Global Plant Based Leather Market - 2023-2030

Global Plant Based Leather Market - 2023-2030

Market Overview

Plant Based Leather Market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of 7.5% during the forecast period (2023-2030).

Plant-based leather is becoming more popular because of the negative effects leather has on both people and the environment. Numerous chemicals are released during the production of animal leather, causing serious health effects as well as soil, air, and water pollution. According to the European Commission, approximately 1000 million pairs of shoes are produced in Europe yearly, with 70% of the uppers made of leather. So, the demand for plant-based is rapidly increasing. Customer behavior has changed due to growing concerns about animal welfare and animal leather industries' impact on the environment. The market for plant-based leather is growing due to industry participants replacing animal leather with a plant-based alternative in response to the current surge in demand for ethical, environmentally friendly, and cruelty-free products.

Market DynamicsGrowing consumer demand for vegan and animal-free products drives the market expansion

Environmental issues like climate change, global warming, and the depletion of natural resources are influencing young people and changing their attitudes and behaviors. One such behavior change is becoming a vegetarian. The demand for plant-based products that are sustainable, vegan, biodegradable, ethical, and environmentally friendly is coming from young people who are major players in the fight against climate change. The expanding market is being driven by manufacturers using plant-based leather instead of traditional animal leather due to the rising demand for environmentally friendly products.

However, plant-based leather requires a significant financial outlay for research and development and certification from many organizations, including the USDA, PETA, and REACH, which raises the cost of the product. The market's expansion is expected to be constrained by the rising price of plant-based leather.

Market Segmentation: The footwear segment accounted for the highest share of the global plant-based leather market

The growing preference for sustainable lifestyles is having a significant impact on the footwear industry. Footwear made from natural or synthetic materials is a cruelty-free alternative to leather or wool shoes. It is produced without the use of any materials derived from animals, including wool, fur, silk, leather, or shearling. Most vegan leather is produced using recycled plastic, microfiber, and polyurethane. Fashionable vegan footwear is as strong, flexible, comfortable, and high-quality as conventional. Demand for vegan footwear, such as shoes, sneakers, boots, sandals, heels, and loafers, has risen quickly in recent years. Due to the rising popularity of veganism worldwide and the extensive use of social media to advertise vegan goods, vegan footwear is becoming increasingly popular among millennials. As a result, many shoe companies are concentrating on creating premium eco-friendly footwear to meet the growing consumer demand.

On the other hand, during the forecast period, the segment of online stores is anticipated to account for a significantly larger revenue share. This can be attributed to many factors, including a rapidly expanding e-commerce platform, high demand for plant-based products as a result of changing lifestyle trends, high internet penetration, the availability of a variety of vegan and sustainable footwear from various brands on various e-commerce platforms, and simple access to goods via home delivery at reduced prices.

Geographical Penetration: Asia Pacific the dominating region during the forecast period

The development of the plant-based leather market in Asia is fueled by the well-established leather industries in India and Bangladesh, as well as an abundance of raw materials. Given that agricultural waste is recycled to make plant-based leather, Asia and the Pacific region, which annually produces tonnes of agro-waste, presents a significant opportunity for the industry to expand quickly. One of the biggest producers of pineapples is the Philippines, a nation in South-East Asia, which presents an enormous opportunity for the pineapple leather market to grow in this region. The market for plant-based leather in the Asia Pacific region is highly competitive, with numerous domestic and international players vying for market share.

On the other hand, North America is the fastest growing region during the forecast region due to the region's growing vegan population, rising consumer interest in environmentally friendly and animal cruelty-free goods, rising demand for vegan-friendly goods like footwear, and the rapid development of synthetic materials. Other elements that are anticipated to contribute to the market revenue growth in North America include the presence of major footwear manufacturers, the accessibility of various types of vegan footwear by various brands in both online and offline stores, the rapidly growing e-commerce sector and social media platforms that support vegan products, and strict governmental restrictions on the use of leather products.

Competitive Landscape

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players are Ananas Anam, Desserto, Nuppele, Natural Fiber Welding, Inc., PEEL Lab, Nova Milan, Mabel SRL, Bioleather, BZ Leather, Ecovative LLC, Beyond Leather Materials, among others. Some important business strategies these main market players use are mergers and acquisitions (M&A), affiliations, collaborations, and contraction to maintain their position in the market. For instance, on 19th March 2021, a popular brand-named collection certified Lug launched its first-ever vegan Leather collection innovative as PETA-approved vegan by PETA. On the other hand, on 12th August 2022, vegan warehouse launched an expansion of its best-selling range of beautiful vegan handbags in a variety of bright and eye-catching colors that are all made with materials that are 100% free of animal ingredients like animal hides and glues.

COVID-19 ImpactNegative impact on the global plant-based leather market

The COVID-19 pandemic harmed manufacturing production globally. Several manufacturers have shut down or slowed down their activities to stop the spread of the disease. The COVID-19 outbreak has slowed the growth of the plant-based leather market due to decreased demand, store and mall closures, and operational difficulties. The pandemic hampered supply chains, and employment levels dropped. A decrease in market demand resulted from the COVID-19 outbreak, which hurt industries like textile, footwear, and clothing. A decrease in the supply of raw materials, restrictions on the movement of goods, particularly from the Asia-Pacific region, and a halt in import and export activities are additional factors limiting market growth during the pandemic. Supportive government regulations, favorable environmental policies, and the opening of distribution channels are anticipated to drive the market after the pandemic.

The global plant-based leather market report would provide an access to approximately 61 market data tables, 53 figures and 114 pages