Nonwovens US Industry Study with Forecasts to 2007 & 2012 STUDY #1711 October 2003 $3900 The Freedonia Group www.freedoniagroup.com The First Choice In Industry Research 767 Beta Drive Cleveland, OH 44143-2326 USA Tel: 800.927.5900 (US) or 440.684.9600 Fax: 440.646.0484
Nonwovens US Industry Study with Forecasts to 2007 & 2012 Study #1711 October 2003 $3900 342 Pages The filtration market, driven by regulatory changes and consumer concerns about air and water quality, will post the strongest gains among disposable markets through 2007 US nonwovens demand to approach $5 billion in 2007 Demand for nonwoven roll goods in the US is expected to increase 3.9 percent per year to almost $5 billion in 2007. Advances will be driven by strong growth in many key disposable markets such as adult incontinence products, filters and protective apparel, and key nondisposable markets such as geotextiles and battery separators. Ongoing product improvements, increased penetration of nonwovenbased products and growth in the amount of nonwovens used in certain products will propel demand for nonwovens in these markets. Shipments from US producers of nonwoven roll goods sold on the merchant market are projected to increase 3.3 percent per year to $5.2 billion in 2007. Growth in shipments will trail growth in demand due to increased imports of specialty nonwovens developed in the more mature nonwoven markets of Japan and Western Europe. Also, a growing number of suppliers in Asia and Latin America are exporting basic nonwovens to the US market. Disposable markets account for largest share of demand Nonwoven fabrics are favored in certain end-use applications because of their status as a lower cost, more flexible alternative to woven and knit competitive materials. A variety of niche marketing opportunities are available as Disposable Nonwoven Fabrics Demand, 2007 ($2.58 billion) Consumer 34% Medical 26% Filtration 24% Other 16% many markets for nonwovens are receptive to new products. Disposable markets accounted for the majority of nonwoven demand in 2002 with a 64- percent share. Disposable consumer products, which primarily include baby diapers, adult incontinence and feminine hygiene products, and wipes, was the largest market for nonwovens in 2002. However, the filtration market, driven by regulatory changes and consumer concerns about air and water quality, will post the strongest gains among disposable markets through 2007. Cotton, wood pulp fibers will be fastest growing materials Polypropylene is the most widely used fiber in nonwoven production, accounting for 56 percent of staple, monofilament and multifilament fiber consumption in 2002. Consumption of cotton and wood pulp fibers will grow faster, albeit from much smaller bases, because of consumer interest in natural fibers, soft materials, and flushable and biodegradable products. Materials such as polyester and rayon will post more modest gains, as they face competition from polypropylene fibers. Visit www.freedoniagroup.com for complete text and table of contents
Table of Contents Letter From the CEO INTRODUCTION EXECUTIVE SUMMARY... 1 MARKET ENVIRONMENT General... 4 Macroeconomic Environment... 4 Manufacturing Outlook... 7 Textiles Outlook... 1 0 Demographic Trends...13 Pollution Control Trends... 1 7 Competitive Materials...19 Environmental & Regulatory Considerations... 2 0 Pricing Trends... 2 4 World Market... 2 6 Western Europe... 2 8 Asia/Pacific... 2 9 Rest of World... 3 1 Foreign Trade...33 Exports... 3 5 Imports... 3 7 MATERIALS General... 4 0 Fibers... 4 0 Polypropylene... 4 3 Polyester...45 Rayon... 4 8 Wood Pulp... 5 0 Polyethylene... 5 1 Cotton... 5 2 Other... 5 5 Nylon... 5 5 Glass... 5 6 All Other... 5 8 Other Materials... 5 8 Binder Resins... 5 9 Additives...61 PRODUCTS General... 6 4 Supply & Demand... 6 4 Web Formation Processes...66 Spunbonded...71 Characteristics... 7 2 Developments... 7 4 Markets & Manufacturers... 7 5 Meltblown...76 Characteristics... 7 8 Markets & Manufacturers... 8 0 Carded... 8 1 Characteristics... 8 4 Markets & Manufacturers... 8 6 Wet Laid... 8 6 Characteristics... 8 8 Markets & Manufacturers... 8 9 Air Laid... 9 0 Characteristics... 9 2 Markets & Manufacturers... 9 4 Web Bonding Processes... 9 6 Thermal... 9 6 Heating Processes... 9 7 Manufacturers... 9 9 Chemical...99 Mechanical... 101 Needlepunched... 101 Spunlaced... 103 Stitchbonded... 104 Dear Colleague: As the world economy emerges from its recent period of doldrums, businesses are planning how to benefit from the new opportunities that an upswing will bring. In making those plans, strategic planners like you require credible industry information on which to base decisions. At Freedonia, it is our mission to provide you with an unbiased, reliable outlook for each industry that we study. We carefully examine available sources, separate the wheat from the chaff, and distill an ocean of data into a concise presentation of where an industry stands today... and where it is going. At Freedonia, it is our mission to provide you with an unbiased, reliable outlook for each industry... Each Freedonia industry study provides you with the information and analysis you need to make important decisions. How large is your target market? Which product segments are growing fastest? Which markets are growing fastest? Our analysts review the relevant secondary sources and talk directly to participants in the industry to find the answers. Our Nonwovens study represents the culmination of several hundred hours of Freedonia analysts' time, and takes a good look at this $4 billion industry. At 342 pages, this study provides 80 pages more of in-depth analysis relative to the prior version of the study. I invite you to put the Freedonia Group research team to work for you by acquiring our Nonwovens study today. Very truly yours, Jeffrey Weiss, CEO MARKET OVERVIEW... 106
Table of Contents (cont.) DISPOSABLES MARKETS General... 110 Consumer... 112 Personal Hygiene Products Outlook... 112 Wipes... 113 Feminine Hygiene Products... 114 Infant Diapers... 114 Adult Incontinence Products... 115 Infant Training Pants... 115 Nonwoven Fabric Demand... 116 Diapers... 118 Wipes... 124 Adult Incontinence Products... 134 Feminine Hygiene Products... 137 Other... 140 Medical... 142 Nonwovens Medical Garments & Textiles Outlook... 142 Nonwoven Fabric Demand... 144 Applications... 146 Types... 147 Filtration... 149 Filters Outlook... 149 Nonwoven Fabric Demand... 152 Air... 155 Liquid...157 Other... 159 Protective Apparel... 160 Industrial Wipes... 162 Miscellaneous... 164 Nonwoven Fabrics Demand, 1997-2007 (million dollars) 3500 3000 2500 2000 1500 1000 500 0 Disposables Nondisposables 1997 2002 2007 NONDISPOSABLES MARKETS General... 166 Geotextiles & Building Construction.. 168 Construction Expenditures Outlook.. 169 Nonwoven Fabric Demand... 171 Geotextiles... 173 Building Construction... 178 Electrical & Electronics... 181 Batteries Outlook... 181 Nonwoven Fabric Demand... 183 Battery Separators... 185 Others... 186 Motor Vehicles... 187 Motor Vehicles Outlook... 187 Nonwoven Fabric Demand... 189 Furniture... 193 Furniture Outlook... 193 Nonwoven Fabric Demand... 196 Applications... 199 Suppliers... 200 Carpets & Rugs... 201 Carpet & Rug Outlook... 201 Nonwoven Fabric Demand... 203 Clothing... 206 Apparel Industry Outlook... 206 Nonwoven Fabric Demand... 209 Apparel Interlinings... 210 Other... 211 Other... 214 INDUSTRY STRUCTURE General... 216 Industry Structure... 217 Market Share... 222 Captive Production... 228 Competitive Strategies... 230 Research & Development... 232 Manufacturing... 235 Distribution... 237 Marketing... 238 Mergers & Acquisitions... 241 Cooperative Agreements... 245 Company Profiles... 249-342 Freudenberg & Company Bergstrasse 69465 Weinheim Germany 49-6201-800 http://www.freudenberg.com Freudenberg Nonwovens LP 3440 Industrial Drive Durham, NC 27704 919-620-3900 COMPANY PROFILES Sales: $3.7 billion (2002, as reported by company) North American Sales: $1.2 billion (2002, reported by company) Employment: 27,695 (2002, as reported by company) Key Products: nonwovens for apparel, personal care, medical, furniture, horticultural, domestic and institutional cleaning, filtration, automotive, carpet, electrical, roofing and other specialty applications Freudenberg, which was the sixth largest supplier to the US market in 2002, supplied 6.4 percent of demand to the merchant market. The Company is primarily active in the US nonwovens industry through the Nonwovens segment, which had sales of $869 million and employed 5,320 in 2002. The segment, which operates as Freudenberg Nonwovens, manufactures nonwovens using spunbonded dry laid and wet laid web formation processes, and chemical, thermal,
Freedonia Study #1711 - NONWOVENS Filtration Demand for Nonwoven Fabrics (million dollars) Item 1992 1997 2002 2007 2012 Pollution Abatement/Control Ex104.7 136.8 171.0 220.0 82.0 $ nonwovens/000$ expendits 4.2 3.5 3.4 3.4 3.3 Filter Shipments 5512 6360 7705 9560 11600 $ nonwovens/000$ shpts 79.3 75.5 MARKETS 75.3 77.4 79.3 The Markets Section analyzes trends and considers Nonwovens in Filtration 437 480 580 740 920 Air 288 the 326 threats 406 and opportunities 532 662 Liquid 154 in each 174 major 208 market 149 258 MATERIALS % filters 26.1 24.1 22.4 23.5 23.9 Wood Pulp Disposable Nonwovens Demand1675 1990 2585 3150 3855 In nonwovens, consumption of wood pulp fiber is projected to increase 5.5 percent per year to 150 million pounds. Gains will be driven by the popularity and increasing versatility of hybrid materials such as Kimberly-Clark s COFORM composite of meltblown polypropylene and air laid wood pulp. Growth will also be spurred as manufacturers shift toward wood pulp, a low-cost SAMPLE and PAGE low-bulk fiber, for use in the production of Text air laid sections nonwovens support for each hygiene applications. Additionally, table s pulp numbers benefits & from projections its status as a natural product and its position as the leading fiber used in air laid and wet laid nonwovens. Further advances will be restrained by the presence of significant price fluctuations due to the cyclical nature of the pulp market. Wood pulp used in nonwovens is primarily composed of softwoods such as southern pine and hemlock due to their high quality and high level of absorbency. Pulp is used in wet laid and pulp-based air laid nonwovens, which feature a higher pulp content compared to wet laid nonwovens. Both these types of nonwovens have production processes that are based on the paper production process. With Air Laid its short Nonwoven Fabric Shipments fiber length, pulp is not suitable for other types of web formation such as carding or textile air laid. Additionally, Item 1992 1997 2002 2007 2012 pulp can be combined with other fibers for more specialized hybrid products. For instance, pulp can be spunlaced with Nonwoven Fabric Shipments () 2855 3780 4400 5170 6100 longer polyester fibers for applications in medical fabrics, or % air laid 9.3 8.9 7.5 7.0 6.9 with lightweight polypropylene spunbonded nonwovens for Air Laid Nonwoven Shpts (mil $) 266 335 330 360 420 PRODUCTS The Products Section cents/sq yd 11.1 11.0 9.0 8.0 7.9 provides demand for historical years and Air Laid Nonwoven Shpts (mil 2400 3045 3660 4500 300 forecasts growth to 2007 % air laid 9.5 9.6 and 10.8 2012 11.9 12.0 Nonwoven Fabric Shpts (mil sq yds)253003170033750 37800 44300
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