Polyester fabric demand in India sees steady growth with Q1 FY24-25 price Fluctuations

India's polyester fabric market is experiencing steady growth, driven by its affordability and versatility. While the overall demand is projected for a Compound Annual Growth Rate (CAGR) of 3.24 per cent until 2029, recent trends offer a mixed picture for Q1 FY24-25.

There is positive sign for polyester demand with a strong domestic market. And what is triggering this demand is that polyester offers a cost-effective alternative to natural fibers like cotton, making it popular among budget-conscious consumers. Its ability to blend seamlessly with other fibers creates a wide range of fabrics with desirable properties like wrinkle resistance and durability. Also also as disposable incomes increase, demand for affordable and stylish clothing, often made from polyester blends, is expected to rise

The Indian textile and apparel industry, a major consumer of polyester, is flourishing. This translates to a continued demand for polyester fabrics for clothing and home textiles. Moreover, recent increase in cheap polyester yarn imports from China has subsided, potentially benefiting domestic manufacturers and boosting demand for Indian-made polyester fabrics.

However, there are challenges in Q1 FY24-25 due to price volatility. The beginning of the current fiscal witnessed a rise in polyester yarn prices due to improved payment flows and concerns over new payment regulations. This might slightly dampen fabric demand in the short term.

Also, global economic uncertainties could impact consumer spending, potentially leading to a temporary slowdown in demand for polyester-based clothing and textiles.

Despite the price fluctuations in Q1, the long-term outlook for Indian polyester fabric demand remains positive. The industry's growth is due to its cost-effectiveness and extensive application in various sectors. Analysts predict a stable to slightly increased demand in Q1, followed by a potential rise in the latter part of the fiscal year.