Biocides for Leather Market

Market Overview

The global biocides for leather market revenue was valued at USD 560.10 million in 2022. It is estimated to reach an expected value of USD 850.12 million by 2031, growing at a CAGR of 4.8% over the forecast period (2023–2031). The leather sector is predicted to be driven by the increasing demand for high-end fashion accessories like wallets and handbags, as well as rising consumer expenditure on personal items. This is expected to propel demand over the forecast period.

Leather is one of the most used materials for making various goods, such as footwear, clothing, automotive seats, purses, jackets, bags, pouches, smartphone covers, dog collars, and belts. Biocides are utilized more frequently as fungicides and bactericides to prevent the accumulation of fungi, bacteria, and other microorganisms during many crucial stages, including soaking, pickling, tanning, cleansing, and finishing, in the leather manufacturing process.

Biocides, commonly present in wastewater, remain after the tanning process and are typically discharged by leather producers into neighboring water bodies, resulting in elevated toxicity levels. Consequently, the European Union's Biocidal Products Directive (BPD) has established restrictions governing the quantity of biocides employed by leather companies.

Market Dynamics

Market Drivers

Growth in the Global Leather Industry

Biocides are widely used in leather manufacturing facilities during important steps such as soaking, pickling, tanning, curing, and finishing to avoid the buildup of microorganisms. The amount and type of biocide used varies from process to process, depending on the hide or animal skin type. For instance, biocides used in tanning applications typically range from 0.1% to 0.5% by mass of rawhide and are non-oxidizing. Examples of such biocides include isothiazoles, quaternary ammonium compounds, and halogenated organic compounds. The expansion of the global leather market is anticipated to fuel demand for biocides in the sector.

Evolving lifestyle of People and Increasing Fashion Consciousness

The growing adoption of smartphones and tablets over the past few years has resulted in the use of trendy covers to protect these devices. Leather and leather-based products are the most traded materials in the world. Moreover, leather is one of the most widely used materials for making a variety of goods such as belts, shoes, bicycle seats, vehicle interiors, purses, boxing gloves, jackets, suitcases, pouches, backpacks, hats, saddles, dog collars, and others.

Leather goods are an important part of human lives as almost everyone uses them knowingly or unknowingly. The quality and quantity of leather used vary from application to application. Growing demand for luxurious fashion products such as wallets, handbags, and other fashion accessories, coupled with rising spending on personal goods, is expected to drive the leather industry over the coming years.

Market Restraint

Toxicity Concerns of the Product

Biocide application has reflected adverse health effects over the past couple of years, translating into public health scares. Chemical Ranking and Scoring (CRS) procedures have been implemented globally to efficiently manage the products to monitor the use and handling of diverse biocide products. CRS offers data on the exposure to and toxicity of various biocide agents. Numerous nations in all major regions have implemented legislation and restrictions to reduce the negative impacts of biocides.

As cited by the Pesticide Action Network (PAN) and various other agencies, several biocides are toxic, persistent, carcinogenic, and endocrine-disruptive. Biocides cause multiple health hazards to humans and animals, such as skin and eye irritation and malfunctioning of the nervous system and respiratory systems. These factors have led to improved investments in research and development by key ecosystem companies to develop products that cause a substantially lower impact on human health and the environment. However, instances of global health hazard risks are poised to restrict the market growth of biocides over the coming years.

Market Opportunities

Growing R&D and New Products

Multiple firms within this sector are producing novel biocides by synthesizing them from natural components. These biocides exhibit enhanced efficacy against microorganisms such as bacteria, fungi, and viruses while preserving leather's integrity and its associated products. Moreover, leather makers can get customized services from firms like Thor and Vink Chemicals. This includes the production of biocides in specific concentrations tailored to meet the requirements of end consumers.

Furthermore, market participants maintain dedicated research and development divisions to create novel technologies for the manufacture of biocides. The R&D endeavors focus on implementing techniques to minimize environmental and water body contamination and creating biocides using biologically regulated compounds while maintaining the effectiveness of biocide application in the leather sector.

Regional Analysis

Region-wise, the global biocides for leather market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific's biocides for leather market share is estimated to exhibit a CAGR of 5.5% over the forecast period. This is due to the high concentration of leather manufacturers and the wide availability of raw materials. One of the main reasons for Asia-Pacific's need for leather chemicals is the region's cheap labor. The massive population, coupled with growing disposable consumer income in China, has liberally contributed to most areas of leather manufacturing. Moreover, leather chemical manufacturers such as Lanxess AG and Seaton Chemicals Ltd. have a well-established regional footprint. Therefore, they can adequately resolve any demand-supply gap issues about leather chemicals.

China is one of the world's largest leather producers and exporters. China accounted for about 25% of the annual worldwide leather production in 2020, with production reaching nearly 6.2 billion sq. ft., according to the China Leather Industry Association (ClIA). Most of the Leather produced in the country is sourced from bovine, accounting for approximately 40% of the total production per year, as China is one of the largest bovine skin producers across the globe. The major portion is utilized domestically for manufacturing straps, soles, and belts. The light leather obtained from goats and sheep is the country's second-largest source of leather production.

The European tanning industry is highly dependent on raw materials and exports. Rising consumption of leather chemicals in leather manufacturing for footwear, furniture, automotive interior, and apparel, among others, is expected to drive market growth in the coming years. However, the EU legislation implements various stringent regulations and guidelines regarding the use of such leather chemicals, which is expected to hinder market growth over the forecast period.

In addition, Germany's automotive sector has grown significantly in recent years. Since the leather business depends on automobile upholstery, this nation's developed automotive sector is anticipated to be the main consumer of leather chemicals. Moreover, the chemical industry in Germany is growing at the same rate as the country's automotive sector, which is expected to boost the leather chemicals market and increase demand for biocides.

The North American market is mostly driven by a well-established leather industry and the accessibility of raw materials. The U.S., Canada, and Mexico are the major leather markets in the region. According to the Leather and Hide Council of America, the leather industry in the U.S. was worth USD 100 million in 2020. Similarly, leather and hide exports accounted for over 90% of the country's production, making it one of the top export markets in the global leather manufacturing industry. As per the Environmental Protection Agency (EPA), the U.S. has over 111 leather tanning facilities, which account for the major consumption of leather chemicals.

The U.S. leather chemicals industry has recently witnessed a considerable rise in product consumption. The market for leather chemicals like biocides in the United States is expected to develop significantly due to the growing demand for automobile leather upholstery. Moreover, large-scale meat processing companies such as Tyson Foods, JBS USA, Cargill Meat Solutions Corp., and Hormel Foods Corp. are further anticipated to create a sustainable and uninterrupted supply of raw materials for leather production. This is anticipated to positively influence the growth of the leather industry, thereby driving the demand for biocides in leather processing.

Segmental Analysis

The global biocides for the leather market have been segmented based on product and process. 

Based on product, the global biocides for leather market are segmented into bactericides and fungicides. 

The fungicides segment dominates the global market and is expected to exhibit a CAGR of 4.9% during the forecast period. Fungicides are considered to be crucial components in leather manufacturing. They aid in preventing mold occurrence on processed as well as finished Leather. If obtained from a reliable supplier and used appropriately, the fungicides used within the leather-making process exhibit no or minimal risk to the end user. However, fungal biodeterioration can adversely impact leather conditions within the tannery after being processed and turned into a finished product.

In tanning operations, biocides, such as bactericides, are typically employed to shield the substrate from bacterial development and assault. Rather than curing the hides, tanneries frequently use germicides to preserve soaking. Didecyldimethylammonium chloride, a quaternary ammonium salt, is one of the most commonly and repeatedly used active agents. It is biodegradable and exhibits low toxicity. Some prominent players offering bactericides include Synmac Chemicals Pvt Ltd., Buckman, and Indofil Industries Limited.

Based on process, the global biocides for leather market are segmented into tanning and dyeing, beam house, curing, and finishing.

The tanning and dyeing segment owns the highest market share and is estimated to grow at a CAGR of 5.2% during the forecast period. Biocides are critical in the tanning process, as they produce semi-finished forms of Leather. The semi-finished material is stored for dyeing and finishing per customer preferences and needs and transported over long distances directly to consumer industries for further operations. Microbes must not be allowed to create any contamination since they might lead to significant material loss and, consequently, significant financial losses.

Moreover, the dyeing process is part of the post-tanning operations, where colors are added to processed hides as per customer preferences. Emulsion oil is applied to the hides before dyeing to replenish the oils lost during beam house and tanyard procedures. Biocides are used in the dyeing process to prevent the formation of molds and mildew that can form due to oil treatment.

The beam house operations involve the preparation of hides for tanning processes. It involves cleaning hides by removing hairs and animal flesh without disturbing the required moisture content. It involves two processes, namely soaking and liming. In the soaking stage, hides are placed in clean water in drums and paddles to remove salts used in the curing process. This is done to adjust the required moisture content in the hide. In the liming process, the hides are soaked in a bath of chemicals, such as sodium sulfide and calcium hydroxide, to remove hairs and other epidermal layers from the skin. This process usually takes about 18 hours to 7 days. The fleshing procedure removes any remaining fats or muscles from the hides after the liming process.

Furthermore, biocides are added in the soaking process to prevent the damage that can occur because of the development of bacteria in water. At this stage, biocides are normally used in a proportion of 0.01 to 0.5% of the mass of raw hides, depending upon the standards set by the leather manufacturers. The usage of biocides is very important at this stage for the initial removal of any contaminations while imparting the required moisture content to the hides.

Recent Developments

• July 2023- Lanxess expanded its product portfolio through the acquisition of the Microbial Control business from International Flavors & Fragrances Inc. (IFF). This acquisition included the addition of biocides such as Rocima, Kathon, and Bioban to Lanxess' product offerings.