Synthetic Leather Market Size, Share & Trends Analysis Report By Type (PU, PVC, Bio-based), By Application (Footwear, Clothing, Furnishing, Automotive, Wallets, Bags & Purses), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global synthetic leather market size was valued at USD 33.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.0% from 2022 to 2030. Globally increasing demand from the footwear sector is expected to be a key factor propelling the overall market growth. The high cost of natural leather is another factor that has driven the need for natural leather replacements. PVC leather is another essential type of synthetic leather that has grown in popularity due to its diverse variety of uses, which include shopping bags, cosmetic bags, wallets, suitcases, purses, and travel bags. It is used 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.

The U.S. market for synthetic leather has witnessed a considerable rise in consumption in the recent past. In recent years, the market in the U.S. has seen a significant increase in demand. Over the next few years, consumption is expected to increase. The overall market in the U.S. is likely to benefit from a significant increase in demand for automotive synthetic leather upholstery. During the forecast period, initiatives to strengthen the supply chain are expected to have a favorable impact on the market in the U.S. The global demand has seen a paradigm shift due to rising applications across furnishing, automotive, clothing, bags, etc. Manufacturers have been spreading their sourcing, especially to Asian suppliers such as China and Vietnam, owing to abundant raw materials and low labor and freight costs.

However, the recent spread of the coronavirus across the globe has drastically impacted the demand for synthetic leather owing to the several preventive measures taken by various governments to limit the spread of the pandemic. This has led to a fall in the demand and trade of synthetic leather globally and is expected to hurt the market growth in the coming years. Emerging regional markets such as China, India, Brazil, Malaysia, Thailand, and Vietnam are expected to play a significant role in product demand. Extensive usage of synthetic leather in the footwear industry in several other regional markets is also expected to contribute to the growth of the global industry over the next few years.

Type Insights

The PU synthetic leather segment led the market and accounted for more than 55.0% share of the global revenue in 2021. It has been witnessing promising growth in product quality, variety, and yield. Polyurethane is waterproof, softer, and lighter than genuine leather and can be dry-cleaned and torn more easily than genuine 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 synthetic leather segment is expected to grow slowly during 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 significant competition from PU as PVC gave a sticky feel and could not retain body heat. As a result, its demand decreased in the clothing and bag application segment. The bio-based product consists of polyester polyol and has 70-75% renewable content. It is softer and has better scratch resistance properties than PU and PVC. Key companies in the global market are focusing on developing new products through collaboration with polyol producers. Rapid industrialization and constant R&D will continue to supplement the segment's growth in the upcoming years.

Application Insights

The footwear segment led the market and accounted for over 30.0% of the global revenue in 2021. Its application is getting nearer to genuine leather, which is increasingly replacing the applications in handbags, briefcases, car furnishings, and clothing. Rising income levels and economic growth, especially in emerging nations, have fueled the demand for footwear. In addition, the segment is led by variations occurring in climatic conditions of different regions, which need different types of footwear.

Synthetic leather is widely used to manufacture shoe uppers, shoe lining, and soles for sports shoes, formal shoes, flip flops, soccer shoes, sandals, slippers, and boots. These shoes also are cost-effective, environmentally friendly, and long-lasting. Synthetic leather shoes possess higher water resistance than genuine leather shoes, which can get stained due to exposure to certain elements. Faux leather shoes are durable enough to be used for a more extended period when walking or running.

The increasing athleisure trend of incorporating athletic shoes into the daily lifestyle is also expected to propel segment growth. The price of faux leather footwear products is three times cheaper than the ones made from animal hide, boosting segment growth. The 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 the market that serve varied requirements of the furnishing industry in terms of color, texture, and fabric look. Moreover, such artificial alternatives can 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 the automotive sector as it is non-sticky and softer than other products. The wallets, bags, and purses segment is estimated to witness significant growth over the coming years due to the high product demand. Using faux leather enables the production of lightweight, breathable, scratch- and water-proof, and easy-to-maintain bags.

The application of synthetic leather in manufacturing wallets, bags, and purses has increased significantly in recent years. Synthetic leather is extremely popular since it is softer than natural leather and has high durability.  Synthetic leather wallets, bags, and purses are easy to maintain as they are lightweight, breathable, waterproof, and scratchproof. The lower cost of synthetic leather has also been a significant factor in driving the demand in this market. Baggit, Solo, ZARA, Lavie World, and KENNETH COLE PRODUCTIONS, INC. are some brands that use synthetic leather to create a wide selection of elegant and trendy bags. With the evolving textile technology, consumers prefer 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 add buoyancy to competitive swimsuits.

Regional Insights

The Asia Pacific dominated the market and accounted for over 40.0% of the global revenue in 2021. China, India, and South Korea are expected to be the significant growth-driving economies in APAC. Rising disposable income, coupled with the 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 coronavirus outbreak 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 near future.

The market in North America is expected to grow at a slow rate on account of the saturation of more prominent domestic fashion brands. There have been growing concerns from animal rights organizations such as PETA, WWF, and others, resulting in growth restraints in the leather market. The demand for synthetic leather goods in the region has increased. The European market witnessed significant growth owing to the flourishing automobile and consumer appliances sectors in the region. Amid the global crisis, governments in the region are focusing on bio-based, low-cost, and long-lasting products. The market for synthetic leather in this region is expected to grow due to this.

Key Companies & Market Share Insights

The market for synthetic leather is dominated by very few companies with a large production capacity, mainly in the Asia Pacific. Companies use 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 can replace genuine leather in various applications.

Some prominent players in the global synthetic leather market include:

• Kuraray Co., Ltd.

• H.R. Polycoats Pvt. Ltd.

• Alfatex Italia SRL

• Filwel Co., Ltd.

• Yantai Wanhua Synthetic Leather Group Co., Ltd.

• San Fang Chemical Industry Co., Ltd.

• Mayur Uniquoters Limited

• Teijin Limited

• Nan Ya Plastics Corporation

Synthetic Leather Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global synthetic leather market report based on type, application, and region:

• Type Outlook (Volume, Million Meters, Revenue, USD Million, 2019 - 2030)

  • PU Synthetic Leather

  • PVC Synthetic Leather

  • Bio-based Leather

• Application Outlook (Volume, Million Meters, Revenue, USD Million, 2019 - 2030)

  • Furnishing

  • Automotive

  • Footwear

  • Wallets, Bags & Purses

  • Clothing

  • Others

• Regional Outlook (Volume, Million Meters, Revenue, USD Million, 2019 - 2030)

  • 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