Technical Textiles Industry: Business Trends
The business trends in the global technical textile industry include the improvement of the current products and new product launches, low import and export percentage, company mergers and acquisitions, recyclability improvement and Increased consumer profiles.
To understand the current business trends in the global technical textiles' industry, we began our research by leveraging a compilation of technical textile industry reports and consulting experts in the industry through their websites and blogs. Through this research approach, we managed to gather multiple resources that enabled us to carry out the research on the current business trends in the global technical textile industry. We narrowed our search to the current and future trends and thus stuck with the most current resources. To make sure that the identified trends were reliable, we ensured that each of the trends identified corroborated with the other sources. We relied on researched reports and key players in the global technical textile industry, therefore the sources used are considered credible. Detailed findings are outlined below.
The Improvement of the current products and new product launches
The improvement of products is a major trend in the global technical textile industry. One of the driving forces behind this trend relates to the increased global competition in the technical textile industry. Major players in this industry are currently improving their technologies as a strategy to improve their respective products. It is important to point out that technology has always played a significant role in the market performance of the businesses in technical textiles. For instance, the recent innovations of new technology by the giant companies in the technical textiles such as 3M and DuPont have seen them generate great fortunes. This explains why major global companies in the technical textile industry are considering structural changes that will see them invest in the highly technical specialists and manufacturers of high-quality technical textile products.
Company mergers and acquisitions
Company mergers and acquisitions is another major business trend that is now common in the global technical textile industry. Noteworthy, the global technical textile market is highly fragmented an aspect that has seen major players in the industry use various strategies such as partnerships, acquisitions and joint ventures, all aimed at increasing their footprints in the market. On the other hand, because of the increased competition in the industry and the need for growth and development, many companies in this industry are merging while many others are acquiring smaller companies. Other than company mergers and acquisitions, inter-companies cooperation is continuing to rise and is being used as an avenue for growth and development. Recently, PGI a major global player in the global technical textile industry purchased Tesalca-Texnovo as a strategy to expand its market share. Company mergers, acquisitions and cooperation have been used by major companies in the technical textile industry as business strategies and operations for rapid economic growth and investments in the underdeveloped regions.
Low import and export percentage in the technical textiles' industry
Current market reports in the technical textile industry indicate that the industry continues to register low import and export percentage, and a major business trend in the industry. This business trend is as a result of the current business operations in the technical textile industry that have seen many international manufacturers continue to expand their businesses by building factories or investments across major towns and cities around the globe. This approach by the international companies is a strategy aimed at enhancing their business operations. More importantly, many companies continue to put several plants across the globe with the primary objective of reaching the consumer market. Major players such as BTT, Ahlstrom, P&G, and Kimberly-Clark have production bases split across Europe, Asia, North America, and the Asia Pacific. All these strategies have seen a significant decrease in the import and export percentage in the global technical textiles' industry.
Recyclability improvement because of the High Cost of Raw Materials
A report by allied market research indicate that the global technical textile market is projected to have a CAGR of 10.4% in the forecast period of 2019 to 2026. Unfortunately, the growth of the global technical textile market could be hindered in the next few years because of the high cost of raw materials and finished goods. However, the major players in the industry are already embracing business strategies that will see their businesses continue to thrive. Many of these companies are already working on their recyclability improvements and putting manufacturing factories closer to the raw material and in countries with the cheap labor market.
Increasing consumer profiles
Increasing consumer profiles is another major business trend in the global technical textile market. The rising end users of the technical textile products such as automobiles and healthcare industries will continue to increase the technical textile market. With this in mind, major players in the industry are taking promotional initiatives and investments that have seen most of them engage in expansions agreements, partnerships and acquisitions with the primary objective of setting their footprints in the global technical textile market.