Bio Based Leather Market Report

The introduction of strict environmental protection policies has encouraged market participants to explore new sustainable materials for the elimination of sludge, tannery wastewater and other solid waste generated by the industry. Several animal rights campaigns have been started all around the world. The implementation of strict animal welfare rules has encouraged the industry to shift towards greener, cleaner and more ecological materials and processes. They are increasingly being used in clothing, accessories, footwear and household goods. Technological advancements, increased investment in R&D and increasing application in the automotive sector are all likely to provide growth opportunities during the forecast period. The trend for green products, combined with increased government regulations on polymer-based products/leather, is expected to drive the global bio-based leather market over the forecast period.

Although bio-based leather is a better alternative to real leather and plastic-based faux leather, it still involves chemical processing to get a leather-like feel and longevity, which poses environmental concerns. For instance, though Pinatex is made from discarded pineapple leaves, it is not biodegradable since it is covered with a petroleum-based material for added durability. Furthermore, the bio-based leather market is still in its early stages, with just a few small-scale firms manufacturing and using the respective products on a wide scale. The prospects for the global market for bio-based products are reduced since they are unavailable across the globe and unknown in emerging economies. The availability, dominance and popularity of real and synthetic leather, which already exist, act as a barrier to the market for bio-based leather. Consumers are unaware of the benefits of bio-based leather, which is limiting the market's growth.

Growing trend of collaborations between traditional leather producers and biotech companies to create and sell new bio-based leather goods. These partnerships combine the skills of old-school leather makers in production with the modern technology of biotech firms to develop sustainable and environmentally friendly options. Through leveraging their respective capabilities, these collaborations are speeding up the creation of advanced bio-derived leathers that satisfy the requirements of both environmentally-conscious consumers and industry benchmarks for excellence. For instance, in February 2023, Lenzing collaborated with NFW (Natural Fiber Welding Inc.) to provide TENCELTM branded fibres as an additional backer choice for NFW's patented plant-based technology, MIRUM. Additionally, in January 2023, MycoWorks, a producer of fungal-based biomaterials that could potentially replace animal and synthetic leather, raised US$ 125 million in Series C funding to build a manufacturing plant and Increase production of its flagship product Reishi.

North America dominates the regional segment of the global bio-based leather market owing to strong demand, industry development and product innovation in the region's bio-based leather market. The need for sustainable leather in the North American fashion sector, a global fashion hub, is also seen as a crucial driver that gives significant growth to the region's bio-based leather market. Europe follows North America in the regional bio-based leather market, driven by the demand for footwear in the region's fashion and sports industries. During the course of the forecast period, a number of regulations on synthetic leather are anticipated to have a favourable impact on the market for bio-based leather in Europe. Throughout the forecast period, demand for bio-based leather is expected to increase in Asia-Pacific. The region's population growth, urbanization, and improving standards of living are likely to fuel market demand. Increased demand for fashion products and accessories, as well as increased application in the automotive industry, contribute to the region's growth. Technical advancements and significant investments in bio-based materials research and development enable market participants to introduce new products into the market. Economic growth in nations such as China, India and Japan, increasing applications in furniture and footwear and rising awareness about animal welfare are all expected to provide lucrative growth opportunities during the forecast period.