Chemical reaction31 January 2019
According to a new study by Global Market Insights, the leather chemicals market will surpass $10 billion by 2024.
The leather chemicals market is set to grow from its current market value of more than $6 billion to over $10 billion by 2024, as reported in the latest study by Global Market Insights.
Improving consumer lifestyle dynamics and spending patterns have been stimulating the leather chemicals market size due to its widespread applications in products such as belts, jackets and shoes.
Increasing construction spending, particularly in the BRIC countries, will be integral to help achieve these numbers by 2024. Leather chemical usage is prominent in the construction business owing to superior leather quality demand in light of its fine finish, smoothness and gloss. In addition, leather is an essential element used in personal protective equipment (PPE) including gloves and shoes. Thus, elevating PPE demand across the globe due to government initiatives – in order to ensure worker safety – will complement the overall leather chemicals market size by 2024.
Despite this positive growth, polluting chemicals in the form of waste water, sludge, unused chemicals, leached proteins and skin by-products, as well as high levels of capital involved in leather processing across different stages – tanning, crusting and surface coating – and in less-regulated regions across the globe may be an obstruction to the growth rate and overall size by this target year.
The finishing market size will experience growth of more than 5% over the forecast time frame. It plays a crucial role in the industry by enhancing the features (smoothness, durability, weather resistance, and wear and tear resistance) of leather products.
The global leather chemicals market share for footwear accounted for more than half of the industry volume in 2016. Escalating global footwear sales, primarily due to upgraded consumer lifestyles, along with increasing customer spending power over the past few years, is considered to be the major factor propelling business growth. The leather chemical market size for automotive will experience close to 5% growth by 2024, which will largely be a result of rising leather demand for interiors (dashboard, seat covers, for example) in personal cars.
Also in 2016, the North America leather chemical market size was more than $1 billion. Regional growth was mainly due to favourable regulations governing PPE use in manufacturing industries. Furthermore, the massive customer base for leather shoes and gloves in the region will complement business growth by 2024.
In the same year, the Asia-Pacific market share accounted for a major chunk of the industry. This massive regional industry size is mainly due to robust leather production in China and India.
Taking all of this into account, the global leather chemicals market size was competitive in 2016, with the major industry competitors having presence across multiple stages of the industry ecosystem and involved in strategic mergers and acquisitions in order to achieve competitive edge in the business.