Global Superfine Fiber Leather Market - Forecast(2023 - 2028)

Superfine Fiber Leather Market Overview

Superfine Fiber Leather market size is estimated to reach US$3.5 billion by 2027 and it is projected to grow at a CAGR of 7.6% during 2022-2027. Superfine fiber leather is emerging as a substitute for natural leather and offers superior chemical and physical properties. It possesses the beneficial properties such as wear resistance, aging resistance, flexibility, superior air permeability, soft texture, and provides environmental protection. Superfine fiber leather is a type of synthetic leather and became the ideal substitute of natural leather as it provides superior performance. It is extensively used in range of applications such as shoes, car interior, clothing, and furniture. There has been research and development going in the field of superfine fiber leather using thermoplastic polyester elastomer (TPEE), polyvinyl chloride, neoprene, polyurethane, and polyamide using many other polymers. Thus, superior performance and wide range of application of superfine fiber leather is fueling the growth of the market.

COVID-19 Impact

Many industries across the globe have faced several challenges due to the COVID-19 pandemic. The industries such as automotive, furniture, textile, and footwear including many others have experienced pitfalls. Many projects in such industries have been halted due to an interrupted supply chain and employee shortages due to quarantines. Also, the production and demand in automotive industry has declined due to an interrupted supply chain and cessation in transportation of raw materials. According to the International Organization of Motor Vehicle Manufacturers, vehicle production showed 16% decline in 2020 to about 78 million vehicles which is equivalent to the sales level of 2010. Moreover, there was a sharp decrease in the growth of textile industry due to unavailability of labor and slowdown in industrial operations. Thus, the global pause in industrial production and distribution, the demand and consumption of Superfine Fiber Leather has hampered to an extent in several industries. 

Report Coverage

The report: “Superfine Fiber Leather Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the superfine fiber leather industry outlook.

By Raw Material: Polyurethane Resin, Nonwoven Material, and Others

By Application: Shoe Making, Home Decoration, Bags and Suitcases, Automotive Interior, Apparel, and Others

By End Use Industry: Automotive (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicle), Consumer Goods, Textile, Footwear, Furniture, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East and Africa)

Key Takeaways

• Asia Pacific is the leading region in the global superfine fiber leather market. This growth is mainly attributed to the increased demand for superfine fiber leather in automotive and footwear industry. 
• Furniture is expected to be the significant segment owing to increase in demand due to its valuable properties such as strength, abrasion resistance, and elastic resilience.
• Surge in demand from consumer goods and footwear industries is driving the market for global superfine fiber leather market.
  

Superfine Fiber Leather Market Segment Analysis – By Raw Material

The polyurethane resin segment held the largest share in the superfine fiber leather market share in 2021, accounted for around 54%. Polyurethane resin is mainly used in the production of superfine fiber artificial leather. This polymer is produced using cross linking agents such as polyether or polyester polyol, polyisocyanate, and polyamines, etc. This resin is available in many forms such as elastomer, soft, semi rigid and rigid foamed plastic. It is used in wide range of applications such as synthetic leather, paints and coating, sealant, and adhesive. It provides superior performance when used in synthetic leather as compared to natural leather. There is a significant development in the production of polyurethane using sustainable raw material which boosts the demand for synthetic leather. According to the European Diisocyanate and Polyol Producers Association, sustainable production of polyurethane is contributing to the resource conservation, for instance, polyurethane insulation protects about 50-100 times of amount of fossil fuel while production. Thus, development regarding the production of energy efficient polyurethane is further fueling the demand and growth of superfine fiber leather market.

Superfine Fiber Leather Market Segment Analysis – By End-Use Industry

The furniture segment is expected to grow at a fastest CAGR of 7.1% during the forecast period in the global superfine fiber leather market. The superfine fiber leather is widely used in range of industries such as automotive, footwear, furniture, and textile including many others. This leather provides cost benefit as compared to natural leather and widely adopted in furniture and decoration purposes. This leather provides realistic quality, economical to use, and require low maintenances to use in furniture application. According to Zhejiang Tangshifu Furniture Co., Ltd, the development in construction industry, changing lifestyle of people, and global economic recovery has increased the demand for furniture globally. Thus, growth in furniture industry is fueling the demand for superfine fiber leather and it is expected to do so in the forecast period.

Superfine Fiber Leather Market Segment Analysis – By Geography

The Asia Pacific is the leading region accounts for the largest share in the superfine fiber leather market in 2021 and held nearly 32% of market share. This growth is mainly attributed to the increase in demand for superfine fiber leather in several end use industries in this region such as automotive, consumer goods, footwear, and furniture including others. Change in living standard and economic growth in increasing the demand for superfine fiber leather in numerous applications. The manufacturing technology in China for superfine fiber leather has developed over the years. China is one of the leading producers and consumers of superfine fiber leather with the significant growth in export and import. China mainly utilizes polyurethane (PU) in the production of this leather. According to Council for Leather Exports, Leather products, leather, and footwear hold the remarkable place in its economy. During 2020-21, India’s export for leather, footwear, and leather products stands at US$ 3.68 billion. Thus, the high demand for leather products and surge in leather industry is driving the market growth in this region.

Superfine Fiber Leather Market – Drivers

Increase in Demand from Consumer Goods   

The demand for superfine fiber leather has been surged during the past few year owing to the change in people’s living standard and fast growth in global economy. It has increased the demand for fiber based synthetic leather which offers superior performance and texture as that of natural leather. It also provides strength, abrasion resistance, and elastic resilience which is utilized to produce high value-added and high-quality products in range of applications. It is used in range of consumer products such as bags, purses, briefcases, belts, diary covers, and gloves including many others. According to Conseil National du Cuir (CNC), one of the most successful exports in France is leather goods. The overseas demand for luxury products from France is growing, for instance sales of handbags and luggage bags increased by 10% and 24%. Thus, the increase in consumer goods is driving the growth of global superfine fiber leather market.  

Increasing Adoption in Footwear Industry   

The synthetic leather has been introduced over few decades, however, the demand is growing with the consumer preferences and changing lifestyle. Production of synthetic leather has been through several technological advancements such as first-generation leather was manufactured using polyvinyl chloride (PVC), the second-generation leather was produced using polyurethane, and third generation leather is formulated with the help of high-performance and high-density superfine fiber synthetic leather. It is extensively used in shoe making such as sport shoes and formal leather shoes, and sandals owing to its superior quality. According to Indian Leather Products, India produces around 700 million leather footwear pair every year which accounts for nearly 18% of the overall export of leather in India. Thus, the surge in demand from footwear industry is boosting the global market growth.  

Superfine Fiber Leather Market – Challenges

Volatile Raw Material Prices

Superfine fiber leather is manufacturing using raw material such as polyurethane, nonwoven, and other synthetic polymers. Polyurethane is the leading material used in the production of superfine fiber leather. The production and prices of these raw materials are largely dependent on petroleum-based sources. Thus, any change or fluctuations in the crude oil prices directly affects the prices of these raw materials and ultimately affects the prices of superfine fiber leather. For instance, according to U.S. Energy Information Administration, prices of crude oil in 2021 have increased up to $71/lb from $42/lb in 2020. Thus, volatile crude oil prices or change supply demand of the other application market may impact the prices and supply of superfine fiber leather market. Thus, volatile crude oil prices directly impact the prices of raw material for superfine fiber leather which is restraining the growth of global market.

Superfine Fiber Leather Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Superfine Fiber Leather market. Superfine fiber leather market top 10 companies include -

1. Toray Industries, Inc.
2. Kuraray Co., Ltd.
3. Asahi Kasei Corporation
4. Kolon Industries
5. San Fang Chemical Industry Co., Ltd.
6. Daewon Chemical Co., Ltd.
7. BASF SE
8. Duksung
9. Shandong Tongda Group
10. Huafon Group

Recent Developments

• In September 2021, BASF’s synthetic leather solution Haptex studied through a comprehensive Life Cycle Assessment (LCA) and specified to have the remarkable environmental benefits as compared to other synthetic leather products. Haptex is synthetic polyurethane solution having anti-abrasion and high peel strength.  
• In January 2020, Kuraray Co., Ltd. and Nissha Co., Ltd. has jointly produced Material Insert using CLARINO, a product of synthetic leather. The companies started selling this product through their sales channel.
• In February 2019, BASF and San Fang showcases futuristic urban streetwear using innovative material in partnership with Seven Crash. It developed innovative and sustainable polyurethane solution for synthetic leather.   

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