The global synthetic leather market is anticipated to grow at a CAGR of around 8.0% during the forecast period (2021-2027). Synthetic leather is a versatile and affordable alternative to genuine leather. Due to the increasing fashion industry, the demand for synthetic leather is growing at a rapid pace. To meet the growing demand for leather products, a synthetic alternative comes to an exitance. Synthetic leather is also known as faux leather, PU leather, or imitation leather, and it does not require using a real animal hide to create. The global synthetic leather market is driven by the increasing demand for synthetic leather in various end-user industries such as apparel, footwear, furnishing, automotive, sports goods, and others. The rising demand for a different type of footwear among the population due to the growing fashion sense is also the reason due to which the market is growing. As per INVEST India, in 2018, the total number of shoes produced globally was 24.2 billion pairs. Asia-Pacific is the largest producer and consumer of footwear globally with a share of 53.8% followed by Europe, and North America with 15.2% and 14.5% share. In 2018, out of the total production, 86.2% of the shoes were being produced in Asia. In Asia-Pacific, China India, Vietnam, and Indonesia are the leaders in the region. Availability of raw material and low-cost labor is the prime factors driving the market growth in the region.

Moreover, the various properties posed by synthetic leather such as high moisture resistance, easily washable, cost-effectiveness, and high durability drives its demand during the forecast period. Additionally, stringent government regarding the protection of animals for leather products is projected to bolster the market growth. Rising consumer awareness regarding animal killing to get leather along with better alternatives of leather for furniture, clothing, and footwear applications likely to offer alluring opportunities to the market participants operating during the analysis period. Besides, increasing R&D investments for the production of bio-based leathers using fruits are further creating huge opportunities for the manufacturers during the forecast period. The introduction of the Industry 4.0 concept is also transforming the way of working with automated systems compounded with an intelligent way of working. The application of industry 4.0 in the footwear industry for sustainable leather production will create a scope for synthetic leather. Apart from this, the environmental concern regarding PU-based and PVC-based polymers may hamper the market growth.

Impact of COVID-19 on Global Synthetic Leather Market

The global synthetic leather market was hardly hit by the COVID-19 pandemic. The Asia-Pacific region which is the largest producer and consumer of synthetic leather due to the high production of footwear was badly impacted owing to the several preventive measures taken by the government to limit the spread of the disease. In addition, the disruption in raw material supply chain from China, the global market was disrupted. The demand for new footwear and other fashion accessories were decreased during the pandemic period. 

Segmental Outlook  

The global Synthetic Leather market is segmented based on type, and end-user industry. Based on type, the market is trifurcated into PU-based, PVC-based, Bio-based. Among these, the PU-based segment is expected to show promising growth during the forecast period. The segment also accounted for the largest market share in 2020. The PU-based synthetic leathers are waterproof, lightweight, easily dry out, and eco-friendly as compared to PVC-based synthetic leather, this is the major factor PU-based leathers are highly demandable in the fashion industry. Whereas bio-based synthetic leathers are expected to gain popularity during the forecast period. Based on the end-user industry, the market is segregated into footwear, furnishing, automotive, clothing, and others. Among these, the footwear industry holds the leading position in the global synthetic leather market due to increasing demand for footwear from major economies. 

Global Synthetic Leather Market Share by End-User Industry, 2020 (%)

The Footwear Industry Emerge as a Fastest-Growing Industry in the Global Synthetic leather Market

The footwear industry is the largest end-user of synthetic leather. The emerging footwear industry in major regions is the key factor the demand for synthetic leather is increased. For an instance, according to the Indian Brand Equity Foundation, India is the second-largest consumer of footwear in the world, and its leather products and footwear market is estimated to be about $12 billion in upcoming years. The growing demand for footwear in the fashion or sports sectors significantly rising the production of synthetic leather every year. Rising disposable income levels and rapid economic growth, especially in emerging nations, have fueled the demand for footwear, thereby accelerating the segment growth. In addition, the increased demand for different types of shoes according to the climate condition, and athletic shoes in sports sectors are also driving the segment growth. The shoes made by synthetic leathers are cost-effective than those are made with real animal leathers, due to this reason, low-income countries are highly inclined towards shoes made from synthetic leather. Moreover, the use of synthetic leather due to its numerous properties and high durability, in the footwear industry is high, this factor drives the market growth.

Regional Outlook 

Geographically, the global Synthetic Leather market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). Among these, the North American region is expected to show lucrative growth in the global synthetic leather market during the forecast period. The US contributes a leading market share of the regional market and is expected to register a higher CAGR during the forecast period. The high disposable income, changing standard of leaving, stringent government regulations regarding animal abuse, and growing demand for footwear are the major factors driving the growth of the market in the country. Europe is expected to be the second-largest region in the synthetic leather market owing to the presence of major fashion brands. Germany and Italy are the two major economies in the region projected to show promising demand for synthetic leather during the forecast period.

Global Synthetic Leather Market Growth, By Region 2021-2027

Asia-Pacific is projected to be the Largest Revenue Generator in the Global Synthetic Leather Market

Geographically, Asia-Pacific dominated the market in 2020, and it is projected to be the largest revenue generator in the market during the forecast period. China, India, and South Korea are expected to be the major revenue-generating economies in Asia-Pacific. With the high demand for leather products along with the high population base in these economies, the scope of development of most fashion industries is high in this region. Moreover, the regional market growth is attributed to the rapid industrialization rate and growing per-capita income in these countries. The growing automotive industry in the region is also the factor in the production of synthetic leather for automotive accessories is also growing. Whereas the investment in R&D of bio-based synthetic leather by manufacturers is expected to create lucrative opportunities in the market.

Market Players Outlook

The key players in the synthetic leather market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market Kuraray Co. Ltd., San Fang Chemical Industry Co. Ltd., Teijin Aramid B.V, Mayur Uniquoters Ltd., NAN YA Plastics corp, Filwel Co. Ltd., Zhejiang Hexin Science and Technology Co., Ltd., ALFATEX ITALIA SRL H.R., Zhejiang Hexin Science And Technology Co., Ltd, among others. These market players are adopting several market strategies including product launch and approvals, merger and acquisition, partnership collaboration, business, and capacity expansion, and others. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Synthetic Leather market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.