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The Great Divide



spunlace manufacturers point to a widening gap between low-cost commodity offerings and high-end niche products



By Ellen Wuagneux
Associate Editor




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“Market Polarization.” These are the two words producers are using to describe current conditions in the spunlace market. This trend is being reported by spunlaced producers across the board—from high-end specialty products to lower cost commodity offerings. Despite this gap, the baby wipes segment is still showing the largest volume in the market and is expected to continue to drive spunlace growth in the 8% range in coming years.

“There is a tendency in the industry to split the market into two different segments,” commented Jos van Hattum, business unit manager of Norafin GmbH. “On the one hand, low cost offerings are needed in high volume/commodity markets and pressure on prices is heavily increasing; on the other, high performance niche market applications and customized product concepts gain ground where innovation plays a decisive role.”

Dennis Norman, vice president of strategic planning and communications for Polymer Group Inc. (PGI) predicted that the split between commodity and specialized products with specific performance requirements will continue to widen in the next five to 10 years. “We see new technologies that can meet the performance and pricing requirements emerging and growing,” he observed.

Suominen Nonwovens’ vice president and general manager Sakari Santa-Paavola agreed, attributing this divide to tight pricing and raw material costs that are still on the rise. “Spunlace manufacturers are choosing their competitive arena more specifically: bulk or niche, brands or copy,” he said. “Fully adjusting the cost structure by improving efficiency and saving on fixed costs is a very challenging task for everyone in the market. We are seeing both market polarization and rather cruel copying of the latest innovations.”