In-depth study of China's nonwovens market: high-end transformation and global layout drive the new cycle of the industry

Nonwovens are an innovative branch of the textile industry. They utilize processes such as needlepunching, hydroentanglement, and hot melt to create mesh and sheet materials, eliminating the need for traditional textile processes. In 2023, my country's total nonwoven production reached 8.143 million tons, of which spunbond accounted for 45.8%, needlepunch for 21.2%, and hydroentanglement for 18.9%. Hydroentangled nonwovens, with their superior performance, are replacing woven fabrics in areas such as industrial wipes and battery separators, with their application areas continuously expanding.

Technological progress and policy guidance are the core drivers of industrial upgrading. Nanofiber nonwovens produced through electrospinning achieve nanofiberization, increasing their specific surface area by 3-5 times, and exhibiting superior performance in high-efficiency filtration and antimicrobial protection. The breakthrough development of smart nonwovens has driven the market for functional products such as temperature sensing and self-healing, with the market size expected to reach 20 billion yuan by 2030, driving the industry's transition to high-value-added products. The "Guiding Opinions on Industrial Restructuring" explicitly mandates a 13.5% reduction in unit energy consumption for enterprises above a designated size by 2025, accelerating the low-carbon transition. The market penetration rate of biodegradable nonwovens reached 10% in 2023 and is expected to rise to 15% by 2025. Large-scale production of bio-based materials (such as PLA and PBAT) will further promote the green transition.

II. Export Market: Global Opportunities Behind Rising Volume and Price

1. Continued Export Expansion

From 2019 to 2024, my country's nonwoven fabric export volume increased from 1.051 million tons to 1.516 million tons, a compound annual growth rate of 8.85%; export value increased from US$3.11 billion to US$4.04 billion, a compound annual growth rate of 5.98%. Although the unit export price soared to US$4/kg in 2020 due to supply and demand fluctuations, it has remained stable at around US$3/kg over the long term. Demand is growing significantly in Southeast Asia and the Middle East, and their export share is expected to increase to 25% in 2024. The Belt and Road Initiative continues to unleash market dividends.

2. Competitive Landscape and Profit Recovery

In the domestic market, nonwovens are widely used in healthcare (accounting for 51.1% of market share), packaging, and wipes. From 2020 to 2023, the industry experienced the pain of overcapacity, and the operating profit margins of large-scale enterprises plummeted from 14% to 3.2%. However, data from 2024 showed that leading enterprises, through technological upgrades (for example, Hengtian Group achieved a 30% increase in degradation speed and a 10% reduction in costs), rebalanced supply and demand, and profit margins rebounded to 3.6%. From January to May 2025, operating revenue and total profits of large-scale enterprises increased by 3.4% and 17.7% year-on-year, respectively, confirming the industry's recovery momentum.

III. Challenges and Trends: Differentiated Competition and Sustainable Development

1. Paths to Increasing Industry Concentration

Currently, the CR5 (cost per million) share is less than 20%, with small and medium-sized enterprises (SMEs) accounting for over 85%, creating fierce competition. Technological barriers have become a key differentiating factor: mainstream processes such as spunbond and spunlace require multidisciplinary expertise in fluid mechanics and materials science. The varying penetration rates of automated production lines put SMEs under pressure to become obsolete. Production capacity is projected to increase to 6.2 million tons by 2025, primarily driven by technological upgrades in spunbond and meltblown processes. However, demand growth (4.8%) is slower than capacity expansion, forcing companies to break through internal competition by offering differentiated products, such as medical-grade high-filtration materials.

2. Environmental Policies and the Risk of Technological Substitution

Growing global environmental awareness is driving industry transformation. The EU has launched a commercial pilot project for nonwoven recycling technology. Bio-based degradable materials are entering a phase of scale-up, with high-end products boasting profit margins 5-8 percentage points higher than traditional products. However, emerging technologies, such as 3D-printed fabrics, may challenge traditional processes, necessitating increased R&D investment. Leading companies are expected to allocate 6% of their revenue to R&D by 2025.

IV. Future Outlook: Driven by Policy Support and Market Demand

1. Deepening the Domestic Market

The healthcare industry accounts for 35%, household goods for 28%, and industrial materials for 20%, forming the three core demand sectors. With the implementation of the Medical Insurance Regulations, demand for consumables such as medical protective clothing and masks has become more regular, and the market size in this sector is expected to reach 50 billion yuan in 2025. Demand for biodegradable non-woven fabrics in the packaging sector is growing at an average annual rate of over 10%, and the application of agricultural mulch materials is also rapidly expanding.

2. New Opportunities for Global Expansion

Industry mergers and acquisitions are expected to increase by 30% year-on-year in 2025. Leading companies are mitigating the impact of tariffs by establishing factories in Southeast Asia, such as Vietnam and India. Although exports to the US have declined by 5% due to trade policies, exports to markets such as Vietnam and Japan have seen significant growth. The application of smart manufacturing technologies (such as the Industrial Internet of Things) has increased production efficiency by 20-30%, narrowing the technological gap with international companies.

V. Conclusion: Innovation Drives High-Quality Development

Driven by technological breakthroughs and environmental policies, China's nonwovens industry is undergoing a transformation from scale expansion to a focus on quality and efficiency. Companies need to focus on three strategic areas: deepening R&D in high-end products (such as intelligent temperature control materials), expanding into biodegradable products, and exploring emerging markets along the Belt and Road Initiative. The nonwovens market is projected to exceed RMB 140 billion by 2025, with a compound annual growth rate of 5-6%. With capacity optimization, profit margins for large-scale enterprises are expected to continue to rise, and increasing industry concentration will reshape the competitive landscape.