by The Microfiber Synthetic Leather Market is estimated to be valued at US$ 25.38 Bn in 2023 and is expected to exhibit a CAGR of 7.5 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Microfiber synthetic leather is a man-made material that resembles real leather. It is made from polymers such as polyester, polyurethane and nylon. It provides advantages over real leather such as lower cost, simple maintenance, variants in textures and designs, flexibility, durability and vegan-friendly properties. The growing footwear and automotive industries drive the demand for microfiber synthetic leather as a substitute for genuine leather.
Market key trends:
The growing demand for sustainable and vegan products is one of the major trends fueling the microfiber synthetic leather market growth. Animal welfare concerns along with environmental considerations are prompting consumers to shift towards faux leather. As microfiber synthetic leather is produced without harming animals and has lower carbon footprint compared to genuine leather, it is increasingly gaining popularity among eco-conscious customers. Its textile-like properties make it a viable substitute for leather in various application industries such as apparel, upholstery and accessories. The market players are investing in research & development to enhance the aesthetics and physical properties of microfiber synthetic leather to further boost its acceptance as an alternative to real leather.
Porter’s Analysis
Threat of new entrants: Microfiber synthetic leather market has moderate threat of new entrants as the market requires large capital investments for setting up the manufacturing facilities and distribution networks. However, the growth opportunities in the market attract new players.
Bargaining power of buyers: The bargaining power of buyers is low to moderate in the microfiber synthetic leather market owing to the presence of numerous suppliers and variety of products offered by suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as suppliers have bargaining power over buyers for raw materials like polyester and PU/PVC. However, buyers can shift to alternative suppliers in case of high bargaining power exercised by any supplier.
Threat of new substitutes: The threat of substitutes is low to moderate as microfiber synthetic leather competes with genuine leather but for some applications it has proven to be a better alternative in terms of appearance, durability, and cost.
Competitive rivalry: The competitive rivalry is high among the established players due to their global presence and continuous product innovations.
SWOT Analysis
Strength: Microfiber synthetic leather offers the appearance and texture of real leather at a much lower price point. It is also more durable, stain resistant and easier to clean than genuine leather.
Weakness: Microfiber synthetic leather lacks the premium feel and appeal of real leather. Some customers prefer genuine leather for its prestige.
Opportunity: Growing demand for lightweight, durable and affordable leather alternatives from the automotive industry presents an opportunity for microfiber synthetic leather manufacturers. Increasing environmental concerns is also driving the demand for animal-friendly synthetic leather.
Threats: Volatility in raw material prices especially polyester can squeeze profit margins for manufacturers. Electric vehicles are gaining traction which may reduce the demand for vehicle interiors where synthetic leather is predominantly used.
Key Takeaways
The global Microfiber Synthetic Leather Market Demand is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing demand from the footwear, automotive and furniture industries.
The Asia Pacific region currently dominates the global market and is expected to maintain its lead over the forecast period. China and India are the major producers as well as top consumers of microfiber synthetic leather in Asia Pacific.
Regional analysis: The Asia Pacific region is expected to remain the largest and fastest growing market for microfiber synthetic leather during the forecast period. China, India, Japan, Indonesia and South Korea account for around 80% share of the global production and demand for microfiber synthetic leather. Rapid industrialization and growing middle-class population demanding quality lifestyle products in countries like India and China are major factors driving the market in Asia Pacific. Europe and North America are also significant markets driven by increasing automotive and footwear production in the regions.
Key players operating in the microfiber synthetic leather market are Toray Industries, Inc., Kuraray Co. Ltd., E-Leather Ltd., Mayur Uniquoters Ltd., Zhejiang Hexin Industry Group Co., Ltd., Yantai Wanhua Synthetic Leather Group Co., Ltd., Clarino (Asahi Kasei Corporation), San Fang Chemical Industry Co. Ltd., Anhui Anli Material Technology Co. Ltd., Nan Ya Plastics Corporation. These players are focusing on expanding their production capacities and geographic reach to strengthen their positions in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
