Demand from textiles & clothing expected to continue dominating VSF market growth
Demand for VSF in textiles and clothing is expected to reach 5,802.0 KT in 2026 from 4,220.2 KT in 2021 growing at a CAGR of 6.6%. This demand is mainly driven by factors such as decreasing cotton output and surging cotton prices in the recent time. Demand from nonwoven segment is expected to register a CAGR of 6.2% between 2021 and 2026, mainly driven by growing usage of wipes, baby diapers, feminine hygiene products, medical products, and several other nonwoven fabrics based products. Industrial & other applications is the third largest segment accounting for 9.5% of the overall demand in 2020. Demand in this segment is expected to reach 637.4 KT by 2026, growing at a CAGR of 3.1% from 2021.
Global apparel imports yet to recover to pre-pandemic levels
Global imports of apparel are still nearly 5% lower than pre-pandemic levels but have recovered well from last year. Imports of knit apparel have come up much stronger in Jan-Jun 2021 compared to woven apparel. Home textiles imports saw a sharp rise last year and are still well above pre-pandemic levels. Imports of nonwoven products fell slightly by 2% in Jan-Jun 2020 and have grown strongly by 24% in H1 2021.
Polypropylene prices continue to rise in Asia
Polypropylene prices gradually rose from Jun '20 to Apr '21 due to robust market recovery, insufficient supply amid plant maintenance and strong demand. Prices of PP raffia for FE Asia market dropped in the second quarter of 2021 owing to stabilisation of market, and as rising production capacities continued to add pressure. However, prices rose back in third quarter of 2021 due to supply disruptions, higher freight costs, labour shortages and strong market sentiments. Prices continue to rise due to strong demand from segments such as surgical masks, protective gowns, packaging products etc.
Footwear imports of major consuming countries bounce back sharply in 2021
Total footwear imports of the top 5 consuming nations have grown by 18.7% y-o-y in Jan-Jun 2021 after falling by 19.3% y-o-y in Jan-Jun 2020. Pent-up demand in these economies have led to a sharp rise in retail sales of footwear. China saw the sharpest rise of 37.3% y-o-y in Jan-Jun 2021, followed by United States (30.5%), France (26.7%) an Italy (9.2%). Germany's footwear imports fell by 10.3% y-o-y in Jan-Jun 21, after falling by 9.1% y-o-y in Jan-Jun 2020.
Consumption of VSF expected to grow by 6.2% y-o-y until 2026
Global consumption of viscose staple fibre (VSF) in volume terms is estimated to be 5,934.4 KT in 2021. Demand for VSF is expected to grow at a CAGR of 6.2% from 2021 to 2026 to reach 8,016.7 KT by 2026. Standard viscose fibre is the biggest segment amongst all the three VSF types. This segment accounted for 87.6% of the global demand in 2020. Demand for the standard viscose is expected to grow slowest amongst all the segments, at a CAGR of 5.8% to reach 6,850.3 KT in 2026 from 5,174.8 KT in 2021.
Indian apparel market size expected to grow by 6.9% y-o-y through 2023
Indian apparel consumption is expected to see a 6.9% average growth between 2019 and 2023. Sarees is the largest segment in this space, which is expected to grow by 6.5%, while the jeans segment is expected to witness the highest growth.
US footwear consumption declined significantly in 2020
COVID-19 pandemic significantly impacted the consumption of footwear in the United States resulting in a 22.6% drop in the consumption against previous year. This drastic drop in the consumption also impacted the US' share in the global market, which dropped below the threshold 10% mark for the first time.
Japan's apparel import demand remains weak as COVID restrictions continue
Japan's apparel imports have fallen further in Jan-Jul 2021 relative to last year as COVID restrictions continue and demand remains weak. Overall apparel imports fell further by 2.5% y-o-y in 2021 following a 14.2% y-o-y fall in 2020. Imports from Bangladesh and Italy grew strongly by 7.7% and 7.1% y-o-y respectively in Jan-Jul 2021, while imports from Vietnam fell sharply by 10.8% y-o-y.
Vietnam continues to gain footwear import share in US
Footwear imports of US saw sharp decline of around 29% in H1 2020 from H2 2019 and have recovered by 31% since then. China and Vietnam accounted for more than 70% of footwear imports made by the US worth USD 4,508 million in H1 2021. However, China has lost tremendous share from 55% to 39% between H1 2017 and H1 2021 owing to trade war and moving production out of China, while Vietnam has gained share from 22% to 33% during the same period.