Global apparel industry poised for MMF boom: PwC Study.

A recent Price Waterhouse Cooper (PwC) study titled ‘From Shirts to Shores: Blueprint for Bangladesh RMG Industry’ paints a compelling picture of a global apparel industry transitioning towards garments made from man-made fibers (MMF). The report predicts a significant rise in garments made from MMF, with global MMF garment exports projected to grow from 50 per cent in 2022 to 60 per cent by 2030. This shift has far-reaching implications for the global textile industry.

Specifically for raw material production, fiber production capacity, and potential beneficiaries across the textile value chain.

Impact on raw material production

Growing demand for MMF garments will undoubtedly impact the raw material scenario. Traditionally, cotton has dominated the apparel industry. However, MMF offers advantages like wrinkle resistance, durability, and versatility, making it increasingly popular. This shift could potentially lead to a decrease in demand for raw cotton, impacting cotton-producing countries. However, the overall impact might be mitigated by the projected growth in the global apparel market.

Fibre production and demand gap

The study highlights a crucial aspect: the ability of fiber production to keep pace with the growing demand for MMF garments. Here's a breakdown of the current and projected scenario.

As evident, the global apparel market is expected to grow from $953 billion in 2022 to $1,121 billion by 2030, with the share of MMF garments rising from 50 to 60 per cent. This translates to a significant increase in MMF demand.

While data on current and projected MMF production capacity isn't readily available in the PwC study, a potential gap between demand and supply can't be ruled out. This gap could present an opportunity for increased MMF production, potentially leading to investments in this sector.

Potential beneficiaries of growing MMF demand

The shift towards MMF garments presents opportunities for several countries.

• MMF producers: Countries with established MMF production capabilities, such as China and India, could benefit significantly. Additionally, countries with a focus on innovation and development of new MMF technologies could emerge as leaders.
• Garment manufacturers: Countries with a strong presence in garment manufacturing, like Bangladesh and Vietnam, could leverage this trend by adapting their production capacities to handle MMF efficiently.
• Fabric and yarn manufacturers: The demand for MMF fabrics and yarns is expected to rise, creating opportunities for manufacturers who can cater to this growing market. This could benefit established producers like South Korea and Taiwan.
• Fiber production:Countries with a strong presence in the production of raw materials for MMF, such as polyester precursors, will be well-placed. This could benefit major chemical producers in the Middle East and North America.

The PwC study highlights a significant shift towards MMF garments in the global apparel industry. While this trend presents many new possibilities, it also raises concerns about potential raw material disruptions and the ability of fiber production to meet the demand. Countries that can adapt and capitalize on this shift, particularly in MMF production, garment manufacturing, and fabric/yarn production, stand to be the major beneficiaries.