Market Overview
The global synthetic leather market was valued at USD 40.6 Billion in 2024 and is projected to reach USD 55.7 Billion by 2033, growing at a CAGR of 3.6% during the forecast period of 2025-2033. The market growth is driven by increasing demand for environmentally sustainable and cost-effective alternatives to natural leather, especially in automotive, fashion, footwear, and furniture industries. Asia-Pacific dominates the market with a significant share supported by technological advances and consumer preference for sustainable products.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Synthetic Leather Market Key Takeaways
- The global synthetic leather market size was USD 40.6 Billion in 2024.
- The market is expected to grow at a CAGR of 3.6% between 2025 and 2033.
- Market forecast value is USD 55.7 Billion by 2033.
- Asia-Pacific holds the leading market share of over 44.6% in 2024, driven by advancements in manufacturing technologies and increasing demand for sustainable products.
- Polyurethane (PU) based synthetic leather represented the largest segment in 2024, holding around 63.6% of the market.
- Shoes lead the application segment, stimulated by environmental concerns and technological advancements enhancing product quality.
- Footwear leads the end use industry segment with a 32.9% market share in 2024.
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Market Growth Factors
The growth of the global synthetic leather market can be attributed to the rising demand for economic and environmentally-friendly leather alternatives from the automotive, fashion, footwear and furniture industries. The increasing inclination of vegans and environment-conscious people towards cruelty-free and eco-friendly synthetic leather products is also expected to fuel market growth. Increasing automobile production, especially in developing countries such as India with 2,328,329 passenger cars produced in January 2024, drives demand for synthetic leather car interiors. They are the cheapest and easiest to clean and maintain. Increased environmental regulations and animal welfare concerns create demand for sustainable bio-based and recycled synthetic leather.
Improvements in technology have enabled synthetic leather to increasingly rival leather in performance, feel, and appearance. Digital printing, 3D modeling, and computer-helped design (CAD) allow customized, high-performance materials to be incorporated into synthetic leather construction. For example, BASF Southeast Asia has contributed to the ZDHC Foundation. Their Haptex 2.0 special adhesives feature high peel strength, anti-yellowing, and abrasion resistance. These adhesives are free from organic solvents, and meet stringent criteria for volatile organic compound emissions. This expands the product's application to the furniture, footwear, automotive, and apparel industries as well.
Synthetic leather is used in clothing, footwear, and automotive industries due to its low-cost and versatility. The increased production capability in the textile industry can be attributed to China, the largest producer and exporter of textiles in the world, experiencing an increase in population. In the automotive industry, synthetic leather is used for upholstered surfaces including seat covers, dashboards, door panels, and other interior surfaces. Malaysia-based Pecca Group Bhd, for instance, expanded its automotive upholstery business by acquiring a synthetic leather manufacturer in Indonesia to tap on the country's growing automotive market.
Market Segmentation
By Type:
- Bio-Based: Includes bio-based synthetic leather products promoted due to sustainability and environmental regulations.
- Polyvinylchloride (PVC) Based: Used widely but not the largest segment.
- Polyurethane (PU) Based: The largest segment in 2024, holding approximately 63.6% market share, driven by superior flexibility and quality. BASF's Haptex 2.0 innovations cater to various industries with enhanced performance and VOC compliance.
By Application:
- Clothing: Adoption supported by eco-friendly trend.
- Bags: Wide usage in accessories.
- Shoes: Leading application segment in 2024, bolstered by rising eco-conscious consumer preference and technological enhancements.
- Purses and Wallets: Segment presence noted.
- Accessories: Various fashion accessories use synthetic leather.
- Car Interiors: Significant demand for automotive seating and trims.
- Belts: Used in fashion and utility.
- Sports Goods: Specialty applications leveraging durability.
- Others: Other miscellaneous uses.
By End Use Industry:
- Footwear: Leading end use with around 32.9% market share in 2024, benefiting from design flexibility and e-commerce expansion.
- Furniture: Durable and cost-effective upholstery applications.
- Automotive: Use in interiors for lightweight and maintenance advantages.
- Textile: Growing incorporation in fabrics.
- Sports: Sport-related accessories and goods.
- Electronics: Applications in electronic device accessories.
- Others: Additional sectors.
Regional Insights
Asia-Pacific is the dominant region in the synthetic leather market, commanding over 44.6% market share in 2024. The region benefits from increasing population, rising disposable incomes, and rapid urbanization fueling demand in automotive, fashion, and furniture sectors. Technological progress supports the production of premium, high-quality synthetic leather. For example, India's textile industry contributes 12% to the country's export earnings at USD 14 Billion and is forecasted to grow 7.6% to USD 23.3 Billion by 2027, underscoring region-wide growth drivers.
Recent Developments & News
- In January 2024, BASF Monomers Division and Xuchuan Chemical announced strategic cooperation on bio-mass balanced (BMB) Methylene Diphenyl Di-isocyanate (MDI) for synthetic leather applications, aiming to reduce carbon emissions in polyurethane production.
- In November 2024, UNCAGED Innovations, a startup, introduced ELEVATE, a luxury leather alternative made from plant-based materials, expanding cruelty-free and sustainable product offerings in the United States.
Key Players
- Asahi Kasei Corporation
- DuPont Tate & Lyle Bio Products Company LLC
- FILWEL Co. Ltd. (Air Water Inc.)
- H.R. Polycoats Pvt. Ltd.
- Kuraray Co. Ltd.
- Mayur Uniquoters Limited
- Nan Ya Plastics Corporation
- San Fang Chemical Industry Co. Ltd.
- Teijin Limited
- Zhejiang Hexin Holdings Co. Ltd.
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