India Specialty Fibers Demand to Cross USD 50 billion by FY24

According to ChemAnalyst report, “India Specialty Fibers Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Application, Type, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, the India Specialty Fibers market has grown tremendously in the past and is projected to grow at a CAGR of 6% during the forecast period on account of increasing thrust of the Indian government to support the domestic manufacturing of Specialty Fibers by devising favorable policies like the National Technical Textiles Mission (NTTM). The market growth will be further bolstered by skyrocketing demand for ballistic fabrics to meet the country’s rising Defense Requirements. Moreover, rising demand for meta-aramid or para-aramid protective clothing for firefighter suits would further drive the market in the forecast period.

Report Link: https://www.chemanalyst.com/industry-report/india-specialty-fibers-market-106

With rapid industrialization and buoyant consumer demand, there is a consistent push by the Indian government to invest into domestic manufacturing of Specialty Fibers as the nation aggressively promotes its ‘Atmanirbhar Bharat Mission’ after heightening rifts between India and China. Because India lacks technical expertise required to manufacture Specialty Fibers, the Union Ministry of Textiles is initiating talks with leading producer countries like Japan and U.S. to adopt latest technologies and promote research and development in the field. Moreover, looking at the vast market potential that the industry holds, the Union government cleared a Rs 1,480 crore scheme in February this year to boost the production and usage of Specialty Fibres till the next four years in the Indian market.  The governments of Tamil Nadu, Andhra Pradesh, Telangana and Karnataka are providing special incentives for investments made in Specialty Fibres sector. The Tamil Nadu government in its Integrated Textile Policy has announced 6% interest subsidy for Specialty Fibers products. These factors are likely to propel the Specialty Fibers market in the forecast period.

On the basis of type, the India Specialty Fibers market is dominated by the Spandex fibers whose demand is continuously increasing due to rising demand for lightweight, wrinkle resistant, stretchable and highly comfortable athleisure such as swimsuits, aerobic or exercise wear, ski pants, golf jackets etc. Growing demand for high performance para-aramid and meta-aramid fibers for specialized applications in diverse areas such as production of fire-resistant vests, ballistic applications for the defense, high altitude combat gear, as well as aerospace sector will further boost the Specialty Fibers demand in the foreseeable future. Increased investments by the Indian government on indigenous development of ballistic goods and  automotive components would support the Specialty Fibers market growth in the forecast period.

Indian Specialty Fibers sector witnessed demand shock due to a dramatic shift in the market dynamics as several downstream sectors remained indefinitely shut during Q1FY19 and Q1FY20 quarter to contain the spread of COVID-19. As India’s Specialty Fibers demand is primarily met through imports, lockdown in China, shot up the prices of almost all Man-Made Fibre (MMF) in the domestic market. Moreover, Spandex prices rose in tandem with tightness in the key raw materials PET and MEG which is majorly imported from China. However, the industry remained relatively less impacted as the loss could be compensated with better sales across other industrial applications such as electronics and medical. Moreover, as the nation is speedily driving towards ‘new normal’, the Specialty Fibers demand has started rebounding.  With a gradual lift in lockdown restrictions and government’s alignment towards its ‘Make in India’ strategy, the market outlook seems positive in longer terms and is likely to regain momentum by the second half of the year.

According to ChemAnalyst report, “India Specialty Fibers Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Application, Type, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, India’s fiber manufacturers do not produce certain specialty fibers and filaments such as nylon 66, high tenacity polyester yarns, etc. However, there are certain companies manufacturing particular categories of Specialty Fibers. India’s Indorama Industries Limited is a leading spandex manufacturer while Bombay Dyeing is into the production of high tenacity polyester fibers. Toray Group and Reliance Industries Ltd.  are into Carbon Fiber production. Other global players operating in the Indian Specialty Fibers market are Dupont, Teijin, Yantai Tayho Advanced materials, Hyosung, Sinopec Yizheng Chemical Fibers and others.

“The Specialty Fibers sector has low penetration in the Indian market contrary to other developed countries which are registering remarkable expansion in the sector. The Indian government’s National Technical Textiles mission which is aimed at achieving the average growth rate of the technical textiles to 15-20% per annum will enable the Specialty Fibers to emerge as a sunrise sector in the coming years. The current Indian Specialty Fibers segment is estimated to cross $50 billion in the next four years, the figure however, is only 6% of the global market due to lack of technical expertise required to locally manufacture them. The production of Specialty Fibres requires huge investment in developing specialized high technology and advanced production facilities. Increased investments by the government of India towards expanding the scope of the market, global technical tie ups, and focus to step up local production would augment the growth of the market. Looking at the recent growth and development in the Specialty Fibers industry, market players are anticipating robust demand growth and hence eyeing on macroeconomic drivers for the market over the next few years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

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