Bio-Based Leather Market

Global Bio-Based Leather Market Size (2024 to 2029)

The global Bio-Based Leather Market is predicted to grow at a CAGR of 15.2% from 2024 to 2029 and the market size is expected to be valued at USD 252.44 billion by 2029 from USD 124.42 billion in 2024.

Current Scenario of the Global Bio-Based Leather Market

Presently, as the industry gently progresses toward circular practices, conventional leather items are been pressured to contend with every kind of synthetics (few fossil fuel-originated) and others bio-based (acquired from sources as varied as bananas and cacti, but usually needing plastic supplements to attain traditional leather’s longevity). Moreover, lately, the world fashion industry predominantly uses a straight “take-make-waste” manufacturing model. Certain renowned and big players specifically operate with wastewater treatment technology for chemical management. At the moment, the whole bio-based leather market is believed to experience explosive growth over the coming years.

MARKET DRIVERS

Bio-based market growth is driven by the rising demand for green or environment-friendly materials.

Among all vegan leather has risen as a prevailing eco-friendly and non-animal substitute in the fashion industry. In the traditional leather sector, there is an escalating need to considerably increase the bio-based concentration of goods, while in developing countries of modern substrates (vegan leather), there is a substantial demand for animal-free or meatless and non-plastic matters as customers emphasize ecologically-friendly items. These patterns are propelling the requirement for biodegradable or responsible sourcing of basic materials in the fashion industry among others. Consequently, the influx of investments or financial support towards start-ups and companies dealing in sustainable or biodegradable products has significantly surged in recent times. For instance, in July 2024, UNCAGED Innovations secured a seed investment of an oversubscribed 5.6 million dollars. It’s a startup engaged in the production of sustainable leather using biomaterials which raised 2 million dollars in 2023 in a pre-seed funding round.

Rising customer desire for ecologically friendly items, awareness of the harmful impact of conventional leather on the environment and advancement in materials chemistry and technology have all fuelled thcue expansion of the bio-based leather market growth. Consumers are seeking eco-friendly products and the wearing apparel industry is no different.

MARKET RESTRAINTS

The existing industry for alternative leathers strongly depends on plastic or synthetic-based materials because of the absence of feasible decomposable choices. This constraint originates from the difficulty of imitating the biomedical qualities present in genuine animal leather. Moreover, the penetration rate of the bio-based leather market also decreases due to the cost sensitivity of the developing economies. Customers in these countries at times prefer cheapness to sustainability. This impedes the progress of plant-based leather items, which are often costly for producers to procure.

MARKET OPPORTUNITIES

Apart from currently used circular practices, further intensifying the application of these methods and techniques at the time of manufacturing can mitigate the ecological overburden and is expected to strengthen the bio-based market in the future. Further, reverting to the original tanning approaches i.e. utilizing vegetable tanning in place of chrome-based. According to new research, it was highlighted that circular-based vegetable tanning, which is also known as green tanning, accomplished a significantly lower effect of toxins and discharge of carbon dioxide along with water conservation.

MARKET CHALLENGES

Inventive circular solutions for achieving greater sustainability in the traditional leather industry, as suggested by experts, can be a serious challenge for the bio-based leather market growth. Another issue is that the industry is bound to use whether willingly or unwillingly tons of hide which would otherwise land in incinerated or landfills. The acceptance of this perception has completely taken over the industry. As a result, it continues to significantly impact the market expansion and the environment. Also, the traditional leather industry is a huge employment provider to lower and middle-class people. So, the output of this not going down any time soon plus shifting a sizable number of people to work in the bio-based leather industry is a daunting or time-consuming task.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Bio-Based Leather Market By Source

The mushroom segment is likely to account for the leading share of the global bio-based leather market during the forecast period. The mushroom segment has rapidly emerged as one of the most prevailing sustainable materials and is expected to further advance during the forecast period for the bio-based leather market. This provides an enduring, environment-friendly solution free from animals and plastics. Moreover, in contrast to animal-based and synthetic leather, producing mycelium leather needs a small amount of direct energy intake over sterilization. This is another reason contributing to the growth of the segment’s market share. In addition, the rising acceptance of mushroom-based items has become one of the top candidates against conventional leather and the evidence from research indicates it’s affordable and more advantageous for the surroundings. However, the expansion of the mushroom segment is likely to be challenged by the requirement of significant investment in expanding mushroom vertical farming. Several plant-based leather substitutes that are contending against this category did not encounter this problem, as they use farming waste or other vegetation which are already matured on a big scale.

Global Bio-Based Leather Market By End User Industry

The footwear segment’s persistent and heightened consumption has led it to capture the largest portion of the bio-based leather market share and is anticipated to propel at a steady CAGR over the estimation period. Bio-based leather is becoming increasingly popular as an ecologically friendly and animal-free material option, especially in the automobile sector, where it's extensively utilized for vehicle interior stuffing, cushioning, and padding. Its existence expands into the global fashion industry, providing biodegradable choices for apparel and accessories, similarly, the furniture sector considers it an appealing cover material. In addition, the adaptability of bio-based leather allows its applications in infinite other usages. This makes sure it remains on the expansion path and is incorporated into sectors that prioritize sustainable, ethical substitutes to conventional leather.

REGIONAL ANALYSIS

Europe is expected to top in the global bio-based leather market during the forecast period.

Europe is projected to be the biggest industry in the bio-based leather market and is anticipated to rebound at a faster rate during the forecast period. Owing to consistent strain on the supply chain due to COVID-19 followed by the Russia-Ukraine war and then high inflation and energy prices. This all led to a decline in consumer spending on luxury items. However, the region’s market dominance in plant-based leather can be attributed to Europe’s persistent commitment to sustainability and strict laws. The regional consumers are regarded as more environmentally focused and are searching for green substitutes, which is surging up need for bio-based leather products. Apart from this, the legal regime of the European Union encourages the application of biodegradable materials and manufacturing techniques, which fuels its market size. Also, this leather is widely accepted by the region’s fashion companies and automotive producers because of its righteous and habitat advantages. Therefore, it is slated to be the largest and most attractive industry for the bio-based leather market due to a blend of customer understanding, regulatory support and industry breakthroughs.

KEY PLAYERS IN THE GLOBAL BIO-BASED LEATHER MARKET

The key players in the global Bio-Based Leather market are Ananas Anam, Desserto, HZCORK, Fruitleather Rotterdam, DuPont Tate & Lyle Bio Products, Bolt Threads Inc., Ecovative Design, MycoWorks, Flokser A.S., Vegea, Toray Industries Inc., Modern Meadows, Natural Fiber Welding Inc., ECCO Leather, Tjeerd Veenhoven Studio, Ananas Anam Ltd., Nat-2, Ultrafabrics, and others.

RECENT HAPPENINGS IN THE MARKET

• In July 2024, Biophilica Ltd., a London-based material inventor, revealed that its plastic-free leather substitute called “Treekind” got 100 per cent bio-based certification by the US Department of Agriculture (USDA) for the product label. It is the first vegan leather in the United Kingdom to be given this certification as it is made from leaves.
• In March 2024, the CSIR-National Institute for Interdisciplinary Science and Technology (CSIR-NIIST) press release that it signed a contract with Tamil Nadu-based Aquagri Processing Pvt. Ltd. for the transfer of newly innovative technology for producing multipurpose environment-friendly plant leather and tableware from chitosan and seaweed.

DETAILED SEGMENTATION OF THE GLOBAL BIO-BASED LEATHER MARKET INCLUDED IN THIS REPORT

This research report on the global bio-based leather market has been segmented and sub-segmented based on source, end-user industry, and region.

By Source

• Mushroom
• Pineapple
• Apple
• Cactus
• Cork
• Tree Bark
• Leftover Fruits
• Others

By End User Industry

• Footwear
• Furniture
• Automotive
• Apparels
• Accessories
• Sports
• Others

By Region

• North America
• Europe 
• Asia Pacific
• Latin America
• The Middle East and Africa