Transparency Market Research (TMR) observes that the global leather chemicals market is highly competitive owing to the presence of a number of players operating in the global market. Some of the prominent players operating in the global leather chemicals market are Wei Tai Leather Co. Ltd., BASF SE, DyStar Singapore Pte Ltd. Clariant International Ltd., and Rock Chemie Co. In order to remain dominant in the global market for leather chemicals, these players are increasingly taking part into strategies such as a merger, acquisition, and partnerships. Additionally, numerous new entrants are struggling to enter into the market. Vendors in the leather chemical are trying to develop innovative and more eco-friendly products.
According to TMR, the leather chemicals market is expected to expand with CAGR of 6.10% over the forecast period from 2014 to 2020 to attain a value of US$8.19 bn from the value of US$5.43 bn in 2013. Based on the product, tanning and dyeing chemicals segment accounted for largest share of around 40% in the overall leather chemicals market in 2013. Based on the region, Asia Pacific region dominated the global market by accounting for 40% shares in terms of volume.
Growing Inclination toward High-Quality Leather to Boost Growth
Increasing demand for the high-quality leather product is projected to boost uptake of leather chemicals in order to improve the quality of leather. Leather chemicals are used in different stages of the production process of leather. These premium leather products increasingly adopted from numerous end-use industries such as footwear, furniture, garments, and interiors of automotive. Especially, the automotive market in the developing countries such as China, India, and Brazil is expected to boost growth of the market over the forecast period.
Additionally, the availability of the abundant raw material, especially in the Asia Pacific, is encouraging numerous players to expand their production in the Asia Pacific. This factor is expected to influence positively on growth of the global leather chemicals market. Furthermore, growth of the leather chemicals directly depends on the emergence of the footwear and automotive industries. The factors such as increasing disposable income are boosting demand for luxury goods. This trend for buying luxury goods is expected to continue over the forecast period which is likely to bolster growth of the global leather chemicals market.
Risk of Possible Side Effects to Hamper Growth
Despite the growth prospects, numerous governments are imposing stringent regulations on the uptake of the harmful chemicals with possible side effects such as lung cancer and respiratory disorders are hampering growth of the global leather chemicals market. Additionally, competition among the local players primarily operating in the Asian countries is restraining growth of the global lather chemicals market. Moreover, growing substitutes for leather chemicals is also posing as a challenge to the growth of the global leather chemicals market.
Nonetheless, growing research and development (R&D) activities in order to develop the eco-friendly products and numerous industries are increasingly preferring the eco-friendly products. These R&D activities and new innovative products are expected to create lucrative opportunities for growth by the end of forecast period.
This post was originally published on Market Reports