Acrylic Fiber Market Analysis

Acrylic Fiber Market (Global, 2024)

Introduction

The Acrylic Fibres Market is poised to experience significant transformations in the coming years, driven by changing customer preferences, technological advancements, and rising demand from end-use industries. As a synthetic fibre known for its light weight, softness, and vibrant colors, the demand for acrylic fibres has been on the rise in the textile industry, especially in the apparel, home textiles, and industrial sectors. Also, the rising demand for sustainable and environment-friendly materials is boosting the scope of the market. The growing popularity of outdoor and sportswear is another factor driving the market. This report examines the trends, opportunities, and challenges that are likely to affect the development of the market. It also presents a comprehensive overview of the current and future prospects of the market.

PESTLE Analysis

Political

In 2024, the market for acrylic fibres is influenced by a number of political factors, including tariffs and trade policy. For example, the United States has imposed a tariff of 25% on some imported acrylic fibres from certain countries. This has caused manufacturers to change their sourcing strategies. Similarly, the European Union has introduced regulations on the reduction of carbon emissions. These regulations may affect the production of the fibres, as companies may need to invest in more efficient technology to comply with them.

Economic

The economic situation of the market for acrylic fibres in 2024 is characterized by fluctuating raw material prices. The price of acrylonitrile, the main raw material for the manufacture of the fibre, rose by about 15 per cent over the previous year, mainly as a result of transport problems and increased demand from the textile and automobile industries. Moreover, the expected rate of unemployment throughout the world is 5.5 per cent, which may have a bearing on the purchasing power of consumers and, consequently, on the demand for products made of acrylic fibres.

Social

Social trends in 2024 indicate a growing preference for products that are sustainable and earth-friendly. A recent survey shows that almost 60 percent of consumers are willing to pay a premium for products made with reclaimed acrylic fibers. A change in consumer preferences is driving the industry to invest in sustainable production methods and reclaiming technology to meet the growing demand for eco-friendly, sustainable products.

Technological

The Acrylic Fibre Market to 2024 is expected to be driven by technological developments. Production techniques, such as the development of high-efficiency spinning technology, have resulted in a reduction of about 20 per cent in the energy consumption per tonne of acrylic fibre produced. Production is also expected to be augmented by the integration of automation and artificial intelligence in the manufacturing process. This would enable companies to stay competitive in the rapidly evolving market.

Legal

In 2024, legal factors affecting the acrylic fiber market include the stricter regulations concerning chemical safety and the environment. The REACH regulation in the European Union requires the registration of more than 140,000 chemicals, including those used in the production of acrylic fibers. These regulations require significant investment in safety and documentation, which will increase the operating costs of companies in the industry.

Environmental

In 2024, the environment is an important factor in the market for acrylic fibers, with a focus on reducing the carbon footprint of production. Various governments have set a target of a 30 per cent reduction in carbon dioxide emissions by the year 2030. In addition, the use of water in the production of the fibers is a concern. It has been calculated that one kilogram of fibers requires approximately 1,500 liters of water to be produced, and this has led to a need for companies to use water more sustainably.

Porter's Five Forces

Threat of New Entrants

The market for artificial fibres is characterized by moderate entry barriers, which include a significant capital investment in the production plant and technology. However, new entrants may still find opportunities in the market, especially in niche segments or through new production methods. Brand loyalty and established distribution channels, however, are a challenge for newcomers.

Bargaining Power of Suppliers

Suppliers have relatively little power to fix prices on the market for synthetic fibres because of the wide availability of raw materials and suppliers. The production of the chemical components of acrylic fibres is based on petrochemicals, which are widely available. Suppliers can therefore easily switch suppliers, which limits the power of any one supplier to fix prices and terms.

Bargaining Power of Buyers

In the market for synthetic fibers, buyers are the most important market participants, especially the big textile manufacturers who buy in large quantities. The fact that there are alternatives to the synthetic fibers gives buyers a negotiating position. Also, the increased demand for sustainable and environmentally friendly materials has led buyers to ask for more from suppliers, which gives them more power.

Threat of Substitutes

The threat of substitution for the acrilyc fibre is high, as there are several substitutes available, such as polyster, nylod and natural fibres. These substitutes often meet the same performance criteria at a lower price. Also the increased interest in the use of sustainable and biodegradable materials makes the threat of substitution higher, as consumers become more environmentally conscious.

Competitive Rivalry

Competition in the acrylic fibers market is keen, with several major players fighting for market share. There is a price competition between these manufacturers, which leads to innovations in the products offered. In addition, rapid technological development and changing customer preferences intensify the competition between the existing companies.

SWOT Analysis

Strengths

• High durability and resilience of acrylic fibers compared to natural fibers.
• Versatile applications in textiles, automotive, and home furnishings.
• Growing demand for lightweight and moisture-wicking materials.

Weaknesses

• Environmental concerns regarding the production and disposal of synthetic fibers.
• Potential competition from alternative fibers such as recycled polyester and natural fibers.
• Price volatility due to fluctuations in raw material costs.

Opportunities

• Increasing consumer preference for sustainable and eco-friendly products.
• Expansion into emerging markets with rising disposable incomes.
• Technological advancements in fiber production enhancing quality and performance.

Threats

• Regulatory pressures related to environmental impact and sustainability.
• Economic downturns affecting consumer spending on non-essential goods.
• Intensifying competition from other synthetic and natural fiber manufacturers.

Summary

The Acrylic Fibres Market 2024 is characterized by its strength in its versatility and its versatility, making it the preferred choice in various industries. Its weakness is in its resistance to environmental concerns and competition from other fibers. Opportunities include increasing demand for sustainable products and the development of new markets in developing countries. Threats include regulatory pressure and the possibility of a reduction in spending.