Synthetic Leather Market Size, Share, Growth Analysis, By Type (PU-based Synthetic Leather, Microfiber Leather), By End-use Industry, By Region - Industry Forecast 2024-2031

Global Synthetic Leather Market size was valued at USD 61.7 billion in 2022 and is poised to grow from USD 65.16 billion in 2023 to USD 100.75 billion by 2031, growing at a CAGR of 5.6% during the forecast period (2024-2031).

The global footwear industry's rising demand is driving significant market growth, particularly for synthetic leather alternatives, largely due to the high cost of natural leather. PVC leather, known for its versatility, is gaining traction across various applications, including bags, clothing, and furniture, where a leather-like finish is needed. In the U.S., consumption of synthetic leather has surged, especially in automotive upholstery, hinting at favorable market conditions. However, the recent COVID-19 pandemic has negatively impacted demand and trade due to various preventive measures. Despite this setback, emerging regional markets in regions like China, India, Brazil, and Southeast Asia are expected to create new growth opportunities, especially within the footwear sector, over the forecast period.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Synthetic Leather market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Synthetic Leather Market Segmental Analysis

In 2021, Asia Pacific had the greatest market share, and it is anticipated that it would continue to dominate during the projected period. The top three countries that export faux leather are China, India, and South Korea. The development of the synthetic leather market in this region is being fueled by advances in technology, welcoming government investment policies, rising disposable income, and population growth. However, there has been a paradigm shift in attention toward Indian markets as a result of the recent border disputes between China and India and the growing trade disagreement between the US and China. The Indian government has deliberately taken advantage of this chance to encourage self-reliance and has provided incentives to many sectors, particularly Small and Mid-size Enterprises (SMEs) to encourage the production and export of footwear and faux leather.

Driver of the Global Synthetic Leather Market

The global synthetic leather market is poised for significant growth due to the rising demand for shoes, automotive interiors, furniture, and apparel in the coming years. This growth is further fueled by the increasing vegan population, which drives the need for non-animal-based materials. While polyvinyl chloride and polyurethane are commonly used raw materials, health concerns surrounding polyvinyl chloride's potential toxicity, including risks of cancer and immune disruption, remain an issue. Despite being more affordable and environmentally sustainable compared to natural leather-which often involves harmful tanning processes-synthetic leather also boasts durability, UV resistance, and a variety of finishes, making it an attractive alternative.

Restraints in the Global Synthetic Leather Market

The global synthetic leather market faces significant challenges primarily due to the environmental and health risks associated with key materials such as polyvinyl chloride (PVC) and polyurethane (PU). Both substances pose serious concerns; for instance, polyurethane isocyanate can irritate the lungs, triggering asthma attacks, while prolonged exposure to its fumes can lead to nausea and dizziness for workers in manufacturing facilities. Similarly, PVC is associated with toxic carcinogens like dioxin and phthalates, which are released during its production and incineration, leading to severe environmental contamination. Consequently, the detrimental impacts of these materials are likely to restrict the growth and acceptance of the synthetic leather market.

Market Trends of the Global Synthetic Leather Market

The global synthetic leather market is witnessing a significant shift, particularly within the footwear industry, where it is increasingly supplanting traditional leather. This trend is driven by the affordability and versatility of synthetic leather, which is utilized in various components of footwear, including uppers, linings, and insoles. As consumer preferences lean towards sustainable and cost-effective alternatives, faux leather shoes present an attractive option, being approximately three times cheaper than their animal hide counterparts. Additionally, the rise in eco-conscious buying behaviors further bolsters this market trend, positioning synthetic leather as a favored choice among manufacturers and consumers alike.