Polyurethane Leather Procurement Intelligence Report 2025-2030

Polyurethane Leather Supply-Demand Overview

Additionally, buyers are becoming increasingly more conscious of environmental and animal welfare issues, and the fashion industry is seeing a shift in consumer preferences toward synthetic leather. In 2024, the garment industry generated USD 2.4 trillion in global consumer spending. In the past ten years, this has increased by 15.94%. By 2029, the polyurethane leather procurement report anticipates that worldwide spending would have increased to almost USD 2.88 trillion. This is because PU leather is inexpensive, long-lasting, and requires zero to no maintenance. 

The Asia-Pacific region is boosting the market in terms of polyurethane leather sourcing. Since synthetic leather is four to five times less expensive than natural leather, it has become the preferred material for mass-market items including clothing, purses, and shoes. As per the polyurethane leather procurement report, opportunities for the market are also presented by the automotive industry's rising prominence in North America.  In 2023, in North America, production increased by 12.4%, resulting in 11.7 million cars produced last year. The US showed a similar trend, with a growth rate of 8.5%, resulting in over 7.6 million cars built. 

Polyurethane Leather Cost Structure

As per the polyurethane leather procurement report, key factors driving the cost modeling of PU production are raw materials such as polyurethane resins, plasticizers, and fabric backings, polyester or cotton. In addition, chemical and fabric price fluctuations make up the majority of the final cost. The application process, including coating and laminating polyurethane onto the fabric, further adds to the overall pricing models, depending upon the complexity such as texture applications and special finishes.

As per the polyurethane leather procurement report analysis, labor cost is another contributor in the pricing strategies, mainly in the preparation of materials, quality control, and final adjustment with skilled work. Energy use during the stages of manufacturing like curing or drying contributes to high costs. Compliance with environmental and regulatory requirements such as the use of non-toxic chemicals and cleaner production increases the cost of manufacturing as buyers react to the demands of the consumer for more environmentally friendly products. Lastly, costs associated with distribution and logistics including shipping and storage, can affect the selling price in the polyurethane leather procurement market.

Polyurethane Leather Pricing Trends

The general trends in prices according to the polyurethane leather procurement report relate to raw materials, new technology in production methods, and wages. However, PU leather is generally priced lower than other leather types. However, based on quality, finishing processes, and environmental credentials, the final pricing strategies may change. The rising demand for green and responsible products causes volatile prices as producers fund more environmentally friendly manufacturing processes. However, the report predicts that with technological advancement and increased production volumes, prices may balance out in the near future. 

Polyurethane Leather Procurement Best Practices

According to the polyurethane leather procurement report, the best practices include acquiring synthetic leather-based materials made from polyurethane to serve its purpose as an environmentally conscious and economical replacement for real leather. As part of their negotiation strategies, companies are increasingly seeking suppliers who present high-quality PU leather exhibiting desired properties, such as durability, texture, and environmental performance. Ethical as well as environmental considerations are highly incorporated in such strategies. Many companies are sourcing PU leather that are produced with non-toxic chemicals and processes that are non-wasteful in nature. Procurement practices also ensure the use of recyclable or biodegradable materials, which is gradually becoming demand among consumers. Further, companies may emphasize suppliers who guarantee responsible production techniques through certifications.

Key Players in the Polyurethane Leather Industry

Recent Developments in the Polyurethane Leather Industry

• In October 2024, the Mitsubishi Chemical Group announced that its plant-derived polyol "BioPTMG" has been adopted by Kahei Co., Ltd. as a synthetic leather (bio-synthetic leather) material. In addition, small items such as shoulder bags and wet tissue cases made with this bio-synthetic leather will be available for purchase at "tonto," run by Triple A Co., Ltd., a planner and marketer of sustainable products.
• In July 2024, BASF launched Haptex® 4.0, an innovative polyurethane solution for the production of synthetic leather that is 100% recyclable. Synthetic leather made with Haptex 4.0 and PET fabric can be recycled together through an innovative formulation and technical pathway, eliminating the need for the layer peel-off process, which makes material reuse possible.