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Leather Substitution-Environmental pressure creates market opportunities

Under the pressure of environmental protection policy, domestic leather market faces a shuffling. The high pollution real leather and the traditional synthetic leather processing industry are gradually exiting as backward production capacity.
The microfiber leather industry, which combines environmental protection, performance and price, has maintained high annual growth rates against the backdrop of a sluggish domestic leather industry.

As an alternative, microfiber leather is considered to be fully enjoying the market gap left by the leather industry shuffle. The traditional leather industry has always been a highly polluting industry. producing industrial wastewater containing a large number of heavy metals, formaldehyde, and other harmful substances. In the past few years, the environmental protection sector has been making a big fight against leather industry, with a large number of non-standard leather and traditional synthetic leather enterprises being eliminated. With domestic important leather market in Hebei province as an example, since the second half of last year, more than half of the local leather processing plant shut down. the high cost of the pollution treatment, it is illegal to make a lot of pollution or backward production enterprise exit the market. Traditional production capacity exists, to bring opportunities for substitutes.

As the third generation of synthetic leather, the touch and appearance of microfiber leather can be compared to leather, and have better physical properties, such as anti-wear and ventilation. More importantly, the production process produces far less pollution than the real leather and traditional synthetic leather.  The cost advantage is also significant. The cost of pu leather for car seat is about 200 yuan per square meter, and the cost of microfiber leather is only about 80 yuan per square meter.

As international oil prices fall, the price of raw materials in the upper reaches of the microfiber leather is cut by more than half, which will bring a bigger impact to real leather and synthetic leather markets. Because of this, the microfiber leather industry has great development space. With the decline of the leather industry as a whole, microfiber sales have maintained high growth for many years. At the moment, however, the market is not big.

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