Key players & competitive landscape of nonwoven fabrics in US market

Table 1: Key exporting countries and trade statistics - HS-560314 - nonwoven fabrics (man-made filaments) in CY 2024

Source: TradeMap and F2F Analysis

*Effective March 2024

Note: RCA - Revealed Comparative Advantage, UVR - Unit Value Realisation and LPI - Logistics Performance Index

Graph 1

Trade Overview

Canada

Canada is the leading exporter of nonwoven fabrics to the US, with an export value of $75.30 million and a UVR of $6.47 per kg. The country currently benefits from a 0 per cent tariff rate under the United States–Mexico–Canada Agreement (USMCA), considering President Trump has temporarily exempted a wide range of goods from Canada and Mexico from the 25 per cent tariffs he had recently imposed, provided they complied with the USMCA trade agreement. The exemptions, covering 50 per cent of Mexican imports and 38 per cent of Canadian imports, will remain in place until April 2, when Trump plans to introduce ‘reciprocal tariffs’ on countries that impose import taxes on US goods.

Additionally, Canada’s competitive pricing at $6.47 per kg strengthens its global position by being the leading exporter to the largest consumer country, the US.

Canada might gain some value from the additional tariff imposition on China by the US. Canada’s superior logistics performance and proximity to the US would benefit its exports of nonwoven fabrics. Canada’s success in the nonwoven textiles sector is driven by a robust production infrastructure and technological advancements. These factors enable high-quality production while maintaining cost efficiency, making Canadian nonwoven fabrics highly sought after worldwide. The combination of innovation, favourable trade conditions, and efficient supply chains solidifies Canada’s leadership in the global nonwoven fabrics market.

India

India's nonwoven fabric exports stand at $52.71 million, with a strong RCA of 5.81. With an export price of $3.11 per kg, India positions itself in the high-value segment, indicating a focus on specialised or premium nonwoven fabrics. The 0 per cent tariff market access for India also facilitates free entry, but the relatively higher pricing could limit competitiveness in price-sensitive markets.

India’s expanding textile industry and increasing investments in nonwoven manufacturing are key drivers of its global presence. By enhancing production efficiency and exploring cost-optimisation strategies, India can strengthen its position while maintaining its edge in high-performance nonwoven textiles, especially in a market like the US, which has shown consistent demand for the product.

Germany

Germany commands a high UVR of $20.52 as it supplies specialised products in nonwoven fabric exports, with an export value of $41.50 million and a price of $29.52 per kg to the US. The country's advanced manufacturing capabilities and strict industry regulations ensure high-quality production, reinforcing its leadership in the US market. With a 0 per cent tariff rate, Germany maintains its competitive edge by offering a balance between quality and affordability, making it a preferred choice for diverse industrial applications.

China

China remains the cost leader in nonwoven fabric for the US market, with an export value of $35.7 million and a UVR of $3.36 per kg. With an RCA of 0.78 for the US, China is losing competitiveness and, despite having one of the lowest export prices, leverages large-scale production and economies of scale to remain highly competitive. The 0 per cent tariff rate further enhances its export strength, allowing China to dominate price-sensitive markets by providing affordable and mass-produced nonwoven fabrics. An additional tariff of 20 per cent will further erode China’s competitiveness and is bound to create space for other competitors in the fray.

Tariff Impact: With the first tariff imposition on February 4, 2025, the tariff rate increased to 10 per cent. This rise in the tariff burden would lead to an increase in the UVR as production and export costs escalate. As a result, the UVR would likely increase to around $3.7/kg, reflecting the growing challenges posed by higher tariffs. The increase in the UVR shows that the products are becoming more expensive, which could make them less competitive for price-sensitive consumers.

Graph 2

In the second tariff imposition, effective March 4, 2025, the tariff rate rose further to 20 per cent. This substantial increase would push the UVR to approximately $4/kg or higher. The higher tariff burden will continue to raise costs, further diminishing the cost-effectiveness of the products. India has been doing particularly well in the category even before the imposition of tariffs of 20 per cent on China. China’s MMF-based nonwoven fabric users might most likely shift to India due to their price-sensitive nature.

Japan

Japan’s nonwoven fabric exports total $34 million to the US, with a UVR of $17.57 per kg and an RCA of 2.25. Known for its technological advancements and innovation, Japan focuses on high-performance nonwoven textiles, particularly for automotive and medical applications. The 0 per cent tariff rate facilitates smooth trade and special access to the US market, while its balanced pricing model ensures competitiveness in premium and specialised segments of the nonwoven fabric industry.

Competitive Landscape and Future Outlook

Market Leadership: Canada, Germany, and Japan lead in terms of volume and market share, maintaining strong positions in the nonwoven fabrics industry focused on US demand.

Technology & Innovation: Germany and Japan continue to set the benchmark in high-performance and specialised nonwoven fabrics, leveraging advanced R&D and cutting-edge production techniques.

Emerging Growth: India is rapidly gaining prominence in the US market. However, strategic pricing adjustments may be necessary to enhance its market penetration and competitiveness on a global scale.

Fibre2Fashion News Desk (NS)