Your group is a brand in fibre industry. As an acrylic fibre producing arm of ABG, how do you find today's Acrylic Fibre market world over? What is its future, and roadblocks?
Acrylic fibre Industry worldwide has been declining in the past few years. The main reason for this has been higher price of acrylic as compared to polyester and cotton. Although products made from Acrylic Fibre are superior in quality, but due to high cost differential between Acrylic Fibre and Polyester/ Cotton, some part of Acrylic Fibre at the lower end of the market has been substituted by relatively low cost fibres. However, for high end needs in sweaters, blankets, the producer still use acrylic fibre. This is like what happened to wool 30 years back, lower end of the market was taken by acrylic and wool demand did not grow.
57% of the global acrylic fibre capacity is in Asian region, which was less than half just 5 years ago. The increase in capacities in Asia is due to lower costs and shift of garment manufacturing to Asia. The shift of garment manufacturing to Asia and particular to China has also led to reduction of production in USA and Europe. North America and West Europe together have less than 20% of global capacity, down from 35% in the year 2000. Within Asia, China accounts for 50% of the share. Almost 35% global capacity and two-third of Asia’s capacity is in China.
Acrylic fibre has inherent strength of bright colors, good color fastness, shrinkage properties which give bulkiness and warmth and it is a lighter in weight than polyester. The lack of awareness of these strengths at the consumer level is one of the main reasons for low growth in demand. Many times, the spinner/knitter decide use of fibre based on cost which fibre is to be used, this leads to consumer not getting the best properties in the garment. We feel, with focused efforts on creating awareness among consumers the Acrylic demand can be grown at a higher rate. The best case study of this is in Iran, where the users still prefer acrylic carpets as the consumers know the advantages of acrylic fibre.
Published on: 05/08/2011
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