Market Insights & Analysis: GCC Synthetic Leather Market (2023-28)
The GCC Synthetic Leather Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2023-28. The growth of the market owes primarily to the burgeoning demand for synthetic leather across various end-use industries, such as footwear, automotive, furnishing, etc., due to high costs of natural leather. Besides, stringent government regulations and rising consumer awareness regarding 'no animal killing' are further augmenting the demand for synthetic leather, i.e., more advantageous than pure leather owing to its high durability and resistance to stain & weather conditions.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR(2023-28) | 4% |
| Countries Covered | Saudi Arabia, Qatar, The UAE, Kuwait, Oman, Bahrain |
| Key Companies Profiled | Kuraray Co., Ltd., H.R. Polycoats Pvt. Ltd., Nan Ya Plastics Corporation, Teijin Limited, Yantai Wanhua Synthetic Leather Group Co., Ltd., Alfatex Italia SRL, San Fang Chemical Industry Co. Ltd, Filwel Co. Ltd, Mayur Uniquoters Limited, Zhejiang Hexin Industry Group Co., Ltd. |
| Unit Denominations | USD Million/Billion |
Synthetic leather is a human-made fabric made using artificial materials like polyurethane & polyvinyl chloride and processed & dyed to look exactly like original leather. In 2020, the advent of the Covid-19 pandemic adversely impacted the industry owing to lockdown imposition and stringent prevention measures imposed by governments, which, in turn, hampered the sales of synthetic leather owing to a sudden halt in manufacturing activities. However, the industry gained momentum with a gradual reduction in Covid-19 cases and the upliftment of restrictions.
Several companies across the GCC region are following a trend of adopting sustainable materials & are actively working on developing products with less plastic & more plants, where plant-based leather is gaining traction, i.e., made from pineapple, cactus, apple skins, grape, & cork, and promises to be a more sustainable choice. It is cruelty-free, has a low environmental impact, and aids in reducing plastic usage. Hence, several brands are massively investing in plant-based leather, which, in turn, would contribute in enhancing the GCC Synthetic Leather Market size during 2023-28
Market Dynamics
Key Driver: Ever-increasing Use of Synthetic Leather in Furniture Upholstery Applications
The surging use of Polyurethane (PU) and polyvinyl chloride (PVC)-based synthetic leather in furniture & domestic upholstery is primarily due to properties offered by them like high dispersion ability & matting efficiency. Moreover, the rising demand for attractive furniture, mounting disposable income, and living standards have also increased the demand for synthetic leather in the past few years. Hence, these aspects are likely to drive the GCC Synthetic Leather Market during 2023-28.
Growth Restraint: High Level of Maintenance Required for Prolonged Lifespan
Prolonged exposure to heat & moisture rapidly degrades the quality of synthetic leather, owing to which it gets chemically treated to attain resistance to sunlight, scratches, and fire. Consequently, its lifespan becomes shorter than traditional leather. Though it is available at affordable prices, it requires a high level of care & maintenance to be protected from direct sun rays in order to extend its lifespan. Hence, commercial end-users tend to refrain from opting for these products, i.e., the prime aspect projected to hamper the product sales and hinder the growth of the GCC Synthetic Leather Market during 2023-28.
Market Segmentation
Based on Type:
Of them all, polyurethane acquired the largest share of the GCC Synthetic Leather Market in the previous few years. It owes to its superior quality, high yield, & assortment. Polyurethane-based synthetic leather is waterproof, softer, and lighter than original leather. It also remains unaffected by the sunlight, thereby augmenting the demand for Polyurethane-Based Synthetic Leather in the coming years.
Based on Application:
Here, the footwear sector dominated the GCC synthetic leather market in the previous few years owing to its high durability. The surging demand for aesthetic footwear due to rising income levels and economic growth has fueled the need for synthetic leather-based footwear. Moreover, it is used widely for manufacturing sports shoes due to its cost-effectiveness. Its wide usage is primarily because synthetic leather-based shoes look like those made from pure leather and offer various other additional benefits like resistance to water & climatic conditions.
Country Landscape
Of all countries in GCC, the UAE is likely to be the fastest-growing Synthetic Leather Market owing to the high demand for premium leather products in the country. The increasing establishments of manufacturing & processing sectors of synthetic leather are making the UAE a hub for product exports. In addition, the rising population levels, coupled with technological advancements in synthetic leather-based products, are further projected to drive the market in the coming years. Moreover, the booming automotive & footwear industries and the growing inclination of customers toward low-priced luxury & aesthetic products are other prominent factors projected to accelerate the demand for synthetic leather in the UAE over the forecast years.
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Frequently Asked Questions
A. The GCC Synthetic Leather Market is projected to grow at 4% CAGR during 2023-28.
A. High costs of natural leather and the burgeoning use of synthetic leather in furniture upholstery applications are the prime factors projected to drive the GCC Synthetic Leather Market during 2023-28.
A. Kuraray Co., Ltd., H.R. Polycoats Pvt. Ltd., Nan Ya Plastics Corporation, Teijin Limited, Yantai Wanhua Synthetic Leather Group Co., Ltd., Alfatex Italia SRL, San Fang Chemical Industry Co. Ltd, Filwel Co. Ltd, Mayur Uniquoters Limited, Zhejiang Hexin Industry Group Co., Ltd. are the key companies participating in the GCC Synthetic Leather Market.
A. The footwear application is projected to provide profitable opportunities to the GCC Synthetic Leather Market during 2023-28.
