Vertical: CNMBase Year: 2018
Market Size (2018)
$27.06B
Projected (2025)
$44.23B
CAGR (2017–2025)
7.2%
Key Players
19+
The global artificial leather market is projected to witness healthy growth during the forecast period, 2019–2025. The market was valued at USD 27,059.5 million in 2018 and is projected to register a CAGR of 7.37% to reach USD 44,228.6 million by the end of 2025. In terms of volume, the market was sized at 15,123.5 million square meter in 2018 and is likely to exhibit a CAGR of 6.32% to reach 23,075.3 million square meter by the end of 2025. The increasing demand for artificial leather in the footwear industry is a major factor driving the global market growth. Likewise, the growth of the market is also driven by the increasing application of artificial leather in the automotive industry, due to its elasticity, breathability, and heat resistant properties. It is in the manufacturing of steering wheel covers, door trims, knob covers and gear boot, sun visors, roof lining, and other components of cars, buses, trucks, and bikes. Furthermore, the growing adoption of bio-based materials to manufacture artificial leather is likely to create growth opportunities for market players during the forecast period. However, the environmental effect of PU-based and PVC-based artificial leather is the major factor projected to hamper the global market growth during the forecast period.
According to Wantstats analysis, the global artificial leather market has been segmented based on type, application, and region. Based on type, the global market has been divided into PU-based, PVC-based, and bio-based. The PU-based artificial leather segment accounted for the largest share of 55.27% in 2018 due to its less toxicity than PU-based leather and high consumption in the footwear industry. The segment was valued at USD 15,022.5 million in 2018; it is expected to register a CAGR of 6.85% to reach USD 23,724.6 million by the end of 2025. In terms of volume, the segment was sized at 8,359.0 million square meter in 2018 and is projected to exhibit a CAGR of 5.86% to reach 12,369.1 million square meter by the end of 2025.
By application, the global artificial leather market has been classified into furnishing, automotive, footwear, bags & wallets, clothing, and others. The footwear segment dominated the global artificial leather market with a market share of 38.67% by value in 2018 due to its growing demand across the globe, especially in Asia-Pacific. The segment was valued at USD 10,464.2 million in 2018; it is expected to register a CAGR of 7.60% to reach USD 17,360.4 million by the end of 2025. In terms of volume, the segment was sized at 5,875.7 million square meter in 2018 and is projected to exhibit a CAGR of 6.57% to reach 9,111.3 million square meter by the end of 2025.
The Asia-Pacific market held the largest share of 50.98% in 2018 due to availability of raw materials, cheap labor, rapid industrialization and commercialization in the region, especially with the growth of the automotive industry. The market was valued at USD 13,794.6 million in 2018 and is expected to exhibit a CAGR of 8.01% to reach USD 23,497.5 million by the end of 2025. In terms of volume, the regional market was sized at 7,792.8 million square meter in 2018 and is projected to register a CAGR of 6.94% to reach 12,382.2 million square meter by the end of 2025.
The Artificial Leather Market market is projected to grow at a CAGR of 7.2% from 2017 to 2025.
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View Subscription PlansArtificial leather also known as faux leather, synthetic leather, rexine, leatherette, or vinyl is a man-made fabric, which is made by using polyvinyl chloride (PVC) or polyurethane (PU). The artificial leather is treated and dyed so that it can closely resemble real or genuine leather. The major applications of artificial leather are in furnishing, automobiles, footwear, bags & wallets, clothing, diary covers, stationary goods (files, folders, writing case covers, menu cards, etc.), gloves, pads, footballs, and others. Artificial leather is cost-effective and exhibits high durability and heat resistance as compared to natural leather. Artificial leather is cheap, versatile, and an ideal alternative to natural leather, which is manufactured from tanned animal hides.
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View Subscription PlansRESEARCH PROCESS
Wantstats research is conducted by industry experts who offer insight into industry structure, market segmentations, technology assessment, competitive landscape (CL), penetration, as well as on emerging trends. Besides primary interviews (~ 80%) and secondary research (~ 20%), their analysis is based on their years of professional expertise in respective industries. Our analysts also predict where the market will be headed in the next five to ten years, by analyzing historical trends and current market positions. Furthermore, the varying trends of segments & categories geographically presented are studied and are estimated based on primary & secondary research
PRIMARY RESEARCH
Extensive primary research was conducted to gain a deeper insight of the market and the industry performance. In this report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players who are active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed, over the next five to ten years.
SECONDARY RESEARCH
Secondary research was mainly used to collect and identify information useful for extensive, technical, market-oriented, and commercial study of the global artificial leather market. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, & developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as United Nations Industrial Development Organization, American Apparel & Footwear Association (AAFA), Brazilian Footwear Industries Association (ABICALÇADOS), UK Leather Federation (UKLF), Confederation of Indian Industry (CII), British Chambers of Commerce (BCC), The Council for Leather Exports (CLE), The International Council of Hides, Skins and Leather Traders Associations (ICHSLTA), Association of Footwear Industries of the Philippines, Africa Leather and Leather Products Institute, All India Footwear Manufacturers And Retailers Association, Wenzhou Shoe & Leather Industry Association, Association of Textile, Footwear and Leather (UTOK), Taiwan Footwear Manufacturers Association, annual reports, SEC filings, journals, white papers, corporate presentations, company web sites, some paid databases and many others.
MARKET SIZE ESTIMATION
Both, top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent submarkets of the global artificial leather market. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market have been covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and added with detailed inputs and analysis from Wantstats and has been presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study
LIST OF ASSUMPTIONS
Parameter
Assumption & Limitations
Currency value
All the forecasts are done with the revenue and volume calculated under the standard assumption that the globally accepted currency - the U.S. Dollar's value remains constant over the next five years.
Exchange rates and currency
For conversion of various currencies to USD, average historical exchange rates were used according to the year specified. For all historical and current exchange rates required for calculations & currency conversions - OANDA - website was used in this research study.
Conversion
Niche market segments
For niche market segments where accurate data of the respective timeline was not available, the data was calculated using trend line analysis. In some instances, where mathematical and statistical models could not be applied to arrive at the number, generalization of specific related trends to the market was done
Qualitative analysis
The qualitative analysis done from the quantitative data arrived at is solely based on the understanding of the market and its trends by the team of experts involved in making this report.
Average Selling Prices (ASP)
The ASPs, wherever applied, are calculated using all kinds of suitable statistical and mathematical methods and considering external qualitative factors affecting the prices. All the calculations interconnected between the tables are done considering the finalized ASPs.
Base Year
2018
Historical Period
2017 – 2017
Forecast Period
2019 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe global artificial leather market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Rapid advancements in material type along with the growing application of artificial leather in the automotive and clothing industries are the key factors that confront the global market growth. The vendors compete based on cost, product quality, and mainly on the availability of the products according to the geographies. It is crucial for the vendors to provide cost-effective and high-quality artificial leather to compete in the market. The competitive scenario is fragmented between the tier-1, tier-2, and tier-3 companies, while tier-1 and tier-2 companies in the market hold over 67% the global market share.
The growth of the market players is dependent on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding the production capacity to meet the demand and enhancing their services. Kuraray Co. Ltd, H.R. Polycoats Pvt. Ltd, Alfatex Italia SRL, Filwel Co. Ltd, Yantai Wanhua Artificial leather Group Co. Ltd, San Fang Chemical Industry Co. Ltd, Mayur Uniquoters Limited, Nan Ya Plastics Corporation, Zhejiang Hexin Industry Group Co. Ltd, Teijin Limited, DuPont Tate & Lyle Bio Products Company, LLC, Gruppo Mastrotto SPA, Asahi Kasei Corporation, and Toray Group are the major companies in the market at the present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of sophisticated and advanced mixes of artificial leather. Although the international players are dominating the market, regional and local players with small market shares also have a moderate presence. The international players with presence across the globe, with established manufacturing units or sales offices, have established their presence across major regions such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The companies with sales offices and distribution network in the Middle East have a major advantage over other competitors, as the region has one of the largest consumer bases for artificial leather
The high competition among the players has encouraged the players to produce mixers of artificial leather which could be unique in the market and have multiple applications. The technologies and processes used are different from different companies. Thus, mergers, acquisitions, and product development between various companies help them to develop new and innovative techniques and processes with better efficiency and higher performance. The players operating in the global artificial leather market are adopting various strategies such as expansion, mergers & acquisitions, alliances, joint ventures, and expansion to maintain the position and increase the geographic presence. Expansion was the most widely employed growth strategy amongst many market players in 2018 to capture maximum market share.
Key Developments
Date
Approach
Developments
July 2019
Expansion
Asahi Kasei announced the expansion of production for “Lamous” artificial suede at its plant in Nobeoka, Japan in two stages. First, it will raise its capacity from 6m m²/y to 10m m²/y, in the second stage it will add another 4m m²/y in 2021. The full functioning of the plant at full capacity is expected by 2022.
December 2018
Expansion
ContiTech invested USD 2.5 million to set up a new production unit in Pune, India, which is expected to be functional by 2020. This production facility will manufacture and offer premium materials such as Acella eco artificial leather to the local market.
January 2018
Product Launch
ContiTech’s Benecke-Hornschuch Surface Group launched a new laif VyP upholstery material. It is a breathable upholstery material, a hybrid material with a combination of vinyl and polyurethane.
October 2017
Collaboration
DuPont Tate & Lyle collaborated with INVISTA to produce sustainable textiles with bio-based membranes and coatings based on Susterra propanediol.
June 2017
Merger
ContiTech merged with Benecke-Kaliko A.G., which develops and manufactures decorative and technical surface materials, which now serves under the Continental brand.
March 2017
Expansion
Toray Industries announced to spend USD 276.87 Million on the expansion of its artificial leather output in Italy. This expansion will help Toray Industries to meet the growing demand for artificial leather.
April 2016
Product launch
Teijin Cordley Limited a subsidiary of Teijin’s Group announced to launch a new high-grade artificial leather named Maestley. The company expanded its series of Maestley products by adopting natural leather processing procedures.
Threat of New Entrants
The players willing to enter the global artificial leather market to capture the growth opportunities are new entrants. The major raw materials required in the manufacturing of artificial leather are available at ease and at low cost. Moreover, less complex manufacturing process and increasing demand for artificial leather instead of genuine leather (animal-based) are factors expected to increase the entry of new players in the global market. Considering these factors, the threat of new entrants in the global market is estimated to be high during the forecast period. The Asia-Pacific is estimated to be a lucrative market for the new market players owing to the growing footwear and apparel markets in the developing economies of China, India, Thailand, Singapore, and other South-East Asian countries. Besides, the ease of availability of workforce at nominal expenses and supportive government initiatives support the entry of new manufacturers in the Asia-Pacific artificial leather market.
Intensity of Competitive Rivalry
The intensity of competitive rivalry in the global artificial leather market is estimated to be moderate to high. There is a substantial number of artificial leather manufacturers across the globe. The market is mainly consolidated in Asia-Pacific, specifically in China, India, and South-East Asian countries. The surge in the demand for artificial leather in the manufacturing of footwear and home furnishings owing to its excellent durability and gloss, color and textures better than real leather, affordability, are likely to favor the global market growth in the coming years. Also, the availability of close alternatives to the product urges artificial leather manufacturers to offer quality products at competitive prices and maintain their market hold. This is likely to incentivize the intensity of rivalry among the players in the market. Additionally, the key players operating in the global market are adopting various business strategies (expansion, product development, and agreements) to gain a competitive edge. For instance, in March 2017, Toray Industries announced to spend USD 276.87 million for the expansion of its artificial leather output in Italy to meet the growing demand for artificial leather in the automotive and furnishing industries.
Threat of Substitutes
Artificial leather exhibits various benefits such as high durability, variety of textures and patterns, affordability, and easy workability over the real leather, which make it suitable for use in the footwear, automotive, and textile sectors. However, volatile raw material prices of PU and PVC are likely to pose a challenge for the manufacturers of artificial leather. Textile fabrics (nonwovens fabrics, coating fabrics, foam fabrics, and trimming fabrics) are considered as a favorable alternative for artificial leather in some applications such as footwear, apparel, and automobiles (seat covers and steering wheel covers). Yet, these alternatives do not pose a major threat to the use of artificial leather in these applications. Considering all these factors, it can be concluded that the threat of substitutes in the global artificial leather market is estimated to be moderate to low.
Bargaining Power of Suppliers
The global artificial leather market comprises many manufacturers and distributors. The majority of the market players are under the unorganized domain and hold a major share of the market. The demand for artificial leather in the global market is projected to surge during the review period due to the increasing adoption of vegan leather and PU-based leather in the manufacturing of footwear and in the interior applications of automobiles. However, there is a presence of close alternatives of artificial leather such as textiles (nonwovens fabrics, coating fabrics, foam fabrics, and trimming fabrics) in the manufacturing of footwear and in automobile upholstery applications (such as seat covers and steering wheel covers), which is likely to limit the bargaining power of suppliers to an extent. Moreover, the fluctuating raw material prices of PU and PVC are also a challenge for the raw material suppliers. Considering the aforementioned factors, it can be concluded that the bargaining power of suppliers is estimated to be moderate to low during the assessment period.
Bargaining Power of Buyers
Artificial leather finds applications in the footwear, automotive, furnishing, and textile industries. Besides, a significant amount of PU-and PVC-based artificial leather and vegan leather are also used by these industries. There is a substantial number of market players and suppliers spread across the world, however, as the threat of new entrants is relatively high, the suppliers have to rely on the existing customers, which increases the bargaining power of buyers. In addition, the presence of close alternatives to artificial leather (textiles and fabrics) further adds to the bargaining power of buyers. Considering all the above factors, the bargaining power of buyers in the global artificial leather market is estimated to be moderate to high.
Market estimates by geography (2025)
InsightAsia Pacific leads with $23.50B by 2025.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $12.86B | $17.14B | $23.50B | 7.8% | 53% |
| South America | $1.11B | $1.35B | $1.69B | 5.3% | 4% |
| Europe | $4.87B | $6.16B | $8.01B | 6.4% | 18% |
| North America | $5.92B | $7.65B | $10.17B | 7.0% | 23% |
| Middle East and Africa | $612.60M | $733.50M | $866.90M | 4.4% | 2% |
| Total | $25.38B | $33.04B | $44.23B | 7.2% | 100% |
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View Subscription PlansTotal Market Size
$44.23B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| PU | $23.72B | 6.7% | 54% |
| PVC | $19.21B | 8.0% | 43% |
| Bio-based | $1.29B | 6.1% | 3% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Artificial Leather Market covering market dynamics, competitive landscape, and strategic outlook.
The Artificial Leather Market market is projected to reach $44.23B by 2025, growing at 7.2% CAGR. The PU segment holds the largest share.
The global artificial leather market is projected to witness remarkable growth registering a CAGR of 7.37% during the forecast period, 2019–2025. The prominent factor driving the growth of the market is the healthy growth of the footwear industry across the globe. The footwear market globally is expected to generate a revenue of over USD 135 billion with an adoption rate of 43.1% by 2025. Additionally, the increasing use of artificial leather in the manufacturing seat covers, dashboards, and other clothing and fabric parts in the automotive industry is also expected to boost the growth of the global market during the forecast period. However, environmental issues associated with PU and PVC are likely to hamper the global market growth.
Artificial leather is a leather-like plastic and is widely used in the footwear industry due to its wear-resistant property and soft texture. Artificial leather offers a brighter appearance than natural leather, is folding resistant, cheaper than natural leather, waterproof, as well as alkali and acid-resistant. The chemical resistant property allows it to be used in the manufacturing of footwear, such as boots for use in the chemical industry and other industrial purposes. Artificial leather is also cost-effective and easier to manufacture as compared to natural leather. The major factor responsible for the growing adoption of artificial leather in the footwear industry is the obsoletion of natural leather made from skin or hide of animals.
Many countries have come up with regulations to limit the slaughtering of animals for the production of natural leather, such as Directive 94/11/EC of European Parliament and Council (EU), Regulation (EU) No 1007/2011 of the European Union (EU), “40 CFR 425” of document citation “61 FR 35680” by the US Environmental Protection Agency (EPA), Legge 1112 and Legge 8 in Italy for discipline of the use of the names "leather" and "fur" and of the terms that derive from them, Decreto 3289/1974 in Spain, Consumer Protection Act, 2008 (68/2008) in South Africa, and many others. These regulations over the years have resulted in an increase in the manufacturing of artificial leather to meet the growing demand in several application areas. The genuine leather used in shoe manufacturing requires chemical treatment, which damages the biodegradability property of the leather, whereas artificial leather is used to make vegan shoes. The artificial leather due to its long-term value is used across formal patent shoes, boots, sandals, slippers, and sports gears. The growth of the footwear industry in recent years, particularly in developing countries, is expected to fuel the demand for artificial leather in the coming years.
According to the Brazilian Footwear Industry Association (Abicalçados), the global footwear industry had generated a revenue of USD 91.6 billion in 2018 and is expected to register a CAGR of 4.82%, and by the end of the review period and generate a revenue of USD 127.1 billion.
The demand for artificial leather is proportional to the growth of the footwear industry. As per the figure given below, the adoption rate of footwear in the industry, which was 23.6% in 2018, is expected to reach to 45.1% by 2025. The growing adoption is expected to increase the manufacturing of footwear and thus the demand for artificial leather.
The increasing manufacturing, import, and export by the major footwear manufacturers such as Nike, Adidas, Skechers, New Balance, Asics, Belle, Nine West, Puma, Kering Group, Wolverine Worldwide, Clarks, VF Corp, ECCO, Anta, Under Armour, Salvatore Ferragamo, Daphne, LI-NING, Mizuno, Red Dragonfly, C.banner, Peak, K-Swiss, and KAPPA is further projected to boost the demand for artificial leather during the review period.
The major countries involved in the production of footwear include China (52% share in 2018), India (13.8%), Vietnam (4.7%), Brazil (4.4%), and Indonesia (3.7%), while the consumption of footwear shows the similar shares in China (16.9%), India (14.1%), the US (12.3%), Brazil (4.2%), and Japan (3.9%). Additionally, in 2018, according to the Associação Brasileira das Indústrias de Calçados, the total artificial leather used in the manufacturing of footwear accounted for over 55% in 2018, which is expected to cross 60% by the end of the assessment period.
The evolution of various platforms for the sale of goods specially footwear is another factor that is increasing the sale of artificial leather footwear. According to the stats by the World Trade Organization, the sale of footwear has increased by 4.1% in 2018, which it is expected to further increase by 2.2% by 2025. The sale of goods by offline channels is expected to decrease by 4% over the assessment period. The increase in sale through online channels is expected to create opportunities for manufacturers to sell their products across the globe. Thus, the growth of the footwear industry across the globe is expected to increase the demand for artificial leather and drive the growth of the global market during the forecast period.
Leather manufacturing is a toxic process. Leather tanneries emit chemicals that are harmful to the environment and human health, they pollute the waterbodies with formaldehyde coal-tar derivatives, mineral salts, dyes, oils, lime sludge, salt, acids, and sulfides. The residents living close to tanneries pose a higher-than-average risk of developing leukemia, whereas more than half of the tannery workers are likely to foster testicular cancer. Besides, the artificial leather manufactured from PU and PVC is not biodegradable. Thus, the manufacturers are making efforts and commercializing artificial leather that is bio-based. Bio-based artificial leather consists of polyester polyol which has a 70 to 75% renewable content and is softer and scratch-resistant as compared to PVC and PU. Some of the companies are developing bio-based materials, which could be used for producing bio-based products. For instance, DuPont Tate & Lyle Bio Products, with their joint venture in 2004, had developed Susterra propanediol, which is a pure, bio-based, petroleum-free diol, and a United States Department of Agriculture (USDA)-certified 100% bio-based product that delivers high performance in various applications, from polyurethanes and unsaturated polyester resins to heat-transfer fluids.
Flokser A.Ş which is one of the major Turkish competitors in the artificial leather business has introduced its SERTEX brand which has 70% renewable content. SERTEX consists of a polyester polyol which is made from the DuPont Tate & Lyle Bio Products' Susterra bio-based 1,3-propanediol and BioAmber's Bio-SA(TM) bio-based succinic acid. SERTEX is produced 150,000 metric tons per year. Thus, the increasing research and development by the manufacturers towards producing bio-based artificial leather are expected to create lucrative opportunities for artificial leather manufacturers.
Artificial leather majorly comprises materials such as polyvinyl chloride (PVC) and polyurethane (PU). PVC is the world's third-most widely produced synthetic plastic polymer, which accounts approx. to 43 million tons per annum globally. However, harmful dioxins and highly toxic chlorine are used during its manufacturing process. PVC is used to make artificial leather, which is further used to make footwear, home furnishings, and many other items. Most of the vegan leather is produced from PU, which is slightly better than PVC, as the production process of PU requires fewer toxic materials. Polyurethane is derived from fossil fuels and is not biodegradable. The waste of PU leather can lead to lung irritation and trigger asthma attacks due to off-gassing.
The other most important reason hampering the growth of the market, other than the effect of PU and PVC on the environment, is the pollution during the tanning process. According to a study conducted by the US Environmental Protection Agency (EPA), tanning of leather is one of the top 10 toxic processes that leads to pollution. On a yearly basis, the tanning process affects approximately 1.8 million people. The tanning methods, i.e., chromium, aldehyde, and vegetable, with chromium being the most used tan, which is used across 80% of all the leather manufactured. Moreover, the liquid and solid waste from tanneries are dumped untreated into the lakes and rivers thus affecting marine life. This is common in most of the developing countries, such as India, China, and Bangladesh, which are also the leading countries in leather production. According to the Bangladesh Ministry of Environment, the tanneries collectively dump 22,000 cubic liters of waste into rivers every day, which is also the water source for residents, thus causing infections, respiratory problems, birth defects, infertility, and other diseases.
Thus, the pollution due to tanneries involved in the manufacturing of artificial leather from PVC and PU and its adverse effects on human health and environment are expected to hamper the growth of the global artificial leather market during the review period.
Apart from the high production concentration in Asia-Pacific, the adoption of artificial leather is also increasing in the global market owing to its cost-effectiveness, which was been traditionally dominated by natural leather. This is expected to boost production in regions such as North America and Europe at a higher scale in the coming years.
Global footwear industry overview
Over the last decade, footwear consumption patterns have changed to reflect the international demographic and economic dynamics in the footwear market. Asia is the largest buyer of the shoes sold around the world with its share of the total world consumption (54% in 2018) being increased by 5 percentage points since 2010. The Chinese market continues to lead the rank of the 10 largest footwear consumers with a share of 18.4% in the global market. The Indian footwear market surpassed the US to become the second-largest consumer of footwear in 2017, reflecting strong demographic and economic trends. From a regional perspective, the Asian market is followed by Europe (15%) and North America (15%).
The year 2018 was marked by a positive outlook in the global footwear market initiated in 2017, with the footwear production and exports grew by 2.7% and 4.3%, respectively. After two years of stabilization (2015 and 2016), worldwide footwear production attained growth in 2017 reaching 23.5 billion pairs, 2% more than in the previous year. In terms of its geographic distribution, the Asian market continues to dominate the production, where 87% of all pairs of footwear are manufactured.
With the production of footwear witnessing a positive trend, the demand for artificial leather is expected to increase in the coming years, thus favoring market growth.
Global textile and apparel Industry overview
The consumption of apparel was valued at around USD 1.8 trillion in 2017, according to FICCI. The EU-28 was the largest apparel consumer with a contribution of worth USD 400 billion. It was followed by the major country-level markets including the US, China, Japan, and India, constituting the top 5 markets accounting for 63% of the global apparel market. The apparel market is forecasted to register a CAGR of 4% and reach a value of USD 2.6 trillion by the end of 2025. The growing demand for apparel in developing economics on account of the changing demographics, growing disposable income, and significantly growing population are some of the major factors driving the demand for clothing in these economies.
Market Trends in India and China
According to the data provided by FICCI and Wantstats analysis, the domestic apparel markets in China and India are expected to register robust growth over the next decade at a CAGR of 5.6% and 7.2% respectively, to attain a cumulative market size of USD 660 billion by the end of 2025. High economic growth coupled with the increasing population, shift from need-based purchase to aspiration-based purchase, high purchasing power, and technological advancements resulting in significant growth in online retail sales are some of the key factors favoring the market growth in these country-level markets.
The Indian textile and apparel market was valued at USD 90 billion in 2017, 70% of which is domestic consumption while exports constitute the rest 30%.
Over the last decade, the per capita income of the individuals in India has grown from USD 749 in 2005 to over USD 1,700 in 2016. The growing income of people in the country has reflected in the increase of aspirational buying, with people becoming more fashion conscious and spending more on clothing. Increasing spending power along with the changing social scenario of the country is likely to favor the apparel market growth in the domestic markets in the coming years. The demand for leather-based clothing has also witnessed a healthy rise in recent years and with the increasing purchasing power, this trend is expected to continue in the years to follow.
Artificial leather production is majorly concentrated in Asia-Pacific. This can be evident with the presence of major market players in Asia-Pacific countries such as China, India, Japan, and Taiwan. In addition to this, the regional artificial leather industry is highly diversified in nature with nearly half of the industry being unorganized. Varying requirements across end-use industries such as footwear and automobiles have led to changes in dynamics in terms of pricing power and competitiveness.
Companies production sites & region
S. No
Company
Location
Region
Kuraray Co. Ltd
Tokyo, Japan
Asia-Pacific
ContiTech AG
Hanover, Germany
Europe
H.R. Polycoats Pvt. Ltd
Haryana, India
Asia-Pacific
Alfatex Italia Srl
Santeramo in Colle, Italy
Europe
FILWEL Co. Ltd
Yamaguchi, Japan
Asia-Pacific
Wanhua Chemical Group Co., Ltd
Ludwigshafen, Germany
Europe
San Fang Chemical Industry Co., Ltd
Taiwan, China
Asia-Pacific
Mayur Uniquoters Limited
Rajasthan, India
Asia-Pacific
Nan Ya Plastics Corporation
Taipei, Taiwan
Asia-Pacific
Zhejiang Hexin Holdings Co., Ltd
Zhejiang, China
Asia-Pacific
Teijin Limited
Tokyo, Japan
Asia-Pacific
DuPont Tate & Lyle Bio Products
Tennessee, US
North America
Gruppo Mastrotto spa
Arzignano, Italy
Europe
Asahi Kasei Corporation
Tokyo, Japan
Asia-Pacific
Toray Industries Inc
Utah, US
North America
Kyowa Leather Cloth Co., Ltd.
Hamamatsu, Japan
Asia-Pacific
Achilles Corporation
Tokyo, Japan
Asia-Pacific
Vulcaflex S.p.A.
Cotignola (RA), Italy
Europe
Scientex Berhad
Selangor Darul Ehsan, Malaysia
Asia-Pacific
According to the UN Comtrade, the major exporting countries of artificial leather across the globe include China, Germany, the US, and South Korea. Amongst these, China is the largest exporter, with a share of around 40% in the global exports in the year 2018. China is also a major consumer of artificial leather, with a share of around 9% of the overall imports in the year 2018.
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 114 companies operating in the Artificial Leather Market market, including revenue, employee count, and market positioning where available.
Showing 114 of 114 companies
Company Headquarters: Selangor, Malaysia Founded: 1968 Workforce: ~2,800 Company Working: Scientex Berhad manufactures PVC leather cloth and sheeting, industrial stretch films, PP strapping bands, FIBC bags, form-fill & seal bags, woven bags, and raffia products. The company operates through two business segments, namely manufacturing and property development. Under the manufacturing segment, it deals with various product categories such as stretch films, custom films, specialty products, and converting. It provides artificial leather for automobile applications under its specialty products category. The company offers its products to a wide customer base by exporting them to more than 60 countries. Scientex Berhad has manufacturing plants in Malaysia, Vietnam, Myanmar, and the US. Apart from its manufacturing business, the company is also a prominent property developer with presence in Johor, Melaka, Perak, Selangor, and Penang, Malaysia.
Company Headquarters: Hanover, Germany Founded: 1871 Workforce: ~ 243,226 Company Working: ContiTech AG (ContiTech) is a multinational producer and distributor of several systems and functional parts made from rubber, metals, polyamide, and textile. It also offers electronic components for plant and machine engineering, as well as the automotive and mining industries. The company mainly has two groups, namely the rubber group and automotive group, through which it sells its products. The rubber group is further sub-divided into Tires and ContiTech. The ContiTech division is further segmented into seven units. Under the surface solutions unit, ContiTech offers artificial leather. The company has operation in 544 locations in over 60 countries, across regions including North America, Europe, Asia Pacific, and Latin America.
Kuraray is a Tokyo-headquartered, globally diversified specialty-chemicals company whose economic engine is a vertically integrated vinyl-acetate chain running from vinyl acetate monomer through polyvinyl alcohol (PVOH) resin into high-value derivatives: optical-use PVA film for LCD polarisers, water-soluble PVOH film (MonoSol) for unit-dose detergents, PVB and ionoplast safety-glass interlayers (Trosifol, SentryGlas) and EVAL EVOH barrier resin. Around these franchises sit an isoprene-chemistry platform (SEPTON elastomers, GENESTAR heat-resistant polyamide), a functional-materials portfolio (Calgon Carbon activated carbon, Kuraray Noritake dental materials, methacrylates) and legacy fibres and leather (CLARINO, VECTRAN, KURALON). Roughly 80% of FY2025 sales of ¥808.4bn were generated outside Japan. The company holds globally leading positions in several niche materials, but group profitability has compressed sharply since 2024 as competition intensified in PVB and PVOH, Isoprene suffered losses and impairments, and the stock trades at ≈0.7x book—making the transition beyond the expiring "PASSION 2026" plan the defining investment question. --- ### What the company does Kuraray manufactures and sells polymer resins, films, specialty chemicals, fibres, activated carbon, dental materials and related engineered products, and runs a trading subsidiary. It describes itself as a specialty chemical company pursuing "sustainable growth", guided by the corporate mission "For people and the planet—to achieve what no one else can" (Kuraray Report 2026; President's Message). Its long-term vision, "Kuraray Vision 2026", and the Sustainability Long-Term Vision state that "as a sustainability leader, Kuraray will develop innovative solutions with unique products and cleaner technologies to improve the natural environment and enhance quality of life". ### Company's own segment description (Kuraray Report 2026 / FY2025 Financial Review) ### Business and revenue model ### Independent characterisation Kuraray is best understood as a "niche-leader portfolio" anchored by one cash engine. The Vinyl Acetate segment generated ≈50% of FY2025 sales but more than 100% of segment operating income before corporate costs (¥62.5bn of ¥80.0bn aggregated positive segment income; ¥58.9bn consolidated after a ¥20.1bn corporate/elimination charge). Its franchises enjoy process know-how barriers, qualification lock-in and global four-region production. Outside this core, returns are thin: Functional Materials earns mid-single-digit margins on large invested capital (Calgon Carbon goodwill and customer assets), Isoprene has lost money every year since its 2023 Thai plant start-up, and Fibers & Textiles is sub-scale. The strategic problem is therefore not franchise quality but capital allocation: ROIC fell to 5.1% in FY2025 versus a PASSION 2026 target of 8–9%, and the market values the equity below book.
Nan Ya Plastics is Taiwan's most diversified materials conglomerate and the downstream/specialty arm of the Formosa Plastics Group. Historically valued as a cyclical petrochemical and plastics-processing house, it is in mid-transformation into a vertically integrated supplier of printed-circuit-board (PCB) materials — electronic-grade glass yarn, glass fabric (including low-Dk and low-CTE "T-glass"), copper foil, epoxy resin and copper-clad laminate (CCL). Press reporting ranks it world #2 in electronic glass yarn, #3 in CCL and glass fabric, #4 in ethylene glycol and #5 in epoxy resin and BPA. Electronic materials rose to 46.4% of FY2025 revenue and 59.8% of August 2026 revenue, driving a swing from a 2025 Q2 loss to record quarterly EPS of NT$3.37 in Q2 2026. Equity stakes in Nanya Technology (DRAM) and Nan Ya PCB (ABF/BT substrates) add a second, highly cyclical earnings engine. The stock rose roughly 7-8x in twelve months, re-rating it from a sub-book commodity name to an AI-infrastructure materials play. --- **What the company does.** Nan Ya manufactures and sells products across four principal reported product categories plus a smaller electrical/mechanical engineering activity: 1. **Electronic materials** — glass fiber yarn, glass fiber fabric, copper foil, electronic-grade epoxy resin, copper-clad laminates (CCL) and prepreg, plus legacy display/LCD-related and PCB ink products. 2. **Chemical products (plastic raw materials / petrochemicals)** — ethylene glycol (EG/MEG), plasticizers, bisphenol A (BPA), and other intermediates, produced in Taiwan (Mailiao), China and the United States (Texas EG). 3. **Polyester products** — virgin and recycled-grade polyester chips for fiber and for packaging/bottles, polyester filament and staple fiber, and textiles. 4. **Plastics processing products** — PVC and PP films, sheets, synthetic leather, TPU films, PU resins, pipes and fittings, cling and stretch films, BOPP/CPP films, A-PET sheet, PP synthetic paper, decorative and window films, doors and windows, pallets and compounds. 5. **Electrical/mechanical engineering** — switchboards (registered business scope) and, more recently, power transformers developed with foreign partners for Taiwan grid-resilience tenders. **Company's own characterization.** In its 2026 communications the company describes itself as transforming from a supplier of plastics and petrochemical materials into an innovation-driven company, with electronic materials (for AI servers, high-performance computing and high-speed networking), medical materials and semiconductor process materials as growth vectors (Taiwan News/CNA, Feb 2026). Its registered business scope lists plastic-processed products, plastic raw materials, electronic materials, polyester fiber manufacture and sale, dyeing/finishing and switchboards. **Independent characterization.** Nan Ya is best understood as three businesses in one listed shell: - **(a) An AI-levered electronic-materials franchise** with rare upstream-to-downstream integration (glass yarn → glass fabric → copper foil → epoxy → CCL), which is currently in a pricing-power phase because AI server and 800G/1.6T switch boards consume high-layer-count, low-loss laminates and all upstream inputs are tight. - **(b) A commodity chemicals/polyester/plastics book** exposed to Chinese capacity additions, crude oil and spreads, which was loss-making or marginal through 2023–2025. - **(c) A holding company** owning significant equity stakes in Nanya Technology (DRAM; ~30% per press reports) and Nan Ya PCB (IC substrates; ~60–67% per conflicting press reports), whose equity-method income now dominates reported net profit in up-cycles. **Business and revenue model.** Revenue is almost entirely product sales (manufactured goods sold on contract or spot pricing). There is no material subscription, licensing or service revenue. Pricing is cost-plus/market-based: CCL and copper-foil prices incorporate copper prices plus processing fees, which the company has raised repeatedly in 2026. Chemicals and polyester are priced off Asian benchmark spreads. **Value-chain position.** Midstream-to-downstream. Upstream feedstocks (ethylene, para-xylene, naphtha derivatives) come largely from FPG affiliates (Formosa Petrochemical, Formosa Plastics). In electronics, Nan Ya sits one step upstream of PCB makers and IC-substrate makers, including its own affiliate Nan Ya PCB. **Customer types and end-markets.** PCB and IC-substrate manufacturers (end markets: AI servers, cloud data centers, networking switches, smartphones, PCs, automotive); textile mills and bottle/packaging converters (polyester); construction, automotive interior, packaging, stationery and consumer goods (plastics processing); polyester and resin producers (EG, BPA). Press reports state CCL customers include NVIDIA's supply chain, with M4–M8 grades shipping and the company on a three-supplier sampling list for NVIDIA's M10-grade laminate.
Asahi Kasei is a Japanese diversified industrial group that runs three deliberately unrelated sectors, Healthcare, Homes and Material, under one operating holding company. It began as a 1920s fibre and ammonia chemistry business in Nobeoka and still carries a sizeable petrochemical base, but the profit centre has moved. In FY2025 Healthcare and Homes together produced about JPY 183 billion of segment operating income against JPY 68 billion from Material, and operating income hit a record JPY 231.2 billion for the second year running. Management's thesis, branded "Diversity × Specialty", is that a broad portfolio stabilises earnings while a handful of specialty franchises drive growth: US specialty pharma (Envarsus XR, Tarpeyo), ZOLL critical-care devices, overseas housing, and semiconductor materials tied to AI packaging. The counterweight is a structurally weak commodity chemical business now being shut down, merged or sold, and a capital-efficiency record (ROE 8.0%) that still sits at the company's own cost of equity. --- **The company's own description.** In its FY2025 Business Report the group says it carries out business in three sectors, Healthcare, Homes and Material, under a group mission of contributing to life and living for people around the world and a vision built on two ideas: living in health and comfort, and harmony with the natural environment [S3]. It describes itself as an operating holding company that brings together diverse management assets to pursue sustainable growth in corporate value through both growth investment and structural transformation [S3]. **Healthcare** covers prescription pharmaceuticals sold in Japan and the United States in autoimmune disease, severe infectious disease, transplantation, kidney disease and orthopaedics; bioprocess products used in manufacturing biologics (notably virus removal filters) and biologics contract development and manufacturing; and the Critical Care business, which is ZOLL Medical: professional defibrillators, AEDs, the LifeVest wearable defibrillator and sleep-apnoea diagnosis and therapy devices [S3]. **Homes** covers order-built detached and multi-dwelling homes in Japan under the Hebel Haus "Long Life Home" concept, real estate development (condominiums), rental management and brokerage, remodeling, overseas homebuilding operations in North America and Australia, and construction materials (autoclaved aerated concrete and insulation) [S1, S3]. **Material** covers electronics (electronic materials and electronic devices), car interior materials, energy and infrastructure (battery separators, ion-exchange membrane electrolysis, hollow-fibre membranes), comfort life (fibres, functional additives, consumer products such as Saran Wrap), performance chemicals (engineering plastics, coating materials) and essential chemicals (petrochemical basic materials and elastomers) [S1, S3]. **Independent characterization.** Asahi Kasei is best understood as a three-legged conglomerate whose legs have different economics. Homes is a domestic, order-backed, high-cash-conversion business with roughly 9% operating margins and low cyclicality. Healthcare is a US-dollar-earning mix of patent-protected specialty drugs and medical devices with high gross margins but heavy amortization from acquisitions. Material is a mixed bag: a small number of high-margin electronic materials (operating margin about 18%) sit beside low-margin petrochemicals (about 2%) and a battery separator business that currently earns close to nothing [S1]. **Revenue model.** The group is overwhelmingly a product seller. Recurring or service-like revenue exists in four places: rental management and brokerage in Homes (JPY 187.5 billion of sales in FY2025), LifeVest, which is supplied to patients on a rental-type model and billed per patient, royalty and licence income in pharmaceuticals (including, from FY2026, royalties on Prevymis via Aicuris) and technology licensing in Material (for example the Acetolyte electrolyte and carbonate process licences) [S1, S2, S6]. The company does not publish a product/service/subscription/licensing split; that mix is not publicly disclosed. **Value chain position.** In Material the group runs from naphtha cracking (through the Mizushima ethylene joint venture) down to formulated specialty products and components; management is now exiting the upstream end. In Healthcare it is an integrated developer, in-licenser, manufacturer and marketer. In Homes it is a designer and builder that also manufactures its own structural material (Hebel AAC panels) and then keeps the customer through rental management and remodeling. **Customers and end-markets.** Customers range from individual households (homes, consumer wrap) to hospitals, emergency medical services and transplant and nephrology specialists, to industrial buyers in semiconductors, automotive, batteries, chlor-alkali, textiles and packaging. By geography, Japan was 44.9% of FY2025 sales and the Americas 23.3% [S1].
Company Headquarters: Tokyo, Japan Founded: 1947 Workforce: 1,303 Company Working: Achilles Corporation is a manufacturer of automotive materials, chemical & rubberized products, floor & wall coverings, shoes, and industrial materials. It operates through three segments, namely shoe, plastic, and industrial materials. The company offers synthetic leather under the plastic business segment. The company has a wide network in the global market and exports its products to the US, Canada, Brazil, Mexico, England, Italy, the Netherlands, Greece, Switzerland, Sweden, Spain, Slovakia, Denmark, Germany, Norway, France, Bulgaria, Belgium, Portugal, Russia, India, Indonesia, South Korea, Cambodia, Singapore, Thailand, China, Hong Kong, Taiwan, Pakistan, Philippines, Malaysia, Australia, and Egypt. It owns several manufacturing subsidiaries across the US and China.
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I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.
Group Product Manager HVAC & Fire Protection GMA, Rockwool
I have been reading the first document or the study, the Global HVAC and FP market report 2021 till 2026. Must say, good info! I have not gone in depth at all parts, but got a good indication of the data inside!
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Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
