Many fashion accessories and garments are made of animal leather. However, the leather manufacturing process is cruel and harmful to the environment, prompting the search for environmentally friendly and cruelty-free alternatives. People’s increased awareness of their health and choices in many aspects of their lives has fueled this desire. Considering these aspects, this paper analyzes the leather alternatives and investigates the leather industry’s challenges and compares the available alternatives based on properties, sustainability, and biodegradability. An in-depth literature review examines the existing research on raw materials, manufacturing procedures, uses, and limitations. Furthermore, the study assesses consumer perceptions and behavior about leather substitutes or vegan leather using a survey questionnaire to determine awareness, acceptance, and preferences. The findings provide insights into consumer behavior, expectations, and reasons for choosing these leather substitutes. By building on existing knowledge in the domain area, this study provides a comprehensive overview of vegan leather research, guiding future directions in sustainable materials and approaches for the leather industry.