastructure slowdown are anticipated to negatively affect the product demand from the end-use application in the near future.

Key Companies & Market Share Insights

The market is led by a few companies with large production capacities, most of them based in Asia Pacific. Companies are using strategies, such as joint ventures, mergers & acquisitions, production capacity expansions, and new product development, to drive their revenues and increase their market shares.

For instance, companies, such as Winner Nippon Leatherette Pvt. Ltd., are consistently involved in developing products that possess the ability to replace genuine leather in a diverse range of applications. Some of the prominent players in the global synthetic leather market include:

  • Kuraray Co., Ltd.

  • H.R. Polycoats Pvt. Ltd.

  • Nan Ya Plastics Corp.

  • Teijin Ltd.

  • Alfatex Italia SRL

Synthetic Leather Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 33.7 billion

Revenue forecast in 2028

USD 57.0 billion

Growth rate

CAGR of 7.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in million meters, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

Segments covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; China; India; Japan; South Korea; Brazil

Key companies profiled

Kuraray Co., Ltd.; H.R. Polycoats Pvt. Ltd.; Nan Ya Plastics Corp.; Teijin Ltd.; Alfatex Italia SRL

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global synthetic leather market report on the basis of product, application, and region:

  • Product Outlook (Volume, Million Meter; Revenue, USD Million, 2016 - 2028)

    • PU

    • PVC

    • Bio-based

  • Application Outlook (Volume, Million Meter; Revenue, USD Million, 2016 - 2028)

    • Furnishing

    • Automotive

    • Footwear

    • Bags & Wallets

    • Clothing

    • Others

  • Regional Outlook (Volume, Million Meter; Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Italy

      • France

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

    • Central & South America

      • Brazil

    • Middle East & Africa

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