Non-Woven

Global Market Outlook on Non-Woven Market

• The global non-woven market is estimated to grow at a CAGR of 3.3 percent during 2023-2026

• The largest market for converted non-woven products will be in hygiene end uses, which is expected to grow at a CAGR of 3.5-4.0 percent during 2023-2026

Industry Best Practices : Non-Woven Market

• The preferred contract duration is 2–3 years, though five-year contracts are also prevalent. This is considered to be a negotiation tool for the buyer

• The length of a buyer’s commitment to buy from a supplier should be reflected in a better price structure

• Working closely and strategically with suppliers is crucial to ensure value addition to any firm

Global Market Size: Non-wovens

• Global market size of non-wovens is estimated to reach approx. $53.8 Billion by 2026. It is further estimated to grow at a CAGR of approx. 2.3 percent during 2023–2026. Bearish market sentiments from construction, automobile, furnishings, apparels, and other non-hygiene segment is likely to result in slower market growth in 2023 amidst higher global recessionary pressure.

• Raw Material: PP overall (approx. 48 percent), whereas PP Spunbond (approx. 40 percent), Polyester (20 percent), Wood Pulp (approx. 10 percent), PE (approx. 9 percent)

• The top 42 companies account for approx. 49 percent of the overall non-wovens market revenue in 2019. They had a total revenue of about $20.1 billion in 2018

• Global consumer spending, GDP, and other macro-economic factors are likely to have an effect, due to the Coronavirus pandemic. Hence, it will have an impact on the overall market revenue growth of non-wovens. It will largely be impacted, due to reduction in demand, due to the Coronavirus pandemic from the non-medical and hygiene segment. Segments, like hygiene and personal protective equipment, are likely to drive the market revenue during this time period

Global Capacity–Demand Analysis

• The global demand for non-wovens has reached approx. 17.1 MMT in 2022. It is further estimated to grow at a CAGR of 3.5 percent during 2023–2026; leading global technology is spunmelt, i.e., about 7.3 MMT in 2022 (approx. 43 percent of the capacity share)

• Major non-wovens users, like K-C and P&G, are the major demand drivers of the global non-woven market

Market Outlook

• Demand: The global demand for non-wovens has reached about 17.1 MMT in 2022. It is further estimated to grow at a CAGR of 3.5 percent during 2023-2026

• Supply: The global non-wovens supply has reached about 17.0 MMT in 2022. The growth in supply is expected to be in line with the demand’s requirement. Major non-woven users, like K-C, P&G, are the major demand drivers of the global market

• Developed/Mature Nations: North America, Europe, and Japan

• Developing/Growing Nations: China, India, and Middle East

• Spunmelt: The global capacity share for Spunmelt has reached about 7.3 MMT in 2022. It will further estimated to cross 8.1 Million MT by 2026. The growth rate has slowed down across developed nations

• The melt blown only suppliers have very small capacity that focus on sorbents (bottom of the barrel market) and filtration. However, it has increased significantly in 2020-2023 due to production of face mask. The market is unlikely to see any major capacity addition in the coming years

Engagement Outlook

• Buyers should indulge with the forward integrated global suppliers. It will result in high profitability, less lead time, and ease in handling

• Medium to long-term contract is the preferred mode of engagement with suppliers. However, option of sourcing with multiple suppliers should be checked to ensure lower risk

Cost Structure Analysis : Non-Wovens

• Raw material is the major cost driver of non-wovens, and hence, Asia and the Middle East have great control over its pricing, due to its low cost

• Reicofil 4-based SMS producers have a margin of approx. 30-40 percent in 2022.

• Raw material cost accounts for 63 percent of the overall cost (which is inclusive of the wastage cost of the raw material while changing spin pack and trimming the edges of the roll)

• Increase in producer’s margin for PP Spunbond Non-woven in 2022, due to stable demand and decrease in fibre prices during H2 2022

• The arrival of Reicofil technology will further boost the overall margin of the producers. Hence, it can be used as a negotiation tool while engaging in a new contract