Leather Chemicals Market Size Forecast to Reach Us$8.7 Billion by 2026

Leather Chemicals Market size is forecast to reach US$8.7 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. Leather chemicals are used for processing leather. These chemicals are used at different stages of leather processing such as cleaning, beam house, tanning and finishing, dyeing, and others. These chemicals help to enhance the water resistance, appearance, flexibility, or heat resistance of leather. The wet-end leather process includes beam house and tanning processes. Chromium sulfate is one of the commonly used leather chemicals during the tanning process. The increasing consumption of leather among various end-use industries such as footwear, apparel, automotive, and others is driving the market growth during the forecast period. The changing lifestyle and growing spending levels of consumers in developing nations are the supporting factors driving the market growth. Leather is used for manufacturing luxury products and interiors. The growing adoption of high-end upholstery leather in luxury cars and growing sales of luxury cars are positively impacting the market growth between 2021-2026. Leather chemicals act as fundamental modifiers for providing color, texture, smoothness, and pattern to the final leather products. However, growing environmental concerns and increasing operational costs of leather products are likely to hamper the market growth during the forecast period

COVID-19 Impact

The COVID-19 pandemic is impacting different industries; one of the few industries that were largely hit to some extent was the leather industry. The demand for apparel and fashion clothing is very low during the covid-19 crises. The temporary shutdown of leather manufacturing facilities has negatively impacted the leather chemicals market. The downfall in the production of leather production, disruption of logistical services, and lack of workforce impacted the market negatively during the covid-19 crises. Travel restrictions have reduced the supply of raw materials required for the manufacturing of leather, which, in turn, has affected negatively the market growth during the pandemic.

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Leather Chemicals Market Segment Analysis - By Form

The liquid leather chemicals segments accounted for approximately 60% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. Liquid leather chemicals are widely preferred by leather processing chemicals due to their high-performance properties compared to powder-based chemicals. Liquid-based chemicals are eco-friendly, dust-free and they are easy to handle. Liquid leather dyes are concentrated anionic dye solutions which are free from NMP (N-Methyl-Pyrolidone). Liquid form chemicals are easily soluble in both organic solvents and water and providing flexibility while dyeing leather and aqueous finishes. 

Leather Chemicals Market Segment Analysis – By Chemical Type

The chromium sulfate segment accounted for more than 8% of the market share in 2020 and is estimated to grow significantly during the forecast period. Chromium sulfate chemicals are used for tanning applications in the leather industry. Chromium sulfate enhances the softness and flexibility of leather products. Chromium tanned leather products contain 4 to 5% of chromium chemicals, which are tightly bound to the proteins. The majority of leather products such as shoes, bags, gloves are tanned with chromium sulfate. The biocides segment is expected to register a moderate growth rate during the forecast period. Biocides are commonly leather chemicals during storage and transport applications. Biocides protect leather and leather products from damage caused by bacteria and fungi.

Leather Chemicals Market Segment Analysis – By Application

The tanning & dyeing segment accounted for more than 20% of the market share in 2020 and is estimated to grow significantly during the forecast period. The tanning process is involved in treating the skins and hides of animals to produce leather. Tanning processing is used to turn animal hides into durable, supple, and high-quality cuts of leather. The tanning process helps to protect animal skin from decomposition. Oak pit tanning, vegetable tanning, and chrome tanning are the commonly used tanning methods in the leather processing industry. The growing production of footwear and leather products in emerging economies are driving the market for tanning & dyeing application during the forecast period. The most commonly used chemicals in the tanning process include chromium and vegetable tannins. The beam house segment holds the second position in the application segment in terms of share. The beam house processing involved hiding trimming, soaking, fleshing, and unhairing operations. Biocides, surfactants, degreasers, lime, enzymes, and others are the commonly used chemicals in beam house application.

Leather Chemicals Market Segment Analysis – By End-use Industry

The footwear segment accounted for more than 40% of the market share in 2020 and is estimated to grow significantly during the forecast period. The growing population along with the increasing consumer spending on personal needs are boosting the market for the footwear industry. Leather is one of the majorly used raw materials for manufacturing different types of footwear such as shoes, loafers, boots, sandals, and others. Finishing chemicals are widely used leather chemicals in the footwear industry for improving the aesthetic view. According to the data published by Statista, China is leading the global footwear industry in 2019 and the country manufactured more than 13.5 billion pairs of shoes.

Leather Chemicals Market Segment Analysis - By Geography

Asia Pacific region held the largest share in the leather chemicals market in 2020 up to 40%, owing to the presence of multiple leather processing units and tanneries in the region. The presence of developing nations such as China and India is driving the market growth in the region. The rapid growth in population, growing number of working individuals, and growth in income levels are some of the major factors driving the regional market. Abundant raw material sources and availability of workforce also supporting the regional demand. India is one of the major manufacturers of leather globally. The country produces about 3 billion sq. ft. of leather every year. The growing footwear industry in the region is driving market growth during 2021-2026. India accounts for approximately 11% of the world’s footwear production in 2019. These are some of the major supporting factors propelling the market growth in the Asia Pacific region. The European region is expected to hold a significant market share in the global market during the forecast period. The presence of leading lather chemical manufacturers including, Bayer AG, BASF, Laxness AG, Stahl International BV, and others are boosting the regional growth.

Leather Chemicals Market Drivers:

Growing demand from the footwear industry

The footwear sector is the major end-user of the leather industry. China and India are the top two footwear manufacturers globally. According to the statistics published by World Footwear, world footwear production has increased by 21.2% from 2010 to 2019. They also mention that approximately 24.3 billion pairs of shoes have been produced globally in 2019. China accounted for 55% of global footwear production in 2019. India is the second-largest global producer of footwear after China, accounting for 11 % of global footwear production in 2019. According to the leather India organization, 95% of footwear manufactured in India is utilized for domestic demand. The growing population in India and China is one of the major factors driving the demand for footwear. The Asia and Pacific region accounted for 60 percent of the world’s population which is about 4.3 billion people. Based on the statistics published by the Domestic Footwear Center, the USA is home to 230 footwear and producing more than 25 million shoes every year. They also mention that the annual U.S. consumer spending on footwear generates US$76.9 Billion. 

Growing Garments & Fashion Industry

Leather is used for manufacturing different types of apparel, bags, belts, and other leather products. Leather garments are classy products of finished leather. Textile Industry is one of the most prominent sectors for any country. A major part of economic growth depends on the textile industry in both developed and developing nations. The USA textile industry occupies the fourth position in the world after China, India. U.S. textile and apparel shipments totaled US$64.4 billion in 2020. China is the largest leather-producing country in the world with over 6.2 billion sq ft of leather produced every year. According to the data published by Leather India Organization, India exported US$ 429.11 Million worth of leather garments during 2019-2020. The organization also mentioned that India exported US$1340.56 Million worth of leather products during 2019-2020. Based on the European Commission publication, the leather and related goods sector comprises 36,000 enterprises and generates a turnover of EUR 48 billion yearly. 

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Leather Chemicals Market Challenges:

Environmental issues

The leather industry is one of the prominent industry play a vital role in various end-use sectors. The processing of leather involved many steps and the usage of chemicals. The chemicals that are used for processing leather are not biodegradable and they are very harmful to the water and contaminates the local communities that are in contact with these chemicals. Based on the research paper, over 50 million animals are killed a year just for the leather and for the fashion industry. The workers who are working in the leather chemical industries are facing cancer-related issues. The tanning chemicals are known to be very polluting and contain toxic substances which may further impact the environment. Governments across the globe are implementing strict rules and regulations on leather chemicals and processing. These are some of the challenges likely to restrain the market growth during the forecast period.

Leather Chemicals Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Leather Chemicals market. Major players in the Leather Chemicals market are Bayer AG, A. Lanxess AG, TFL Ledertechnik Gmbh & Co.KG, Clariant AG, Solvay, Arkema SA, Eastman Chemical Company, Evonik Industries AG, Saudi Basic Industries Corporation, Stahl Holdings B.V., Elementis PLC, BASF, Stahl International BV, Indofil Industries, and others

Acquisitions/Technology Launches

In June 2021, Stahl launched its new product Stahl Ympact®, a family of leather chemical solutions made with renewable feedstocks. The products will help tanneries to reduce their environmental footprint. The product conation Zero Discharge of Hazardous Chemicals (ZDHC)’s and contain less than 1% volatile organic compounds.

In August 2020, TFL agreed to acquire the organic leather chemicals business of LANXESS. The company stated that the acquisition is expected to close by 2021. The combined TFL and LANXESS leather businesses will employ around 1,200 people worldwide and have a turnover of approximately €450 Million on a proforma basis

Key Takeaways

The Asia Pacific is expected to register the highest CAGR of 6.5% during the forecast period (2021-2026). Changing lifestyles, increasing consumer spending, emerging economies, and rapid population growth are the major factors driving the market growth. 

Leather processing is involved in several chemical reactions. The beam house process is the basic process. The chemicals used for the beam house process include cleaning chemicals and degreasing agents.

The manufacturers are involved in developing advanced chemicals for the leather industry. Leather processing industries are looking for high-quality and environmentally friendly processing chemicals.

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