The recent spate of continued gains in crude oil prices is likely to push up the input costs for the man-made fiber makers. Broad demand trends are also likely to be mixed amid worries over the lukewarm global economic environment. The latest data from the Central Statistical Organization or CSO showed that the domestic Man-made fibres (including Viscose and Artificial Fibres) edged up 3.27% on year in July 2023. However, the cumulative output in April-July 2023 is down around 2% compared to the same time last year.

Market share of medical textiles growing strongly in India

The market share of medical textiles is growing strongly in India on the back of profound R&D and skilling in the area, according to Rajeev Saxena, Joint Secretary, Ministry of Textiles. He highlighted on the vitality of medical textiles due to its direct correlation with quality of life, despite low share compared to Packtech and Mobiltech in India. There's a need for repositioning of product focus in medical textiles in terms of global market and domestic market, he further emphasized.

He emphasized that wider innovation and research is required in the medical textiles, especially focusing on novel technologies and indigenizing the highly-imported medical textile items such as sanitary pads, diapers and other surgical sutures, among others. Ministry of Textiles is also working with CDSCO on regulatory aspects of different medical textiles, he added. Ministry of Textiles will soon be notifying Quality Control Orders (QCOs) for 6 medical textile items including sanitary pads and diapers, among other, he further announced.

Global synthetic fibre market poised for good growth

Anticipated to grow at a lucrative CAGR of 5.1 per cent from 2022 to 2030, the global synthetic fibre market is expected to reach US $ 98.21 billion by 2030– all thanks to the increasing consumer demand for cost-effective, durable, easy-to-wash and maintainable synthetic fabrics. Additionally, rising adoption of polyester fibre and expansion of the textile industry are also considered major growth drivers. However, increasing crude oil prices and environment impact remain major challenges in this regard.

Claiming this, the “Synthetic Fiber Market Size, Share & Trends Analysis Report by Type (Polyester, Nylon, Acrylics), by Application (Clothing, Home Furnishing), by Region, and Segment Forecasts, 2022-2030” report by ResearchAndMarkets.com says that Asia-Pacific is the largest market for synthetic fibres, with demand likely to rise throughout the forecast period due to the region's high population density and rising need for synthetic fibre products in sectors such as automotive, textile, filtration and furniture.

The presence of major multinational fashion clothing manufacturers, including H&M, Zara, Dior, Louis Vuitton, Gucci and Hermes, has increased the demand for branded clothing, which, in turn, is anticipated to benefit the demand for synthetic fibre market in the country. The escalating e-commerce industry has provided opportunities to different sports apparel retailers to offer products like sports and gym clothing which are lightweight and have moisture-wicking properties. This is likely to boost the demand for polyester fibre during the forecast period. Key market players are undertaking mergers and collaborations to expand their reach and increase production capacity, thereby advancing their market share.

Outlook:

WTI Crude oil futures hit above $90 per barrel in last week of September 2023- scaling up to their ten-month highs. This was driven by expectations that major oil producers' output cuts would tighten the market in the coming months, as indicated by recent market outlook reports. OPEC projected that global oil demand would grow by 2.25 million barrels per day in 2024 and anticipated a significant deficit of 3.3 million barrels per day in the fourth quarter of the current year. Prices dipped thereafter but stayed supported well above $80 per barrel. This is bound to impact the prices of Polyester fibres which are obtained from petroleum products.