Leather Chemicals Market is likely to be characterized by numerous mergers & acquisitions between major industry players. For instance, recently, on the 27th of May 2017, Clariant AG, one of the leading specialty chemicals market giant, and Huntsman Corporation, the American chemical product manufacturer, decided to collaborate and form a combined entity, with stockholders of the former holding 52% of stake in the joint enterprise and those of the latter owning the rest. An increase in the number of strategic moves such as this will stimulate leather chemicals market growth positively. Global Market Insights, Inc., reports that leather chemicals industry, worth USD 6 billion in 2016, is projected to hit a targeted revenue margin of over USD 10 billion by 2024.
Taking into consideration the topographical trends, North America leather chemicals industry, which was estimated at over USD 1 billion in 2016, is expected to expand substantially over 2017-2024. High consumer demand for safety shoes, jackets, and gloves along with strict government legislations mandating the use of protective clothing across the manufacturing sectors will boost the revenue. The U.S. industry is expected to make notable contributions toward the regional share.
U.S. leather chemicals market size, by end-user, 2013 - 2024 (USD Million)
Asia Pacific industry, which contributed toward a major portion of the overall leather chemicals market share in 2016, is anticipated to experience a scaling growth over the coming seven years. The surge in the leather production across the countries such as India and China coupled with the escalating popularity of leather items in the region is forecast to boost the market trends. Both China and India, currently hold more than 40% of the global leather exports, together.
The thriving personal protective equipment market, which is slated to surpass a revenue of USD 65 billion by 2023, is expected to widen the business scope of leather chemicals market. Leather chemicals find extensive applications in gloves, footwear, automobiles, construction, garments, and furniture sectors. Leather chemicals industry share in the automobile sector is expected to grow at a rate of 5% over the coming seven years. Mounting product preference across personal cars along with escalating sales of passenger vehicles will drive the revenue. Global passenger car sales, which are estimated to record a CAGR of nearly 5% over 2017-2024, are likely to boost the industry size.
Leather chemicals market size in the footwear sector, which contributed to over 50% of the overall industry share in 2016, is expected to grow substantially over the next few years. Increase in the demand for the footwear across the globe as a result of shifting customer preferences coupled with the rise in the purchasing capacity of the consumers will positively influence the industry development.
Leather chemicals market encompass finishing chemicals, tanning & dyeing, and beamhouse chemicals. Tanning & dyeing leather chemicals industry size, which accumulated a revenue of over USD 2 billion in 2016, is expected to register a substantial surge over the coming seven years. The product’s ability to offer stability to the leather material during the initial phase of leather processing will boost its popularity. For instance, formic acid is used to prevent the spread of fungus, owing to its ability to reduce the pH value of biological organisms.
Finishing leather chemicals market is projected to record a CAGR of 5% during the duration from 2017 to 2024, owing to the product’s ability to provide protective coatings to the leather and raise its aesthetic value. The capability of the product to provide longevity, weather resistance, smoothness, and wear & tear resistance to the leather items will further boost the industry development.
BASF SE, Elementis PLC, Schill & Seilacher GmbH, The TASA Group, Stahl International B.V., Lanxess Aktiengesellschaft, Indofil Industries Limited, Balmer Lawrie & Company Limited, Chemtan Company, Zschimmer & Schwarz & Co KG, and TEXAPEL are the major participants of leather chemicals industry.