Synthetic Leather Market

Synthetic Leather Market: Footwear Segment by Application Projected to Hold a Substantial Market Share over the Forecast Period: Global Industry Analysis (2012 - 2016) and Opportunity Assessment (2017 - 2027)

  • 2017-09-08
  • REP-GB-4886
  • 263 pages
  • PDF PPT EXCEL
Synthetic Leather Market

An Incisive, In-depth Analysis on the Synthetic Leather Market

This study offers a comprehensive, 360 degree analysis on the Synthetic Leather market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Synthetic Leather market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Consumer Preference for Luxury Goods Coupled with Growing Vehicle Parc and Vehicle Production to Drive Revenue Growth of the Synthetic Leather Market

Synthetic leather offers a luxurious look to a vehicle and thus, is a significant material for auto accessories in automobiles. Hence, the growth of the automotive sector is expected to create healthy growth opportunities for the synthetic leather market. Increase in the sales of luxury goods and growth in vehicle parc and vehicle production drive the growth of the synthetic leather market. Primarily, PVC PU and Bio Based are the two types of materials used in the making of synthetic leather.

The global consumption of synthetic leather was pegged at 42,575 Thousand Tons in 2016. The global synthetic leather market was valued at US$ 36,132.9 Mn by 2016 end and is expected to reach US$ 56,334.3 Mn by the end of 2027, expanding at a CAGR of 4.2% over the forecast period. The global synthetic leather market is anticipated to represent an incremental opportunity of US$ 18,910.4 Mn between 2017 and 2027.

Growth in Demand for Luxurious Goods to Drive the Synthetic Leather Market

Bags and Wallets will keep driving the luxury goods sector specially the women bags in personal luxury goods sector, with regard to both accessible and high-end luxury. With an increase in personal consumption, tax easing policies of the present U.S. government will leave consumers with higher disposable income, which in turn will drive the synthetic leather market. Along with this, synthetic leather market exports will see a significant jump and the consumption of bags, footwear and electronics in North America, particularly in the U.S. will drive the synthetic leather market.

Changing Consumer Preference from Natural Leather to Synthetic Leather Products

The Latin America synthetic leather market is mainly driven by three main factors, the ascent of the white collar class combined with the extending of a buyer culture, he making of convenient miniaturized scale innovations, the ascent of these patterns has made new natural markets for calfskin items, including lampshades, stockpiling boxes, lounge chairs, note pad packs, iPod cases, sunglass cases, picture outlines and wireless covers, to name a few. These are the factors that will propel the synthetic leather market as the above mentioned factors will lead to higher disposable income, which will be spent on the growth of the country’s economy. High innovations will lead to increase in productivity and quality and will increase the demand from customers. The Latin American Synthetic Leather industry is not significant in terms of volume as well as value. But, nowadays there is a rising demand for the quality product by the Applications to be utilized in the manufacturing of various consumer Luxury goods and also in the interior refurbishing sector. One of the key trends identified in the Latin America Synthetic Leather market include the demand for the PU synthetic Leather Products which is more advance and better quality synthetic leather the PVC.

Rising Disposable Income Driving the Use of Synthetic Leather in Footwear and Clothing

Growing population and general increase in disposable income have led to an increase in the demand for leather and luxury products, which is constantly driving the supply of synthetic leather as a raw material. It is expected that the supply of raw material for synthetic leather will continue to grow in step with the rising disposable income and population. With growth in spending in the U.S. and Europe being slowed by recession, Asia Pacific will face a decrease in exports and hence, will have to look within the region, rather than outside. With an increase in personal consumption and slowdown of inflation in the Asia Pacific region, it is expected that disposable income will rise and drive the footwear and clothing industries, packaging industry as well as use of synthetic leather covers for electronic gadgets, which in turn will drive the synthetic leather market.

Increasing Demand for PU Synthetic Leather Products

The Latin American Synthetic Leather market is not significant in terms of volume as well as value. But, nowadays there is a rising demand for the quality product by the applications to be utilized in the manufacturing of various consumer Luxury goods and also in the interior refurbishing sector. One of the key trends identified in the Latin America Synthetic Leather market include PU synthetic Leather market demand which is more advance and better quality synthetic leather the PVC.

Growing E-commerce Industry to Boost the Synthetic Leather Market

The Footwear ecommerce market in Eastern Europe is on an upward trend. Online shopping in footwear will drive the synthetic leather market. The formal footwear synthetic leather market segment is performing well, owing to the growing middle class, increase in women participation at work and increase in shopping centers, which will consequently drive the market for synthetic leather. Footwear makers in Eastern European nations are witnessing a decline in the domestic retail market and instead, are profiting from exporting their products. This shift in demand experienced by the footwear business is expected to continue in the future as well hence driving synthetic leather market

Other driving factors are Rebranding of cars by automobile manufacturer with affordable synthetic leather interior, Use of affordable synthetic leather in place of expensive natural leather, Substantial Growth in the Luxury items and interior refurbishment products will boost the market of synthetic leather, The demand for Low maintenance with longer life synthetic leather market. Few synthetic leather market restraints Political Disturbance and low FDI can restrain the synthetic leather market, High Tax and Import Duties and obligation on chemical products can affect the growth, Slow Rate of growth In automobile Industry may impact synthetic leather market growth.

Synthetic Leather Market Value & Volume Forecast

The overall synthetic leather market is estimated to be valued at US$ 37,423 Mn by 2017 end and is expected to reach US$ 56,334.3 Mn by 2027, projecting a CAGR of 4.2% over the forecast period.

The global synthetic leather market is estimated to account for a volume share of 44,067 (‘000 Tons) by end of 2017 and is expected to grow to 65,406 (‘000 Tons) by 2027, projecting a CAGR of 4.0% over the forecast period of 2017 to 2027. The market has been segmented on the basis of material type and application.

On the basis of material type, the global synthetic leather market has been segmented into PVC, PU and Bio Based. The PVC segment accounted for a 39.4% volume share in 2016. The PU synthetic leather market segment is pegged to grow at a faster rate, due to the ban on PVC in many countries and the superior quality of PU as compared to PVC. Bio-Based synthetic leather is still new in the market and yet in the development phase. The PVC synthetic leather market segment is projected to create total incremental opportunity of US$ 4,651.3 Mn between 2017 and 2027. The segment is expected to account for  28.3%  share in the Global Synthetic leather market by 2027.

On the basis of application, the global synthetic leather market has been segmented into footwear, furnishing, automotive, clothing, bags and wallets, sports, electronics and others. The footwear segment accounted for over a 26.8% value share in 2017. High growth of the synthetic leather market segment can be mainly attributed to the change in consumer preference. Automotive is expected to be one of the attractive synthetic leather market in the forecast period. Automotive segment is estimated to account for 19.4% revenue share in the Global Synthetic Leather Market by 2017 end.

Furnishing is estimated to account for 19.1% revenue share in the Global Synthetic Leather Market by 2017 end, which is expected to dip slightly to 18.8% by 2027 end

synthetic leather market

APEJ Expected to Remain the Dominant Region in the Global Synthetic Leather Market over the Forecast Period

On the basis of geography, the global synthetic leather market has been segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Middle East & Africa and Japan. The APEJ Synthetic leather market accounted for a value share of 27.2% in 2016 and is projected to retain its dominance in the global synthetic leather market over the forecast period. The North America synthetic leather market is expected to represent a significantly high incremental opportunity between 2017 and 2027, while the Japan synthetic leather market is projected to expand at a significant CAGR in terms of volume over the forecast period. Sales of synthetic leather in Western Europe is expected to represent a total incremental opportunity of US$ 2,156.5 Mn between 2017 and 2027. Non-apparel end uses of needle punched synthetic leather are gaining traction in the usage of luggage, upholstery, automotive seats, panels, footwear and wall coverings.  

Prominent Players Dominating the Global Synthetic Leather Market

Some of the prominent market players in the global synthetic leather market include Kolon Industries Inc., Mayur Uniquoters Ltd, .Gruppo Mastrotto spa, Alfatex, Achilles Corp., Teijin Limited, Nan Ya Plastics Corporation, Asahi Kasei Corporation, Toray Group Kuraray Co., Ltd., Daewon Chemical Co Ltd., Leather Resource Of America Inc., Comfort Int'l Co., Ltd, Sheng Hung Industrial Co. Ltd. and Plastics Elche S.A.

Additional Questions Answered

  • What are the key concerns related to synthetic leather market?

  • How is logistics and supply chain management a critical element (as it requires compliance from source to customer) in synthetic leather market?

  • What are the differences in marketing strategies among the leading players in the synthetic leather market?

  • How are advertisements playing a key role in promoting synthetic leather market?

  • How are companies leveraging social media & digital marketing to drive the synthetic leather market?

  • Which end-user base should be targeted in synthetic leather market?

Synthetic Leather Market – Global Industry Analysis and Opportunity Assessment 2016–2026

This report by Future Market Insights on the global synthetic leather market for the period 2016–2026 presents an outlook of the market across the globe. The primary objective of the report is to offer updates on market opportunities in the global synthetic leather market. Synthetic leather also termed as artificial leather which exists in form of a fabric  made of woven/ non- woven clothes  and polymers with high finishing finish envisioned to use as the alternative to leather in clothing, footwear, bags etc. PU and PVC are polymers are mainly used for the manufacturing of synthetic leather .  PVC synthetic leather is comparatively cheaper where PU is better in quality.

Chemicals are used at the different stages in the production of leather. Operational stages in synthetic leather production include preparatory, tanning, crushing and surface coatings. Tanning & dyeing chemicals hold the largest share of the global synthetic chemical market and this trend is anticipated to continue during the forecast period. The global synthetic leather industry is gradually transitioning toward lightweight leather products for the automotive industry. Attributing to the growing demand for lightweight vehicles, the leather industry is also trying to capture this trend in the synthetic leather market.

Growing demand for premium quality leather from various end-use industries is expected to drive the synthetic leather market. Premium quality leather is widely used in furniture, footwear, bags, hats, jackets, belts, wallets and other decorative products. Changing lifestyle and rising disposable income in developing countries such as China and India are driving the demand for synthetic leather. Brazil and Mexico are also contributing significantly to the demand for high-quality leather. Furthermore, the growing automotive industry is indirectly fueling the synthetic leather market. The demand for leather in automotive interiors, upholstery and seat covers is driving the leather industry, which in turn is expected to fuel the synthetic leather market.

However, stringent environmental regulations regarding the use and transport of synthetic leather are expected to inhibit the market growth for synthetic leather. For instance, chromium, a heavy metal used in the tanning process of leather is a potent carcinogen. Chromium is banned in Europe by Registration, Evaluation, Authorization and Restriction of Chemical substances (REACH).

To understand and offer insights on the global synthetic leather market, the report has been categorically split into three sections: market analysis material type, application and region. The report analyses the global synthetic leather market in terms of market value (US$ Mn) and volume (Tons).

The report starts with an overview of the global synthetic leather market. This section also includes FMI’s analysis of key trends, drivers and restraints from the supply and demand perspectives. Impact analysis of key growth drivers and restraints based on the weighted average model are included in the report to better equip and arm clients with crystal-clear, decision-making insights.  

To understand consumption patterns and assess opportunities in the synthetic leather market, the report is divided into sections on the basis of material type, application, and region. The report analyzes the synthetic leather market in terms of market value (US$ Mn). The report covers the global synthetic leather market performance in terms of value contribution. The synthetic leather market report also includes FMI’s analysis of drivers and restraints witnessed in the market. Key trends observed across the value chain are also included in the report. The report highlights existing opportunities in the synthetic leather market to equip the client with crystal-clear, decision-making insights.

To understand and assess opportunities in the global synthetic leather market, the report has been divided into three sections based on market segmentation as:

Region

Material Type

Application

North America

PVC

Footwear

Latin America

PU

Furnishing

Eastern Europe

Bio Based

Automotive

Western Europe

 

Seat

Japan

 

Door

APEJ

 

Dash

MEA

 

Steering Cover

 

 

Others

 

 

Clothing

 

 

Bags

 

 

Sports

 

 

Electronics

Research Methodology of the Synthetic Leather Market

Market volume is inferred through in-depth secondary research and validated from industry experts through primary interviews. Each interview is thoroughly analysed and average market volume is deduced and reconfirmed and incorporated in the report. The prices of synthetic leather are deduced through material type, where the average price of each material is inferred across all the seven regions. The market value of the synthetic leather market is thus calculated from the data provided by the average selling price and market volume.

For the ten-year forecast of the market, various macroeconomic factors and changing trends have been observed, which give an idea about the future of the market. Other important factors considered to arrive at market forecast are the size of the current market, inputs from the supply side and demand side and other dynamics shaping the scenario of the market.

During the compilation of the report, the forecast has been conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated presenting the client with crystal clear insights and future opportunities as far as the synthetic leather market is concerned.

Other important parameters such as market attractiveness index and impact analysis of the drivers and restraints for each region are included in this report providing insights about the dynamics, growth, performance and untapped opportunities in the synthetic leather market. In-depth profiling of major synthetic leather manufacturers is included in the final section of the report detailing the strengths, weaknesses and competitive strategies of each manufacturers.

The list of key market participants included in the “Synthetic leather Market: Global Industry Analysis 2012–2016 and Opportunity Assessment, 2017–2026” report are as follows:

  • Kolon Industries Inc.

  • Mayur Uniquoters Ltd.

  • Gruppo Mastrotto spa

  • Alfatex.

  • Achilles Corp.

  • Teijin Limited

  • Nan Ya Plastics Corporation

  • Asahi Kasei Corporation

  • Toray Group Kuraray Co., Ltd.

  • Daewon Chemical Co Ltd.

  • Leather Resource of America Inc.

  • Comfort Int'l Co., Ltd

  • Sheng Hung Industrial Co. Ltd.

  • Plastics Elche S.A

The global synthetic leather market is moderately fragmented with major players having presence across the value chain. The market is on the verge of consolidation with increased frequency of mergers and acquisitions.

Synthetic Leather Market Reports - Table of Contents

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