Global: Textile industry facing challenges due to low demand & overcapacity
"Global textile industry under strain due to low demand and overcapacity", 26 July 2023
The global textile sector is facing challenges due to low demand and overcapacity, creating stress in the industry. Addressing the need for rebalancing supply and demand, embracing sustainability, and navigating regulations were among the key themes highlighted during the three-day World of Wipes conference held in Atlanta recently.
The outbreak of COVID-19 compelled the spunmelt nonwovens and medical textiles industry to rapidly expand capacity and bolster production. Over the course of the two-year pandemic period, there was a notable doubling in meltblown production and an increase in spunlace products. However, the demand for single-use medical textiles declined, leading to an accumulation of excess inventory in the market.
Global textile demand is moderate to low amid expected inflation slowdown. In India, the industry faces production cutbacks, with about 20 per cent of knitted and garment sectors in Tiruppur and Noida halting operations. Tamil Nadu’s cotton yarn spinning mills seek relief from Central and State governments due to a dire situation.
Adapting to the current situation, inventory repurposing and exploring new markets are vital. Meanwhile, Rahul Bansal, Global Head-Nonwovens for Mumbai-based Birla Cellulose emphasised Birla Cellulose’s collaborative efforts, exemplified by a partnership with Sparkle to create viscose-based diapers, driving innovation.
The industry needs collective representation to governments, focusing on sustainable products, future markets, and competitive advantages.