Growth Drivers

• Stringent Regulations Regarding Animal Cruelty and Slaughtering - According to the Act on Welfare and Management of Animals (1973), abandonment and cruelty through neglect are both punishable by fines, whereas killing or wounding an animal in a protected category carries a fine or a sentence of up to one year in jail. The anti-cruelty and duty of care regulations cover all agricultural animals, with the exception of fish. Although suitable methods are not specified and stunning is not necessary, slaughters are necessary to reduce pain and misery. Owing to the regulation imposed in Japan more preference ins given to synthetic leather as it involves no harming and slaughtering of animals. They are usually made from plant-based material, and more. Hence this factor is expected to drive the growth of the market in Japan.

• Shift from Natural Leather to Synthetic Leather - Adidas x Stella McCartney invented the first vegan sneakers, and Nike and Hugo Boss used Pinatex, a natural leather alternative made from pineapple leaf fibres, in some of their collections prior to the pandemic outbreak. Fashion players have long used leather substitutes for their bags, luggage, and footwear products.

• Increase in Vegan Population - There are approximately, 2 Million vegans in Japan.  According to a TPC Bibliotheque survey, sales of vegan products have climbed by about 16%. 

• Technology Development by Various Key Players - In an effort to break new ground in the development of a sustainable leather substitute that can be used for shoes, apparel, accessories, and more, Bucha Bio introduced plant-based leather that is totally produced in a lab.

• Surge in Usage of Synthetic Leather in Automobile Industry - Instead of actual leather, the seats in Mazda's brand-new "MX-30" electric vehicle will be made of imitation leather. The leather on the steering wheel and gear selector could also be replaced, according to the company.

Challenges

• Harmful Effect of PU and PVC
• Growing Environmental Concerns
• Availability of Alternatives

Raw materials for synthetic leather including polyurethane (PU) and polyvinyl chloride (PVC) are harmful to the environment, the health of people and animals. As an isocyanate, PU has the potential to injure the lungs by triggering asthma attacks and irritating the airways. It also causes skin irritation and makes breathing challenging owing to a lung infection. Hence owing to all these consequences this factors is expected to hinder the growth of the market in Japan.

The Japan synthetic leather market is segmented and analysed for demand and supply by product type into polyurethane (PU), and polyvinyl chloride (PVC). Out of which, polyvinyl chloride (PVC) segment is anticipated to garner the highest revenue of USD 1,231.1 Million by the end of 2031, up from a revenue of USD 565.2 Million in the year 2021. Further, the segment is anticipated to grow at a highest CAGR of 8.2% over the forecast period, backed by its increasing popularity in commercial industry. Approximately 1 million tonnes of polyvinyl chloride were produced in Japan in 2020. They are extensively used in manufacturing footwear. Moreover, they are also used for furniture upholstery, transportation seating, and more.