Threads

Global Market Overview –Threads

• The global market for industrial threads is estimated to be $5.06 billion in 2023, and it is expected to grow at a CAGR of 3.6 percent, to reach about $5.62 billion by 2026

• The APAC will continue to dominate the market, in terms of global production and sales of threads by region

• China is the major producer of industrial threads, due to high availability of primary raw material (synthetic fibers) required for thread production

Global Trends : Threads

• Threads are used in the upholstery industry, including automotive interiors, home furnishings, luggage and travel. This trend is increasing in North America and Western Europe, due to increase in quality demanding customers

• Economic growth and rapid urbanization in South American regions drive the demand for high-quality threads

• APAC is the major producer of industrial threads, due to high availability of primary raw material (synthetic fibers) required for thread production. Top suppliers have manufacturing locations in Asian countries, due to low cost of production and raw material availability, which drive local sourcing and more value-added services.

Global Drivers and Constraints : Threads

Rapid urbanization, economic growth, and increase in customer awareness are driving the demand for superior quality thread production. The technological adoption differ with developed and emerging regions, which act as a constraint in sourcing operations to meet the specification for different geography.

Drivers

Economic growth

• Consumer purchase for superior quality products and apparels have increased, due to which, demand for specialty threads has increased for leisure goods, automobile airbags, fast moving consumer goods (e.g., tea bags)

Urbanization

• Pace of urbanization in developing countries, like China, India, Brazil, Mexico, is increasing, due to which, consumer demanding more innovative quality products from suppliers

Awareness

• Increase in public sector spending by governments (public and military) and protective safety clothing (industry and military) are helping the demand for innovative and quality thread products

Constraints

Technological adoption

• The quality and compliance (environmental, labor) of the product differ for developed regions (U.S. and Western Europe) and emerging regions (e.g., India, China, Brazil), due to which, the sourcing operations differ with geographical regions

• New technologies, such as anti-microbial threads, fibre optic threads, composite technology threads are used more in the U.S. and Western Europe markets than emerging markets

Cost Drivers : Threads

Raw material is the most important contributor to cost. Production output, lead time, and quality of the product are all dependent on the raw material.

Raw Materials

• Polyester staple fiber and polyester filament yarn are the main raw materials of thread

• It also depends on twist of threads, the number of turns per unit length required to hold the fibers together to give the yarn the required strength and flexibility

Labor

• The factors that drive labor include the average time required for machinery erection

• The process efficiency level will also have a greater impact on labor cost

Dyeing Process

• During the process of manufacturing threads, yarns are produced through twisting fibers or continuous filaments

• Twisted yarns are prepared to undergo dyeing process under controlled condition, which is standardized. Standardized process leads to low impact

Product Customization

• When the threads of the same color of the apparel are to be produced and the threads are not readily available, manufacturers order the threads on demand

• In such cases, the price depends on order volume. If the order is placed for a smaller quantity, threads suppliers keep a margin above the usual price

Machinery and Energy

• The type of advanced machines used in the production of threads is also a factor while arriving at the cost

• The utility prices in a country also affect the cost of production