Strong Outlook for Luxury Leather Points to Bio-Based Solutions

Key Takeaways

  • 1. With luxury leather goods projected to grow 4-6% annually through 2027, bio-based leather presents a timely opportunity for brands to differentiate with sustainability and innovation.
  • 2. Consumers are seeking novelty, ethical craftsmanship and verifiable sustainability, making next-gen materials a strategic investment for brands looking to build trust and long-term loyalty.
  • 3. The story behind bio-based leather—rooted in innovation, sustainability and craftsmanship—resonates with modern luxury buyers who value meaning and quality in their purchases.
Despite a wider slowdown in the luxury market, leather goods continue to have bright prospects as a category.

According to the 2025 State of Fashion, Luxury report (subscription required) by Business of Fashion and McKinsey & Co., luxury leather goods are on the rise, and are “poised for the fastest growth at 4–6% per year between 2025 and 2027”. The report cites enduring demand for investment pieces as a purchase driver.

 

The jewellery category has an equally strong outlook and together the two groups are predicted to be the most resilient product category through 2027. Out of all categories, the two grew the fastest in the 2019 to 2023 period. The strong growth was driven by price increases and demand for iconic products, particularly in leather goods.

A Good Time To Go Bio

Luxury brands are exploring ways to balance volume growth with sustainability and exclusivity. At Alt. Leather, we think this represents an ideal opportunity for brands to implement novel and sustainable materials like our 100% bio-based leather. Furthermore, the report highlighted consumer concerns about (un)ethical supply chains and the environmental impact of luxury goods, further enforcing the chance for bio-based leather options to emerge as a multi-faceted solution that tackles environmental, ethical and quality concerns.

Investing in 100% bio-based leather alternatives taps into a lucrative segment while offering a point of differentiation.

Not the Same Old Story

The report also highlighted that storytelling, and the new-found popularity of experiences, have a renewed importance in attracting luxury customers, who are looking for deeper meaning in their purchases. 

 

Bio-based leather is rich with storytelling possibilities that circle themes of innovation, sustainability, ethics and craftsmanship. Naturally, we’re biased, but could there be anything more exciting than a 100% bio-derived product designed from inception to have a super-low impact? A new type of material that has gone through thousands of iterations to become its best version; that has taken bright scientific minds and visionary entrepreneurial spirits to create; and that is made from 100% biological inputs, zero animal products and zero petroleum plastics, and yet is as beautiful and durable as the finest traditional leathers? 

 

We think the story behind bio-based leather makes a compelling narrative for luxury buyers. But are they willing to buy novel materials? Research elsewhere shows they are. According to a 2023 study by North Mountain Consulting Group for Material Innovation Initiative 92% of U.S. consumers are open to buying next-gen materials, “including 51% who were somewhat/moderately likely to purchase and 41% who were very/extremely likely to purchase,” the report noted.

Current Consumer Tastes

The report also noted consumer scepticism around greenwashing. We believe brand engagement and investment in 100% bio-based leather alternatives with transparent LCA data would demonstrate genuine sustainability efforts, therefore enhancing customer trust and loyalty. 

 

While the Business of Fashion report found that on average, sustainability is only an important purchasing factor for 50% of luxury consumers, there is a growing desire for novelty and attention to quality, the latter coloured by concerns around ethical craftsmanship. Bio-based leather ticks the box for innovation, ethical manufacturing and quality.

The Bio Opportunity

With luxury leather’s projected annual growth of 4-6% between 2025 and 2027, investing in innovative leather alternatives taps into this lucrative segment while offering a point of differentiation.

Alt. Leather is poised to satisfy luxury’s appetite for leather with sustainability and style. Get in touch to join us in shaping luxury leather’s future.

Bridging the Gap From Lab to Market for Biomaterials

Key Takeaways

  • 1. Moving from lab to market is the most critical phase in the development of biomaterials, where investment and brand partnerships can drive innovation, sustainability and profitability.
  • 2. Patient capital leads to long-term value. Early investment in biomaterials can support breakthroughs that align with new regulations, consumer demand and future-proofed supply chains.
  • 3. Brands must commit beyond capsule collections. Multi-year adoption, pilot programs and supply chain collaboration are needed to make biomaterials commercially viable and scalable.
Scaling biomaterials from the lab to the pilot stage is one of the most critical and exciting steps in unlocking their potential. It is also the step where support is most impactful. For investors, brands and society, this is a pivotal opportunity to drive positive innovation for people, the planet, and the bottom line.

The Challenges of Scaling Biomaterials

Scaling the production of biomaterials is a complex yet rewarding endeavour. Moving from the lab to the pilot stage involves addressing multiple interconnected challenges:

 

  • Raw Material Requirements: Sourcing inputs that meet scalability needs while maintaining quality and sustainability.
  • Operational Complexities: Managing utilities, logistics, and other operational factors on a larger scale.
  • Process Refinement: Small formulation issues in the lab can become magnified at scale, requiring careful optimisation.

 

These challenges underscore the importance of collaboration and support from industry and investors. With the right resources and partnerships, the transition from lab to market can unlock enormous positive potential for biomaterials.

Accelerating Progress from Lab to Market

The journey from lab to market is a critical phase for biomaterials, requiring coordinated efforts to refine processes, demonstrate performance and build reliable supply chains. While this stage demands investment and dedication, it also offers immense opportunities for growth and innovation.

 

Key areas of focus include:

 

  • Scaling Production: Ensuring consistent quality and scalability while optimising costs.
  • Proof of Performance: Demonstrating the material’s capabilities to meet industry standards.
  • Strategic Partnerships: Collaborating with brands and supply chain partners to accelerate market readiness.

These steps are essential for biomaterials to become commercially viable and achieve widespread adoption.

Scaling biomaterials is not just a commercial opportunity; it’s an urgent necessity for the planet.

Why Patient Investment is Key

Investing in biomaterials, like our 100% bio-based leather alternative, is a forward-thinking opportunity that aligns with emerging market trends and regulations. While scaling requires initial commitment, the long-term rewards are significant.

 

Patient capital—investment that prioritises long-term impact over immediate returns—is especially valuable for supporting biomaterials through the critical scaling phase. By backing innovators early, investors can:

 

  • Unlock significant financial returns from groundbreaking technologies.
  • Contribute to solutions addressing environmental and ethical challenges.

 

Additionally, new regulations like the EU Corporate Sustainability Due Diligence Directive and the New York Fashion Act are driving brands to reduce their environmental impact. Switching to bio-based materials is one of the most effective ways to meet these requirements, as raw materials and their processing can account for up to 65% of a product’s environmental footprint, according to The State of Fashion 2023, a report by Business of Fashion and McKinsey & Company.

The Role of Industry Brands

Industry-leading brands have a unique opportunity to shape the future of biomaterials. By moving beyond isolated capsule collections, brands can drive meaningful change by committing to sustained adoption and support.

 

Key actions include:

 

  • Long-Term Partnerships: Supporting R&D, manufacturing and supply chain development over multiple years.
  • Pilot Programs: Funding and participating in programs to test and refine biomaterials at scale.
  • Collaborative Ecosystems: Working closely with innovators to co-develop solutions and share insights.

By embracing these strategies, brands can gain access to exclusive materials, enhance product customisation and strengthen their sustainability credentials—all while aligning with consumer demand for ethical and eco-friendly products.

The Urgency of 100% Bio-Based Leather

Scaling biomaterials is not just a commercial opportunity; it’s an urgent necessity for the planet. Materials like 100% bio-based leather offer tangible solutions to the environmental crisis by:

 

  • Reducing reliance on resource-intensive industries like animal agriculture.
  • Lowering carbon emissions and other environmental impacts.

 

With sustained support, biomaterials like ours at Alt. Leather can transform industries such as fashion, automotive and furniture. This transformation is vital for the health of our planet, workers, consumers and animals.

What Brands and Investors Can Do

Scaling biomaterials requires a collaborative, long-term approach. Here’s how brands and investors can help:

 

  • Investors: Provide patient capital to support the transition from lab to market, recognising the long-term benefits of biomaterials.
  • Brands: Commit to multi-year adoption strategies, fund pilot programs and invest in shared infrastructure. Collaborate with innovators to build resilient ecosystems for biomaterial development.
By supporting material innovators, brands and investors can accelerate the adoption of biomaterials and drive meaningful change—for the benefit of people, the planet and the bottom line.

Understanding Leather Types: The Pros and Cons

Key Takeaways

  • 1. Animal leather remains valued for its quality and durability, but its production often comes with significant environmental and ethical concerns.
  • 2. Petroleum-derived synthetic leathers are affordable, customisable and animal-free, but they depend on fossil fuels and create plastic pollution.
  • 3. Bio-based leathers are made mostly or entirely from bio-based and plant-based inputs, presenting an animal-free, low-impact, high-quality option. 100% bio-based leather is ideal.
As the demand for sustainable and ethical materials continues to rise, the leather industry is undergoing significant transformation. From traditional bovine leather to synthetic and bio-based alternatives, each type has unique advantages and drawbacks. In this article, we break down the three major categories of leather to help consumers and businesses make informed choices.

Animal Leather (Bovine)

While most leather comes from cows and calves (bovine leather), it is also made from the skin of pigs, goats and sheep (including lambs). More unusual and so-called exotic sources include alligators, ostriches, snakes and kangaroos. Animal-derived leather is a favourite for a reason—it’s durable, beautiful and is a mainstay of many everyday products, from shoes to wallets to cars.

 

Animal Leather Pros:

 

  • Durability: Traditional leather is renowned for its longevity, often lasting decades with proper care.
  • Aesthetic Appeal: It offers a classic, high-quality look and feel that many consumers value.
  • Biodegradability: Untreated leather can eventually break down in natural environments.

 

Animal Leather Cons:

 

  • Environmental Impact: Bovine leather production is resource-intensive, contributing in part to 14.5% of global greenhouse gas emissions through livestock farming. Deforestation and water pollution are also significant concerns.
  • Ethical Issues: The leather industry raises animal welfare concerns and is closely tied to the meat industry.
  • Chemical Usage: Tanning processes often involve hazardous chemicals, posing risks to workers and ecosystems. Finishing leather often involves plastic coatings.
  • Toxic Water Waste: Leather tanneries are notoriously polluting of water. A study published in the Water Quality Research Journal highlights that tannery wastewater has become one of the dominant sources of industrial pollution, with the global leather industry producing approximately 600 million cubic meters of effluent annually.

Petroleum-Derived Synthetic Leathers (PU/PVC)

Pleather, leatherette, current-gen leather, artificial/synthetic/faux/imitation leather—whatever you want to call it, it’s made from fossil fuels. Synthetic leather today is synonymous with polyurethane (PU) or polyvinyl chloride (PVC), which are primarily derived from petroleum-based fossil fuels. PU can also come in recycled form or solvent-reduced waterborne PU.

 

These types of leather are often dubbed “vegan leather” since they contain no animal products. But that doesn’t mean they’re wholly environmentally friendly, just that they’re free from animal products (though from an emissions point of view, they often rate better than animal counterparts).

 

Synthetic Leather Pros:

 

  • Cost-Effective: PU leather is more affordable than traditional leather, and PVC is typically the most affordable of all synthetics.
  • Customisable: Available in a range of textures, colours, and finishes.
  • Animal-Free: It’s a vegan alternative, appealing to consumers avoiding animal products.
  • Durability: PVC leather is more resistant to water and abrasion than PU leather.

 

Synthetic Leather Cons:

 

  • Non-Biodegradable: Made from petroleum-based materials, PU and PVC leather contribute to plastic waste and microplastic pollution.
  • Durability Issues: Less durable than traditional leather, PU tends to crack and peel over time.
  • Fossil Fuel Dependency: Production relies on non-renewable resources, contributing to greenhouse gas emissions.
  • Toxicity: PVC production releases harmful chemicals like dioxins and phthalates, which can pose health risks. PVC is also a classified carcinogen in the US.

 

100% bio-based leather is free from animal and petroleum products, offering a sustainable alternative that balances performance, quality, and ethics.

Bio-Based Leather

This new group of materials goes by several names: they might be called “next-gen leather”, “bio-based leather” or “bioleather”. Material inputs for next-gen leathers can be, for example, plant-based, fungal (mycelium), or recycled (e.g. petroleum-plastic, other fibres). 

 

 

Partially Bio-Based Leather Alternatives

The important thing to note is that “bio-based” doesn’t mean the material is necessarily 100% plant or biologically derived. Many bio-based leathers contain some degree of petroleum due to its desirable properties.

 

Partially Bio-Based Leather Pros:

 

  • Reduced Plastic Content: These materials combine bio-based components (e.g. plant fibres) with synthetic polymers, reducing reliance on fossil fuels.
  • Lower Environmental Impact: Partially bio-based leathers often have a smaller carbon footprint than PU or PVC leather.
  • Improved Customization: Offers similar versatility to synthetic leathers.

 

Partially Bio-Based Leather Cons:

 

  • Limited Bio Content: Many options still contain petroleum-based inputs, limiting their overall sustainability.
  • Durability Variance: Quality can vary widely, with some materials being less robust than traditional leather.
  • End-of-Life Issues: Like PU and PVC, these materials are often non-biodegradable.

 

100% Bio-Based Leather Alternatives

At Alt. Leather, we’re one of very few companies innovating the next generation of leather that doesn’t come from animals or petroleum-based plastics. We work to match the performance and quality of traditional options without the environmental cost.

 

100% Bio-Based Leather Pros:

 

  • Eco-Friendly: Fully bio-based leathers are made from renewable resources like mycelium (fungi) and other plant-based materials. They often have a significantly lower carbon footprint.
  • End-Of-Life Solutions: Many are designed to decompose naturally at the end of their lifecycle, or without affecting soil microbiome.
  • Innovative Appeal: Pioneering brands using these materials can stand out as sustainability leaders.
  • Customisable: Like synthetics, bio-based alternatives can be customised to include various textures and colours.
  • Waste Reduction: They can use of biomass as a feedstock, reduce emissions and water waste during production, and are often produced in lineal metres to reduce cutting floor waste. They are also designed with end-of-life solutions in mind.

 

100% Bio-Based Leather Cons:

 

  • Higher Cost: In this nascent industry 100% bio-based leathers are more expensive to produce than synthetic or traditional options.
  • Scalability: Production can be limited as companies build, making it initially challenging for large-scale applications.
  • Durability Concerns: While improving, some bio-based leathers may not yet match the longevity of traditional leather.

 

Traditional leather remains a benchmark for quality and durability but comes with drawbacks. Synthetic options like PU and PVC leather address animal welfare concerns but also pose challenges. Bio-based alternatives, particularly fully bio-based leathers, are a growing solution, combining sustainability with innovation. Ready to explore sustainable leather alternatives?

Why Major Brands Should Embrace Bio-Based Leather Alternatives

Key Takeaways

  • 1. Animal leather and petroleum-based synthetic leather boast a range of benefits but also carry significant environmental and ethical drawbacks.
  • 2. Bio-based leather alternatives aim to replicate the high quality and performance of traditional options whilst being free of animal products, but they often still contain a degree of petroleum-plastics.
  • 3. Brands that adopt 100% bio-based leather (with 0% petroleum-plastics) can significantly reduce their environmental impact, stay ahead of regulatory shifts and meet consumer preferences.
The leather industry is at a pivotal moment. Traditional leather production—whether animal-derived or synthetic—faces mounting criticism for its environmental, social, and ethical impacts. As consumers increasingly demand sustainability and responsibility from the brands they support, the case for bio-based leather alternatives has never been stronger. Here we explore why and how major brands can lead the way with embracing bio-based innovations.

The Environmental Toll of Traditional Leather 

Animal-derived leather is prized for its durability and aesthetic appeal. Whilst the traditional leather industry is not going away, its current production comes at a steep environmental cost:

 

  • Greenhouse Gas Emissions: According to a 2013 report by the Food and Agriculture Organization (FAO), livestock farming accounts for 14.5% of global greenhouse gas emissions, with methane from cattle being a significant contributor.
  • Water Pollution: The tanning process generates large amounts of heavily polluted wastewater. Only a small percentage of leather is vegetable-tanned, leaving the majority reliant on chemical-heavy processes.
  • Deforestation and Biodiversity Loss: Cattle farming is a leading cause of deforestation, particularly in the Amazon, where, according to the WWF, 17% out of a recommended upper limit of 20% has already been deforested.

Synthetic Leather: A Limited Alternative

Synthetic leather, often marketed as “vegan leather”, initially appeared as a more ethical and sustainable option. However, its reliance on petroleum-based materials like polyurethane (PU) and polyvinyl chloride (PVC) raises significant concerns:

 

  • Fossil Fuel Dependency: Synthetic leather contributes to the depletion of non-renewable resources and pollution. According to a 2022 report by the Organisation for Economic Co-Operation and Development (OECD), plastics, including PU and PVC, are responsible for 3.4% of global greenhouse gas emissions.
  • Microplastic Pollution: During use and disposal, synthetic leathers shed microplastics, which contaminate ecosystems and enter the food chain.
  • End-of-Life Challenges: Most synthetic leathers are not biodegradable, leading to long-term waste in landfills.

 

Bio-based leather is the next generation of sustainable materials—it aims to deliver high performance without the environmental cost of traditional and synthetic leather.

The Case for Bio-Based Leather Alternatives

Bio-based leather is part of the next generation of sustainable materials, offering a viable solution to the challenges posed by traditional and synthetic leathers. These materials, derived from, for example, plants, fungi (mycelium) and/or recycled fibres, combine performance with environmental responsibility.

 

Here’s why we think major brands should make the shift:

 

      1. Significant Environmental Benefits:
        • Lower Carbon Footprint: Bio-based products as a broad category have on average 45% lower emissions than fossil-fuel-derived products. Life-cycle assessment data from other bio-based leather companies has shown, variously, bio-based leather to be 19 times or 80% less impactful than animal leather, and 3.5 times or 21% less impactful than synthetic leather.
        • Resource Efficiency: Unlike cattle farming, which occupies significant global agricultural land, bio-based materials often utilise agricultural by-products or rapidly renewable resources.
        • Reduced Chemical Use: Many bio-based leathers avoid the harmful chemicals used in traditional tanning, protecting workers and ecosystems. At Alt. Leather we avoid tanning completely, instead using 100% plant-derived and bio-based dyes.
      2. Alignment with Consumer Values:
        • In 2018, Yoox Net-a-Porter surveyed 24,000 customers: 72% said social or environmental considerations influenced their purchasing decisions at least some of the time and 58% said having more information about the ethics and sustainability of a product would influence their shopping choices.
        • Bio-based leather alternatives allow brands to align with these values, positioning themselves as leaders in sustainability.
      3. Regulatory Readiness:
      4. Innovation and Branding Opportunities:
        • Partnering with bio-based leather innovators like Alt. Leather allows brands to differentiate their products and tell a compelling sustainability story. Early adopters can become industry leaders, gaining a competitive advantage in a crowded market.

Real-World Examples of Bio-Based Leather Success

Several major brands are already taking steps to remove animal leather from their supply chains for environmental reasons. Companies like Apple, Tesla and Stella McCartney have publicly committed to eliminating traditional leather from their products. These decisions reflect a growing recognition of the environmental and ethical challenges associated with animal and synthetic leather and a commitment to align with consumer demand for sustainable solutions.

 

These initiatives demonstrate how forward-thinking companies can lead the industry toward a more sustainable and innovative future.

The Business Case for Bio-Based Leather

The transition to bio-based leather is not just an environmental imperative; it’s a business opportunity. Brands that adopt these materials can:

 

  • Reduce their carbon footprint and environmental impact.
  • Meet and exceed consumer expectations for sustainable products.
  • Gain a competitive edge in an increasingly eco-conscious marketplace.

 

At Alt. Leather, we’re leading the way with 100% bio-based, petroleum-plastic-free leather alternatives. Our materials are designed to be circular, low-impact and beautiful—offering a sustainable future without compromising on quality or performance.

The leather industry is ripe for disruption, and bio-based materials are key to a more sustainable future. By shifting away from traditional and petroleum-based synthetic leather, major brands can drive positive change while unlocking new opportunities for growth and innovation.

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