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

Industry Insights

The global synthetic leather market size was valued at USD 29.2 billion in 2019 and is projected to expand at a revenue-based CAGR of 7.8% during the forecast period. Increasing demand from footwear sector is expected to be a key factor propelling the growth. Comprised of a cloth base coated with a synthetic resin, artificial leather serves as a suitable alternative, augmenting its scope of application. The product finds applications including fabrics, footwear, clothing, and upholstery where leather-like finish is required, and the material is unusable, unsuitable, and cost-prohibitive. The production process has evolved over the years for the shell coating to go on top of the synthetic polymer blend, making the product more versatile and durable.

The global demand has seen a paradigm shift due to rising application across furnishing, automotive, clothing, bags and others. Thus, manufacturers are focusing on increasing their production capacities. The global market is fragmented and is led by a few companies. This has resulted in high entry barriers as these manufacturers are emphasizing on forward and backward integration across the value chain to improve their efficiency and overall productivity.

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

Product Insights

Polyurethane (PU) has been witnessing promising growth, in terms of product quality, variety, and yield. It is the largest product segment in the synthetic leather market and is expected to observe the fastest growth during the forecast period. Polyurethane is waterproof, softer, and lighter than real leather, turns easily, and is easy to dry clean. It also remains unaffected from sunlight. It is an eco-friendly substitute to vinyl-based products as it does not emit dioxins. All these factors are expected to augment the product demand in near future.

Polyvinyl Chloride (PVC) 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 the former gave a sticky feel and was unable to retain the body heat. As a result, its demand from clothing and accessories manufacturing witnessed a significant reduction.

Bio-based synthetic leather is comprised of polyester polyol and has 70% to 75% renewable material. It is softer and has better scratch resistance 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 upcoming years.

Application Insights

Footwear emerged as the largest application segment for synthetic leather 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 fuelled 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 trend of athleisure that involves wearing athletic shoes in everyday life is also expected to propel the segment growth. The price of a faux leather footwear is three times lower than the ones made from animal hide, which is expected to boost 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 colour, 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 witness significant growth over the forecast period, 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 opting for 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

Asia Pacific (APAC) led the global market in 2019 and is projected to continue leading over the forecast period, on account of rapidly expanding footwear and automobile industries. China, India, and South Korea are expected to be the major growth-driving economies in APAC. Rising disposable income coupled with increasing population is anticipated to create growth opportunities for the market. China, in particular, constitutes around 25% of the global production of synthetic leather.

North America and Europe are expected to witness significant growth owing to rising demand for cruelty-free products. Moreover, rising awareness and stringent regulations regarding animal rights in several countries in these regions have been encouraging the usage of synthetic leather. Supply-demand gap in natural leather industry is another major factor that has made manufacturers to opt for artificial alternatives.

Synthetic Leather Market Share Insights

Some of the leading companies in the market include Kuraray Co. Ltd., H.R. Polycoats Pvt. Ltd., Mitsubishi Chemicals Corp., Hanwa Chemical Corp., 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 possess properties same as natural leathers. These properties make it extremely suitable for many fashion creations.

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

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Italy

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa