Airlaid Market Report

Even as airlaid nonwovens benefit from the increased need for sustainable and bio-based materials in the global wipes and hygiene markets, some producers are reporting challenging conditions brought on by global macroeconomic trends like intense competition and high energy and raw material prices.

However, consumption of airlaid continues to grow about 6% per year by volumes, according to industry tracker Smithers. This should lead to a tightened supply by 2027, according to experts.

“Due to the flexibility of the airlaid technology and its ability to process short fibers, nonwoven producers can serve various applications such as bio-wipes, technical wipes, absorbent hygiene products, food pads, napkins and table cloths,” says Tobias Schafer, vice president forming and  finishing at airlaid equipment supplier Andritz Nonwoven & Textile. “Today the nonwovens market is looking for sustainable and economically viable solutions.”

In the past few years, two major line installations, from Glatfelter and Domtar, both in the U.S., have created more opportunities for airlaid, which had seen a long period of extremely slow investment throughout the late 2000s and early 2010s. During this timeframe, the industry also experienced consolidation including Glatfelter’s purchases of Concert Industries and Georgia-Pacific, which had earlier purchased the old Buckeye Technologies business. Looking ahead, Glatfelter’s proposed merger with Berry Global, which continues to operate airlaid assets in China, will contribute to further consolidation and intensify competition in the marketplace after it closes this month.

However, the addition of new non-traditional markets for airlaid like packaging, insulation and molded consumer products should help drive airlaid  pricing upward through 2027, according to Smithers.

A Challenging Road

Amidst this growth, key suppliers of airlaid nonwovens continue to report challenging conditions. In its most recent earnings call in May, the world’s largest airlaid producer, Glatfelter, referred to airlaid as its more challenging segment due to tenuous conditions in the European market. The segment’s earnings decreased about $9 million during the first quarter with the majority being attributed to prolonged European market weakness. This resulted in lower shipments and production rates along with adverse pricing dynamics. Additionally, airlaid continues to experience growing competition from producers of related substrates.

Despite these challenges, Glatfelter continues to accelerate efforts with innovative products that have the potential to address customers’ ongoing demand for sustainable, plastic-free alternatives and new creative applications.
Among these products are Glatfelter’s GlatPure acquisition distribution layers (ADL) and absorbent core materials, which have received the prestigious class 4 OK Biobased certification from TUV Austria, with the biobased carbon content of GlatPure ADL and Absorbent Core being at 100%. This certification reinforces Glatfelter’s dedication to environmental sustainability and eco-friendly practices within the absorbent hygiene industry.


“We are thrilled to receive this certification for our GlatPure ADL and Absorbent Core,” says Vishal Bansal, vice president, Global Innovation & Product Sustainability. “It is a testament to our ability to deliver eco-friendly solutions within the hygiene sector. We believe environmental stewardship and innovation go hand-in-hand, as they both play vital roles in addressing our customers’ needs and the pressing challenges of sustainability.”

GlatPure ADL and Absorbent Core are integral components of Glatfelter’s menstrual care products, designed to provide exceptional performance and comfort while minimizing the environmental impact. These products are manufactured with renewable plant-based raw materials, which the USDA considers to have a high potential for reducing carbon footprint throughout their lifecycle.

Meanwhile, in new application areas, Glatfelter has partnered with Blue Ocean Closures to develop a cellulose-based airlaid bottle cap. Blue Ocean Closures is reportedly the first company to develop a concept for fiber-based screw cap solutions. This is achieved through excellence in material know-how and a cost-effective production concept using advanced, proprietary press forming. The companies have already received awards for their work with Absolut Vodka and have recently contracted with a Swedish manufacturer of nutritional supplements to supply plastic-free closures.

Additionally, Glatfelter revealed it has recently reached  qualification with a key customer for a brand-new airlaid solution with production targeted for Europe but the company remains tight-lipped on the details. “Shipping volume for this application when fully ramped up has the potential to generate meaningful volume annually,” says Thomas Fahnemann, president and CEO of Glatfelter. “Also, we recently shipped our first commercial plant-based caps to Blue Ocean closures for use by a Swedish manufacturer of nutritional supplements. These innovation initiatives are part of our overall airlaid business strategy to reduce customer concentration in the segment.”

By region, during the first quarter, Glatfelter saw an increase in volumes of 13% in North America while European volume decreased 7% compared to the fourth quarter.

“In Europe, the markets are much more challenging, and our volume dropped by 7% from Q4 to Q1,” says CFO Rahmesh Shettiger. “And the decline in that area in Europe was mainly driven by hygiene with probably minus 10%, minus 11%. And here, we had to take actions to really protect our margins. And our goal, and you know that we have an overall strategy to really be less dependent on big customers and widen our product portfolio, but we have to offset this with new products. We have made some really good progress with new products and new customers.”

Partnerships Prevail

Finish airlaid machinery manufacturer Anpap Oy says it continues to see airlaid penetrate new market areas beyond traditional applications like hygiene and wipes. During the last few years, the company has delivered full production lines, forming systems and through air drying systems for airlaid and foamlaid processes globally.

“Airlaid has benefitted from the increased need for more sustainable materials but has not yet fully capitalized on it as it waits for the industry to fully embrace alternative technologies and materials,” says CTO Tuukka Vihtakari.
“Airlaid will offer a sustainable, low water and energy-using alternative compared to wetlaid products.

“We definitely see airlaid as an option for several never-before applications which blur the border between carded, airlaid and wetlaid products,” adds  Vihtakari. “The waterless forming process will attract various industries to cut down emissions and natural resource use.”

Anpap has recently received a turnkey contract to supply an airlaid pilot line to the VTT Technical Research Center of Finland for its Energy 1st initiative, which will pioneer low-carbon, water-efficient technology with the potential to reduce water consumption by up to 90% and overall energy consumption by more than half.

With a budget of around €20 million over the next four years, the initiative consists of several projects including the pilot line in Jyväskylä, Finland. The collaborative research aims at developing and testing commercially viable, sustainable alternatives for cardboard packaging, hygiene products and nonwoven fabrics. 

One area being targeted will be fiber-based packaging solutions which is projected to grow 5-10% annually, according to data from Statista Market Insights and eMarketer. This growth is creating a need to develop scalable, high-quality packaging that is easy to recycle while simultaneously significantly reducing carbon footprint.

“This new initiative is a pivotal step towards more sustainable and competitive fiber-based products and has the potential for great impact, thanks to more than 50 industrial partners. We are excited about the prospect of 1:1 commercial projects with companies, driving innovation in energy-efficient paper board production. VTT’s purpose is to bring together people, business, science and technology, paving the way to a sustainable future. The Energy First theme aims to do just that,” says Atte Virtanen, vice president, Biomaterial Processing and Products at VTT.

Products manufactured with the new process are designed to be compatible with existing recycling methods. Furthermore, fiber-based packaging is produced in a way that makes it a sustainable alternative to reusable packaging. The planned EU packaging and packaging directive requires that both the raw material and the manufacturing process are sustainable, and recyclable bio-based packaging solutions will have to undergo a sustainability assessment.

Tabletop Trends

In August, Swedish airlaid manufacturer Duni demonstrated its commitment to the tabletop market when it announced  it would acquire a 70% stake in SETI, a maker of tabletop products and a longtime customer of its airlaid business in an effort to broaden its reach throughout Europe. SETI, based in Kranj, Sweden, is a converter for standard and customized high-technology tabletop products such as napkins, table covers and coasters made using airlaid and tissue.

“We are pleased to welcome SETI to our Group of leading brands in dining and food packaging solutions for the restaurant market. The acquisition broadens Duni Group’s reach and footprint in South East Europe,” says Robert Dackeskog, president and CEO.

SETI has annual net sales of nearly $10 million, with profitability in line with Duni Group’s business area Dining solutions.

According to Duni, airlaid plays a crucial role in the tabletop market as it represents a premium napkin quality with a textile feel and the convenience of disposability. “Duni Group’s recent acquisition of SETI is expected to enhance our growth in Eastern and Southeastern Europe, allowing us to expand our market presence and offer a broader range of innovative and stylish products tailored to customer needs,” says global communications manager Amanda Larsson.

Some of Duni’s industry leading sustainable airlaid products include Bio Dunisoft product, which utilizes a plastic-free binder made from organic waste and plant-based materials, certified OK HOME Compostable, which aligns with consumer preferences for sustainable options. These products offer a combination of softness and strength making them well received not only in Europe but in other markets worldwide.

“The availability of biobased and polymer-free binders has enabled producers to create fossil-free, renewable products,” Larsson says. “This shift not only reduces reliance on plastic raw materials but also offers a substantial reduction in climate impact, appealing to customers seeking to minimize their Scope 3 emissions.”

In other new market areas, Campen Machinery has developed and filed a patent for biodegradable airlaid trays, which was developed at its state-of-the-art airlaid test center, where not only new machinery but also pioneering processes are brought to life. At the test center, prototypes of the airlaid trays can be made together with the customer, so they can evaluate if the trays align with their expectations.

At the test center, the airlaid material is made according to customer requirements and desired product qualities and subsequently dry molded in an automatic process. The airlaid material is then transformed into biodegradable trays made from 100% natural fibers, pure cellulose or a balanced blend of cellulose and natural fibers or upcycling fibers, such as straw or waste fibers from e.g. internal cardboard production.

Entirely devoid of plastic, these trays are 100% home compostable, ideal for fruit and vegetable packaging.

“Our aim was always broader than just machinery. Starting 25 years ago, we envisioned a greener, more sustainable future for packaging, and with this airlaid process, we believe we're taking a giant leap in that direction,” says Jens Erik Thordahl, airlaid specialist at Campen Machinery.

Thordahl emphasizes: “At Campen, we believe in strengthening the industry through collaboration. Our doors are always open for innovators who share our vision for a sustainable future. We also want to highlight, that we are offering the process and machinery to produce airlaid – the dry molding can be made with any tools available at our customers. They may also bring their own tools to our test center.”

This business model has encouraged investment by converters of products like wipes and hygiene products in airlaid lines.

“For the last four years, we have sold three smaller airlaid production lines that are producing airlaid rolls internal and for their own converting to finish products,” Thordahl says. “One example is the company Magic, Italy, which has purchased its own Campen airlaid line and all of its materials are being used internally for finished products they are selling.”