Background Context: With the rise of veganism, concern for the environment, and awareness of carbon footprint, leather has been facing a lot of criticism. While the industry has been dedicating resources to address each concern, traditional leather has found itself a worthy competitor in leather alternatives.
A favourite among leather startups: Among the various research focus areas within the leather industry, alternative leather has been the most lucrative, with more than 100 start-ups already established, many of them having patented technology and commercialized products in their bag (pun intended!). The industry has been constantly evolving to keep up with the trends as each material tries to outdo the other in terms of performance, sustainability impact, or even the feedstock from which it is sourced. Some of the material sources have become commercially popular over the last few years like mushroom or fish-based leather. Many come from unique sources like pineapple leaves or coconut water.
Synthetic=Vegan=Oil: Traditionally, alternative leather markets were dominated by players who derive their products from synthetic or petroleum-based sources. The first so-called “vegan” leathers that came into the market were the synthetic ones. These were made of variations of two kinds of plastics, namely PU and PVC. However, even though animals were not harmed by the generation of these leathers, they still have a toxic impact on the environment and are also non-biodegradable. While synthetic leather has a smaller carbon footprint than animal leather, it is not by much (just 7% less greenhouse gases). But despite this, when measuring the area of plastic leather manufactured in comparison to animal leather, plastic leather is miles ahead, which is a very concerning fact.
Upcoming answers from early-stage companies’ & universities in Eco-Friendly Leather #AlternativeLeather
Plant-based answers: Given the concerns of synthetic leather, there is an emerging trend of innovative players in the market developing bio-based sustainable alternative leather. Many of them offer plant-based leather. One such company is Malai, a start-up based in South India. They have developed a method to manufacture alternative leather using coconut water fermentation. Another start-up that uses plant-based origin for creating alternative leather is Ananas Anam, using pineapple plant leaves. The material is sold under the brand name Piñatex, and leading brands such as Hugo Boss have already been using it for their leather products. German institute Niederrhein University of Applied Sciences has also sourced leather from cacti which requires less water for growth and has numerous environmental benefits. A Mexican start-up named Deserto has also been using cacti to develop leather using less water and energy and emitting few greenhouse gases when compared to synthetic or animal leather.
Lab-grown answers: Lab-grown leather is another sub-segment within alternative leather, with start-ups like Bolt Threads and Modern Meadow. Bolt Threads, a US biotech company, has engineered the process for mycelium cells to grow in a vertical farming facility. They are set to commercialize the product with major luxury fashion houses investing in upscaling the material production. Modern Meadow developed leather through lab-grown collagen by using engineered yeast. The engineered yeast is still being developed to generate enough collagen for scalability. KTU, a university in Lithuania, has also developed leather-like material using yeast and bacteria.
Fish-based answers: Fish leather is also an interesting option for alternative leather that sidesteps most of the environmental problems associated with animal leather. Ictyos, a French start-up, has used leftover sushi fish skin to make the leather. The start-up has also set up its own vegetable tanning facility that would contribute to the company’s overall sustainability focus. While there are some disadvantages to fish leather like its thinness and lack of water resistance, there has been research to improve these properties. IIT, an Italian research institute, has researched extensively on fish leather to improve its hydrophobic feature by developing a coating made of other food by-products epoxidized soybean oil, and the fatty acid trimer Pripol.
The Green Opportunity: The leather market is 54% dominated by animal leather, leaving significant room for alternatives. The alternative leather industry is fiercely competitive, with challenges like cost and scalability. Startups, mostly founded in the last five years, are leading this space and have secured global funding to scale. With a projected 37.4% CAGR in the vegan bio-based leather market over the next decade, even a small market share offers a huge opportunity.