Global Vegan Leather Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

Stringent environmental protection policies encourage market players to explore new sustainable materials to eliminate tannery wastewater, sludge, and other solid waste generated by the industry

The Global Vegan Leather Market is estimated to be USD 49.88 Bn in 2023 and is expected to reach USD 84.35 Bn by 2028 growing at a CAGR of 11.08%.

Vegan leather, also known as faux leather or synthetic leather, is a type of material that is designed to look and feel like real leather, but without using animal products. Many synthetic materials, such as polyurethane (PU), polyvinyl chloride (PVC), and others, can be used to create vegan leather. Moreover, organic materials like cork, pineapple leaves, and apple peels can be utilized to make vegan leather. Because of this, vegan leather is excellent for fashion and, in general, is simpler to deal with. Desserto is a type of vegan leather created from cactus leaves. At first, millions of animals were used to make leather, which had a tremendous impact on biodiversity. Moreover, it is non-biodegradable, which has harmed the ecology. In contrast, vegan leather is biodegradable and does not require water for growth. The use of cactus leather benefits the environment and preserves animals. Cactus leather has a shelf life of ten years and is produced without the use of any hazardous chemicals. In the fashion, furniture, leather products, and automobile industries, this leather is preferred. Also, creative businesses are emerging from nowhere to offer a brand-new leather-like substance.

So, the market is driven by increasing demand for vegan and cruelty-free products. The kids are being influenced by environmental issues including climate change, global warming, and the depletion of natural resources, which is changing their attitudes and behaviors. One such behavior shift is switching to a vegetarian diet. Young people, who are crucial in the fight against climate change, are calling for the substitution of animal-derived goods with plant-based alternatives that are ethical, sustainable, vegan, biodegradable, and environmentally friendly. The growing market is being driven by producers using vegan leather in place of traditional animal leather due to the rising demand for environmentally friendly items. Many chemicals are released during the manufacture of animal leather, causing significant health impacts and land, air, and water pollution. Vegan leather, which has similar textural features to traditional leather while using considerably less water and energy and leaving a significantly smaller carbon footprint, is becoming more and more popular with consumers and manufacturers across many industries. It produces less trash, doesn't utilize dangerous chemicals, and solely uses agricultural waste as a raw material. Due to growing public awareness of animal cruelty as well as growing ethical and environmental concerns, an increasing number of people are embracing a vegan lifestyle. Fashion houses are actively looking for a workable, non-animal leather substitute because of this shift in consumer preferences. This has thus raised the demand for vegan leather.

However, the market is restrained by a shorter lifespan as related to traditional leather, as prolonged exposure to heat and moisture degrades vegan leather at a more rapid pace. Vegan leather is chemically treated to make it resistant to sunlight, scrapes, and fire, but with time, wear and strain cause it to deteriorate and become weak. Vegan leather needs to be kept in excellent condition and must be shielded from the sun's rays to increase its longevity. Also, because vegan leather is not breathable, it can readily degrade in hot and humid settings. In comparison to regular leather, vegan leather is also more prone to tearing or punctures due to abuse or other factors. Traditional leather, in contrast to vegan leather, is known to last 20 to 30 years with adequate maintenance.

However, the market has an opportunity through ongoing R&D to introduce new bio-based leather products as a more sustainable and eco-friendlier alternative to traditional leather. The process of creating bio-based leather, also known as lab-grown leather or cultured leather, includes generating leather-like materials from animal cells in a lab. Using plant-based resources like mushrooms, pineapple leaves, and other agricultural waste items, research, and development are concentrated on creating bio-based leather. These materials can be processed to give them a leather-like texture and look without the typical animal leather's negative environmental effects or ethical issues. Furthermore, vegan leathers such as premium artificial leathers and those made from recycled polyesters are becoming more popular on the market because of growing worries over the environmental impact of the leather industry. However, the increasing use of vegan leather by significant automakers like Volkswagen, Mercedes-Benz, and Tesla will lead to fruitful opportunities for emerging players in the vegan leather industry.

• However, the market is challenged by quality concerns and consumer perception towards vegan leather. Customers are dubious about the durability, feel, and appearance of plant-based leather and wonder whether it can hold its own against genuine leather given that it is made from recycled agricultural waste. Some customers have complained that after prolonged usage, vegan leather products often peel or crack, or that the texture of the material can often feel artificial or plastic-like. The way that consumers view vegan leather also depends on their values and views. Customers may emphasize the perceived quality and luxury of real leather over sustainability and animal welfare.

Market Segmentations

• The Global Vegan Leather Market is segmented based on Product, Application, and Geography.
• By Product, the market is classified into Pineapple Leather, Cactus Leather, Mushroom Leather, Apple Leather, and Others.
• Mushroom leather holds the largest share. The dominance is ascribed to mushroom leather's rising use in the fashion and automotive industries in response to consumer demand for vegan and cruelty-free goods, as well as to partnerships between mushroom leather companies and well-known global fashion and automotive brands. The mycelium, or root structure, of mushrooms, is used to create mushroom leather, often referred to as mycelium leather or fungal leather. The popularity of mushroom leather has grown recently because of its durability and environmental friendliness. It is a more ethical alternative to traditional leather because it is biodegradable, uses fewer resources, and doesn't include animal agribusiness. Mushroom leather is a versatile material for use in fashion and other consumer goods since it can be made in a range of textures and colors. The low environmental effect of mushroom leather is one of its advantages. By employing agricultural waste materials instead of breeding and killing animals as is the case with traditional leather production, less waste and carbon dioxide emissions are produced. Also, compared to conventional leather manufacture, its creation uses less water and energy.
• By Application, the market is classified into Fashion and Others.
• Fashion holds the largest share of the market. While sustainable fashion is becoming more and more popular, consumers are now gravitating towards vegan and cruelty-free goods. Vegan leather is being used by numerous product makers to make a variety of accessories, including handbags, belts, and watch straps. Its use is becoming more like that of genuine leather, which is replacing applications in handbags, briefcases, furniture for cars, and clothes. The desire for fashion has been spurred by rising income levels and economic expansion, particularly in emerging nations. They are cost-effective, environmentally friendly, and long-lasting. Compared to actual leather shoes, which can become stained from exposure to specific environments, it has more water resistance. It can be used for a longer time because it is strong enough.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• Asia-Pacific region holds the largest share of the global market. The region's increasing population, urbanization, and rising consumer living standards are anticipated to fuel market demand. The region's growth is also supported by rising applications in the automobile industry and rising demand for fashion goods and accessories. Over the projected period, factors including rising animal welfare awareness, increased uses in footwear and furniture, and economic expansion in nations like China, India, and Japan are anticipated to create growth possibilities. Population growth and rising disposable income will open a wide range of business opportunities. In terms of both production and sales, China is one of the major markets for leather. To stop the virus from spreading, several manufacturers have shut down or scaled back their activities. The market for vegan leather is predicted to expand as a result of factors including the rising demand for natural materials and the rising customer preference for vegan and vegetarian products.

Recent Development

• MIRUM developed by Natural Fiber Welding made its premium watch strap debut with IWC and Gisele Bundchen. - July 2022.
• Natural Fiber Welding and Richemont entered a technological collaboration that helped both businesses continue improving sustainability and material science together. - April 2021

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Adidas, Alfatex Italia, Allbirds, Autron Industry, Bioleather, Bolt Threads, BZ Leather, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
• The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Vegan Leather Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Vegan Leather Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Vegan Leather Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
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Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market