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The global synthetic leather market size is expected to reach USD 45.41 billion by 2025, according to a new study by Grand View Research, Inc. The market is projected to expand at a strong CAGR of 7.4% during the forecast years. Increasing product application scope in footwear has been a major factor driving the market growth. In addition, growing importance and awareness about animal rights set by several organizations and stringent laws regarding the usage of real leather are propelling the demand for synthetic leather.
Synthetic leather materials offer superior properties, such as high gloss finish, durability, strength, and UV resistance and easy maintenance. Moreover, products made from faux leather are cheaper and thus, continue to attract consumers, especially from middle and high income level groups. However, in countries, such as Japan, the product is facing competition from Fumikodata, which is a replica of real leather and is a cruelty-free material. Polyurethane (PU) was the largest product category in 2017 and is expected to register the fastest CAGR over the forecast period.
PVC is anticipated to witness sluggish growth on account of its properties, such as sticky finish and lesser durability. Footwear application segment is expected to observe a cosiderable growth over the upcoming years. Cheaper costs, fluctuating climatic conditions in several regions creates needs for different types of footwear. Rising disposable income levels in emerging regions are also fueling the demand for synthetic leather in footwear segment. Moreover, trend of incorporating athletic shoes in daily lifestyle is further augmenting the product demand.
Further Key findings from the study suggest:
- The global synthetic leather market is expected to witness significant growth over the forecast period owing to rising product demand in footwear and automotive applications
- PU leather emerged as the largest product segment in 2017 and is estimated to generate revenue over USD 28.03 billion by 2025
- Asia Pacific is projected to witness the fastest growth over the estimated period owing to rapid economic growth across countries, such as India, China, Japan and Korea
- Rapid development of construction and automotive manufacturing industries in APAC is also fueling the product demand in the regional market
- Countries, such as South Korea, Taiwan, China, and India, are emerging as leading producers in the global market as a result of available of relatively cheaper raw materials
- Key companies in the global market include Nan Ya Plastics Corporation, Mayur Uniquoters Limited, Alfatex Italia SRL, and Kuraray Co. Ltd.