About 26% of the world’s fiber demand is met by cotton, while 56% is met by polyester. In the year 2000, both cotton and polyester fabric held over 35% of this market. Since then, there has been a steady drop in the global market for cotton fiber. Additionally, polyester is predicted to meet 60% of the entire fiber requirement globally by 2030, with cotton accounting for 1/4 of the total. The worldwide market trends are largely responsible for the impressive increase and volume of polyester fiber consumption. Consumers’ shifting priorities and values influence product developments and polyester fabric manufacturers, which in turn affect downstream processes through a cascade of needs based on price, quality, and performance and capability.
This article discusses the changing nature of the synthetic textile industry and highlights the unrealized potential for investment in India. Key advantages experienced by Indian players are explored, as are the deficiencies that need to be remedied.
Factors That Are Driving The Industry
As a result of these shifts in the industry, the demand for polyester fiber has increased dramatically in both volume and scope. Recycled nylon, lyocell, and viscose are among more synthetic fibers on the rise. Polyester, however, continues to be the synthetic material of choice. Consumers’ shifting priorities and values impact what’s popular in terms of finished goods. These major tendencies have been spotted:
- The importance of maintaining a healthy body image is rising.
- A new sustainable fashion trend,
- The rise of new forms of activewear, such as sportswear, performance wear, and athleisure, as important consumer markets,
- The emphasis in the textile industry has shifted toward low-cost fibers as a result of the need to be more cost competitive.
As a result of the aforementioned shifts in the international market, polyester has emerged as a popular choice since it is both inexpensive and versatile. It may be recycled and combined with materials like cotton and spandex to meet certain performance standards. Today, recycled polyester is widely recognised as a viable sustainable textile choice. Fibers are spun from recycled plastic bottles.
This prevents the bottles from being dumped in landfills. Eco-conscious consumers are increasingly patronizing multinational corporations like H&M, Nike, and The North Face because of their use of recycled polyester in production. The present athleisure fashion trend has resulted in extremely good potential for development, and the need for polyester has led to further market share increases. Athleisure is a relatively new subset of the fashion industry in which clothes intended for exercise or other athletic pursuits are worn in non-sporting contexts including work, school, and informal or social gatherings.
Overview of Indian Textile Industry
In India, output of man-made fibers has climbed from 1,307 Mn. Kg. in 2013-14 to 1,319 Mn. Kg. in 2017-18, a compound annual growth rate of 0.2%. Over the same time period, MMF filament yarn production fell by 2% each year, to a total of 1,187 mn. kg in 2017-18. In 2017–18, the world produced 15,236,000,000 square meters of MMF fabric, down from the previous year’s total of 15,236,000,000 square meters.
Overall, textile and apparel exports based on MMF decreased by 1%, from US$ 11,025 million. in 2016-17 to US$ 10,969 mn. in 2017-18. Filaments, yarn, and home-textile exports increased by 11%, 5%, and 11%, respectively; exports of fiber, fabrics, and clothes decreased by 1%, 2%, and 7%, respectively. To summarize, clothing accounts for 47% of all Indian MMF textile and apparel exports, followed by fabric (19%), filament (11%), yarn (6%), and home textile (1%).
In 2017–18, India spent US$ 2,987 million on imports of man-made textiles and clothing, an increase of 16% year over year. Compared to the previous year, imports of man-made yarn increased by 94%, from US$ 117 mn to US$ 227 mn. Apparel and fabric imports made from MMF have also increased significantly, at 30% and 19% respectively.
Opportunities in Synthetic Industry
The increasing size of India’s textile and apparel industry, along with the country’s more competitive export market, presents excellent prospects for almost every kind of fibre and textile. Still, textiles made from MMF are anticipated to be the most in-demand worldwide. The textile industry in India based on MMF mostly produces low-value added and commodity items. Value-added synthetic textiles, however, are seeing brisk global demand. Many East Asian countries, including China, Taiwan, and Korea, have already begun producing high-quality textiles using MMF.
Companies in India need to invest and build expertise in MMF textile and apparel items to enter the value added market if they are to stay up with current demand. There’s a lot of money to be made in the future with performance-based MMF textiles, which aren’t being made in India in significant quantities at the moment. The following are some of the potential investment prospects in synthetic textiles:
To date, India has had a negligible impact on the international market for textiles derived from man-made fibers. Except for blouses, dresses, and sportswear, India has a negligible proportion (<10%) in the top 10 traded MMF-based categories. While this is true, nations like China and Vietnam have a disproportionately big percentage. To get into the global market for MMF textiles and clothing, India must make investments and improve its production capacities.
In 2017, India spent a total of US$ 640 million on the importation of synthetic woven fabric and US $390 mn on synthetic knitted fabric. India imports the vast bulk of its high-quality fabric from countries like China, Korea, and Taiwan since it lacks a strong presence of businesses in the high-end category. India should encourage the production of these kind of goods.
Forecasts show that by 2025, worldwide demand for polyester would increase from its 2017. It was on level of 52 million metric tonnes moved to 65 million metric tonnes, as reported by PCI. As of 2018, India’s demand for polyester is 4 Mn Tonnes. However, this is predicted to rise to 6.7 Mn Tonnes by 2025. It has been shown via a thorough examination of the demand and supply for polyester.
There will be a shortage of the material beginning in 2022. By 2022, India is expected to have a need for around 5 kilotons of polyester. This demand can be met by the country’s current polyester factories. Analysis of international trade data and domestic Indian data reveals that India must expand its Market share in the trade of synthetic fabrics and garments. Priority should be given to producing the most widely traded and rapidly expanding segments of the textile and apparel industries.
Briefly put, major textile companies have begun realigning their operations around polyester, the fiber of the future. In spite of recent diversification efforts, India’s textile sector is still heavily dependent on cotton. And could need a boost in its international standing in the synthetic textiles trade. In recent years, India’s MMF output has not changed. Also, although imports increased by double digits, handloom fabric exports fell somewhat. However, India has a lot of room to grow in this industry.
The outlook for the synthetic textiles industry in India seems to be brightening. And the market is poised for significant expansion in the coming years. Many textile manufacturers, especially polyester fabric manufacturers, have expanded their capacity in this area, and others have plans to do so, thanks to rising government assistance and shifting attitudes. India’s synthetic textiles industry may, thus, improve its export competitiveness and supplier image in the near future.
In this scenario, fabriclore is also contributing by its polyester collection that you can checkout at the online store. You can even purchase wholesale fabrics without any hussle.