USA Synthetic Leather Market Outlook to 2028

USA Synthetic Leather Market Overview

The USA synthetic leather market was valued at USD 8 billion in 2023. The market's growth is driven by increasing demand for eco-friendly and cost-effective alternatives to genuine leather.

Prominent players in the USA synthetic leather market include Kuraray Co., Ltd., Teijin Limited, Toray Industries, Inc., H.R. Polycoats Pvt. Ltd., Anli Group. These companies are leading the market through continuous innovation, extensive product portfolios, and strategic partnerships.

In 2023, Teijin Limited expanded its synthetic leather production facility in the USA, increasing its capacity by 20 million square meters annually. This expansion is aimed at meeting the rising demand from the automotive and fashion industries, ensuring a steady supply of high-quality synthetic leather.

The West region's dominance is largely driven by California, where there is a high demand for eco-friendly and sustainable products. The presence of major automotive and fashion industries in this region further propels the market for synthetic leather.

USA Synthetic Leather Market Segmentation

The USA Synthetic Leather Market is segmented into distribution channels like product type, end-user, and region.

By Product Type: The USA synthetic leather market is segmented by product type into polyurethane (PU), polyvinyl chloride (PVC), and bio-based synthetic leather. In 2023, PU synthetic leather held the largest market share, due to its superior durability, flexibility, and closer resemblance to genuine leather.

By End-User: The market is segmented by end-user industry into automotive, footwear, and furniture. In 2023, the automotive industry accounted for the largest market share, driven by the increasing use of synthetic leather for car seats, interiors, and upholstery.

By Region: The synthetic leather market in the USA is segmented by region into North, South, East, and West. In 2023, the West region, particularly California, dominated the market due to the presence of major automotive industries.

USA Synthetic Leather Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Kuraray Co., Ltd.

1926

Tokyo, Japan

Teijin Limited

1918

Tokyo, Japan

Toray Industries, Inc.

1926

Tokyo, Japan

H.R. Polycoats Pvt. Ltd.

1991

Uttar Pradesh, India

Anli Group

1994

Wenzhou, China

R. Polycoats Pvt. Ltd.: H.R. Polycoats Pvt. Ltd. invested $10 million in research and development in 2023 to develop innovative and sustainable synthetic leather products. This investment aims to enhance product quality, reduce environmental impact, and strengthen the company’s competitive position in the market.

Toray Industries: In 2023, Toray Industries introduced a new line of bio-based synthetic leather made from renewable resources. This product line is expected to attract attention from environmentally conscious consumers and boost Toray’s sales by $25 million annually.

USA Synthetic Leather Market Analysis

USA Synthetic Leather Market Growth Drivers:

Increasing Demand from Automotive Industry: The synthetic leather market in the USA is experiencing growth driven by the automotive industry's demand for durable and cost-effective materials. The Bureau of Economic Analysis reported that the automotive industry contributed $100 billion to the US GDP in 2023, highlighting its substantial impact on related markets, including synthetic leather.

Rising Awareness and Adoption of Eco-Friendly Materials: Consumer preference for eco-friendly and cruelty-free products is propelling the growth of synthetic leather. In 2023, 60 million consumers in the USA opted for products made from sustainable materials, according to a survey by a leading environmental organization.

Expanding Footwear Industry: The footwear industry's expansion is another major driver for the synthetic leather market. In 2023, the USA footwear industry produced over 200 million pairs of shoes incorporating synthetic leather, as reported by the American Apparel and Footwear Association.

USA Synthetic Leather Market Challenges:

Environmental Impact of PVC-Based Synthetic Leather: The production of PVC-based synthetic leather poses environmental challenges. In 2023, the Environmental Protection Agency (EPA) reported that the synthetic leather industry contributed 500,000 metric tons of non-biodegradable waste. This has raised concerns among environmental groups and consumers, leading to increased scrutiny and pressure on manufacturers to develop more sustainable alternatives.

High Production Costs of Sustainable Alternatives: Developing and producing sustainable alternatives to traditional synthetic leather involves high costs. In 2023, the cost of producing bio-based polyurethane was reported to be $50 per square meter, compared to $30 per square meter for traditional PVC-based synthetic leather. This cost disparity poses a challenge for manufacturers aiming to adopt sustainable practices while maintaining profitability.

USA Synthetic Leather Market Government Initiatives:

Sustainable Materials Innovation Act: In 2023, the US government introduced the Sustainable Materials Innovation Act, providing $100 million in grants and tax incentives to companies investing in sustainable synthetic leather production. This initiative aims to encourage the adoption of eco-friendly materials and reduce the environmental impact of synthetic leather manufacturing.

Green Manufacturing Initiative: The Green Manufacturing Initiative, announced in 2024, offers financial support and technical assistance to synthetic leather manufacturers adopting green technologies. The initiative has a budget of $75 million and aims to reduce the carbon footprint of synthetic leather production by 20% by 2026.

USA Synthetic Leather Future Market Outlook

The USA Synthetic Leather market is expected to grow in the coming years. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

USA Synthetic Leather Future Market Trends

Expansion of Recycling Initiatives: The synthetic leather industry is expected to see an increase in recycling initiatives. By 2028, the National Recycling Strategy aims to recycle 25 million square meters of synthetic leather annually, reducing waste and promoting sustainability in the industry.

Increased Adoption of Bio-Based Synthetic Leather: Over the next five years, the adoption of bio-based synthetic leather is expected to rise. By 2028, it is projected that bio-based synthetic leather will account for 30 million square meters of the market annually, driven by consumer demand for sustainable products and advancements in bio-based materials technology.
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