• Login
    • Join
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Applications
    • Technology
    • Market
    • Other
    • Top 40
    • Buyers Guide
    • Hygiene Directory
    • More
  • Magazine
  • News
  • Exclusives
  • Applications
  • Technology
  • Market
  • Other
  • Top 40
  • Buyers Guide
  • Hygiene Directory
  • Current / Back Issues
    Features
    Editorial
    Columns
    Digital Edition
    Southeast Asia Edition
    eNewsletter Archive
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    Top Features
    Fluff Pulp Market Faces Year of Transition

    Roofing & Construction Report

    Investment Continues for Needlepunch Nonwovens

    Sustainability Report

    Spunmelt Nonwovens Update
    Company Cameo
    Financial News
    Machinery Equipment
    New Products
    Nonwovens News
    Patent Review
    People in the News
    Supplier News
    Top News
    Live From Shows
    Top News
    Nicely Offers Nonwoven Slitters, Winders

    Freudenberg to Present Battery Pack and Liquid Absorbers at Battery Show

    The Honest Company to Sell Diapers, Wipes at Walmart

    Thinx Launches Moist Panties Campaign

    Weekly Recap: Ontex Confirms Possibility of Attindas Deal, Purell Launches New Wipes & More
    Nonwovens Insights
    Online Exclusives
    Adult Incontinence
    Absorbent Core
    Antimicrobials
    Apparel
    Automotive and Transportation
    Face Masks
    Chemicals / Adhesives
    Construction
    Contract Services
    Diaper, Baby
    Electronics
    Feminine Hygiene
    Fibers
    Filtration
    Flame Retardance
    Geotextile / Agrotextile
    Home Products
    Hygiene Film/Components
    Industrial / Institutional
    Inspection / Quality Control
    Machinery and Equipment
    Medical
    Wipes

    Nicely Offers Nonwoven Slitters, Winders

    The Honest Company to Sell Diapers, Wipes at Walmart

    Thinx Launches Moist Panties Campaign

    Vegeto Turns Milkweed Fibers into Nonwovens

    INDA Names Three Finalists for WOW Innovation Award
    Air Through Bonding
    Airlaid
    Carded/Carding
    Chemical Bonded
    Composite
    Meltblown
    Needlepunch
    Nanotechnology
    Spunbond
    Spunbond/Spunmelt
    Spunlace
    Thermal Bonded
    Wetlaid

    Executive Talks: 5K Fibres' President Doug Brown

    Borealis, Grabher Partner to Recycle Face Masks

    Glatfelter, Blue Ocean Closures Receives Sustainability Award at IDEA22

    Investment Continues for Needlepunch Nonwovens

    Murtra Nonwovens
    China
    Eastern Europe/Russia
    India
    Middle East/North Africa
    North America
    Pacific Rim
    South/Central America
    Turkey
    Western Europe

    Sub-Saharan Africa’s Specialist Nonwovens and Fibers Capability is Growing Steadily

    Southeast Asian 5 Nonwoven Capacity and Demand Development

    Chinese Baby Diaper Brands

    Retail Disposable Hygiene in Southeast Asia and China: Growth Outlook, Challenges, Opportunities

    Albarrie Installs Stenter
    Associations
    Contracts / Awards
    Education
    Facilities / Capacity
    Green / Sustainability
    Legal / Regulatory
    Market Data
    Flushability
    Mergers and Acquisitions
    Product Improvement / Innovation
    R&D/Basic Research
    Shows / Events

    Vegeto Turns Milkweed Fibers into Nonwovens

    Rif care Launches Hemp-Based Period Products

    Boots to Prohibit Sale of Plastic-Based Wipes

    Dyper Partners with rePurpose Global to Remove Nearly 100,000 KG of Plastic Waste from Environment

    Borealis, Grabher Partner to Recycle Face Masks
    Chart
    Companies
    All Companies
    Categories
    Company Profiles
    Add New Company
    International Buyers Guide Companies
    WEIMA America, Inc.

    Valco Melton

    Robinson, Inc.

    Investkonsult Sweden AB

    Bast Fibre Technologies Inc.
    Brands
    Brand Owners
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • Southeast Asia Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers Guide
      • All Companies
      • Categories
      • Company Profiles
      • Add Your Company
    • Applications
      • Absorbent Core
      • Adult Incontinence
      • Antimicrobials
      • Apparel
      • Automotive and Transportation
      • Chemicals / Adhesives
      • Construction
      • Contract Services
      • Diaper, Baby
      • Electronics
      • Feminine Hygiene
      • Fibers
      • Filtration
      • Flame Retardance
      • Geotextile / Agrotextile
      • Home Products
      • Hygiene Film/Components
      • Industrial / Institutional
      • Inspection / Quality Control
      • Machinery and Equipment
      • Medical
      • Wipes
      • Face Masks
    • Technology
      • Air Through Bonding
      • Airlaid
      • Carded/Carding
      • Chemical Bonded
      • Composite
      • Meltblown
      • Needlepunch
      • Nanotechnology
      • Spunbond
      • Spunlace
      • Thermal Bonded
      • Wetlaid
      • Spunbond/Spunmelt
    • Market
      • China
      • Eastern Europe/Russia
      • India
      • Middle East/North Africa
      • North America
      • Pacific Rim
      • South/Central America
      • Turkey
      • Western Europe
    • Other
      • Associations
      • Contracts / Awards
      • Education
      • Facilities / Capacity
      • Green / Sustainability
      • Legal / Regulatory
      • Market Data
      • Mergers and Acquisitions
      • Product Improvement / Innovation
      • R&D/Basic Research
      • Shows / Events
      • Flushability
    • Top 40 Companies
      • Chart
      • Companies
    • Online Exclusives
    • Slideshows
    • Hygiene Directory
      • Brands
      • Brand Owners
    • Experts Opinions
    • Videos
    • Podcasts
    • Infographics
    • Whitepapers
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
      • Live From Asian Connections
    • Jobs
    • Resources
      • Suppliers Gallery
      • Literature Showcase
      • Web Showcase
      • Home Page Showcase
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Features

    Spunlaid Polypropylene Capacity and Demand Outlook 2018 - 2023

    Industry in recovery mode after a five-year period of expansion.

    Related CONTENT
    • Fitesa
    • Spunmelt Market Report
    • The Top 5 Indicators of Quality for Baby Diapers
    • Berry Reports Quarterly Results
    • Avgol Launches ComfortFIT
    David J. Price, Partner, Price Hanna Consultants LLC02.08.19
    After a tidal wave of new capacity installations across the world over the last five years, producers utilizing spunlaid polypropylene technology are set to take a breath while they await further demand growth to absorb capacity and assess still newly introduced technology advances. Nevertheless, global capacity continues to increase as new capacity entered many regional markets in 2018 and continues to do so in 2019 from previously announced capacity expansions. Oversupply exists in most global regions. With some exceptions, producer profitability is below expectations and largely driven by high cost of manufacture associated with lower than expected capacity utilization and in some regions, high raw material costs and volatility. 

    At present, only Gulsan and Berry Global have acquired the newest full scale versions of Reifenhauser 5 technology. PF Nonwovens (CZ Republic) will commission a Reicofil 5 Compact semi commercial line near the end of 2019. Both Berry Global (China) and Gulsan (Turkey) will commission their Reicofil 5 machines in Q4 2019.

    While orders for Reicofil 5 and other modern technology may appear paltry thus far, one should consider that the technology is new, costly and introduced near the end of a period in which a record amount of new capacity was installed. In addition, previously announced capacity additions will continue to be installed through 2020 using Reicofil 4 S technology ordered just prior to the introduction of Reicofil 5. Such installations include Toray lines in China and India wherein capacity will be fully realized in 2020 and 2021, a Gulsan line in North Africa where capacity will be fully realized in 2019 and Mitsui lines in Japan where capacity will be fully realized in 2019.

    We expect the pace of new capacity investment will accelerate after 2020 as capacity is absorbed. This expectation may be advanced by the decommissioning of earlier generation capacity. We also expect that upgrades to existing capacity may occur to enhance the capability of existing machines. Several producers, particularly in Asia, are keen to invest as soon as possible to utilize plant infrastructure recently built to house multiple lines and to advance their competitive position.
    • In North America, 35,000 tons of new capacity has or will enter the market (Fitesa, UniqueTex) during 2018 - 2019 preceded by 20,000 tons by Avgol in 2017. This new capacity was introduced in an already oversupplied market. Demand growth for baby diapers is slow as a result of low year-over-year birth rates, but demand for adult incontinence products is increasing at a 5-6% annual rate. Some rationalization of early generation capacity is expected. It is likely that no new capacity will be further installed until capacity utilization improves.
    • In South America, no new capacity has been installed since the Fitesa Brazil commissioned a new, high capacity line in the 2H 2016. Market demand in the region fell dramatically during 2015 - 2016 precipitated by the worst recession in Brazil in its history and the first successive years of recession in Brazil since the 1930s. During this period, demand for disposable hygiene and in other nonwoven markets fell to 2013 levels. The collapse of the Venezuelan economy and the impact of high inflation in Argentina are also retarding regional demand growth. Adult incontinence products hold a strong future growth potential when the region’s economic trends improve. While a weak recovery is underway, nonwoven capacity utilization is low and is not expected to increase substantially soon. Despite an opportunity to address aging technology, no new capacity is expected until economic growth returns to the region and capacity utilization improves.
    • In Greater Europe, 85,000 tons of new capacity has or will enter the market during 2018 - 2020. This includes the very large 35,000-ton Gulsan R5 line in Turkey which is expected to be commissioned in Q4 2019 and fully commercialized in 2020. Other new capacity becoming available during this period will be the R5 semi commercial line by PF Nonwovens and the full capacity of lines commissioned by Union (Poland) and Fitesa (Germany) in 2017/2018. These installations follow a period of significant new capacity additions in Greater Europe by Hayat (Turkey) and others, which together with new installations during 2015-2016, overran demand growth in both regional and export markets.
    • In the Middle East, capacity increased 20,000 tons during 2017 - 2018 (Avgol) which was more than offset by the closure of the Mada plant due to a fire eliminating 32,000 tons in the region. Then again, capacity growth in North Africa increased 40,000 tons as new lines were commissioned by Hayat and Gulsan in Egypt during 2018. Demand in the Middle East and North Africa remains well below capacity in the MENA region but capacity utilization is beginning to improve. Still, significant new and modern capacity exists in the MENA region which is not fully utilized nor expected to be so for some time. 
    • In South Africa, previously announced new capacity installations by PF Nonwovens and Spunchem will be fully realized in 2019 - 2020.
    • In Southern Asia, there has or will be 24,000 tons of previously announced new capacity commissioned in India during 2018-2019 and another 38,000 tons during 2020 - 2021. We suspect there will be even more capacity installed in India before 2023 as demand growth is strong.
    • In Asia-Pacific, 71,000 tons of new capacity was commissioned and/or will be fully realized during 2018 - 2019. Demand is growing but slowing as compared to prior periods. We expect further capacity announcements in the region which may not occur until after 2020.
    • In China, 76,000 tons of new capacity was or will be fully realized during 2018 - 2019 and another 50,000 tons will be available in 2020. While we expect more capacity will be installed during 2021 - 2023, we estimate demand for Chinese-made spunlaid polypropylene nonwovens to be softening as compared to prior year-over-year rates which could impact future capacity growth.
    We expect global demand growth in tons from 2018 - 2023 to be around 5% annually. Regional demand growth will vary. Demand growth will be the highest in Southern Asia (India) and Africa followed by that in Asia-Pacific and China. Demand growth will be more moderate in North America, Greater Europe and the Middle East. Demand growth in South America will continue to recover from a significant economic downturn in 2015 - 2016. Demand growth in China and Asia-Pacific is slowing in comparison to prior periods but will still remain attractive.

    In summary, capacity growth will slow to allow for the absorption of new large scale capacity expansions that have occurred and which will continue to be added to the market in North America, Europe, the Middle East and Africa. Recession in Brazil affecting much of South America dampens the outlook for capacity expansion in the near term, but aging capacity will be replaced once market demand justifies doing so. This could lead to pent up demand for new technology once market conditions improve. Demand growth for spunlaid polypropylene nonwovens in Southern Asia, Asia-Pacific and China is expected to be the highest in the world through 2023 and capacity will be installed to meet that demand. With that said, there is the risk that competitive pressures will result in more capacity than needed being added in these regions.

    In the near term, we expect selective existing machine upgrades to address modernization needs as it becomes necessary rather than installing large scale production lines. This forecast could change if early generation capacity is decommissioned and replaced with new technology. We expect a pause in new capacity announcements in most global regions through 2019 and possibly most of 2020 with some exceptions in India, Asia-Pacific and China.

    Leading global producers have achieved and continue to actively pursue advancements in spunlaid polypropylene nonwoven loft and softness surface features used in premium hygiene products to meet customer demand. While the highest consumer demand for these products is in Asia, demand for these products is also increasing in Western Europe and the U.S. It is remarkable to witness the results thus far of innovations on this front with producers addressing this challenge using and exploring mechanical (calendar patterns, air-through bonded dryers, bicomponent spinning and fiber crimping techniques) and raw material variations.

    The high cost of modern spunlaid polypropylene nonwoven technology will lead to lengthy and careful deliberations when considering an investment in new capacity. Investors will seek a high degree of certainty on the timing expected to reach full machine capacity utilization and projected investment returns. 

    Rather significant consolidation, strategic positioning and M&A activity over the last few years led to aggressive geographic diversification, technology modernization and capacity growth with little rationalization of costs to date. We expect investments in new capacity and acquisitions to be increasingly scrutinized in the near term in reaction to lower than expected returns on recent investments.


    David J. Price is the author of the Price Hanna Consultants LLC report “Spunbonded and Spunmelt Nonwoven Polypropylene World Capacities, Supply/Demand, Manufacturing Economics and Profitability. Our next report on this topic will be published in February 2019 covering the period 2013, 2018 - 2023. To obtain a detailed prospectus for this study, please contact Michele Scannapieco, Price Hanna Consultants LLC, at mscannapieco@pricehanna.com or visit our website www.pricehanna.com.
    Related Searches
    • technology
    • capacities
    • south africa
    • asia-pacific
    Related Knowledge Center
    • Market Data
    • Meltblown
    • Spunbond/Spunmelt
    Suggested For You
    Fitesa Fitesa
    Spunmelt Market Report Spunmelt Market Report
    The Top 5 Indicators of Quality for Baby Diapers The Top 5 Indicators of Quality for Baby Diapers
    Berry Reports Quarterly Results Berry Reports Quarterly Results
    Avgol Launches ComfortFIT Avgol Launches ComfortFIT
    Berry Posts Record Results Berry Posts Record Results
    India Diaper Report Released India Diaper Report Released
    Toray Partners with Water Purification Specialist Toray Partners with Water Purification Specialist
    Galaxy Industries Galaxy Industries
    Nonwovens in China: Growth Continues Nonwovens in China: Growth Continues
    Disruptions in the Baby Diaper Space Disruptions in the Baby Diaper Space
    Three Finalists Vie for Hygienix Award Three Finalists Vie for Hygienix Award
    Avgol to Present AntiMicrobial Solutions at Hygienix Avgol to Present AntiMicrobial Solutions at Hygienix
    Avgol to Showcase Microbial Solution at Hygienix Avgol to Showcase Microbial Solution at Hygienix
    Ahlstrom-Munksjö Finalizes Purchase of Specialty Paper Producer Ahlstrom-Munksjö Finalizes Purchase of Specialty Paper Producer

    Related Content

    • Fitesa

      Fitesa

      ...
      Mariana Mynarski, Marketing Manager 07.27.20

    • Meltblown | Spunbond/Spunmelt
      Spunmelt Market Report

      Spunmelt Market Report

      New machinery technology, acquisitions and new customer demands are changing things in this nonwovens segment.
      Karen McIntyre, Editor 02.08.19

    • The Top 5 Indicators of Quality for Baby Diapers

      The Top 5 Indicators of Quality for Baby Diapers

      Lessons from low income consumers.
      Raymond Chimhandamba, Handas Consulting, Johannesburg, South Africa 02.08.19


    • Berry Reports Quarterly Results

      Clopay acquisition boosts net sales
      02.01.19

    • Diaper, Baby | Meltblown | Spunbond/Spunmelt
      Avgol Launches ComfortFIT

      Avgol Launches ComfortFIT

      Spunmelt technology reaches new level of softness
      01.15.19

      Trending
      • The Honest Company To Sell Diapers, Wipes At Walmart | Nonwovens Industry
      • Kimberly-Clark To Expand Diaper, Wipes Production In Suzano, Brazil | Nonwovens Industry
      • Bambo Nature Diapers Now Feature Paper Packaging | Nonwovens Industry
      • Thinx Launches Moist Panties Campaign | Nonwovens Industry
      • Freudenberg To Present Battery Pack And Liquid Absorbers At Battery Show | Nonwovens Industry
      Breaking News
      • 3M to Expand in Nebraska
      • Nicely Offers Nonwoven Slitters, Winders
      • 'Right' Hygiene Conference to be Held in June
      • Freudenberg to Present Battery Pack and Liquid Absorbers at Battery Show
      • H&V Appoints Vice President and General Counsel
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Fluff Pulp Market Faces Year of Transition



      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      GOED Creates Infographic Highlighting Omega-3 Health Claims Approved in Europe
      Kyowa Hakko Appoints Dr. Colin Hill to Immuse Scientific Advisory Board
      Expert Consensus Statement: Diet is Best Primary Intervention to Achieve Diabetes Remission
      Coatings World

      Latest Breaking News From Coatings World

      Teknos Receives EcoVadis Gold Medal for Sustainability Performance
      AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges
      Five PPG Facilities in Ohio Recognized for Sustainability, Health, Safety Practices
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      Iterative Scopes Expands its Senior Leadership Team
      Viz.ai Raises $100 Million in Series D Funding
      FDA Clears Arterys' AI Mapping and Quantification Tools
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Piramal Pharma Solutions New API Plant in Canada Now Online
      MG America Appoints Claudio Radossi as President
      Catalent Invests $175M to Expand Mfg. Capabilities at Winchester, KY
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Authentic Beauty Concept Launches Second-Generation ‘Refill Bar’
      HASK Beauty Enters Exclusive Partnership with Amazon
      Garance Doré Launches Made in France Skincare Line
      Happi

      Latest Breaking News From Happi

      Silab Implements Biodiversity Conservation Project
      Indie Beauty Brand i-On Skincare Releases New Skin Emulsion, AI Diagnostic Tool
      Estée Lauder Companies' New Research on Oxidative Damage, Skin Barrier Function & Hyperpigmentation
      Ink World

      Latest Breaking News From Ink World

      Nazdar Celebrates 100 Years with a New Look
      hubergroup Chemicals Exhibits at Paint India for First Time
      Award for Sustainability: Evonik Receives Platinum Rating Again
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Specialty announces move to new facility
      Mark Andy hosts dealer's open house in Warsaw
      Nazdar celebrates 100th anniversary with refreshed brand identity
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      3M to Expand in Nebraska
      Nicely Offers Nonwoven Slitters, Winders
      'Right' Hygiene Conference to be Held in June
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      FDA Clears Anika Therapeutics' X-Twist Knotless Fixation System
      Paragon 28 Rolls Out TenoTac 2.0 Hammertoe and Soft Tissue Repair
      Cionic Expands Scientific Advisory Board
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Evonik Launches New Processing Aids for PV Wafer Cutting
      NREL Creates Highest Efficiency 1-Sun Solar Cell
      eMagin Wins People’s Choice Award at Display Week 2022

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login