Synthetic Leather Market Size, Share & Trends Growth [2031]

Report Description

The global synthetic leather market size was USD 36.3 Billion in 2022 and is likely to reach USD 69.1 Billion by 2031, expanding at a CAGR of 8.1% during 2023–2031. The market is driven by the increasing adoption of modern lifestyles and the rise in per capita income.

Growing applications of synthetic leather across various consumer products, including clothing, furnishing, bags, and automotive are expected to boost the market. The use of synthetic leather upholstery in automobile furnishing has been one of the major factors contributing to the propulsion of the market. The footwear industry has been another major user of synthetic leather as it is very comfortable and durable. Furthermore, with the rise of consumer culture, modern lifestyle, and increasing disposable income in several regions of the world, the market is anticipated to grow at a rapid pace during the assessment period.

• As per a survey report published in August 2023, the global revenue of the footwear industry was expected to have an increment of approximately 19% (USD 74.2 billion) between the period of 2018 and 2028. On the basis of constant increments each year, the new estimates reached USD 472.59 billion.

  Get Free Sample Report
  

Synthetic leather is a low-maintenance product that does not crack, fade, or become stiff and can easily be cleaned. Since it is man-made leather, it does not involve any animal cruelty and is available in a wide range of shades and colors. It is greatly resistant to stains and moisture and has a relatively long life. These factors have led to an increased adoption of synthetic leather across several industries and its end products have a high demand among consumers, which is likely to substantially boost the market.

The research report finds that the COVID-19 pandemic impeded the market as a result of the lockdowns imposed by governments all across the globe to prevent the spread of infection. It completely disrupted the supply chain network and halted import and export activities. This created a deficit between the supply and demand of several consumer products, including numerous end products of synthetic leather. However, as things have improved, the market is projected to have a steady rise during the forecast period.

Artificial Intelligence Impact on the Synthetic Leather Market

Artificial Intelligence is likely to provide substantial propulsion to the synthetic leather market. AI aids in the optimization of the manufacturing process as it analyzes data from numerous sources, including past production records and machine sensors. This eliminates the chances of human error to a great extent and considerably enhances the production quality. With the help of machine learning algorithms, AI detects anomalies and patterns in data, which enables it to make better decisions and increase productivity, thereby propelling the market.

Synthetic Leather Market Dynamics

Major Drivers

Growing use of automobiles and fashion products is expected to drive the market during the projection period. The usage of end-use products, such as footwear, handbags, fashion apparel, and furniture, has been increasing in various countries, including India, China, and Russia. Furthermore, the demand for synthetic leather is on the rise due to rapid urbanization and the flourishing of the furnishing and automotive sectors.

In the automotive interiors, synthetic leather is utilized to enhance the durability, aesthetic value, and comfort of vehicles. It is a cost-effective alternative to genuine leather and is therefore, used in the manufacturing of car interiors, such as seats, steering wheel covers, seat belts, dashboards, and door panels, among other things.

• As per a survey report published in August 2022, the total revenue generated by synthetic leather-based car seats in Russia was close to USD 45 million in 2020. Headliners had the second-highest use of synthetic leather within the automotive industry.

Rising awareness for the ethical treatment of animals is projected to boost the market during the assessment period. There have been increased efforts for wildlife conservation as several species and sub-species of animals were starting to go extinct due to illegal hunting activities. Organizations such as PETA and Animal Justice Project have made significant efforts towards stopping the exploitation of animals for the manufacture of leather. As a result, several leading market players have started adopting synthetic leather for manufacturing leather-based products which propels the market.

Existing Restraints

Toxic effects of polyvinyl chloride and polyurethane on the environment are likely to impede the market. Synthetic leather is one of the most prominent sources of microplastic pollution. Most of the common leather alternatives are made using petroleum-based plastic, such as polyvinyl chloride (PVC) and polyurethane (PU).

Synthetic leather is non-biodegradable and leads to further contamination of the environment. Since such alternatives are made using fossil fuels, their manufacturing process is both, chemically intensive and carbon-intensive. The rise in environmental awareness is expected to hinder the market during the forecast period.

Emerging Opportunities

Research and development of bio-based synthetic leather are anticipated to create substantial growth opportunities for the market. The use of natural fibers such as flax, cotton, and pineapple leaves in the creation of synthetic leather presents a highly favorable alternative to traditional leather production methods.

The bio-based option not only demonstrates a strong commitment to sustainability but also aligns with strict environmental guidelines and regulations. It is a significant step towards reducing the environmental impact of the fashion industry and paves the way for a more conscious and responsible approach to fashion design and production. Consequently, the use of natural materials for manufacturing synthetic leather can lead to significant market growth.

Get Free Sample Report

Scope of the Synthetic Leather Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Synthetic Leather Market Segment Insights

Type Segment Analysis

Based on type, the synthetic leather market is divided into bio-based, polyvinyl chloride, polyurethane, and others. The polyurethane segment is projected to hold the major share of the market during the projection period, owing to the high demand for this material from the footwear and furniture industry. It is created using thermoplastic polymer and is used in the manufacture of shoes and furniture.

The 100% PU leather is completely synthetic and is also considered vegan. It is made using thermoplastic polymer and costs much less than genuine leather. Another type of leather, called Bicast leather, is a special PU leather in which the real leather is covered with polyurethane coating on top. It is ideal for consumers looking for the look and feel of real and premium leather at an affordable price. The growing availability of such products in the market is projected to boost the growth of this segment.

• In September 2021, Teijin Limited, one of the prominent market players, created a new type of synthetic leather that is antibacterial and antiviral in nature. The company intends to use this leather in the manufacture of various sports equipment such as shoes and leather balls.

Get Free Sample Report

Application Segment Analysis

On the basis of application, the global market is segregated into automotive, furnishing, footwear, accessories, clothing, electronics, and others. The automotive segment is projected to register a high CAGR during the forecast period, as a result of the rapid expansion of the automobile industry in recent years due to the advancement of technology and the advent of electric vehicles (e-vehicles). Synthetic leather has great durability and is resistant to wear and tear upon prolonged use. As a result, it is abundantly used in the manufacture of interiors for cars, trucks, and passenger vehicles for making roof lining, gear boots, dashboard lining, and other parts, which significantly contributes to the market growth.

• In September 2021, Volvo Cars, one of the global leaders in the automobile industry, declared the use of leather-free materials for all its future electric vehicles in an effort to promote sustainable luxury. The company intends to encourage animal welfare and sustainability through the use of recycled materials.

The footwear segment is projected to register a considerable CAGR during the forecast period due to the high demand for synthetic leather such as polyurethane (PU) in the footwear industry. Synthetic leather-based footwear can withstand the wear and tear caused by prolonged usage and can even withstand harsh weather conditions. Furthermore, it is very cost-effective and is anticipated to be propelled by factors such as a rise in the living standards of consumers, increasing disposable income, and growing awareness regarding animal cruelty.

Regional Outlook

In terms of region, the global synthetic leather market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to the rapid upsurge in the electric vehicle industry in this region. Major electric vehicle manufacturers including Tesla use synthetic leather to design the interiors of their electric cars. Moreover, the implementation of stringent government policies and regulations for wildlife conservation and against animal cruelty has led to the high adoption of synthetic leather as a substitute for actual leather, which is likely to boost the market in this region.

Europe is expected to witness significant development in the synthetic leather market during the assessment period, due to the growing awareness of animal cruelty and strict government rules and regulations that limit the slaughtering of animals. This affects the use of natural leather in a wide range of end-use industries including automobile, furniture, and footwear. This significantly increases the adoption of synthetic leather in these industries. Furthermore, European countries such as Germany are some of the largest producers of synthetic leather, thereby, substantially supporting the market in this region.

Get Free Sample Report