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 mimics the appearance and feel of real leather. It is made from polyesters, polyamides and polypropylene and offers advantages like durability, flexibility and easy maintenance over real leather. It is seeing increasing use in apparel, footwear, furnishings and automotive interiors. The automotive industry accounts for over 30% of demand for microfiber synthetic leather due to superior performance, aesthetics and reasonable pricing.
Market Dynamics:
The rising demand for microfiber synthetic leather from the automotive industry is expected to be a major driver of market growth over the forecast period. Microfiber synthetic leather is emerging as a viable and cost-effective substitute for real leather in car interiors and exteriors. Strong growth in vehicle production and sales globally is supporting increased uptake.
A second major driver is the growing popularity of vegan and eco-friendly lifestyles. Microfiber synthetic leather offers an animal-free alternative to real leather and has considerably lower environmental impact as it does not involve agriculture, tanning chemicals and wastewater disposal from tanning processes. This is increasing consumer preference for the material which is boosting market demand.
SWOT Analysis
Strength: Microfiber synthetic leather provides a soft and supple feel that closely mimics genuine leather. It is durable, water resistant and easy to clean. It does not require animal hides for production, making it an ethical alternative to real leather. Production processes of microfiber synthetic leather are more environment friendly compared to real leather processing.
Weakness: Microfiber synthetic leather lacks the premium and luxurious appeal of genuine leather. It cannot match the authentic leather texture and feels synthetic. The microfiber material also has a shorter lifespan compared to real leather.
Opportunity: Increasing consumer awareness about animal welfare and demand for vegan and eco-friendly products present an opportunity for growth of microfiber synthetic leather. Favorable government regulations banning animal testing for leather goods will further boost market opportunities. Emerging markets in Asia Pacific offer huge untapped growth potential.
Threats: Stiffer competition from other synthetic materials that provide differentiation such as performance, feel or look. Imitation leather produced from polyurethane and polyvinyl chloride pose major threats. Volatile raw material prices can squeeze profit margins for manufacturers.
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 vegan and environmentally conscious trends among consumers. The market size for 2023 is estimated at US$ 25.38 Billion.
Regional analysis: Asia Pacific dominates the global market and is expected to continue its lead, growing at the fastest rate. Countries like China, India and South Korea are major exporters of microfiber synthetic leather. Rising disposable incomes, rapid urbanization and boost in manufacturing sector drive the market in Asia Pacific.
Key players: 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 investing in expanding production capacities and new product developments to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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