Vegan Leather Market
Vegan Leather Market - Global Industry Assessment & Forecast
- By Product Type Footwear, Bags, Clothes, Other Product Types
- By End User Men, Women, Kids
- By Industrial Vertical Fashion Industry, Automotive Industry, Furniture Industry, Others Industrial Verticals
- By Sales Channel Online Retail, Offline Retail
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2023 - 2030|
|Historical Years:||2017 - 2021|
|Revenue 2022:||USD 39.5 Billion|
|Revenue 2030:||USD 74.5 Billion|
|Revenue CAGR (2023 - 2030):||9.5%|
|Fastest Growing Region (2023 - 2030)||Asia Pacific|
|Largest Region (2022):||North America|
- Cross-segment Market Size and Analysis for Mentioned Segments
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- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
- Go To Market Strategy
- Region Specific Market Dynamics
- Region Level Market Share
- Import Export Analysis
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The global Vegan Leather Market is valued at USD 39.5 Billion in 2022 and is projected to reach a value of USD 74.5 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 9.5% over the forecast period.
Vegan Leather is a popular alternative to genuine leather and is often produced from polyurethane. It can be further manufactured from various innovative and sustainable materials such as pineapple leaves, apple peels, other fruit waste, and recycled plastic. The global Vegan Leather market is expected to grow significantly during the forecast period owing to rising demand from the footwear sector and increasing prices for genuine leather products. PVC leather is a dominant Vegan Leather used primarily for producing various bags, including shopping, cosmetics, wallets, suitcases, purses, and travel bags. It is further utilized in fabrics, footwear, clothing, upholstery, and other products that can depict a real-leather-like finish. This will contribute to the growth of the global Vegan Leather market during the forecast period in an incremental manner.
The production process for Vegan Leather is expected to improve as time progresses. Studies have further indicated that Vegan Leather is more cost-effective than real leather. Rising demand from the automotive industry from emerging countries is pushing the growth of Vegan Leather toward sustainable development during the forecast period. Additionally, the global market is inclining towards a higher margin owing to increased utilization within the furnishing industry. Prominent manufacturers are shifting their production bases towards China, India, and Vietnam due to their skilled labors and lower freight costs. This is expected to propel the market's growth and widen the global demand as production ramps up.
Environmental concerns such as global warming, climate change, and depletion of various natural resources is inclining consumers towards using sustainable and eco-friendly products. The adoption of vegan products is noticed highly among the younger population. Young people are combating climate change on a higher level by demanding replacing animal-based products with plant-based ones. These products are highly sustainable, ethical, and bio-degradable in nature. Increased consumer demand is prompting manufacturers to shift from genuine leather products towards Vegan Leather products at an accelerated pace. Studies have indicated that the production of animal leather involves the emission of countless chemicals, which causes pollution on a large scale. This will contribute towards a rising adoption of Vegan Leather products.
Vegan Leather Market Size, 2022 To 2030 (USD Billion)
According to many financial analysts and economists, most of the global economy would be in a recession if it wasn't already. But as 2022 finishes and 2023 starts, the world economy is predicted to slow even more. According to estimates, the United States will have a recession in the first half of 2022 because of a tight labor market. The chance of an economic recovery in many nations following a pandemic has decreased due to the ongoing conflict between Russia and Ukraine. Most of this financial load is anticipated to fall on Europe and Central Asia's developed and developing economies. Economic activity will decline during 2023 due to the continuing effects of energy price shocks on the world economy.
Top Market Trends
1. Continuous Cycle of Research and Development: There is constant scope for continuous R&D as various market innovations are appreciated. This indicates that many more variations of plant-based leather could be expected during the forecast period. For instance, in April 2021, Natural Fiber Wielding and Richemont announced that they were entering a technological collaboration to help both businesses continue improving sustainability and material science.
2. Scope for Green Entrepreneurship: Rising awareness regarding animal cruelty is catching the interest of many entrepreneurs who are taking the opportunity to bring change. Consumers are also getting interested in the concept of Vegan Leather. Studies have indicated a rising number of startups entering the market space. The current generation of startups are utilizing various raw materials such as cork, coconut, mycelium, fruit-based, cactus, and hemp to produce a wide range of Vegan Leather products. For instance, Ananas Anam Ltd., a Vegan Leather company announced that they were shifting towards a leather-like materials from the fibres of pineapple leaves, which will be a by-product of pineapple harvest.
3. Booming E-Commerce Product: The global e-commerce sector is multiplying significantly. Factors such as rising income, changing living standard among the general population, and increased internet penetration is expected to contribute to the e-commerce industry. Increased consumer awareness and demand for Vegan Leather products will attest to the e-commerce sector, fuelling the market's growth.
4. Harmful Effects on the Environment: Studies indicate that genuine leather production can pollute nearby soil, air, and water bodies. According to the European Commission, the European footwear sector manufactures about 1,000 million pairs of footwear, with leather accounting for nearly 70% of the material. This is leading to widening consumer awareness that will contribute to the growth of the global Vegan Leather market.
The global Vegan Leather market can be categorized on the following: Product, End-Users, Industry Verticals, Sales Channel and Regions. Based on product, the market can be categorized into footwear, bags, clothes, and others. By end-users, the market can be segmented across men, women, and kids. By industry vertical, the market can be fragmented across fashion industry, automotive industry, furniture industry, and others. By sales channel, the market can be split between online retail and offline retail. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Below tree is interactive. You can click the nodes to get more information.
Based on Product
Footwear to Dominate Sales Owing to Rising Inclination for Sustainable Products
The footwear segment will dominate the global Vegan Leather market during the forecast period in terms of sales and revenue. Factors such as the rising inclination of consumers towards replacing genuine leather in handbags, briefcases, car furnishing, and clothing are tempting consumers to widen their awareness, fuelling the growth of the segment. Additionally, factors such as rising income levels among the general population, especially in emerging nations combined with varying climatic conditions, are expected to increase the footprint of the footwear segment further. Footwear includes shoe uppers, shoe lining, sales for sports shoes, formal shoes, flip flops, soccer shoes, sandals, and boots. These shoes are extremely cost-effective and environmentally friendly. Bags will account for the fastest growing CAGR during the forecast period owing to higher water resistance.
Based on End-Users
Men to Account for Largest Market Share While Women to Grow with the Fastest Growing CAGR
Men are expected to account for the largest market share during the forecast period. Factors such as an increasing working population combined with a broader product availability is expected to widen the segmental growth. Products such as vegan bags, footwear, clothes in the form of jackets, and other accessories are prompting higher sales. Additionally, rising awareness among the general population regarding the cost-effectiveness of Vegan Leather compared to genuine leather pushes for incremental growth. The segment of women will grow with the fastest growing CAGR during the forecast period owing to widening product availability in the form of handbags and other accessories.
Based on Industry Vertical
Fashion Industry to Fuel Highest Segmental Growth Owing to Price
The fashion industry is expected to dominate the global Vegan Leather market during the forecast period in terms of sales and revenue. Studies have indicated that the price of faux leather products is less than three times that the ones made from real leather. Additionally, an ongoing trend of athletics incorporating athletic shoes within their daily lifestyles combined with a wider product availability is expected further to increase the revenue stream for the global Vegan Leather market. The fashion industry comprises a wide range of products, including shoes, wallets, handbags, purses, and others, expected to widen the segmental growth towards an incremental stage. The furniture industry is expected to grow with the fastest growing CAGR during the forecast period owing to a wide range of Vegan Leather materials that provide numerous colours, textures, and fabrics.
Based on Sales Channel
Offline Retail to Grow Towards a Dominant State Owing to Qualitative Product Selection
The offline retail will account for most of the global Vegan Leather market. Consumers can shop around for these products at supermarkets, specialty stores, retail stores, and flea markets by viewing the products in person. This gives the consumer a chance to appreciate the make and texture of the product. Additionally, personalized help from employees and attractive offers will drive segmental growth during the forecast period. Online retail is expected to grow with the fastest growing CAGR during the forecast period owing to increased internet presence combined with various connectivity options in rural areas. Additionally, manufacturers focus on D2C opportunities due to larger profit margins, adding to the segmental value.
Based on Region
Asia Pacific to Dominate Global Market Owing to Rising Population and Widening Income
The global Vegan Leather market is expected to be dominated by the region of Asia Pacific in terms of growth and revenue. Factors such as a widened consumer pool, rising disposable income among the general population, and the presence of many prominent manufacturers will add to the regional growth during the forecast period. Additionally, China is said to be one of the largest countries in production and consumption. A booming e-commerce industry is expected to contribute in terms of sales. Rising demand for products owing to increased consumer awareness combined with widened utilization of Vegan Leather in the automotive industry is likely to add to the Asia Pacific Vegan Leather market.
The North American region will grow with the fastest growing CAGR during the forecast period owing to the presence of a large fashion industry combined with rising concerns from animal rights organizations such as PETA and WWF about the usage of premium leather products. Additionally, a flourishing automobile sector in the region is expected to increase the footprint of the North American area.
The global Vegan Leather market is expected to be fragmented due to the presence of numerous players. Additionally, legacy players in manufacturing luxury leather products are inclining toward the vegan luxury market due to increasing consumer awareness. This is expected to widen the competitive landscape of the global Vegan Leather market. Players focus on lean manufacturing and various research and development practices to integrate various end-use industries.
The key players in the global Vegan Leather market include - Adriano Di Marti (U.S.), Kuraray Co. Ltd. (Japan), H.R. Polycoats Pvt. Ltd. (India), Yantai Wanhua Group Co. Ltd. (China), Alfatex Italia (Italy), BASF SE (Germany), Dupont (U.S.), Willow Tex (U.S.), Ultrafabrics (U.S.), Anli Group (China) among others.
Recent Market Developments:
· March 2022: Polybion, a biotechnology startup based in Mexico, announced that they were introducing a new Vegan Leather called Celium, which will be developed from agro-industrial food waste. The bio-textile is sustainably sourced and developed as an alternative to a traditional product. Furthermore, this material can be sourced for sportswear, fashion, and automotive applications.
· November 2021: Melina Bucher, a German luxury handbag brand, announced that they were collaborating with a biotech startup to develop bio-based plastic-free Vegan Leather. This collaboration is expected to bore the introduction of various accessories that will be sourced from bio-based materials. This collaboration has occurred due to growing consumer demand for sustainable products.
Segmentation of the Global Vegan Leather Market
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
What is the global demand for Vegan Leather in terms of revenue?
The global Vegan Leather valued at USD 39.5 Billion in 2022 and is expected to reach USD 74.5 Billion in 2030 growing at a CAGR of 9.5%.
Which are the prominent players in the market?
The prominent players in the market are Adriano Di Marti (U.S.), Kuraray Co. Ltd. (Japan), H.R. Polycoats Pvt. Ltd. (India), Yantai Wanhua Group Co. Ltd. (China), Alfatex Italia (Italy), BASF SE (Germany), Dupont (U.S.), Willow Tex (U.S.), Ultrafabrics (U.S.), Anli Group (China).
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 9.5% between 2023 and 2030.
What are the driving factors fueling the growth of the market.
The driving factors of the Vegan Leather include
- Growing demand from the footwear sector
Which region accounted for the largest share in the market?
North America was the leading regional segment of the Vegan Leather in 2022.