The technical textiles industry has shown unexpected resilience in early 2026. According to data from the General Administration of Customs and the National Bureau of Statistics, revenue of enterprises above designated size grew 1.7% year-on-year from January to May, reversing the previous decline. Although total profits fell 3% year-on-year, the decline narrowed significantly from the first quarter. Nonwovens, with output up 9.5% and exports up 10.7%, became the industry's core growth engine.
This growth is driven by multiple structural factors. On one hand, global demand for functional textiles in hygiene, protection, and filtration continues to expand; on the other, domestic industrial upgrading and supporting demand for 'new three' products (new energy vehicles, lithium batteries, photovoltaic products) provide incremental space. Notably, the industry's operating profit margin is only 3.6%, down 0.2 percentage points year-on-year, indicating persistent pressure to increase both revenue and profit.
Sub-sector divergence intensifies, nonwovens stand out
Among five major sub-sectors, nonwovens are the only segment achieving positive profit growth, with revenue and profit up 2.5% and 9.9% respectively, and operating margin rising to 2.7%. This is directly linked to strong exports of downstream consumer products such as medical dressings, wipes, and hygiene articles—exports of absorbent textiles and wet wipes grew 10.7% and 14.7% respectively during the period.
In contrast, industrial supporting segments such as tarpaulins, ropes and cables, and tire cord fabrics all saw profit declines. Tarpaulin revenue grew 8.5% but profit fell 5.7%, reflecting poor cost pass-through and intensified capacity competition. Tire cord fabric revenue fell 4.1% and profit fell 2.4%, directly tied to weak downstream demand from the tire industry. Other technical textiles (construction, protective) had the highest operating margin of 5%, but profit plunged 11.5%, indicating that high-value-added categories also face order volatility.
Exports grow steadily, market structure optimizes
Exports are the biggest bright spot in the first half. From January to May, total exports reached $18.81 billion, up 5.3% year-on-year, with growth accelerating nearly 2 percentage points from last year. Nonwoven export volume exceeded 770,000 tons, up 13.4%, with clear volume-driven characteristics despite price pressure. Coated fabrics, the largest export category by value, reached $2.19 billion but grew only 1%, suggesting traditional advantages are plateauing.
Market structure changes are more noteworthy. Among the top three destinations, Vietnam led with 8.3% growth, the US grew 3.5%, and Japan was nearly flat. Exports to Belt and Road countries reached $11.34 billion, accounting for about 60% of total exports, up 5.5%. This indicates China's technical textile trade is shifting from traditional Western markets to emerging markets in Southeast Asia, Central Asia, and the Middle East. For foreign trade enterprises, establishing stable channel networks in these regions will determine growth ceilings in the next three years.
Raw material shift: geopolitical premium fades, supply-demand logic returns
International oil prices fell sharply in June, driven by eased US-Israel-Iran tensions and improved navigation in the Strait of Hormuz. Signals from Iraq and other oil-producing countries to accelerate production further depressed geopolitical risk premiums. Polyester, nylon filament, and polypropylene prices weakened, while viscose staple fiber rose amid cost support.
This change has dual implications for technical textiles. In the short term, lower raw material costs help ease profit pressure for midstream and downstream enterprises, especially for nonwovens and tarpaulins with high raw material cost ratios. In the medium term, persistently low raw material prices will squeeze upstream chemical fiber producers' profitability and may trigger a new round of price competition. The industry's trading logic is shifting from 'betting on geopolitical premiums' to 'competing on supply-demand fundamentals', making inventory management and cost control core competitive advantages.