The Global Leather Chemicals Market was valued at USD 8.6 Bn in 2020 and is expected to reach USD 14.4 Bn by 2027, with a growing CAGR of 7.6% during the forecast period.
Chemicals used in the tanning, dyeing and re-tanning stages of the leather production process are known as leather chemicals. The leather processing market is influenced by the fashion industry's fluctuating environment. The leather chemicals industry is expected to grow considerably due to the renowned sales for shoes and automobiles in India and the Asia Pacific. Today, environmental and health concerns control the sorts of chemicals used in leather manufacturing, requiring the use of environmentally friendly and technologically complex compounds.
Globally changing lifestyles, increase in purchasing power, and demand for garments is anticipated to drive the leather chemicals industry growth in the near future. According to the latest predictions from the International Monetary Fund (IMF), Italy's GDP would surpass $2 trillion, reuniting it with seven other economies, including the United States, China, Germany, and India.
Additionally, the availability of leather chemicals at cheaper prices from China, India is expected to drive the demand for leather chemicals in the near future. For instance, the price for technical grade colorless tanning agent Aritan GSI liquid costs Rs 152 / kg i.e. (USD (2.02) at India Mart, and the white phenolic syntan powder, for leather tanning, costs Rs 80/kg (~1.1 USD). However, toxic waste production from leather manufacturing industries may impede the market growth. For example, due to the potential for growth and economic contribution in Bangladesh, the leather industry has been designated as a high-priority sector. However, owing to environmental contamination, these chemical companies are unable to fulfill the compliance challenge. Most tanneries in Bangladesh create 20000 m3 of liquid waste and 232 tonnes of solid waste each day due to the lack of a central effluent treatment facility and modern management technology, posing a substantial risk to the environment and human health unless properly managed. Leather processing is a multi-step process including both chemical and mechanical techniques.
The unique insights provided by this report also include the following:
Based on type, the tanning & dyeing chemicals segment held the largest market share in 2020 and is expected to grow significantly during the forecast period due to its use in textiles
Based on type, the market has been segmented into beamhouse chemicals, tanning & dyeing chemicals, finishing chemicals, The tanning & dyeing chemicals segment in the leather chemicals industry accounted for the largest market share in 2020 and is expected to grow significantly during the forecast period. Dyeing is used to provide a special appearance, metallic finish, coloring, and transparency for end-use products such as textiles, footwear. For instance, in 2018 Huntsman (US), Archroma (Switzerland), and DyStar (Singapore) were the world's largest suppliers of dyes and textile chemicals.
Based on the application, the footwear segment in the leather chemicals market is growing at the highest CAGR during the forecast period owing to its demand from millennials
Based on the application, the market has been segmented into automotive, garments, furniture, footwear, and others. The footwear segment is expected to grow at the highest CAGR during the forecast period. More than 50% of the world's leather is currently produced in underdeveloped countries such as China, Brazil, India, South Korea, Turkey, and others. Leather footwear accounts for around 65% of global leather production, in 2021, according to “shoe intelligence” global footwear consumption is expected to rise by 2.8% in volume this year as the market recovers from losses posted last year due to the Covid-19 pandemic.
Based on region, Asia-Pacific is expected to hold the largest market share during the forecast period owing to the presence of cheap resources
Based on region, the global leather chemicals market is categorized into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Asia-Pacific held the largest market share in the leather chemicals market owing to the presence of several manufacturers such as pon pure chemical group, jintex chemical, and others. Asia accounted for almost 80% of footwear production in 2021. Additionally, in India, the government initiatives to promote the leather industry include the reduction of GST for finished leather from 12% to 5%. Moreover, on certain leather chemicals, leather goods, leather garments, and saddlery items have been reduced from 28% to 18%. GST on Common Effluent Treatment Plants (CETPs) has been reduced from 18% to 12%. GST on footwear has been reduced from 18% to 5%
Additionally, the global demand for leather upholstery in automobiles is expected to bolster the market growth during the forecast period. Due to increasing disposable incomes in the Asia-Pacific region, there is a growing desire for personalization among automobile buyers. Automobile manufacturers and OEMs in this region are now offering leather upholstery in their mid-range vehicles, propelling the leather-type automotive upholstery market forward. The growing consumer preference for upgrading vehicles with leather upholstery is fuelling market expansion through the aftermarket channel.
The report also provides an in-depth analysis of leather chemicals market dynamics such as drivers, restraints, opportunities, and challenges
According to Smit & Zoon, the leather chemicals market showed indications of recovery after a rough 2019, but the Covid-19 a new source of fear since it affects global supply chains such as the leather supply chain. Natural leather and its end products are attracting a growing number of stakeholders in the leather business who want to make real leather more visible once again. During the fashion weeks in Paris and Milan every year, more leather is noticeable in the fashion world, which is anticipated to support the market growth in the near future. Additionally, the discussion over whether vegan or other materials have a reduced environmental effect continues, and it will continue as customers and various stages of the supply chain develop a greater awareness of the facts. However, this will continue in the next years.
The impact of Covid-19 on the leather chemicals market is difficult to forecast, but if the disruption is kept to a minimum, the leather output is expected to be better than last year. Furthermore, shipping is presently slow steaming, and container equipment is distributed, as well as local transportation is delayed by the Covid-19. Owing to the lack of Asian guests due to Covid-19, Linea Pelle 2021 was rather smooth. Despite this, the group recorded a 2% gain over the previous year. The Simac Tanning Tech expo drew a large crowd. The demand for new chemicals and equipment is high. Another trend as part of the sustainability is to push for more sophisticated industrialization of leather manufacturing and waste management, similar to car seat leather.
The report also provides an in-depth analysis of key trends in the leather chemicals market
The report also provides an in-depth analysis of recent news developments and investments
The key players operating in the leather chemicals market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.