Synthetic Leather Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for synthetic leather is growing rapidly, with a current value of $ 72 billion in 2024, expected to reach $ 121.4 billion by 2032. The compound annual growth rate (CAGR) of the market is 6.8 %. It is mainly the growing demand for sustainable and animal-friendly leather substitutes that are causing this increase, as well as the technological progress in the field of production. The quality and tenacity of the material is being improved through innovations in polymer chemistry and production processes, which makes it a good option for various industries, such as the fashion, automotive and furniture industries. Also, the leading manufacturers in the market, such as BASF, DuPont and Toray Industries, are constantly investing in research and development in order to create high-performance materials that meet the increasing requirements for aesthetics and sustainability. Strategic initiatives, such as collaborations and alliances, are also increasing as companies seek to increase their product offerings and market penetration. These include, for example, collaborations between fashion brands and suppliers of artificial leather, which demonstrates the growing trend towards eco-friendly materials and thus strengthens the market in the coming years.

Regional Market Size

Regional Deep Dive

Synthetic leather is experiencing significant growth in various regions, driven by increasing consumer demand for sustainable and animal-friendly alternatives to leather. The market is influenced by technological developments, changing consumer preferences, and regulations to reduce the environment's impact. Each region is unique, with varying degrees of innovation and adoption of synthetic leather production, and influenced by local economic conditions and attitudes towards sustainable development.

Europe

• Europe is at the forefront of innovation in synthetic leather, with companies like BASF and Covestro developing bio-based alternatives that reduce reliance on fossil fuels, aligning with the EU's Green Deal objectives.
• The European market is also influenced by stringent regulations on animal welfare and environmental sustainability, prompting brands to adopt synthetic leather to meet consumer and regulatory expectations.

Asia Pacific

• The Asia-Pacific region is witnessing rapid growth in the synthetic leather market, driven by the booming fashion and automotive industries, with major players like Toray Industries and Asahi Kasei leading the charge in production.
• Government initiatives in countries like China and India to promote sustainable manufacturing practices are encouraging the adoption of synthetic leather, which is expected to enhance market growth in the coming years.

Latin America

• Latin America is seeing a rise in synthetic leather production, particularly in Brazil and Argentina, where local manufacturers are focusing on sustainable practices to meet both domestic and international demand.
• The region's unique biodiversity is prompting innovations in bio-based synthetic leather, with companies exploring the use of natural fibers and materials to create eco-friendly alternatives.

North America

• The rise of eco-conscious consumerism has led to increased demand for synthetic leather products, with companies like Stella McCartney and Adidas investing in sustainable materials to appeal to environmentally aware customers.
• Regulatory changes, such as California's ban on the sale of fur products, are pushing manufacturers to explore synthetic alternatives, thereby expanding the market for synthetic leather in the region.

Middle East And Africa

• In the MEA region, the synthetic leather market is gaining traction due to the increasing demand for luxury goods and fashion, with local brands exploring synthetic options to cater to a growing affluent consumer base.
• Cultural shifts towards sustainability and ethical consumption are influencing market dynamics, with initiatives like the UAE's Vision 2021 promoting sustainable practices across various industries, including textiles.

Did You Know?

“Synthetic leather can be produced using a variety of materials, including polyurethane (PU) and polyvinyl chloride (PVC), with some innovative companies even utilizing recycled plastics to create sustainable options.” — Market research reports and industry publications

Segmental Market Size

The synthetic leather industry is a significant part of the synthetic leather industry, which is currently experiencing a steady growth, driven by the rising demand for sustainable and animal-friendly leather alternatives. A growing awareness of animal and environmental issues, coupled with a governmental push towards the use of eco-friendly materials, are the key drivers behind this trend. Companies such as Stella McCartney and Adidas are a few of the leading names that have made synthetic leather a key component of their products. In the current market, synthetic leather has reached a stage of maturity, and is used across a number of industries, including fashion, automobile and furniture. A few notable examples include the use of synthetic leather in the interior of the Tesla automobile and the use of synthetic leather in the shoes of Nike. Besides, the market is benefiting from macro-economic factors such as the growing trend towards sustainability and government initiatives towards reducing carbon footprints. The evolution of synthetic leather is shaped by newer technologies, such as the use of bio-based materials and the emergence of advanced manufacturing processes. These are expected to lead to the development of durable and high-quality leather alternatives, which can meet the expectations of the end-consumer.

Future Outlook

The synthetic leather market is expected to show a high growth from 2024 to 2032, with a CAGR of 6.72% from 2024 to 2032. The main reasons for this growth are the increasing demand for sustainable and cruelty-free alternatives to traditional leather and the development of new manufacturing technology, which has improved the quality and endurance of synthetic materials. In addition, as the concern for the environment continues to increase, the penetration of the market will continue to grow, and by 2032, the share of synthetic leather in the world leather market will reach over 30%. Technological drivers such as the development of bio-based synthetic leather and the development of new methods of processing and reusing old synthetic leather are expected to further drive the market. Also, the implementation of the Green Credit Policy and the Green Tax Policy will also drive the development of the market. Emerging trends such as the combination of smart textiles and the development of a bespoke service will also play an important role in forming consumers' preferences and expanding the market. In short, the synthetic leather market will be driven by the combination of sustainable development, new technology, and changing consumer behavior.