Infinium Global Research has published a global report on the Vegan Leather Market which estimates that the market for vegan leather will reach up to $89.6 billion by 2025, with a compound annual growth rate of 49.9%, in the forecast period (2019-2025).
Leather is one of the most broadly traded commodities in the world, and the leather and leather products industry play a conspicuous role in the world’s economy. The global demand for vegan leather has seen a paradigm shift owing to rising applications across furnishing, automotive, clothing, bags, and others.
The report notes that soaring demand for vegan or faux leather is driven by a range of factors, which include evolving consumer trends, mounting concerns over the impact of traditional leather on the environment, ascending demand for animal-free products, and rising awareness regarding the attributes of vegan leather, among others.
In the last few years, the prices of traditional leather have augmented constantly worldwide, which, in turn, has boosted the demand for cost-effective alternatives such as vegan leather. The physical and functional properties of vegan leather are at par with that of traditional leather which is playing a key role in increasing the demand for synthetic leather.
Increasing R&D Investments to Develop Sustainable Vegan Products
Within the vegan leather market, research and development activities have played a crucial role in differentiating the overall attributes of vegan leather from traditional leather. Stakeholders in the vegan leather market landscape are investing in research and development activities to develop vegan leather with superior properties. Forthcoming and established players in the current market landscape are involved in the development of vegan leather with various textures, colors, patterns, and functionalities.
Numerous companies are entering into strategic partnerships to develop innovative and sustainable vegan leather in tune with evolving industry trends. Furthermore, the major companies are announcing the collaboration with other companies to facilitate the production of new prototypes that they aim to commercialize for different applications. Vendors in the current vegan leather market are also aiming to streamline their quality control processes. Presently, due to the ascending demand for vegan leather across various industries such as footwear, automotive, furnishing, garments, etc., vendors are anticipated to align their product development activities with the requirements of each of these industries.
Asia Pacific To Dominate Vegan Leather Market
The Asia Pacific led the global vegan leather market and is projected to continue leading over the forecast period, on account of rapidly expanding footwear and automobile industries. A rapid rise in population and disposable income has been impelling the demand for passenger and commercial vehicles, particularly in developing countries such as China and India. North America and Europe are projected to witness substantial growth owing to the increasing demand for cruelty-free products.
Additionally, rising awareness and stringent regulations regarding animal rights in numerous countries in these regions have been encouraging the usage of vegan leather. Countries in Europe such as France, Germany, and Italy have numerous manufacturing units that require vegan leather as their raw material and hence, the demand for vegan leather is projected to remain stable in the near future. A supply-demand gap in the natural leather industry is another key factor that has made companies to opt for artificial alternatives.