Recycled Leather Market

What are the drivers of the industry?

“Eco-friendly products to gain traction in forecast period”

The eco-friendly factor introduced by the recycled leather market and its innovative methods of manufacturing is reducing the environmental pollution. For this reason, it is considered as an ideal product for various applications, thereby increasing the overall market value. An increase in the demand for such products in numerous regions is also a key driver of the market. With the technological advancements in quality and production, the market has witnessed notable growth in terms of revenues and is subject to expand steadily.

However, awareness about recycled leather is still in its nascent stages. The large consumer base of traditionally manufactured leather products and its brand image act as restraints for the global market.

Recycled Vs PU leather

Recycled leather is distinct from PU leather as the later is purely vegan and made up of thermoplastic polymers. On the counterpart, recycled one has some proportion of real leather in it which makes it a mixture of real and artificial leather.

What deters the growth of the market?

The pandemic lead impacts have affected the industry of leather products. Persistent lockdowns and gaps in supplies are affecting demand for leather products in the period. Government-initiated measures like lockdowns have halted transportation facilities thereby affecting the market negatively.

Moreover, due to the threat caused by the disease, there have been extensive irregularities in the workflow of several key players which are in the business of this product. This aspect too has affected the market adversely. A surge in product costs and lesser demand in this period due to covid-19 are also some considerable factors that have had an impact on market globally.

Which regional market is promising in the leather industry?

Europe is a major region in the recycled leather segment. The region is leading because of the popular players present in this market. The rise in the demand for recycled products due to environment-friendly activities has also affected the market. In addition to this, the sustainability initiatives laid out by the governments are also a key factor affecting the growth of the market in this region.

The propelled awareness about sustainability and reuse is fostering demand for the recycling process in the countries like Germany and France. The European market in the forecast period is likely to grow with a CAGR of USD 3.5 Billion. Italy is having a historical background in leather products and is likely to remain a key area in the industry for the forecast period.

Asia and North America are anticipated to become major markets in the segment in the forecast period. The market is predicted to gain higher market growth in the recycled products segment owing to excelling awareness about these products. The enhanced demand from fashion clothing and brand lovers is likely to increase the revenue in this sector.

Opportunities in the Recycled Leather Industry?

The leather industry is considered a high-wage business sector that employs 4 million people. The majority of laborers in this segment are belonging to lower socioeconomic status. The segment is also opening up the employment opportunity for the women workforce accommodating around 30% of the global women population. Regional markets such as India in Asia account for nearly 13% production of total leather products worldwide. This region is having youngest leather segment workforce.

The market entrants into this industry will have options to enter as a retailer, manufacturers, or distributors. The industry is quite capital-intensive which demands higher investment. The multivariate uses of leather products are likely to propel the demand for the market. The millennial population across the globe is increasingly focused on branded consumption and footwear products which are likely to give traction to the recycling leather market.

Trends and Recent Developments

“Green Innovation leading to lighter yet durable leather products”

The global leather industry is dominated by major brands. However, there is a significant rise in the small and medium enterprises operating in the sector. These companies often struggle to identify the potential and growth prospects in the sector. The competition in the sector is slacking due to the higher price of raw materials and failure in negotiation. Companies that focus on technological upgradation and overcoming financial constraints likely to gain positive traction in the industry.

Effective clustering and supply chain network development are key focus areas for manufacturers to gain a competitive edge over others. Companies like Recycleather are listed as sustainable global brands that hold certification given by the control unit. The company is investing in green innovation and the production of lighter yet durable leather products.

Segment wise Insights

On the basis of products, recycled leather dominated in the making of bags and footwear. Strips of leather are directly used in the making of bags that need low reprocessing that account for major applications. However, the clothing segment is gaining attention from manufacturers as well as customers which is likely to propel demand in the forecast period.

The fashion and lifestyle industry amounts to a major segment in the market as there is high demand for footwear and bags made from recycled leather. The use of leather in furniture and architecture is likely to see a rise in the upcoming period.

Based on the regional markets in the European region led by Italy, Germany is reigning in the global markets in recycled leather. North America is likely to gain positive statistics in the forecast period owing to rising awareness of people for fashion and propelling incomes.

Competitive Landscape

The global market is significantly consolidated in nature. A few of the key players dominate the market some of which are Recyc Leather, Relea, Elvis & Kresse, ELeather, CTL Leather, Looptworks, Wolf and Lamb, Teo Geo, Deadwood Studios, and Salamander Industrie-Produkte GmbH.

A market leader like Recyc Leather has used several strategies and innovations to expand its product portfolio in the market by offering different kinds of products. Other competitors have adapted strategies to raise awareness of this type of product and extensive branding and popularization to attract customers. To reduce overall expenditure and increase market share, companies are working in a forward and sophisticated integrated manner.

Segmentation

• On The Basis of the Type:

  • Footwear
  • Bags
  • Wall Decor
  • Furniture

• On The Basis of End - User Industry:

  • Furniture
  • Architecture

• On The Basis of Geographic Regions:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa