VISCOSE STAPLE FIBER MARKET ANALYSIS

Market Challenges And Opportunities

Global Viscose Staple Fiber Market Drivers:

Rise in demand for apparels and clothing in developing countries is propelling market growth

Viscose is an organic liquid extracted from wood pulp and it is useful in the manufacturing of textile and apparel industries. According to the India Brand Equity Foundation, the Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel.

Growing adoption of viscose fabrics due fluctuating price of cotton

Cotton prices are vulnerable to immense volatility due uncertain climate conditions, along with the supply chain constraints.  This compel apparel producers to look for substitutes. According to the USDA (United States Department of Agriculture), in the United States, cotton prices increased by almost 15% in 2017, from the previous year. Hence, fluctuation of prices is witnessed every year in almost every country.

Global Viscose Staple Fiber Market Opportunities:

Growing application of VSF in healthcare sector is expected to present significant growth opportunities. Due to its  high moisture and liquids' adsorption and low impurity content properties they are receiving acceptance in the healthcare textile field in recent years.

The product is also gaining popularity in the manufacturing industry. It is a renewable resource and is biodegradable. It is environmentally friendly and helps in reducing greenhouse gas emissions. Additionally, the rising awareness about environment-friendly products has increased the demand for viscose staple fiber. It is also a good alternative to synthetic fabrics and other non-organic materials for manufacturing apparels.

Global Viscose Staple Fiber Market Restraints:

Retaliatory tariff on viscose in the United States

For instance, in 2017, the tariff on viscose staple fiber was 4.3%. Around 41% of the viscose rayon fiber imported into the United States comes from Europe. This step has highly disrupted the industrial supply chain, and has had a detrimental effect on the competitiveness of rayon fiber containing products in the United States.

Competition from synthetic fibers

VSF are costlier than other synthetic fibers, such as polyester, rayon, acrylic, and nylon. Although it is a high-quality material, manufacturing of the fiber becomes limited at times, as the process is expensive.