Dublin, June 11, 2021 (GLOBE NEWSWIRE) -- The "Coating Agents for Synthetic Leather Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Global Coating Agents for Synthetic Leather Market size was valued at over USD 500 million in 2020 and the market is projected to register a CAGR of over 7% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 in 2020. Amid the global COVID-19 situation footwear industry in 2020 generated revenue of USD 432.11 billion compared to USD 439.02 billion in 2019. Additionally, according to the OICA, the global production of automobiles was 77,621,582 in 2020 a decline of 16% compared to 2019, impacting the demand for coating agents in synthetic leather. Similarly, other industries including textile and fashion, furniture, etc. were also impacted adversely by COVID-19, which had a negative impact on the market studied. However, the market situation is expected to recover in 2021 as lockdown has been lifted in several countries across the globe.
Over the short term, a major factor driving the growth of the market studied is PETA regulations limiting the usage of natural leather. By application, the automotive industry dominates the market during the forecast timeline. Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Automotive Industry to Dominate the Market
The use of coating agents in synthetic leather results in a lightweight and highly durable material, while providing superior hydrolysis resistance, moisture heat resistance, and chemical resistance. It is used in various interior automotive applications, such as steering, wheels, and seats.
The use of synthetic leather makes car seats more comfortable, and its highly abrasion-resistant property helps manufacturers meet the stringent volatile organic compound (VOC) standards for applications such as car seats and furniture.
The BASF synthetic leather product portfolio includes Haptex, a polyurethane (PU) system solution for the production of synthetic leather.
Suzhou Ruigao New Material Co. Ltd, a leading manufacturer of synthetic leather, adopted the product of BASF SE, Elastollan-grade B50A12CF made of thermoplastic polyurethane, in the production of synthetic leather in a Chinese automaker's latest model due to its cost-effective and environment-friendly thermoplastic process in comparison with conventional processing technologies such as coagulation.
However, the recent decline in the automotive industry had a negative effect on the market. The automobile industry witnessed a rapid decline in 2019, after experiencing a continuous growth for a period of 10 years. According to the OICA, the automobile industry registered a negative growth of 5% in 2019, and the production declined from 95.63 million units produced in 2018 to only 91.78 million units in 2019.
After a bleak 2019, where the global automotive sales decreased by 6%, the world automotive production faced a new and unprecedented challenge during 2020. In 2020, the COVID-19 pandemic impacted the automobile sector, with lockdowns implemented across all countries, which resulted in an automotive production halt.
Asia-Pacific Region to Dominate the Market
Asia-Pacific held the highest market share, accounting for more than 50% of the market. China is the largest synthetic leather market in Asia-Pacific, owing to robust growth in the automotive and footwear end-user industries in the country.
China is the largest automotive market in the world. The automotive industry in China is mainly driven by domestic market demand. According to OICA, the country produced 25,225,242 vehicles in 2020 a decline of 2% compared to 2019. the production of automobiles is expected to increase owing to the rising demand for electric vehicles positively impact the demand for coating agents for synthetic leather for seat covers, steering, and other interior applications.
The footwear industry in Japan witnessed a revenue of USD 27.93 billion in 2020 and is expected to grow by 2.57% to reach USD 32.13 billion by the end of 2025 revenue, positively impacting the market demand.
The athletic footwear end-user segment has witnessed steady growth over the past five years, owing to changing fashion trends and shifting consumer preference toward popular brands.
According to Invest India, Ministry of Commerce and Industry, India, the textile industry in the country contributes 12% in the export earnings of the country which was USD 14 billion in 2020, and is expected to grow by 7.6% to reach USD 23.3 billion by 2027.
Therefore, considering the aforementioned factors, the demand for coating agents in synthetic leather is expected to increase significantly in the region during the forecast period.
The global coating agents for synthetic leather market is highly fragmented in nature. Some of the major players in the market include Stahl Holdings B.V., LANXESS, Evonik Industries AG, Covestro AG, and Elkem ASA.
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Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 PETA Regulations limits Usage of Natural Leather
4.1.2 Other Drivers
4.2.1 Impact of COVID-19
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
5 MARKET SEGMENTATION
5.1 Resin Type
5.1.4 Other Resin Types
5.2.2 Furniture & Domestic Upholstery
5.2.4 Textile & Fashion
5.2.6 Other Applications
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.3.2 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Abhilash Chemicals and Pharmaceuticals Pvt. Ltd.
6.4.2 CHT Group
6.4.3 Covestro AG
6.4.5 Elkem ASA
6.4.6 Evonik Industries AG
6.4.7 Jasch Industries Limited
6.4.9 Papertex Speciality Chemicals Pvt. Ltd.
6.4.10 ROWA GROUP Holding GmbH
6.4.11 Stahl Holdings B.V.
6.4.12 W. R. Grace & Co.-Conn.
6.4.13 Wacker Chemie AG
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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