Market Trends

Synthetic Leather Market Poised for Remarkable Growth Fueled by Customization Trends

In the bustling metropolis of New York, on March 6, 2024, a comprehensive analysis has unveiled an encouraging projection for the synthetic leather market, forecasting an incremental spurt of USD 23.52 billion from 2022 to 2027. This equates to a robust CAGR of 9.44% over the forecasted horizon. The competitive landscape of the market displays a fragmented structure, comprising a mix of international and regional vendors who contribute to the industry's vitality.

Customization emerges as a key trend that powers the market forward. Today's synthetic leather is no ordinary material—it is a canvas for personal expression. Each aspect, from design, color, and sheen to texture, is malleable, subjected to the client's tastes and the latest fashion whims. This surge in the demand for bespoke synthetic materials has seen a substantial climb across various application sectors. Moreover, end-users wield the option to refine their selections further with traditional techniques like gliding and embossing, now complemented by modern digital technologies, such as laser printing and cutting, thus fostering the market's expansion.

Technavio has announced its latest market research report titled Global Synthetic Leather Market 2023-2027.

Technavio's latest market analysis report offers an up-to-the-minute synopsis of the current market landscape, infused with insights into prevailing trends and principal market dynamics. Interested parties can access a sample of the report here.

Detailed Insights into the Market Scenario

The report's coverage spans over 173 pages, based on data accumulated in 2022, and studies the market's history from 2017 to 2021 to project a period from 2023 to 2027. Technavio's market research document also identifies the growth momentum and CAGR, which is expected to accelerate further. The 2023 market growth prediction sees a surge of USD 23.52 billion, revealing considerable market opportunities.

A noteworthy year-over-year growth of 7.73% indicates a sustainable upward trajectory for the industry. The report elucidates an extensive regional analysis covering Asia-Pacific (APAC), North America, Europe, South America, and the Middle East and Africa, with APAC making a commanding 54% contribution to the market.

Leading countries at the forefront of the synthetic leather market include the United States, China, Japan, France, and Italy. These nations have become hubs of innovation and growth in the synthetic leather sphere.

Spotlight on Key Market Participants

The market is fragmented, offering plenty of room for competition and innovation. To maintain a competitive edge, companies are encouraged to distinguish their offerings with unique value propositions. It is imperative for market vendors to maximize growth prospects within fast-growing segments, while maintaining a presence in the slower ones.

Some of the major players in the market include:

• Air Water Inc., delivering synthetic leather solutions via its subsidiary FILWEL.
• Alfatex Italia Srl, presenting synthetic leather applications to sectors such as marine, automotive, and medical.
• Asahi Kasei Corp., providing premium synthetic leather products like DURANOL.

An increasing preference for synthetic leather over animal hide is driving market momentum. Typically, leather represents a luxury material for products like shoes, clothing, and handbags. Yet, a considerable portion of sales in the apparel, accessory, and footwear industries is now captured by synthetic leather or fabric alternatives. These items are competitively priced and available in a plethora of colors, designs, and textures, attracting a broad consumer base.

Challenges and Market Dynamics

The market's growth trajectory does face headwinds, such as the ebbing and flowing prices of raw materials which could pose significant challenges. For more granular details and insights on market dynamics, readers can download sample reports which delve into these aspects further.

Market Segmentation Analysis

Deep diving into the market segmentation reveals the following:

• Product: The category is broken down into PU-based, PVC-based, and Bio-based synthetic leather products. The PU-based segment is particularly influential, praised for its light weight, variety of colors and textures. It is widely used in clothing, footwear, and automotive industries. The leather-like quality of PU-based synthetic leather is steering consumers away from traditional animal-hide leather.
• End-user: Segments involving footwear, furnishing, automotive, bags, and others are encompassed within the end-user market analysis. Each sector echoes the growing acceptance and integration of synthetic leather into mainstream production.
• Geography: Geographical segmentation highlights APAC, North America, Europe, South America, and the Middle East and Africa. Each region's market potential forms a piece of the global synthetic leather puzzle.

Overall, the PU-based segment is poised to significantly bolster market growth during the forecast period, attributed to its varied applications and growing popularity amongst consumers who are transitioning from traditional leather products.

Analyst Perspective on the Synthetic Leather Innovations

The stride synthetic leather has made into modern materials is worth noting. Its wider applications span from the footwear industry, which opts for its durability and aesthetic charm, to the automotive sector that adopts synthetic leather for sophisticated upholstery, steering covers, and interior embellishments. Materials like isocyanate and vinyl chloride monomer are vital for tailoring performance and achieving a certain look.

Yet, the environmental footprint cannot be ignored. The use of phthalates, dioxin, and other petrochemicals in the production of synthetic leather calls into question the sustainability of the industry. These procedures have been criticized for their potential ecological damage, non-biodegradability, and concerns about the spread of micro-plastics.

In response to environmental concerns, the market is seeing a spike in demand for bio-based synthetic leather, which uses more eco-friendly materials such as flax, cotton, and pineapple leaves. This pivot is aimed at lessening negative environmental impacts, reducing the release of volatile organic compounds, and shrinking the ecological footprint.

With consumers inclining toward ethical and sustainable consumption, the synthetic leather market is set for a significant evolution. Innovations in manufacturing and material science are promising to bring forth solutions that balance environmental concerns with the need for quality and performance. The incorporation of bio-based and recyclable materials is pivotal in steering the industry toward sustainability, ensuring synthetic leather remains a relevant and respected material choice.

Exploring the Market's Future Landscape

The synthetic leather market thrives on its variety of applications across a range of industries. Key materials such as polyurethane (PU) and polyvinyl chloride (PVC) are the linchpins of the market, used extensively in the manufacturing processes for products in industries such as footwear, furnishing, automotive, clothing, and more. As components like isocyanate and vinyl chloride monomer feature prominently in the creation of these materials, they underscore both the functional and aesthetic needs of consumers. Synthetic leather's adaptability and the shift towards sustainable alternatives position it as an attractive choice that does not sacrifice style or function. The continuous patronage from the automotive and fashion sectors especially underscores its growing acceptance and versatility.

For further understanding and in-depth analysis click here to download a sample report.

Related Market Research Reports

The global interest in sustainable material options has led to the growth of other related markets. The bio-based leather market, for instance, is anticipated to expand by USD 250.48 million from 2021 to 2026, with a promising CAGR of 6.55%. Meanwhile, the coating agents for synthetic leather market is forecast to grow by USD 207.38 million from 2021 to 2026, at a CAGR of 7.12%. These figures highlight the interlinked aspects of the synthetic leather industry and its related markets, signaling overall growth trends in the materials sector.

Technavio: A Pioneer in Market Research

Technavio stands out as a premier global technology research and advisory company, focusing its efforts on uncovering emerging market trends and providing actionable insights to empower businesses. With a report library that exceeds 17,000 items and spans across 50 countries, they cater to clients ranging from startups to Fortune 500 giants. Their commitment to delivering expansive coverage and in-depth market insights is unwavering, as they continue to help enterprises capitalize on market opportunities and optimize their market footholds.

For detailed information, contact Technavio Research via email or visit their website.

Conclusion

In conclusion, the synthetic leather market is on the brink of an extraordinary growth spurt over the course of the forecast period. The rise of customization, coupled with technological advancements, is expected to be the primary catalyst propelling the market forward. With consumer preferences rapidly evolving towards sustainable and environmentally friendly options, the market is set to reformulate in ways that meet these new demands, ensuring a prosperous future for synthetic leather. As Technavio's report suggests, market participants who are able to innovate and navigate through the changing landscape will likely emerge as leaders in this fast-paced and transformative era for synthetic leather.