The Global Leather Chemicals Market is expected to grow from USD 8.6 Bn in 2020 to USD 14.4 Bn by 2027, at a CAGR of 7.6%.
Growing demand for leather upholstery is anticipated to support the leather chemicals market growth during the forecast period. Demand for high-quality automotive upholstery has helped to keep upholstery leather tanning in the developed markets. For instance, Pigskin makes up more than 10% of all leather produced currently. Additionally, China has surpassed the United States as the leading producer of pigskins and pigskin leather. Moreover, Japan sold leather goods of approximately 3200 USD in 2021, followed by South Korea and Hong Kong respectively.
Based on type, the tanning & dyeing chemicals segment in the leather chemicals market accounted for the largest market share in 2020 and is expected to grow with highest CAGR during the forecast period. The tanning industry includes a diverse range of raw materials from around the world and a range of end-user clients. Additionally, the availability of conventional raw materials is anticipated to remain adequate in the near future, while it is to be expected that deer and camel meat will be commercialized further that supports the tanning demand. Tanneries will likely develop as more machinery processes link operations, reducing labor content and improving leather quality uniformity. Smaller boutique tanneries and, highly mechanized tanneries are expected to divide the business. Thus, the tanning segment is expected to drive the leather chemicals market growth in the near future.
In the automobile industry, the outcome of leather upholstery can be made in different regions of the world with adequate process and quality transfer, suggesting that big groups of tanneries in different parts of the world could be a viable option. Chrome tanning is anticipated to be the most popular tanning method, but efforts to develop better alternatives is expected to remain continue. Chrome's use has declined to between 80% and 85% in the last decade, as the automotive sector, in particular, has shifted to chrome-free leather production. Moreover, as new technologies are used, chrome tanning's share of the market might shrink to ~70%. It is also expected that chemical industries and machinery suppliers working together will lead to even more advancements in processing.
In terms of geography, Asia-Pacific is expected to dominate the leather chemicals market during the forecast period owing to the presence of a number of leather products manufacturers. For instance, India is the second-largest producer of footwear and the third-largest exporter of saddlery & harnesses in the world. Additionally, the Indian leather industry produces around ~12% of the world's skins. India has a large supply of raw resources. India is home to 20% of the world's cattle and buffalo population, whereas goats and sheep make up 11%, which is expected to support the raw material demand in the future years. Moreover, raw material availability, a qualified staff, cutting-edge technology, has supported the Indian economy in terms of improved industrial conformity with foreign norms.
Additionally, Germany is Europe's third-largest leather manufacturer. There are more than 100 leather factories in Germany. The industry's annual revenue is estimated to be approximately USD 555 million. The sales revenue from foreign nations accounts for 70% of the total. Cars, furniture, high-end shoes, purses, and saddlery are just a few of the primary industries that employ leather. Germany exported leather products and baggage worth USD 1.12 billion in the first half of 2019. Exports totaled USD 1.09 billion during the same quarter the previous year. Switzerland was one of the major buyers.
The key players operating in the leather chemicals market are: