Wazir Advisors arrived at 5 major trends that will mark the big shift in the textiles industry.

1. Polyester will continue to 1 drive global fibre market

Global fibre consumption has increased from 29 million tonnes in 1980 to 97 million tonnes in 2018, and the market has brought with it a change in the consumption patterns.

Cotton has limitation for future growth

  • Inability to meet growing fibre demand

  • Environmental concerns

  • Limitation in end-use and product innovation

         

Future belongs to polyester

Over the years, the supply gap left by cotton has been suitably filled by synthetic fibres especially polyester. Polyester's share in world's fibre consumption grew from 17% in 1980 to a dominant 55% by 2018.

The following properties of polyester fibre make it the most consumed fibre globally:

  •           Scalable and economical to produce

  •      Suitable for a large variety of end uses due to enhanced fibre characteristics

  •      Suitable for a large variety of end uses due to enhanced fibre characteristics

  •      Continuously evolving in terms of fibre properties

  •    Going forward, polyester will continue to be the dominant fibre and is expected to maintain the largest share of fibre consumption.

  •  By 2030, polyester fibre consumption will grow by another 25 million tonnes to reach a level of 78 million tonnes annually and will form a share of 60% of global fibre consumption of 130 million tonnes.

2. Manufacturing landscape will be influenced by 3 Cs-Cost, Competitiveness & Closeness

Cost has played a major role in textile & apparel manufacturing shift over the years

  • Over years, high-cost destinations such as US, European countries (incl. Italy, Germany, Belgium, France, and UK), Turkey, Japan, and South Korea have dropped their combined share in the global textiles & apparel trade from 45% (1995) to 22% (2018).

  • While low-cost destinations such as China, India, Bangladesh and Vietnam have increased their share from 26% to 49% during the same period.

  • While trade will continue to grow, shift in manufacturing will be driven by other parameters besides cost.       

 

Countries will need competitive advantage

While all countries would like to increase the share of manufacturing, the top textiles & apparel manufacturing hubs i.e. China, India, Bangladesh, and Vietnam have developed themselves over the years to become competitive in their respective segments.