An overview on global fiber and yarn market

The global demand for the Textile Yarn Market was valued at USD 11.9 Billion in 2019 is expected to reach USD 16.0Billion in 2026 and is anticipated to grow at a CAGR of 4.0% between 2020 and 2026. The textile industry is witnessing huge demands in Asia Pacific regions due to the population explosion. The adoption of new trends globally and the introduction of new fabrics are some of the major factors driving demand for textile yarns.

Growth Factors: Rapid growth in urbanization and increasing requirements of the industries are the major factors that anticipate driving the market growth. The shift in consumer preference towards affordable and comfortable clothing increases the demand for high-value fabrics such as viscose, silk, and hemp. Blended varieties of fibers are also taking immense growth in the market owing to significant features of both artificial and natural yarn thus opening up new growth opportunities in the coming years.

Segmentation: The global textile yarn market is classified based on the sources as chemical, animal, plant, and others. Based on application, the market is fragmented into home textile, apparel, and industrial. Based on the artificial subtype, the market is segregated into categories such as viscose, polyester, acrylic, and nylon. This type segment is divided into artificial and natural types. Furthermore, the natural subtype segment is divided into flax, wool, ramie, cotton, hemp, jute, and silk.

In terms of fibre, global consumption crossed 100 Million MT in 2016 and it has been growing with 2019 recording consumption of 108 Million MT. The majority of fiber demand is met by synthetic fibers (63%), with cotton coming in second (25%).

According to the 2020 Lenzing report, synthetic fiber demand is expected to grow at a 3-4 percent annual rate between 2019 and 24. It is estimated that by 2030, global fiber consumption will reach approximately 140 million tons, with man-made fibers accounting for 108 million tons.

According to Wood Mackenzie’s Fibres Global Supply Demand report 2018, cotton accounts for only 26% of global fibre consumption, with Polyester accounting for 56%, Polypropylene 4.9 percent, Nylon 4.8 percent, Acrylic 1.6 percent, and other fibres accounting for the rest. For the period 2010 to 2020, worldwide fiber consumption increased at a pace of roughly 3.3 percent per year, with Asian countries having a higher consumption rate.

Natural fibers’ share of the market has shrunk from 41% two decades ago to roughly 26% today. As a result, it is clear that man-made fibres will be the primary source of fiber to meet the rising demand.

Cellulose Fiber Market was valued at US$ 26.04 Bn in 2019 and is expected to reach US$ 49.49 Bn by 2026, at a CAGR of 8.36% during a forecast period.

Despite the COVID-19 dilemma, the global market for Cellulosic Man-Made Fibers, which was anticipated to be 6.4 million tons in 2020, is expected to expand to 8.6 million tons by 2027, with a CAGR of 4.3 percent throughout the analysis period. Following an early assessment of the pandemic’s business ramifications and the resulting economic crisis, the Fabrics segment’s growth is revised to a revised 5.5 percent CAGR over the next seven years.

In the United States, the market for cellulosic man-made fibers is expected to reach 1.9 million tons by 2020. China, the world’s second largest economy, is expected to reach a projected market size of 1.5 million tons by 2027, representing a 4.1 percent CAGR from 2020 to 2027.Japan and Canada are two more important geographic markets, with forecasted growth rates of 3.9 percent and 3.6 percent, respectively, from 2020 to 2027. Germany is expected to expand at a CAGR of around 4.2 percent in Europe.

Factors helping the man-made textiles and apparel industry grow worldwide. Fiber consumption is predicted to increase as the global population grows. While cotton demand is expected to rise, the supply base is constrained. Man-made fibers fill the void and are rapidly gaining popularity as a preferred material. MMF’s cost competitiveness has also contributed to the industry’s increased use. MMF-based textile items and garments are becoming more popular as people’s attitudes on traditional textiles change and their acceptability grow. MMF’s infinite recyclability contributes to its overall attractiveness as the global consumer trend turns towards sustainability and circularity. Finally, MMF’s adaptability in end-use categories like sportswear, leisurewear, women’s dresses, home textiles, automobiles, carpets, and other industrial sectors makes it a suitable ‘fibre of the future.’

MMF textile & apparel industry in Bangladesh
With more than 4600 garment manufacturers, Bangladesh has established itself as a significant producer in the ready-made clothing market. There are approximately 430 spinning mills in operation, with just 27 mills manufacturing man-made yarn, specifically polyester. The production from the mills can meet only 20 percent of the national demand for the product. Other man-made fibres, such as polypropylene, nylon, and acrylic, have yet to be produced in Bangladesh. According to the Wood Mackenzie Chemicals report 2018 and TTS research, the textile mill consumption of polyester staple fibre and filament in South Asia has grown over the last decade, Bangladesh has enormous potential in the manufacture of man-made fiber if it can capitalize on its current resources. Currently, countries such as China, Viet Nam, Indonesia, South Korea, Thailand etc., are leading the man-made fibre production.

Man-made apparel export
In comparison to cotton apparel exports, Bangladesh’s man-made garment exports are low. In 2019, the worldwide man-made apparel trade was valued at over 179 billion dollars, with Bangladesh accounting for about 5% of the market. At the same time, Bangladesh’s market share in the worldwide cotton apparel market, which was valued at 199 billion dollars, was close to 15%.

Bangladesh’s exports share in global man-made apparel trade.

Opportunities and growth potential

The government should also make it easier for FDI to flow into man-made fiber textile and clothing manufacturing, as the country has extremely limited capacity in this area. Bangladesh’s government has announced plans to broaden its clothing export basket and improve its backward linkages sectors by extending tax-free manufacture of man-made fibers. The government should also make it possible to import raw materials duty-free. Otherwise, production costs will be greater. Entrepreneurs and business leaders applauded the move, which they believe will help the garment industry attract more foreign direct investment. Given the global economic environment, particularly in light of the COVID-19 situation and the expanding diversification of clothing sourcing, now is an excellent time for Bangladesh’s textile sector to engage in man-made fiber textiles and move up the value chain.