Underperforming Fiber Material Supply Projected for 2024

The global supply of fiber materials comprising staple fibers, filaments and polymer-based nonwovens is projected to perform again below average in virtually the sixth straight year.

The world quantity in the first year of pandemic succeeded to stay in positive growth territory thanks to outsized demand for face masks made from spunlaids. The following year was characterized by a strong manmade fiber rebound that triggered cotton cultivation for the subsequent season.

In February 2022, Russia’s invasion of Ukraine meant the largest conflict in Europe since World War II, causing cost-of-living crisis and tightening financial conditions in most regions. On top, the lingering COVID-19 pandemic continued to weigh heavily on the outlook and consumer sentiment.

IMF reduced economic growth from 6.0% in 2021 to 3.5% in 2022. Its July 2024 World Economic Outlook accounted for even slightly less growth projections in the period 2023 to 2025.

High energy costs, inflation, shortage of workers, extraordinary consumer spendings for home textiles during working in home office and Asian import pressure led to several company closures and capacity adjustments in the Western hemisphere. At the same time, reduced demand of apparel and textile products via traditional channels of distribution resulted in a worsening of operating rates in most parts of the Asian region as consumers cut spendings on non-essentials in favor of traveling, services and entertainment. Massive flows of low-priced apparel products benefiting from de minimis rules have additionally exerted influence on the buying behavior at the expense of brick-and-mortar retailers.

Country analyses for 17 nations in the Americas, Asia and Europe with a cumulative share of more than 60% in global consumption show for a number of countries that recent demand levels still were below the pre-pandemic average of the period 2015 to 2019. To make matters worse, a revival in last year’s demand in some markets is believed to be consequence of destocking. A projection for adding unregistered apparel volumes derived from SHEIN sales comes to the conclusion that a significant portion of garment demand at this stage is being met by airfreight delivery.