Synthetic Leather Market Size, Share & Trends Analysis Report By Product (Bio-based, PVC, PU), By Application (Clothing, Furnishing, Automotive, Bags & Wallets, Footwear), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global synthetic leather market size was valued at USD 29.3 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 4.4% from 2020 to 2027. Globally increasing demand from 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. This factor is also anticipated to augment its demand in various applications.

The material is used in various applications including fabrics, footwear, clothing, upholstery, and others where a leather-like finish is required. It 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.

The global demand has seen a paradigm shift due to rising applications across furnishing, automotive, clothing, bags, and others. Manufacturers have been spreading their sourcing, shifting especially to Asian suppliers such as China and Vietnam owing to an abundance of raw material, and low labor & freight costs. However, the recent spread of COVID-19 across the globe has drastically impacted the market demand for synthetic leather owing to the several preventive measures taken by various governments to limit the spread of pandemic. This has led to the fall in the demand and trade of synthetic leather across the globe and is expected to have negative impact on the market growth in the coming years.

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

Product Insights

Polyurethane (PU) synthetic leather segment accounted for the largest revenue share of over 55% in 2019. It has been witnessing promising growth, due to the product quality, variety, and yield. Polyurethane is waterproof, softer and lighter than real leather, can be dry cleaned and torn easily than real hides. It also remains unaffected from 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 their 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 clothing and bags application segment. Bio-based product is comprised of polyester polyol and has 70% to 75% renewable content. It is softer and has better scratch resistance properties than PU and PVC.

Key companies in the global synthetic leather 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 upcoming years.

Application Insights

Footwear accounted for the largest revenue share of over 30% in 2019. Its application is getting nearer to genuine leather, which is increasing replacing the applications in handbags, briefcases, car furnishings, and clothing. Rising income levels and economic growth, especially in emerging nations, has fueled the demand for footwear. In addition, the segment is also led by variations occurring in climatic conditions of different regions, which needs different types of footwear.

Increasing athleisure trend of incorporating athletic shoes in daily lifestyle is also expected to propel the segment growth. The price of faux leather footwear products is three times lower than the ones made from animal hide, which also boosts the segment growth. Furnishing industry is also one of the major application areas for synthetic leather as it has become more affordable than animal hides.

There is a wide range of synthetic leather materials available in market that serve varied requirements of the furnishing industry, in terms of color, texture, and fabric look. Moreover, such artificial alternatives can also be used in marine furnishing as it is saltwater resistant. Faux leather is used in cars, trucks, motorcycles, buses, and agricultural vehicles as it is lighter than animal hides.

Polyurethane is the most-widely used material in automotive sector as it is non-sticky and softer than other products. The bags and wallets segment is also estimated to have a significant growth in the forthcoming years due to high product demand. The usage of faux leather enables the production of lightweight, breathable, scratch- and 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. PU synthetic leather is also used in clothing where it is used to create spandex and to add buoyancy to competitive swimsuits.

Regional Insights

The Asia Pacific region accounted for the largest revenue share of over 40% in 2019 and is expected to continue its dominance over the forecast period. China, India, and South Korea are expected to be the major growth-driving economies in the region. Rising disposable income coupled with increasing population will provide numerous opportunities for the market.

China is one of the prominent markets for leather in terms of production and sales. However, the outbreak of coronavirus in December 2019 has severely affected the country’s manufacturing output. Several manufacturers have either closed or slowed down their operations to contain the spread of the virus. 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 demand for synthetic leather from the end-use application in the third and fourth quarters of 2020.

North America and Europe are also expected to witness sluggish growth owing to lockdowns and restrictions on cross broader trades in various countries in the region. In addition, the ongoing trade war between the U.S. and China and serious strain caused by the spread of the coronavirus pandemic, which originated in Wuhan, China, has created trust issues between the two nations, which is further expected to adversely impact market growth in the coming years.

Key Companies & Market Share Insights

The key players that dominated the global market in 2019 include Kuraray Co. Ltd., H.R. Polycoats Pvt. Ltd.., Alfatex Italia, Yantai Wanhua Group Co. Ltd., Nan Ya Plastis Corp., Tejinin Ltd. A lot of market participants are focusing on business expansion and product innovation. For example, Kuraray Europe GmbH showcased a new solvent-free man-made leather at Première Vision 2019, which possesses properties the same as natural leathers. These properties make it extremely suitable for many fashion creations. Some of the prominent players operating in the synthetic leather market include:

• Kuraray Co., Ltd.

• H.R. Polycoats Pvt. Ltd.

• Nan Ya Plastics Corporation

• Teijin Limited

• Yantai Wanhua Synthetic Leather Group Co., Ltd.

• Alfatex Italia SRL

Synthetic Leather Market Report Scope

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 2027. 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 Meters; Revenue, USD Million, 2016 - 2027)

  • PU

  • PVC

  • Bio based

• Application Outlook (Volume, Million Meters; Revenue, USD Million, 2016 - 2027)

  • Furnishing

  • Automotive

  • Footwear

  • Bags & Wallets

  • Clothing

  • Others

• Regional Outlook (Volume, Million Meters; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Italy

    • France

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa