Despite their benefits, animal and petroleum-based synthetic leathers come with serious environmental, social, and ethical challenges. Animal leather contributes to deforestation, water pollution and significant methane emissions, while tanning processes contribute to ecosystem damage and expose workers to toxic chemicals. Synthetic alternatives, though animal-free, rely on fossil fuels and generate petroleum-based microplastic pollution.

Bio-based leather offers a smarter solution—dramatically reducing environmental impact, eliminating animal products and petroleum plastics (as in the case of Alt. Leather’s 100% bio-based material), and enabling safer, more equitable manufacturing conditions.

The wholesale leather market is estimated at USD 70 billion. Bio-based leather currently represents a small share of the market but has big potential and is an emerging high-growth sector. Early investors in other high-growth material innovations, such as bioplastics, have seen strong returns. Bio-based leather presents a similar opportunity, with a projected CAGR of 7.9% from 2020 to 2030 for the synthetic leather industry (including bio-based options). IDtechEx, an emerging technologies research firm, puts the alternative leather industry’s expansion rate at 37% over the coming decade. It also notes that USD 1 billion has been invested so far. 

Furthermore, according to the 2025 ‘State of Fashion, Luxury’ report 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”.

Brands today must navigate increasing regulations (particularly in the EU), ambitious sustainability targets, and growing consumer demand for eco and ethical materials—without greenwashing.

And while it’s clear major brands are responding, first movers in bio-based leather still have a competitive edge. Take Nike, which has set a goal to reduce its carbon footprint by 63% by 2030 and reach net-zero emissions by 2050. “Innovating and scaling low carbon materials” is one of their sub-aims, in which they are already exploring bio-based foam options. 

The importance of raw material choice for lowering environmental impact cannot be overstated. A hefty two-thirds of a brand’s climate impact stems from its choice in raw materials, according to Boston Consulting Group. This matters because, compared to animal and synthetic leather, bio-based leather alternatives have significantly lower emissions. Our early stage lifecycle assessment data shows that Alt. Leather is 68.5% less carbon intensive to produce than animal leather, and 35% less impactful than synthetic leather. (Data not yet peer reviewed.)

Research by North Mountain consulting group for Material Innovation Initiative shows 92% of U.S. and 99% of Chinese consumers surveyed are open to purchasing next-gen materials, which includes bio-based leather alternatives. The U.S. consumer report also put next-gen leather’s potential market share at 57%, compared with other leather types.

Luxury brands have been exploring next-gen leather options since 2014, setting a precedent for mass adoption just as sustainable fabrics like Tencel have transitioned from high fashion to mainstream retail.

The innovation-driven nature of bio-based leather alternatives opens up new creative possibilities. With investment to support continued research and development, bio-based materials may be able to offer benefits that are difficult or impossible to achieve with animal or synthetic leather, such as improved durability, custom surface patterning and lighter weights. This means bio-based leather can become not just a cost-effective alternative, but a premium material with unique advantages.

Bio-based leather presents a high-value investment opportunity due to significant barriers to entry that limit competition and protect market leaders. Unlike traditional materials, bio-based leather requires proprietary technology, specialised production infrastructure and regulatory approvals—creating a strong moat around established players.

Alt. Leather is well-positioned to lead this industry shift.

• Our 100% bio-based leather alternative aims to match the quality and durability of premium animal leather—without petroleum-based plastics. Most animal leathers and bio-based leathers still rely on PU or PVC to bind or coat their bio-base.
• Our 100% bio-based resin has a pending patent.
• As mentioned above, our recent material’s life cycle assessment results are very positive, and we are attaining third-party verification.
• Leading fashion and automotive brands have expressed strong interest in our material with partnership negotiations underway.

With a scalable manufacturing process, growing brand interest and a clear path to price parity, Alt. Leather is ready to capture market share in a rapidly expanding industry. Investors who join us now will do so at a timely moment—just as sustainability regulations and consumer demand drive the market toward bio-based solutions. We’re also the only next-gen leather innovator in Oceania, providing a unique regional advantage with access to the world’s largest APAC manufacturing locations and Australasian trade agreements.

For bio-based leather to reach mass adoption, funding is needed to scale production rapidly. As production scales, bio-based leather is expected to achieve price parity with animal leather, opening up mass-market adoption and driving strong ROI for investors, which in turn will lead to the best outcome for ecosystems, workers and consumers alike. 

The bio-based leather market is currently on a strong growth trajectory, driven by rising consumer demand, regulatory pressure and increasing investment in sustainable materials. Various companies have secured significant investments, demonstrating strong investor confidence in the sector. Additionally, as the demand for sustainable materials rises, bio-based leather companies present opportunities for investor returns through acquisitions by major brands or eventual IPOs.

Bio-based leather is positioned to significantly disrupt the animal and synthetic leather markets, offering a science-backed, high-growth investment opportunity to advance the material industry ethically and sustainably. With strict sustainability regulations, growing consumer awareness and proven demand for innovative alternatives, brands must transition to better materials.