India Synthetic Leather Market Size 2024-2028

The India synthetic leather market size is forecast to increase by USD 1.85 billion, at a CAGR of 8.56% between 2023 and 2028. The growth of the market hinges on various factors. Key among these is the expanding adoption of polyurethane (PU) synthetic leather materials, which offer versatility and performance. Additionally, the market benefits from a diverse array of products catering to different industries and consumer needs, ranging from fashion accessories to automotive upholstery. Crucially, there's a notable shift in consumer preference, with more individuals opting for synthetic leather over traditional animal hide products due to ethical and environmental considerations. This transition not only drives market expansion but also underscores the importance of sustainability in today's consumer landscape.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is being driven by the growing demand for eco-friendly alternatives like bio-based synthetic leather amidst rising environmental concerns. Athleisure trends and the popularity of faux leather footwear are also fueling market growth. However, challenges such as fluctuating polyester polyol prices and competition from natural leather persist. The automotive sector, furnishing industry, and demand for wallets, purses, and luggage are key segments contributing to market expansion. Moreover, in the market, segmentation encompasses a diverse array of applications and industries. With materials like Polyvinyl Chloride (PVC) and bio-based synthetic leather gaining prominence, the market caters to various needs across different sectors. In the automotive sector, faux leather upholstery is in demand for its durability and cost-effectiveness, while the athleisure trend drives the production of synthetic leather footwear. Moreover, the furnishing industry relies on synthetic leather for its versatility in marine furnishing, offering resistance to harsh climatic conditions. From wallets and purses to luggage, the demand for PVC leather extends into the realm of fashion accessories, reflecting a blend of style and functionality. Through strategic utilization of materials like polyester polyol, the market continues to evolve, offering sustainable alternatives to natural leather while meeting the demands of a dynamic consumer base.

Key Market Driver 

The increasing penetration of polyurethane (PU) synthetic leather materials is the key factor driving the growth of the market. PU-based leather is typically made from flexible polymers and other materials such as polyester or cotton. Various techniques are used to resemble leather made from animal hides. PU-based synthetic leather is made from soft polymers, so no additional plasticizers are needed. It has several advantages such as water resistance, lightness, and softness. Under certain conditions, PU-based leather can easily shred, despite not fading or cracking in direct sunlight. It is widely employed in the automotive and apparel industries. PU-based leather is regarded as more environmentally friendly than vinyl-based leather because it does not produce dioxins. PU-based leather is more expensive than PVC-based leather because its manufacturing process is more time-consuming. These factors are expected to propel the market's growth over the forecast period.

Significant Market Trends

Technological advances in synthetic leather manufacturing is the primary trend in the market growth in India. Converting raw materials into final products requires many processes in which manufacturers seek to optimize product quality and yield at low cost while minimizing environmental impact. Manufacturing processes consume large amounts of water, chemicals, and energy, which lead to high effluent discharge. For instance, Mayur Uniquoters established a PU plant after taking permission from the government of Rajasthan to use the recycled wastewater of Reengus for manufacturing synthetic leather. This initiative taken by the company reduced the water wastage that occurs in the production process of synthetic leather. Such advancements in synthetic leather manufacturing are expected to fuel the growth of the Market during the forecast period.

Major Market Challenge 

The harmful effects of PU and PVC on humans are a major challenge to the growth of the market. Raw materials for synthetic leather, such as PU and PVC, endanger human and animal health and the environment. PU is an isocyanate that can irritate the lungs and cause asthma attacks. It causes skin irritation and lung infections that make it difficult to breathe. In polyurethane manufacturing plants, workers are often exposed to polyurethane fumes that can cause nausea, vomiting, and dizziness.  Carcinogens such as vinyl chloride monomer (VCM), phthalates, and dioxin are present in PVC. Dioxin is a highly toxic and hazardous byproduct of the combustion of chlorine-containing materials. Thus, the hazardous nature of PVC and PU can impede the growth of synthetic leather in India during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Colence Pvt. Ltd.: The company manufactures and exports footwear, furniture, and accessories. The company offers synthetic leathers made of PU and PVC.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Daman Textiles
• Giriraj Coated Fab Pvt. Ltd.
• H.R. Polycoats Pvt. Ltd.
• Jasch Industries Ltd.
• Marvel Vinyls Ltd.
• Mayur Uniquoters Ltd.
• Natroyal Group
• Nirmal Fibres Pvt. Ltd.
• Premier Polyfilm Ltd.
• Response Fabrics Pvt. Ltd.
• RMG Polyvinyl India Ltd.
• Shakti Tex Coaters Pvt. Ltd.
• United Decoratives Pvt. Ltd.
• Vortex Flex Pvt. Ltd.
• Winner Nippon Leatherette Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segment

By Application

The market share growth by the footwear segment will be significant during the forecast period. The footwear industry makes extensive use of synthetic leather due to its superior properties and high durability. It is used in the linings, uppers, and insoles of athletic shoes, shoes, boots, sandals, and slippers. India's rising demand for footwear is expected to increase the demand for synthetic leather during the forecast period.

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The footwear segment was valued at USD 842.40 million in 2018. Due to the low cost of synthetic leather, it is widely used in India to manufacture athletic shoes for various sports. Waterproof, heat, and weather resistance are other attributes of sports shoes made from imitation leather that looks just like real leather. They are used all over the world, including formal shoes for men and women, boots for women and men in the fashion industry, and shoes for people living in cold climates. When exposed to snow or water, genuine leather boots will tear, while synthetic leather is more snow and water-resistant. As a result of the advantages associated with synthetic leather footwear, the market is expected to experience substantial growth over the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Application Outlook 
  • Footwear
  • Furnishing
  • Automotive
  • Clothing
  • Others

• Type Outlook 
  • PVC
  • PU

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Market Analyst Overview 

In the market, bags, purses and wallets, and other accessories play a pivotal role in meeting the demands of a rapidly urbanizing population. However, concerns regarding health risks and environmental risks associated with traditional materials like natural leather have fueled the rise of synthetic alternatives. With a focus on reducing reliance on petrochemicals and promoting biodegradability, the market has witnessed a shift towards bio-based synthetic leather. This not only addresses issues such as microplastics and Volatile Organic Compounds (VOCs) but also offers environmental advantages. Furthermore, the emphasis on cruelty free choices resonates with consumers, driving collaboration between footwear manufacturers and clothing industry leaders to innovate in shoe uppers, shoe lining, and soles.

Moreover, the industry's growth is supported by robust manufacturing infrastructure, well-established supply chains, and a skilled workforce, catering to diverse sectors like the automotive industry and beyond. In the market, artificial leather is a versatile material that meets the demands of a population influenced by urbanization trends. Concerns about micro plastics pollution have led to a surge in demand for cruelty-free choices, prompting the development of alternatives like PVC synthetic leather and bio-based synthetic leather. These materials offer not only comparable quality and durability but also address environmental concerns associated with traditional leather production. As consumers become more conscious of their purchasing decisions, the market continues to evolve, prioritizing sustainable options without compromising on style or functionality.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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