Between 2018 and 2023, nonwovens capacity and production demand (regional domestic demand and exports) in Southeast Asia are expected to continue to grow, driven by favorable demographics, economic conditions, high local and export market demand, and rising market penetration.
Overall, the five ASEAN countries (Malaysia, Indonesia, Philippines, Thailand and Vietnam) are regarded as the third largest market in the world. In 2019, Thailand's real GDP growth rate is expected to reach 3%, and Vietnam and the Philippines are expected to reach 6%. Indonesia's GDP is expected to grow by 5 percent in 2019 and Malaysia's by 4.5 percent. In contrast, China's GDP growth in 2019 is expected to be in the range of 4.5-6.3 percent. The annual growth rate of global GDP in 2019 is expected to be around 3%.
The stimulative economic growth in the Asean Five was striking, leading to increased employment and higher productivity and wages. This, in turn, is driving increased consumption of disposable nonwovens products and other consumer goods.
The gradual increase in the market penetration of disposable and durable nonwovens in Southeast Asia and China (where the market penetration is still low) is a positive factor for the Southeast Asian market and its exports and the growth of demand for nonwovens. Nonwovens producers in the five ASEAN countries are expected to benefit from good export demand from China, Japan and other countries in the Asia-Pacific region. The largest market for nonwovens will be sanitary products, followed by durable geotextiles and others.
A number of global and regional disposable hygiene products manufacturers have invested in Southeast Asia, and some of them have recently expanded their local capacity. These producers include Kimberly-Clark (Kimberly-Clark), Johnson & Johnson, Kao, Procter & Gamble and Eunice, which recently acquired Thailand's DSG. The increase in production capacity in Southeast Asia shows that demand in the region is growing and also proves that the region is gradually developing into a manufacturing base for exporting products to other Asian regions.
In 2019, nonwovens capacity in the region was dominated by fine denier spunbond/spunmelt, staple fiber needle punched and/or thermally bonded, spunbond polyester and medium denier polypropylene spunbond punched, in that order. It also includes other smaller but well-developed segments, such as hot air.
From 2013 to 2018, the new capacity of fine denier spunbond and spunmelt polypropylene in Southeast Asia increased by an average of 14% per year, from 143000 tons in 2013 to 275000 tons in 2018. In 2018 alone, the capacity of this technology increased by 32000 tons.
In 2019, the production capacity of fine and medium denier spunbond/spunmelt polypropylene in Southeast Asia was 284000 tons, accounting for about 7% of the total global capacity of this technology category.
The largest concentration of this technology capacity is in Thailand, where there are currently four major producers, with a total spunbond nonwoven production capacity of 134000 tons, accounting for 47% of the share. In Malaysia, there are now two producers with a combined capacity of 94000 tonnes, or 33% of the total capacity in Southeast Asia. In Indonesia, there are two producers with 52000 tons of capacity, equivalent to 18% of all capacity in the region. The remaining capacity is located in the Philippines.
Large nonwovens manufacturers in Southeast Asia mainly use fine denier polypropylene spunbond/spunmelt technology for the sanitary products market. Malaysia's Fibertex was the largest nonwovens producer in Southeast Asia in 2018, with a capacity of 85000 tons.
Thailand's Asahi started a new production line in 2018 and has a 60000-ton fine denier spunbond capacity in early 2019. In Thailand, FitesaCNC and Mitsui have fine denier capacities of 40000 and 30000 tonnes, respectively.
Fine denier spunbond/spunmelt producers in Southeast Asia will continue to rely heavily on exports to achieve good capacity utilization. The demand for disposable nonwovens in the region is growing, but it is still small compared to the capacity in the region.
Unitika launched a 30000-ton spunbond polyester production line in 2017, making it the sixth largest nonwovens producer in Southeast Asia. The line will target carpet backing, geotextiles, roofing materials, automotive and other industrial applications.
TenCate is the only producer of medium denier spunbond polypropylene nonwovens in Southeast Asia. These non-woven materials are needle punched and can be applied to geotextiles and other related end uses. The annual capacity of the TenCate is 9000 tons, unchanged since 1996.
Hot air producers in Southeast Asia include OceanCash in Malaysia, JNC in Thailand and Daiwabo in Indonesia.
作者：David J. Price， Price Hanna Consultants公司
