Global Viscose Staple Fiber Market - Segmented by Production Process, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global viscose staple fiber market valued at 5,594.08 kilotons in 2017 and is expected to register a CAGR of 5.45% during the forecast period, 2018 to 2023. Asia-Pacific was the largest market in 2017, registering a market share of around 62%.
Growing demand for Apparels and Clothing
The apparel & clothing industry grew at a healthy rate despite the economic slowdown and is expected to continue the trend. This is majorly due to low switching costs and the significant role of the industry in terms of trade, employment, investment and revenue.
The Asia-Pacific region is the biggest exporter of clothing and textiles to both the United States and Europe. The United States and Canada are among the top 10 countries with high spending on apparel. In Europe, Germany, Norway, Austria, Sweden and the United Kingdom are the top countries which spend the most on apparel.
The United States and China are the top two retail markets for apparels. Moreover, countries such as Germany, the United Kingdom and Russia also hold a significant demand for apparels. India and Brazil are the fastest emerging market for apparels. This will boost the apparel & clothing market, which in turn, will uplift the demand for viscose staple fibers.
In 2017, textiles and apparel application segment dominated the global market, and also registered the fastest CAGR through the forecast period.
Asia-Pacific Dominates the Market
Asia-Pacific had the highest share in the market, accounting for around 62% of the global market in 2017. As textile production capacities continue to shift to Asia from Europe and North America, consumption growth has started to expand in Asia-Pacific region. China, India, and Indonesia dominate the viscose fibers production in Asia-Pacific region, and the export market of viscose yarns and fabrics.
China is the Largest Consumer
China is one of the major producers and consumers of VSF. The increasing yarn production in China has been boosting the demand for VSF. The Asian yarn production, in Q1 of 2016, increased by 21% - quarter on quarter, mainly driven by the Chinese yarn industry. The yarn production has been increasing due to the increasing production of non-woven fabrics in the country.
However, the Chinese VSF industry has been witnessing a major issue of surplus production capacities. The government has released new regulations for limiting the viscose capacities in the country. Furthermore, the wages in China have been increasing gradually, due to of which, the textile production is expected to shift to low-wage ASEAN countries, thereby, affecting the sales of VSF in the country. The surplus production capacities and record high cotton inventories are estimated to dominate the global market over the forecast period.
Key Developments in the market