Global Leather Chemicals Market Size, Share, and COVID-19 Impact Analysis, By Type (Tanning & Dyeing, Beam House, Finishing), By End User (Footwear, Furniture, Automotive, Textile & Others), and by Region (North America, Europe, Asia-Pacific, South America, Middle East and Africa) Analysis and Forecast 2022-2028

KEY MARKET INSIGHTS

The leather chemicals market was valued at US$ 8.3 Bn in 2021 and is projected to reach US$ 12.4 Bn by 2028, at a CAGR of 6.1%. Bronzing and dyeing chemicals, beam house chemicals, and finishing chemicals are the three types of leather chemicals that are commonly used. Tanning chemicals are used to convert raw hide to leather. Vegetable tannin, mineral salts, and animal oil are examples of common tanning chemicals. Vegetable tanned leather, synthetic tanned leather, alum tanned leather, aldehyde tanned leather, and chromium tanned leather are the different types of processing chemicals produced for tanning.

One of the primary reasons driving market expansion is rising leather consumption in the footwear, apparel, and automotive industries. The chemicals are classified as pre-tanning, tanning, and finishing chemicals and are used at various phases of leather production. Chromium sulphates, PU resins, surfactants, and biocides are among the most commonly utilised compounds. The demand for these chemicals is expected to rise as people seek to improve the texture, color, and aesthetic value of leather. However, some negative elements of these compounds' use, such as excessive water consumption, toxicity, and waste emissions such as heavy metals and phthalates, may constitute a severe environmental hazard.

COVID-19 ANALYSIS

COVID-19 has had a detrimental influence on the worldwide leather chemicals market due to a decrease in leather manufacturing, logistical service disruptions, and delayed shipments. The global leather chemicals market is negatively impacted with the outbreak of COVID-19. The outbreak's consequences and impact are expected to intensify in the coming months as the virus spreads. Several governments of few countries are considering national-level lockdowns as a viable means of controlling viral transmission. The outbreak of Covid-19 has forced governments around the world to deploy severe rules such as lockdown, temporary shutdown, social distancing, caused disruption in production of raw materials and in turn increased costing of raw materials. Shipments of raw materials, as well as revenue produced have fallen. Furthermore, insufficient raw material supply will limit the rate of leather chemicals, influencing the management of the leather chemicals supply chain. The Airports Council International (ACI) has cautioned that the COVID-19 outbreak's protracted length will have a substantial impact on the region's airport connectivity and economic sustainability, limiting the region's ability to achieve previously estimated growth possibilities. This chain of occurrences is expected to have a negative influence on the growth of the leather chemicals market in the future years.

LATEST TREND

Growing Usage in Electrical Vehicles & Shared Mobility

The growing usage in automotive industry including seats and panels are trending nowadays of the global leather chemicals market. Leather quality and chemical control are held to exceedingly high standards in the car industry. Chemical impact on materials, both in contact and in emission, has prompted a search for alternatives. With the introduction of electric vehicles and shared mobility, the need for more durable and environmentally friendly interiors is shifting. It encourages the research and development of leather chemicals and fuel the expansion of the global leather chemicals market during the forecast period.

DRIVING FACTORS

Increasing Demand for Leather Products in the Textile Industry

The leather chemicals market is developing due to rising demand for leather goods in the fashion industry. Because leather is becoming more popular as a luxury item, demand for leather purses, jackets, and shoes has increased dramatically. Furthermore, the growing popularity of sporting activities is driving up demand for leather goods such as balls, gloves, and protective gear. The automotive industry uses leather extensively for seat coverings and other applications, therefore the rise of the automotive industry is also helping to expand the leather chemicals market.

RESTRAINTS

Concerns Pertaining to Harmful Environmental Impact of Leather Chemicals

Concerns pertaining to the adverse environmental impact of leather chemicals is hampering the global leather chemicals market during the forecast period. The leather industry is one of the most polluting, releasing effluent that contains toxic substances including lead, sulphur, and chromium. Furthermore, the leather business consumes a lot of water, making it an unsustainable business. During the forecast period, factors such as rising operational expenses and tight environmental governing tactics are expected to stifle the leather chemicals market.

SEGMENTATION

The global leather chemicals market is segmented by Type (Tanning & Dyeing, Beam House, Finishing), by End User (Footwear, Furniture, Automotive, Textile & Others) and region. Based on the type, the market is categorized into Tanning & Dyeing, Beam House, D connectors. Based on end user, the market is categorized into Footwear, Furniture, Automotive, Textile & Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.

TYPE INSIGHTS

Based on the type segment, the global leather chemicals market is categorized into tanning & dyeing, beam house and finishing. The tanning & dyeing segment accounted largest market share in 2020 due to dyeing and tanyard operations are the most important stages in the leather-making process, it uses more chemicals for processes spanning from tanning to post-tanning. Over the forecast period, the aforementioned factors are likely to drive demand for tanning and coloring chemicals. Trivalent chromium and vegetable tannins are the most widely utilized compounds in the tanning process.

The beamhouse is anticipated to emerge as the fastest-growing region over the forecast period. Due to the usage of leather chemicals for everything from hide and skin preparation to preservation. Hide trimming, soaking, fleshing, and unhairing are all part of the beamhouse processing. Biocides, surfactants, degreasers, lime, sodium sulphide, formic acid, sulfuric acid, and enzymes are among the chemicals utilised in these processes.

END USER INSIGHTS

Based on the end user segment, the global leather chemicals market is categorized into footwear, furniture, automotive, textile & others. The footwear segment accounted largest market share in 2020 due to the leather is one of the most extensively utilized components in the footwear business, as a result of which the product's consumption is significant. Finishing chemicals are widely used in the footwear industry to improve the product's visual appearance. In the long run, rising demand for luxury footwear will undoubtedly drive up need for finishing chemicals.

REGIONAL INSIGHTS

The global leather chemicals market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. Asia Pacific is expected to dominate the market share of global leather chemicals market owing to uninterrupted raw material supply and low-cost labour are two of the most important factors driving market expansion in this area. Increasing disposable income in developing countries like China and India, combined with increased desire for luxury items, has fueled leather demand in a variety of end-use industries, resulting in increased product consumption in the aforementioned countries. Furthermore, companies like TFL Ledertechnik GmbH and Seaton Chemicals Ltd. have a strong presence in the region and can effectively address any demand-supply imbalances. According to IBEF, India is predicted to become a global leader in the automotive industry by 2030, opening up potential for electric and commercial vehicles. The increase in demand is attributed to a rise in middle-class income and an increase in the number of young people. Europe is anticipated to emerge as the fastest-growing region over the forecast period. Governments in the region are emphasizing on bio-based, low-cost, and long-lasting products. As a result, the region's demand for sustainably derived and bio-based leather chemicals is predicted to grow. The tanning business in Europe is heavily reliant on raw resources and export. In the future years, rising demand for leather chemicals in the manufacturing of footwear, furniture, automobile interiors, and apparel is likely to drive market expansion.

KEY INDUSTRY

• Bayer AG
• TFL Ledertechnik GmbH
• Elmentis Plc
• Stahl International B.V.
• Texapel
• Pidilite Industries Limited
• Chemtan Company, Inc.
• Lawrence Industries Limited
• Zschimmer & Schwarz Chemie GmbH
• Arkema S.A.
• Clariant AG
• EASTMAN CHEMICAL COMPANY
• Evonik Industries AG
• Indofil Industries Limited
• Saudi Basic Industries Corporation (SABIC)
• Solvay
• Others

KEY INDUSTRY DEVELOPMENTS:

June 2021- LANXESS sold their organic leather chemicals to TFL Ledertechnik GmbH, another leading global supplier of specialty chemicals.

SEGMENTATION

By Type

• Tanning & Dyeing
• Beam House
• Finishing

By End User

• Footwear
• Furniture
• Automotive
• Textile
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia