Leather Chemicals Market

The global Leather Chemicals Market is valued at USD 8.2 Billion in 2022 and is projected to reach a value of USD 12.8 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 5.7% between 2023 and 2030.

Premium Insights

The Leather Chemicals market is witnessing significant growth due to the increasing demand for leather products across various end-use industries such as automotive, fashion, and furniture. China is the world's largest producer and exporter of raw textiles and clothes, which accounted for more than 41% of textile exports in 2022 followed by the EU and India. In December 2022, 3.47 billion square meters of textiles for clothing were produced in China. The market for Leather Chemicals in the textile industry is expected to grow over the forecast period because of these factors.

Leather Chemicals are used in various stages of leather processing, including beam house operations, tanning, and finishing.

The growth of the Leather Chemicals market is driven by the increasing demand for high-quality leather products and advancements in leather processing technology. The chromium and sulfide content of the effluents is reduced by technological developments in tanning plants in industrialized countries. Innovative tanneries in Eastern Europe take advantage of techniques that have been proven to work successfully in the industry. namely, direct recycling, which involves tanning hide material twice in the same chromium bath. Furthermore, the development of new strategies to reduce chromium production from wastewater has increased market growth prospects. The United Nations Industrial Development Organization report states that using the same chrome bath for tanning has reduced the amount of chromium in the wastewater produced by 21% Additionally, to lower the chromium content in wastewater, some firms are utilizing reclamation techniques.

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Key Highlights

• The Asia Pacific region has generated more than 55% of its revenue share in 2022 and is expected to grow at a CAGR of 11.6% during the forecast period.
• Europe is expected to witness the fastest CAGR between 2022 and 2030.
• Based on product type, the tanning agents segment dominating the market has generated more than 40% revenue share in 2022 and is expected to grow at a CAGR of 6.1% during the forecast period.
• The footwear sector held a substantial share of the application segment in revenue in 2022.

The COVID-19 pandemic has affected the Leather Chemicals market, with the industry experiencing a decline in demand due to reduced production activities. However, the demand for Leather Chemicals is expected to rise in the upcoming years due to the resumption of production activities and the increasing demand for leather products. Additionally, the emphasis on eco-friendly and sustainable products is driving the demand for bio-based Leather Chemicals. Bio-based Leather Chemicals are derived from renewable sources such as plant extracts and are free from harmful substances, making them environmentally sustainable. The adoption of such eco-friendly products is projected to increase in future years, which will drive the demand for bio-based Leather Chemicals.

Economic Insights

The IBEF projects that the Indian textile industry will be worth USD 250 billion. The Indian textiles industry accounted for 15% of India's exports and it is expected to grow further in the coming years. In FY22, India's textile and clothing exports, including handicrafts, amounted to USD 44.4 billion, an increase of 41% year on year. In addition, India's vehicle industry has become the world's 4th largest in terms of sales and is growing by 8% a year. The market for Leather Chemicals is expected to expand because of rising vehicle production and the use of these substances in inner and outer parts.

Top Market Trends

1. Rising Demand for Eco-Friendly and Sustainable Leather Products: The global Leather Chemicals market is expected to experience massive growth in the coming years due to various factors, such as increasing demand for leather goods and growth in the automotive industry. One of the top trends in the Leather Chemicals market is the rising demand for eco-friendly and sustainable leather products. Companies are introducing new products that are free from harmful substances, such as heavy metals and Azo dyes, which are highly toxic. Eco-friendly leather products also have a significantly lower environmental impact on energy usage and water consumption during production. As consumers become more aware of the hazardous effect of chemicals on their health and the environment, the demand for eco-friendly products continues to increase.
2. The Emergence of Tanning Agents that Reduce Water Consumption During Processing: Another top trend in the Leather Chemicals market is the emergence of tanning agents that reduce water consumption during processing. However, the introduction of advanced tanning agents that reduce water consumption has been a game-changer in the industry. These tanning agents use significantly less water during processing and are proving to be more cost-effective for companies, hence driving the growth of the Leather Chemicals market. As sustainability becomes an essential factor in the leather industry, producing goods that are environmentally friendly, energy-efficient, and cost-effective will be the driving force that creates new opportunities for manufacturers and suppliers alike.

Market Segmentation

The global Leather Chemicals market can be categorized on the following: Product Type, Application, and Region. Based on Product Type, the market can be categorized as Tanning & Dyeing Chemicals, Beamhouse Chemicals, Finishing Chemicals, and Others (including preservatives, surfactants, etc.). Additionally, based on Application, the market can be split between Footwear, Furniture, Automotive, Clothing, and Others (including bags, wallets, belts, etc.). Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product Type

Tanning Agents to Accommodate Maximum Market Share Due to Changing Consumer Preferences for Fashion and Luxury Leather Goods

Leather Chemicals are classified into four major types, including tanning agent, dye, fat liquor, and finishing agent. Among these, tanning agents account for the highest market share in terms of product type. Tanning agents are used to transform raw hides and skins into leather by binding with collagen fibers. They comprise both vegetable and synthetic tanning agents. Vegetable tanning agents, made of natural raw materials such as tree bark, leaves, and fruits, are more environmentally friendly than synthetic tanning agents. However, artificial tanning agents are more effective and have a lower cost. The demand for tanning agents is driven by the growing population, rising disposable income, and changing consumer preferences for fashion and luxury leather goods. The global market for tanning agents is expected to grow owing to the demand from rising economies like India and China, which have a large population and a thriving leather industry.

Based on Application

Footwear Industry to Express Dominion owing to the Growing Demand for Leather Products, such as Shoes, Boots, and Sandals.

Leather Chemicals are used for various applications, such as footwear, garments, automotive, furniture, and others. Footwear is the dominating category among these applications. The increase in consumer purchasing power, rising fashion consciousness, and the growing trend of online shopping have led to growth in the production and sales of footwear, thereby driving the demand for Leather Chemicals. Leather footwear has a high demand compared to synthetic footwear due to its durability, comfort, and prestige factor. The footwear industry is expected to witness significant growth during the forecast period, with Asia-Pacific being the biggest market due to the presence of major footwear manufacturers in this region. Apart from footwear, the automotive industry is also expected to drive the demand for Leather Chemicals due to the use of leather upholstery and interiors in luxury cars. Leather Chemicals are used as coating agents, finishing agents, and dyes to give the desired color, texture, and durability to leather products. The growing demand for superior quality leather goods, environmental regulations, and the need for innovative products will drive the growth of the global Leather Chemicals market in the coming years.

Based on Region

Asia Pacific to Lead Global Sales Owing to the Large Leather Manufacturing Industry in Countries Such as China, India, and Vietnam

The Asia Pacific region is the largest in the Leather Chemicals market. This is primarily due to the large leather manufacturing industry in countries such as China, India, and Vietnam. China alone accounts for over 60% of the world's leather production, and this demand for leather has led to a corresponding demand for Leather Chemicals. In addition to the large manufacturing industry, the Asia Pacific region is also home to a large population with a growing middle class. As a result, there is more demand for leather apparel, luggage, and accessories. To make high-quality leather items, there is a greater demand for Leather Chemicals because of this increase in demand. Furthermore, the Asia Pacific region is home to a number of major Leather Chemicals producers, such as Stahl Holdings BV, BASF SE, and Lanxess AG. These companies have a strong presence in the region and are continually investing in research and development to improve their products and processes. Overall, the Asia Pacific region will continue to be a significant player in the Leather Chemicals market due to its large manufacturing industry, growing population, and strong presence of major chemical producers.

The Leather Chemicals market in Europe is experiencing significant growth and is currently the fastest-growing region in the industry. Europe has been witnessing a rise in demand for Leather Chemicals due to factors such as the increasing popularity of premium leather goods, a growing consumer preference for high-quality products, and a rise in disposable income among consumers. One of the key factors driving the growth of the Leather Chemicals market in Europe is the increasing demand for premium leather goods. The region is known for its high-quality leather products, which are highly sought after by consumers worldwide. This has led to a rise in the production of premium leather goods, which, in turn, has generated a significant demand for Leather Chemicals.

Competitive Landscape

Numerous international and regional actors compete fiercely on the global market. Major corporations engage in strategic alliances, mergers & acquisitions, and joint ventures to acquire a market advantage. In addition, manufacturers concentrate on capacity expansions and R&D for new product development to offer consumers products that are on trend. In June 2021, Lanxess announced the launch of a new product line of aqueous polyurethane dispersions (PUDs) for the leather industry called Levaderm PU.

The key players in the global Leather Chemicals market include - Stahl International B.V. (Netherlands), Lanxess AG (Germany), Bayer AG (Germany), Elementis PLC (UK), Texapel (Spain), Chemtan Company Inc. (U.S.), Lawrence Industries Ltd. (UK), BASF SE (Germany), W. R. Grace & Co. (U.S.), Dow Inc. (U.S.) among others.

Recent Market Developments

• January 2023: A partnership was established between LANXESS and TotalEnergies for the delivery of bio-circular styrene. The business may provide low-carbon-footprint raw materials and sustainable solutions to its clients by collaborating with TotalEnergies.
• October 2022: Chem-MAP is happy to report that Texapel received ZDHC Level 3 certification, the highest level of certification available under the ZDHC Road Map to Zero program, for their Leather Chemicals.

Segmentation of the Global Leather Chemicals Market