How the Global Polyester Staple Fiber Market is Performing?

Published: Feb 2023

Polyester staple fiber (PSF) is a kind of polyester fiber that is manufactured directly from PTA and MEG or PET chips or recycled PET bottle flakes. PSF made from MEG or PET Chips and PTA is known as "virgin" PSF, whereas PSF made from recycled PET Flakes is known as "recycled" PSF. Recycled polyester staple fiber is used as a polyfill for filling cushions, pillows, soft toys, and blankets, as well as in non-woven carpets, wadding, and filtration industries. It is also used to make yarn and geotextiles. There is one more type of PSF, which is blended.

Market Drivers and Forecast

According to OMR Research, the global polyester staple fiber market is projected to grow at a CAGR of 6.7% during the forecast period (2023-2029). The key driver of the market is the wide range of applications of PSF. It is used in apparel, automotive, home furnishings, filtration, personal care and hygiene, and electrical and electronics sectors. 

Significant growth in the real estate sector is positively influencing the home furnishing sector’s demand. In this sector, countries such as China, India, the US, Japan, and others have the largest shares in the global market. According to the National Investment Promotion & Facilitation Agency of India, India is the fourth-largest consumer of furniture worldwide and the fifth-largest manufacturer of furniture. It has been noted that northern and southern India account for the majority of the demand for furniture. India is also a low-cost producer of cotton textiles. In FY21, the Indian furniture market was worth $17.4 billion. It is anticipated to reach $37.7 billion by 2026, rising at a CAGR of 13.37% between 2020 and 2026.

Moreover, government initiatives to increase the production of man-made fibers (MMF) such as PSF will benefit the market. For instance, in April 2022, the Indian Ministry of Textiles announced that the government had approved the Production-Linked Incentive (PLI) Scheme for textile products such as MMF fabrics, MMF apparel, and products of technical textiles, with an outlay of INR 10,683 crore ($1.3 billion) over a five-year period.

Apart from this, an escalating demand for sustainable and fast fashion is promoting the utilization of PSF in the textile industry. PSF is also used for making speaker felts, geotextiles, and wadding, and as a filler for sound absorption. Moreover, the trend of environmentally friendly initiatives in the global market will boost the recycled PSF demand. According to a 2017 study by the Swiss Federal Office for the Environment, recycled polyester has nearly the same quality as virgin polyester but uses 59% less energy to produce.

The companies are also initiating efforts to increase the production of recycled PSF. For instance, in November 2022, Unifi, a recycled material producer, announced its new Textile Takeback initiative. This textile-to-textile infrastructure initiative is intended to repurpose post-consumer fabric waste and polyester-based supply chains and transform them into REPREVE, a high-performance polyester fiber produced by the company. REPREVE resin derived from the textile takeback process is remelted and converted into staple fiber or filament yarn.

Recent Developments

The key companies in the market include Far Eastern New Century Corp., Alpek, S.A.B. de C.V., China National Petroleum Corp., Bombay Dyeing & Manufacturing Company Ltd., Diyou Fibre (M) Sdn Bhd., Ganesha Ecosphere Ltd., Huvis Corp., Reliance Industries Ltd., Indorama Corp., Petrovietnam Petrochemical, and others. These companies are engaging in different mergers and acquisitions, investments, expansions, and other operations to help the market grow. Some of the most recent market developments include-

In November 2022, FRX Innovations, a provider of eco-friendly flame-resistant solutions, announced that Reliance Industries Ltd., a manufacturer of polyester filament yarns and staple fibers, agreed to use FRX Innovations’ Nofia technology to strengthen the environmentally friendly component of its well-established Recron FS fire-resistant polyester for polyester textile applications.

In September 2022, Reliance Industries acquired the polyester divisions of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex (SPTex) for a value of INR 1,592 crores ($192.7 million). This transaction by Reliance Industries would improve its textile and manufacturing industries, as well as Reliance's ambition to develop its polyester industry. 

In April 2022, Teijin Frontier Co., Ltd., the Teijin Group's fibers and products conversion subsidiary, created an eco-friendly staple polyester nanofiber with exceptional performance for reinforcing rubber in goods such as vehicle tires, hoses, and belts. The new staple nanofiber contains both polyethylene polymers and polyester nanofiber, which are blended in Teijin Frontier's patented sea-island composite cross section. Different polymers are utilized for the "sea" and "island" portions to increase rubber reinforcement.

In February 2022, Adnan Fibre Limited, a Bangladesh-based firm, announced a $20.66 million investment in the Ishwardi Export Processing Zone (IEPZ) to build a plant capable of producing 25,000 metric tons of PSF per year. The firm will make PSF from the PET Flex (PET bottles), which will be retrieved locally. This will eventually aid in the prevention of environmental pollution. For the objective, the company has signed a memorandum of understanding (MoU) with the Bangladesh Export Processing Zones Authority (BEPZA).