Market Challenges And Opportunities

Global Acrylic Fibers Market: Drivers

Increasing Demand for Fashion and Growing Global Apparel Market

There has been increase in demand for clothing and apparels over the few years with a change in the financial landscape and the introduction of fast fashion as some of the primary catalysts for the market. There has been increase in sales of clothing item consumption in developing countries due to a rapid increase in the GDP. China and India are projected to be the fastest growing countries in the industry, as these countries are investing heavily in the market. Schemes such as the US$ $ 1.44 billion Production Linked Incentive (PLI) schemes by the Indian government helped the textile manufacturers in the country. According to the State Council of The People’s Republic of China, the textile firms in China witnessed surge of 25.4% in their profit year-on-year in 2021. China’s garment export also reached a record high of US$ $ 315.5 billion in 2021. According to Business Finland, the global apparel market is estimated to exhibit a CAGR of 3.6% and reach a value of US$ 2.7 trillion by 2025. Acrylic fibers are one of the key providers for the textile and apparel market.

Increasing E-Commerce for the Furniture & Upholstery Market

Acrylic fibers are widely used in the furniture and upholstery market as one of the staple fabrics in furnishing. One of the key driving factor for the acrylic fibers market is the increasing demand for furniture & upholstery market. There is rise in e-commerce space for furniture & upholstery due to the ease of viewing products and products availability. This was further boosted by the Covid-19 pandemic, as stay-at-home culture and social distancing became common norms, and this led to increase in sales of furniture and upholstery online. According to India Brand Equity Foundation (IBEF), the online retail market in India is estimated to reach 37% of the total retail market by 2030 with furniture and upholstery holding 4% share of the online retail market in 2020. Increased interest in eco-friendly furniture and flexible workspaces have secured more investment in the industry.

Global Acrylic Fibers Market: Restraints

Availability of Substitutes for Acrylic Fibers

Acrylic fibers is a type of synthetic fiber. There is a wide variety of substitutes for this material. Some of the commonly used synthetic fibers are polyester, polyamide, and polypropylene. Polyester fibers are the most widely used synthetic fiber in the world, primarily due to its durability, lightweight form factor, and strong fastness to dyes. According to Textile Exchange, polyester fibers hold the largest share in the synthetic fiber space, with a market share of 52% in 2020, while acrylic fibers held only 1.6%. The biggest challenge for the global acrylic fibers market is the availability of substitutes for acrylic fiber during the forecast period.

Restraints & Challenges: