Leather Chemicals Market

Leather Chemicals Market Size (2023-2028)

The leather chemicals market was valued at $8.64 billion in 2022 and is expected to grow at a 7.3% CAGR to reach $11.6 billion by 2028.

The leather industry is a centuries-old manufacturing sector that produces a wide range of goods such as leather footwear, leather bags, leather garments, and so on. 

The leather industry is another high-polluting industry that is typically found in developing economies. Humans consume leather products regularly and use them almost every day is expanding the growth of the leather chemical market. The leather industry trade is currently worth more than US$ 80 billion per year, and this is expected to rise as the country's population and urbanization increase. Additionally, as a result of the rapid expansion of the e-commerce industry and the improvement of the manufacturing industry, the demand for the market is growing tremendously. Leather chemicals are chemicals that are used in the tanning, dyeing, and retaining stages of the leather production process. The leather processing industry is affected by changes in the fashion industry. Leather-making is an ancient art form that has been practiced for over 7,000 years. The modern commercial leather-making process is divided into three stages: tanning preparation, tanning, and tanned leather processing.

Leather Chemicals Market Trends:

The rise of globalization in the last few decades has reshaped the production strategy, with outsourcing becoming common among many top brands. Just-in-time production has become a hot trend due to advancements in technology and shifting consumer demands. Because of the power of e-commerce and social media, consumers, rather than retailers and editors, are now more frequently establishing trends. Furthermore, the evolution of fast fashion and automotive production created new consumer groups while also increasing consumption among existing groups. However, the increasing prices of raw materials and veganism have grown in popularity as a result of concerns about both animal welfare and climate change is expected to constrain market growth.

Recent Developments in the Leather Chemicals Market:

• February 2020, LANXESS, a specialty chemicals company, will display its extensive product line in the field of leather chemicals at the India International Leather Fair (IILF) in Chennai, India.

• Stahl will use the ACLE webinar series to reach out to leather industry stakeholders all over the world. 

Leather Chemicals Market Drivers:

Fashion trends are changing, and the fast fashion industry is dominating. Rapidly changing apparel trends as a result of shifting consumer expectations and innovative manufacturing techniques are fuelling the growth of the leather chemicals market. Domestic household income is rising, as is the demand for clothing. An increase in disposable income leads to an increase in leather consumption, which raises the overall value of the leather chemicals market—lower manufacturing costs and a large potential for the leather industry. Just-in-time production has become a hot trend due to advancements in technology and shifting consumer demands. Major clothing manufacturers and designers are becoming more visible. While apparel manufacturing automation is still on a small scale, emerging technologies demonstrate its enormous potential. The luxury goods and leather industries are thriving.

Leather Chemicals Market Restraints:

Acceptable defects; requires specific cleaning and leather finishing products. Expensive operational costs and government regulations are stringent are hampering the growth of the leather chemicals industry.

Opportunities in the Leather Chemicals Market:

Fashion sportswear and active sportswear are the fastest-growing and most appealing product categories, creating enormous opportunities in the leather chemicals market. Furthermore, the advancement of the tanning process is expected to reduce the formation of chromium and sulfides in water, which is expected to open up new revenue opportunities during the forecast period. Micro factories, which enable high-speed, agile garment production, are another opportunity.

Challenges in the Leather Chemicals Market:

Handbags, gloves, automobile seating, or footwear, have a long journey from raw material to finished product. Apart from intellectual property sustainability and management, other major challenges include counterfeit, contraband footwear, and leather goods—the environmental impact of tanning production. 

LEATHER CHEMICALS MARKET REPORT COVERAGE:

Leather Chemicals Market Segmentation:

By Chemical Type:

• Organic Chemicals 

• Inorganic chemicals

• Biocides 

• Surfactants 

• Others

In terms of type, the organic chemical segment, which is expected to be the fastest-growing market during the forecast period, had the largest share in 2021.

By Processing:

• Tanning & Dyeing Chemicals

• Finishing Chemicals 

• Beam House Chemicals

The tanning and dyeing chemicals segment is expected to grow at the fastest rate due to the high demand for tanning and dyeing chemicals.

By End User:

• Automotive
• Footwear
• Textile & Fashion
• Furniture

The footwear segment accounted for the highest market share in terms of value and is expected to grow as it is one of those innovative forms of leather chemicals that contribute to its portability and ease of use.

Leather Chemicals Market Regional Analysis:

 The Leather Chemicals Report includes the segmentation of regions:

•  North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

In 2021, due to the presence of multiple leather processing units and tanneries, the Asia-Pacific region is expected to account for the largest share of the total leather chemicals market in terms of value, followed by North America and Europe. The resurgence of demand for shoes and automotive in India and the Asia Pacific divines well for the growth of leather chemicals. Significant leather production in India and China, combined with an increasing customer base for leather products. Also, rising market players of leather chemicals in the Asia-Pacific region. The North American protective packaging market is developed, and the high fashion wear and footwear region, the US and Canadian markets, are expected to experience the highest growth rates in the future. The rapid expansion of the automotive, footwear, textile, and fashion industries, as well as the e-commerce sector, as well as the growing demand for avoiding distance in pandemics, and other factors, are some of the key factors accelerating market expansion in the emerging region. As a result, the market for leather chemicals has been impacted both positively and negatively.

Impact of Covid-19 on the Leather Chemicals Market:

COVID-19 has a sectoral impact on specific social and economic sectors and industries. Workers are being told to stay at home, industries suffered a temporary shutdown, and global supply chains are coming to a break, threatening the viability of the textiles, clothing, leather, and footwear industries. Also, impact on the market due to a decrease in leather production and delayed shipments. However, the COVID-19 era has created untapped opportunities for the leather chemicals market. The outbreak of the Coronavirus has taken a heavy toll on India's leather export trade. Worse, consignments of finished products that have already been exported by Indian manufacturers have become stuck at various seaports and airports in countries such as China, Germany, Italy, and the US. In this time of crisis, the textile industry is also motivated to help in the fight against coronavirus. As a result, the emphasis has shifted from aesthetically appealing clothing to functional clothing that offers a protective function to clothing. Production of PPE kits, gloves, and masks has increased in the last two months and is expected to increase further.

Leather Chemicals Market Key Players:

The major players covered in the Leather Chemicals market report are 

1. BASF SE 

2. Clariant AG

3. TFL Ledertechnik Gmbh & Co.KG

4. Arkema SA

5. Bayer AG

6. Evonik Industries AG

7. Lanxess AG, 

8. Stahl Holdings B.V., 

9. Indofil Industries Limited, 

10. Elmentis Plc, 

11. Solvay, 

12. Eastman Chemical Company