The study intends to give an overview of the Leather Chemical Industry

1. 1
Leather Chemical Industry Study
Prepared By- Debajit Barman

2. 6.6 7.02 7.48 7.92
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2017 2018 2019 2020 2021 2022 2023 2024
Market Size (In Billions)
Leather Chemical market size is estimated to
cross $10 billion by 2024 growing at a CAGR of
6.5% from $6.6 Billion in 2017
Current market Size is estimated to be around
$7.48 billion. [CAGR calculated as 2017-2024; 8 year
average. ]
Leather is a highly reputed raw material in footwear, upholstery, fashion and other industrial application. To be
at this usable stage leather goes through a range of chemical treatment. The leather chemical is used to treat
the animal skin during the manufacture of leather
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34 34 33.8 33.8 33.6 33.5 33.4 33.3
26 26 26.2 26.2 26.4 26.5 26.6 26.7
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2017 2018 2019 2020 2021 2022 2023 2024
Tanning and Dyeing Chemicals Beam House Chemicals Finishing Chemicals
Tanning and Dying Chemicals
continue to dominate the market
as it plays essential role in
defining the aesthetics of the
product
Beam House Chemicals estimated
to hold its position but it is
observed that it will slightly loose
grounds to Finishing Chemicals
because of growing demand in
footwear and fashion segment of
the latter.
Segment Analysis (In Percentage)
2
Market Overview
Source- marketsandmarkets.com , marketwatch, transparency market research

3. Growth Drivers and Challenges
 Growth in automotive market driving the demand for upholstery across the globe.
 Elevating spending power of the youth and brand awareness are augmenting the demand for trendy
and fancy footwear
 Consumer preferences for fashion and apparel are shifting due to rise in living standards and
disposable income of middle class especially in APAC region.
 Lightweight leather, environment friendly innovation and emerging tanning techniques are opening
more roads ahead
 Growing environmental concerns and high operational cost are posing danger to the industry
 Inception of eco leather driving potential consumers away
 Low cost substitute like Synthetic Leather has always been a threat
 Alternative to the hazardous chemicals which cause health issues in the workforce
 Geopolitical situation and stringent compliance rule, animal rights campaign in Europe and
North America are liming reach of the industry.
3Source: Businesswire.com; Transparencymarketresearch.com
Growth Drivers and Challenges
Growth Drivers
Challenges

4. Leather Chemical market is dominated by Asia Pacific followed by North
America, Europe, Middle-East, Africa and Latin America. India and China
comprised of 40 % of total leather export. North America accounts for
approximately 20% market share while other region covers the rest.
In the years to come global leather chemical manufacturer are expected to focus
on innovation like non hazardous and eco friendly chemicals. Also, product
portfolio expansion would an important aspect given the growing demand
from newer market segments. Few major players in the market are cited below-
Sl No. Companies Revenue (In Millions) Headquarters- Country Market Coverage
1 Bayer AG 46700 Germany APAC,EMEA & Americas
2 Lanxess AG 8200 Germany APAC,EMEA & Americas
3 Dow Chemical 8000 Canada APAC,EMEA & Americas
4 Clariant 6500 Switzerland APAC,EMEA & Americas
5 Dystar Group 1000 Singapore APAC,EMEA & Americas
6 Stahl International BV 870 Netherlands APAC, Latin America and Europe
7 Elementis PLC 830 UK United States, China and Europe
8 Balmer Lawrie & Co. Ltd 281 India India and APAC
9 Schill+Seilacher 200 Germany EMEA & APAC
10 Indofil Industries Ltd 140 India Brazil, Netherlands, APAC
11 Wei Tai Leather Co., Ltd 100 China China and Vietnam
4Source: Zoominfo; Businesswire; Website of the respective player
Competitive Landscape

5. 5
Inception of Eco-Leather, synthetic
leather and other low cost material
are serious threat.
Threat of substitute
Presence of global
and local player
provides edge to
buyer to negotiate
more in terms of
price, quality and on
time availability.
Bargaining power of
Buyers
Apart from giants like
Bayer, Dow and Lanxess who
has access to global
market, there are thousands
of local players in markets like
India and China who puts
tough competition
Competition in the industry
As the industry follows
strict government
regulation, requires technical
knowhow along with good
amount of investment and
observed decrease in profit
margin new comers does not
have a easy road ahead.
Whereas technological
innovation and growing
demand making the market
more lucrative and continues
to attract new players
Threat of new entrants
Larger players can bargain and
shape their cost forward given the
market situation but smaller player
adheres to its budget.
Bargaining power of suppliers
Moderate
Moderate
High
Porter’s Five Forces Analysis

6. 6
Brazil Revenue (In Million) Description
Elekeiroz 290
Elekeiroz is a Brazilian chemical company that meets
chemical demand for industrial purposes and in the building
and construction, footwear, clothing, automotive, food and
various chemical industries.
WACKER Chemicals of
Brazil
4988
The company has served across South America in particular,
Argentina, Brazil, Bolivia, Chile, Peru, Paraguay and
Uruguay.
TFL Brazil Chemical
Industry Ltd.
38
Part of TFL, has production facility in Brazil catering South
American market
Braskem 1470
Brazilian petrochemical company headquartered in São
Paulo has also launched its leather Chemical variety in 2017
Spain Revenue (In Million) Description
Dyes Lorca Chemicals 100
Beamhouse products, retanning agents, greases, resins are some of
main product line. Has distribution network across Russia, Ukraine,
China and South America
Cepsa Chemical 20000
Based in Spain has manufacturing plants in Spain, Germany, Canada,
Brazil, China and Indonesia
Dow Chemical 8000 Located in Canada has significant outreach to the market worldwide
Sthal 870
Recently acquired leather chemical business from BASF has reach all
the major markets in the world
Henkel 1999 German chemical and consumer goods company also present in Spain
Source: Zoominfo, Hoovers, Company Website & annual report
Key Players- Brazil and Spain

7. 7
China has the fastest growing chemical industry in the world by revenue since 2011 as stated in Mckinsey report.
Growing at a CAGR of 7.8 % (estd) Chinese leather chemical industry will continue to outpace other region as
projected till 2024 supported by spurring demand for footwear, apparel and automotive application.
Source: mckinsey.com
China – Market Overview
Growth Drivers
Major Players in Leather Chemicals are-
 Increase in demand for luxurious goods
 Low cost in technology and scale of production
 Favorable economic variables
 Domestic consumption- China is the largest producer of finished and
raw leather goods
 Income level of middle class has been on rise
 Chem China
 LANXESS Chemical (China) Co., Ltd.
 Sinochem
 Petro China
 Sinopec
 Brother Enterprises Holding Co.,Ltd.

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Thanks