Recycling or biobased? Dornbirn conference maps competing paths to fibre sustainability

The just-concluded Global Fibre Conference (GFC) in Dornbirn offered a stark reminder of the challenges facing the synthetic fibre industry, but it also put the spotlight on the yarn sector, which sits at the heart of textile value chains. From polyester spun yarns to specialty functional yarns, the discussions revealed both the economic headwinds and the technical opportunities shaping the future of yarn markets.

Overcapacity trickles down to yarns

A central theme was the overcapacity in synthetic fibres, particularly polyester, which directly impacts yarn spinners worldwide. According to industry estimates, global polyester fibre capacity has reached close to 70 million tonnes, while demand lags significantly behind. For yarn manufacturers, this glut translates into intense price competition.

“Yarn producers are squeezed from both sides high input capacity and low garmenting demand,” noted Helmut Kroner, an independent textile economist at the conference. “Margins on staple and filament yarns have narrowed to unsustainable levels in many regions.”

India and China, both major players in the yarn trade, are feeling the heat. Indian polyester spun yarn exports fell by nearly 12 per cent in FY2024-25, largely due to weak demand in the EU and US markets, coupled with rising protectionist policies.

Table: Top global yarn exporters

Trade policies and market shifts

The yarn industry is also grappling with the fallout of shifting trade policies. The US-China tariff standoff has redirected yarn sourcing, with buyers exploring alternatives in Vietnam and India. At the same time, the EU’s push for stricter sustainability regulations, including due diligence laws and extended producer responsibility (EPR) schemes is reshaping sourcing strategies.

“European buyers are increasingly seeking not just cost-effective yarns, but also recycled and certified sustainable alternatives,” said Rajesh Mehta, Director of an Indian spinning mill exporting to Europe. “Compliance is no longer optional; it is a business license.”

This has prompted mills in India and Southeast Asia to increase investments in recycled polyester yarns (rPET), despite the cost disadvantages compared to virgin fibre yarns.

Recycling and circular yarns

One of the more encouraging themes at the Dornbirn conference was innovation in recycling technologies that directly affect yarn production. Chemical recycling of polyester, which enables fibre-to-fibre transformation is gaining traction, with machinery suppliers showcasing systems that can produce high-quality yarns from post-consumer textile waste.

According to Textile Exchange, global recycled polyester accounted for 15 per cent of total polyester fibre production in 2024. By 2030, this figure is projected to cross 30 per cent, with yarn producers playing a key role in scaling up.

“We are now spinning recycled yarns that are indistinguishable in quality from virgin yarns,” said a European technical yarn producer at the conference. “The challenge remains cost competitiveness and waste collection at scale.”

Specialty and biobased yarns on the horizon

Beyond recycling, biobased fibres such as polylactic acid (PLA) and next-gen bio-polyesters are beginning to enter yarn production, albeit in niche applications. While their market share is still under 2 per cent, these yarns are attracting interest from sportswear, athleisure, and medical textiles manufacturers who value performance and sustainability.

The conference also highlighted demand for functional yarns with properties like moisture management, antimicrobial finish, and conductivity, markets where margins are more resilient compared to commodity yarns.

India’s strategic position

India, with its vast spinning capacity, finds itself at a crucial juncture. The country produces over 5.5 million tonnes of man-made fibre (MMF) yarn annually, with polyester yarns dominating output. Yet, exporters are increasingly facing competition not only from China but also from price-aggressive players like Vietnam and Indonesia.

“The Indian yarn industry must pivot towards value-added and sustainable segments,” argued Sunil Patodia, President of the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC). “Relying on commodity yarn exports will not be enough in the coming decade.”

Industry observers believe India’s future lies in becoming a hub for recycled yarns and technical textiles, supported by government schemes like the Production Linked Incentive (PLI) for MMF-based apparel and textiles.

Table: India’s yarn production (FY2024–25, in mn tonnes)

Tightrope between price and innovation

As the global textile industry edges toward circularity, yarn producers find themselves walking a tightrope between commodity price pressures and innovation-led opportunities. Overcapacity and trade disruptions will continue to weigh on the sector in the short term. Yet, the demand for recycled, specialty, and biobased yarns presents a longer-term growth path.

The Dornbirn discussions made one point clear: the yarn industry can no longer depend solely on volume. The winners will be those who can marry efficiency with sustainability, creating yarns that meet both price expectations and regulatory demands in a rapidly evolving global market.