Leather Coatings Market Size (2024 – 2030)

The global leather coatings market was valued at USD 1.21 billion and is projected to reach a market size of USD 1.75 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 5.38%. 

The act of adding a protective layer or treatment to leather surfaces to improve their usefulness, longevity, and look is known as leather coating. To protect against stains, moisture, wear and tear, and other environmental variables, coatings are applied to a variety of leather items, including footwear, clothing, accessories, and upholstery for automobiles.

Emollients and conditioning ingredients found in leather coatings help to maintain the brand-new appearance of the interior. The protective coating shields the car's inside leather against water damage, filth, and grime. In the past, these coatings were primarily used in the automotive and furniture industries. They were used due to their appealing properties and aesthetic looks. Presently, the market has seen steady growth owing to advancements and consumer preferences. Additionally, economic growth has played a major role in delving into diverse applications. In the future, with a growing focus on sustainability and customized coatings, the market is anticipated to show a significant expansion.

Key Market Insights:

By 2030, the size of the worldwide market for leather products is expected to have grown from its 2022 valuation of US $440.64 billion to US $738.61 billion.

Plant-based leather was estimated to be worth US $68 million globally in 2022, and it is expected to grow to US$97 million by 2027.

By 2025, it is anticipated that the Netherlands' earnings from the tanning and dressing of leather, the production of handbags, luggage, saddlery, and harness, as well as the dressing and dyeing of fur, would total around 408.13 million US dollars.

23 billion square feet of leather, valued at around $45 billion, are produced annually by the worldwide leather business. Approximately 3 billion square feet of leather are produced in India each year, accounting for 13% of global output.

Leather tanning produces a lot of trash and contaminates waterways. According to research backed by the European Commission, tanning one kilogram of leather can result in the consumption of up to 2.5 kg of chemicals, 250 liters of water, and 6.1 kg of solid waste. To tackle this, organizations are promoting the use of eco-friendly synthetic tanning chemicals, vegetable tanning, and chrome-free tanning as cleaner, more sustainable tanning methods. These techniques minimize water contamination and cut back on the use of dangerous chemicals.

Leather Coating Market Drivers:

Growing demand for leather is fueling the growth.

Leather has been used for several decades in various industries like automotive, furniture, footwear, fashion, and others. This material is known for its durability. It can last for many years because of its strength. Secondly, this material is extremely comfortable. Thirdly, it has good insulation and water resistance. This means that it can prevent heat loss and hold large amounts of water vapor. Moreover, it can be shaped and molded easily due to its flexibility. It has a natural texture that gives it a unique look and feel. Besides all these properties, the leather industry provided jobs for many. Over 4 million people are employed in the leather business, which is primarily composed of people from the lower segments of society. In the leather products business, women make up around 40% of the workforce. Owing to all these advantages, a lot of people prefer materials made from this product. This consumer preference acts as a major driver in boosting the market.

Technological advancements are accelerating the growth rate.

Innovative materials have been introduced to the market. These materials have advanced formulations and properties that include characteristics like scratch and abrasion resistance, flexibility, eco-friendliness, etc. Research and developmental activities are continuously being prioritized to meet stringent requirements. The quantity of chromium in leather is being reduced, and alternatives like sodium hydrosulfite are being used. This method creates softer leather while lessening the impact of leather manufacturing on the environment. New chemicals and tanning agents are being researched to reduce the environmental impact. Besides this, white leather is being given utmost prominence. This is a sustainable substitute for chromium tanning techniques that have decreased chromium pollution in the leather industry.

Leather Coatings Market Restraints and Challenges:

Environmental and health impacts, price volatility, and intense competition are the main issues that the market is currently facing.

Aquatic life may be harmed, and water supplies may be contaminated by the chemicals used in the tanning process. Water is used extensively in the leather purification process, resulting in 20,000–80,000 L of effluent for every tonne of raw skin material. Salts, heavy metals, and other contaminants frequently contaminate wastewater. Air pollution can result from the trash and toxic substances produced during the tanning process. Chromium (III), which may oxidize to create chromium (VI), a recognized poison and carcinogen, is one substance that is frequently employed as a tanning agent. Large tracts of forest are cleared by the industry for cattle, which fuels climate change. Rare animal species that depend on trees may potentially be in danger due to deforestation. Solid waste and toxic wastewater discharge are also produced by leather tanneries. Besides this, the leather industry generates significant amounts of carbon, contributing to greenhouse gas emissions. Secondly, many studies have shown the adverse impacts of leather on human health. People who are constantly exposed to this material have a higher possibility of developing respiratory and skin diseases. Germs, molds, yeasts, and illnesses including anthrax, leptospirosis, tetanus, Q fever, and brucellosis can infect raw hides and skins, due to which human health is impacted. Furthermore, this market is subjected to a lot of cost variations of raw materials, solvents, dyes, additives, etc. This can cause losses and demotivate smaller firms. Apart from this, a lot of people are against this material due to its impact on animals and the environment. As such, they go for other alternate or synthetic materials. Besides, the other materials have lower costs, making them an ideal option. It is necessary to address these concerns for the market to develop.

Leather Coatings Market Opportunities:

Nanotechnology is an emerging field that greatly benefits this market. Nanoparticles are being used to create a protective layer around these coatings. This helps to increase the water resistance and durability of leather. As such, the material becomes more robust to wear and tear. Secondly, digital printing is being emphasized. This helps in making accurate and precise designs, reducing the need for water and chemicals. The whole process becomes sustainable to a certain extent by incorporating this technique. Water-based finishing methods are prioritized to eliminate the use of solvent-based chemicals that are harmful to human health and our environment. Bio-based coatings are being emphasized. Furthermore, faster tanning methods, reduction of chemicals, and alternatives to harmful compounds are being researched to promote sustainability. Apart from this, the market has started to embrace the changes in consumer preferences. Therefore, the hides and skins of animals that have died of natural causes are being taken by a few prominent companies. This initiative can help with increasing revenue since the animals are not tortured or stressed for their product.

LEATHER COATINGS MARKET REPORT COVERAGE:

Leather Coatings Market Segmentation: By Type

• Solvent-borne

• Wate-borne

• UV

Based on type, water-borne coatings are the largest and fastest-growing segment. The technique for producing leather involves the use of water-borne polyurethanes. They have the characteristics of solvent-based systems and are non-toxic and stable. Because they require water during manufacture, they are also eco-friendly. Water-borne coatings have minimal levels of flammability and toxicity. Since they release fewer odors and VOCs into the atmosphere, they are also less flammable. Besides this, waterborne synthetic leather mimics the look, color, texture, and feel of genuine leather while maintaining a smooth texture and excellent appearance. These properties make them an ideal choice for creating an upsurge.

Leather Coatings Market Segmentation: By Application

• Artificial Leather

• Genuine Leather

Based on application, genuine leather is the largest growing category. Real leather, whether it comes from sheep, cows, lamps, etc., is genuine leather. Because of its strength, quality, and opulent appeal, genuine leather is frequently utilized in a variety of industries, including the automobile, furniture, fashion, and footwear sectors. Genuine leather goods are given coatings to improve their performance, appearance, and resistance to moisture, abrasion, and other environmental elements. Artificial leather is the fastest-growing segment. Technological developments in synthetic materials, the rising need for less expensive substitutes for real leather, and the public's increased consciousness of sustainability and animal welfare concerns are some of the elements driving this expansion. Artificial leather goods may be used in a variety of sectors, including upholstery, fashion accessories, and automobile parts. Coatings are used to enhance their look, performance, and longevity.

Leather Coatings Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, Europe is the largest growing market. The Netherlands, Germany, and the United Kingdom are the notable ones. This region has the most well-established players that have a global presence. Stahl Holdings BV, Sika AG, Covestro AG, and Lanxess AG are some of the major players. Leather coatings are of great value on this continent. This is because of the rapid growth of the fashion industry. Leather boots are one of the most popular shoe choices in European countries. They help provide warmth in the cold weather. As such, leather coatings are primarily used in the fashion industry. Additionally, the automotive and furniture industry uses these coatings for dashboards, steering wheels, couches, chairs, bean bags, etc. Asia-Pacific is the fastest-growing region. Countries like China, India, Pakistan, and Bangladesh are at the top. These countries are important hubs for leather manufacturing. To support this, there are many significant companies. A few prominent ones include Tanatex Chemicals B.V., Chemtan Company, Tannin Corporation, and Stahl Holdings B.V. This growth is also fueled by economic progress. Urbanization has led to a rising middle class and an increasing disposable income. People are on the lookout for premium products. They are in a position to afford these luxuries. These factors have been elevating the demand for leather coatings in this region.

COVID-19 Impact Analysis on the Global Leather Coatings Market:

The outbreak of the virus severely affected the market. The new norm was social isolation, movement restrictions, and lockdowns. This caused disruptions in the supply chain, transportation, and other logistics. Import-export activities suffered as a result. As per a report by The Hindu, a 10.89% decline in leather exports was caused by the COVID-19 pandemic. All manufacturing units and companies had to shut down to prevent the spread of the virus. This halted the production and other operations. A lot of industries have started layoffs due to economic uncertainty. Many people lost their jobs. Most of the money was spent only on basic and necessary utilities. All funding was diverted towards healthcare applications that included vaccines, hospital beds, oxygen tanks, masks, PPE kits, etc. This caused delays in collaborations and launches. Besides, the pandemic played a crucial role in highlighting the importance of sustainable living. People became more aware of the cruelties faced by the animal industry. Post-pandemic, the market has begun to pick up. The market has adapted to sustainable practices. The upliftment of guidelines and relaxation of rules have resumed normal function.

Latest Trends/ Developments:

Companies in this industry are motivated to increase their market share by using a range of strategies, including acquisitions, joint ventures, and investments. Businesses are spending a lot of money to develop techniques to retain competitive pricing. Further growth has resulted from this.

Customized leather coatings are becoming more popular as a result of consumers' growing need for individualized and customizable leather goods. To satisfy a wide range of consumer tastes and target specific markets, manufacturers are providing coatings in a variety of colors, finishes, and textures.

Key Players:

1. BASF SE

2. Covestro AG

3. Stahl Holdings BV

4. DSM Coating Resins

5. Dow Inc.

6. Lanxess AG

7. Arkema S.A.

8. Huntsman Corporation

9. Evonik Industries AG

10. Lubrizol Corporation

• In March 2024, Garmon revealed a range of new glossy coating options for denim and colored clothing that mimic the look of old leather. Every coating has unique qualities that enhance the durability and appearance of clothing. Legafinish Silvery is a resin that is self-polished and provides a smooth, cozy leather look. With continued usage, the coating's inherent brightness changes to silvery hues. The coating gets brighter the longer the clothing is worn.

• In October 2023, with an emphasis on sustainable solutions, Trumpler, a leader in leather chemicals, partnered with Archroma, a global leader in specialty chemicals, to offer a novel leather production process that can be used to produce high-performance leather in a more economical and environmentally friendly manner.

• In December 2022, Toyoda Gosei Co., Ltd. announced that it was creating a steering wheel made to look like real leather. The steering wheel, according to the manufacturer, is intended for customers who like leather-free goods made without using genuine animal leather.