Synthetic Leather Market Synopsis

Synthetic Leather Market Size is Valued at USD 38.97 Billion in 2023, and is Projected to Reach USD 77.08 Billion by 2032, Growing at a CAGR of 7.87% From 2024-2032.

The Synthetic Leather Market guide represents the entire worldwide economy sector that manufactures and sells synthetic leather products. These materials for instance polyurethane (PU) and polyvinyl chloride (PVC) leather are used as synthetic leather to replace animal leather in different sectors like; footwear, automobile interior, furniture, and trinkets. It directly targets various end-user application segments such as fashion products and automotive elements, electronics retail products which are used by consumers looking for affordable and long-lasting materials to actual leather.

• The identification of the synthetic leather market comes down to its current widespread application in various industries because of the cost advantage over natural leather. From the footwear market, car interiors, and furniture industries, there is increasing pressure from the middle-income population and increasing levels of affluence in countries around the world. Synthetic leather that provides more opportunities in terms of designing, colorality, and texture in comparison to animal leather meets the modern consumers’ demand on stylish and environmentally friendly products. Besides this, the strict legalization for animal rights as well as environmental issues which are related to the usual process of leather production is one of the most effective developments in the synthetic leather market.
• Modern manufacturing techniques have also improved the characteristics of synthetic leather and it has become more of a sturdy product and is less vulnerable to wears. The availability of synthetic leather from bio sources like plants and conservation of natural resources for market growth also enhances market growth for products with a green label. Also, endeavors towards embracing environmentally sound manufacturing processes and the ability to recycle synthetic products are creating conditions that are good for the industries. Considering the world’s industries’ concern towards minimizing their contribution to climate change, synthetic leather becomes the best solution for various industries and makes their application to grow around the world.

Synthetic Leather Market Trend Analysis

Bio-Based Synthetic Leather, The Next Frontier in Sustainable Materials

• The Synthetic Leather Market is growing rapidly and is boosted by several factors such as increasing consumption in automotive, footwear, and fashion applications. Developed nations and many consumers around the world are aware of the animal cruelty and the effect of fake leather products hence shifting to the synthetic ones. Today synthetic leather is used as a true substitute for natural leather because technological progress impacted positively on quality, durability and appearance of fake materials. This is accompanied by consumer trends that always seek the latest fashion products that are fairly priced, especially in the emerging markets.
• Besides the need for consumer goods, governmental encouragement for environmental-friendly goods is pushing market growth. Bio-based synthetic leather also developed from renewable sources is coming in the market to replace the conventional one. The automotive industry chiefly uses synthetic leather primarily to cut operating expenses while also being easy to clean and blending well with the sector’s aesthetic sensibilities. Currently, Asia Pacific region is the largest producer and consumer of the special steel products which lay emphasis on china and India. On the other hand, North America and Europe have moderate compound annual growth rates due to adoption of sustainable development and better technologies of production.

Driving Innovation, The Future of the Synthetic Leather Market

• The growth prognosis of synthetic leather market major drivers are the rising demand of animal-free products and the heightened awareness of environmental conservation. With the ethical and environmental issues on the rise, there is increased market call for products and services that are free from animal skin, and thus, increased call for synthetic leather. This trend is especially seen in this fashion and automobile industries since synthetic leather is now a perfect substitute to natural leather in terms of quality and appearance. Innovations in synthetic leather manufacturing like bio-based and high-performance products contribute the market’s captivating aspect because buyers get sustainable products also with high levels of durability and versatility.
• However, the increasing popularity of automobiles in global markets, especially in the developing countries, increases the uptake of synthetic leather intensively used in vehicles’ interior parts. It is cheap to produce, does not require constant maintenance, and can be produced in different colour and feel as that of the natural leather. Moreover, focusing on the geographical perspective, population increase and urbanization along with the more disposable income in the developing countries is further boosting the demand for synthetic leather products as furniture, clothes, and accessories that are indeed stylish and of high quality. Thus, in the process of further developing the characteristics of synthetic leather such as breathability, wear resistance and comfort, the latter is expected to gradually seize the market share of traditional natural leather.

Synthetic Leather Market Segment Analysis:

Synthetic Leather Market Segmented on the basis of type, application, and end-users.

By Type, Polyurethane (PU) Leather segment is expected to dominate the market during the forecast period

• The market for synthetic leather can also be divided by types and they are Polyurethane (PU) Leather, Polyvinyl Chloride (PVC) Leather, Bio-Based Leather and others. While PU Leather offering the option of being used as a almost genuine as leather and being slightly closer to it and PVC Leather is preferred due to its durability and comparatively cheaper cost. Bio-Based Leather claims the market as the consumers continue to seek for green products for their daily use. The synthetic leather type that falls under this category is a versatile material mainly used for several other uses that meet specific needs in different industries.

By Application, Footwear segment held the largest share in 2024

• With regard to the application, the synthetic leather is segmented into Footwear, Furnishing, Automotive, Clothing, Bags & Wallets, and beyond. Shoes are also categorized under footwear and this part of the clothing industry continues to dominate because it is widely used. Furniture applications obtain the strength and elegance from synthetic leather, automotive applications take it for internal car trims whether interiors, as a cheap but trendy substitute for real leather. In clothing, synthetic leather offers beautiful cheap stylish apparels that are environmentally friendly and an improvement to animal suffering. Similar to shoes, bags and wallets remain taking advantage of the qualities of the synthetic leather such as flexibility and cheapness. The ‘others’ category is an assembly of numerous and diverse applications where the synthetic leather is employed to satisfactorily address numerous requirements in different industries.

Synthetic Leather Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• Currently, the Asia Pacific synthetic leather market is recovering remarkably as many end-user industries such as automotive, footwear, and furniture demand it. New willing consumers, availability, our increased population moving into urban areas, changes in consumers’ switching behavior to look for substitutes for genuine leather which are environment friendly as well as cheaper are contributing to the growth of synthetic leather market. Some of the regional markets that have a high demand for synthetic leather include china, India, Japan and the southern korea all contributing to the synthetic leather market with the largest market holder being china. The footwear industry constitutes a major proportion since the region is associated with large shoe manufacturing factories.
• It is also worth mentioning that, as to the consumption of synthetic leather products, not only developing countries in the Asia Pacific region have great domestic demand but they also export the products. The increasing consciousness about eco-friendly products has made manufacturers focus on the bio-based synthetic leather, which will boost the market growth. Resource endowment and strong manufacturing strength in the region along with technology and production line enhancements have allowed the region to meet global synthetic leather market demand. The Asia Pacific region has encouraging government policies for the markets growth and there is an increasing preference for products with sustainable materials.

Active Key Players in the Synthetic Leather Market

• Kuraray Co., Ltd. (Japan)
• H.R. Polycoats Pvt. Ltd. (India)
• Alfatex Italia SRL (Italy)
• Filwel Co., Ltd. (Japan)
• Yantai Wanhua Synthetic Leather Group Co., Ltd. (China)
• San Fang Chemical Industry Co., Ltd. (Taiwan)
• Mayur Uniquoters Limited (India)
• Teijin Limited (Japan)
• Nan Ya Plastics Corporation (Taiwan)
• Others