The technical textile industry is undergoing a quiet structural divergence. Data from the first five months of 2026 show that while the overall sector maintained steady growth under macro pressure, profit trends across sub-segments have clearly diverged.
Nonwovens emerged as the highlight, with output up 9.5% and profit surging 9.9%. In contrast, traditional categories like tarpaulins and ropes faced revenue increases but profit declines. Export performance also varied: nonwoven exports grew 10.7%, while tents and canvas products saw slight declines.
Output Accelerates, Profits Diverge
According to data from the National Bureau of Statistics, from January to May, above-scale enterprises saw nonwoven output increase 9.5% year-on-year, 5.6 percentage points faster than the same period last year. Cord fabric output rose 3.8%, accelerating by 3.4 percentage points. This output growth is driven by sustained demand from downstream hygiene materials and filtration products.
However, profit performance varied widely. Nonwoven industry profit grew 9.9%, with operating profit margin rising to 2.7%. Tarpaulin and canvas industries saw revenue up 8.5% but profit down 5.7%. Other technical textiles (construction, protective) saw revenue up just 0.2% and profit down 11.5%. This suggests cost pressures or intensified competition are eroding margins in certain categories.
Cord fabric industry revenue fell 4.1%, but its profit margin edged up 0.1 percentage point to 3.7%, indicating companies are actively shedding low-margin orders. This strategy of prioritizing profit over scale is pragmatic given the industry's overall operating margin of only 3.6%.
Export Structure: Nonwovens and Hygiene Products Drive Growth
China Customs data show technical textile exports reached $18.81 billion, up 5.3%. Nonwoven exports hit $1.93 billion, up 10.7%, with volume at 770,000 tons, up 13.4%. Another growth engine was absorbent textiles (diapers, sanitary napkins), with exports of $1.76 billion, up 10.7%; wet wipes exports stood at $490 million, up 14.7%.
Notably, coated industrial fabrics remained the largest export category ($2.19 billion) but grew only 1%, showing fatigue. Industrial glass fiber products exports reached $1.02 billion, up 12.2%, emerging as a new growth pole.
By destination, the US, Vietnam, and Japan remained the top three, but growth rates diverged: exports to Vietnam rose 8.3%, to the US 3.5%, and to Japan just 0.9%. Exports to Belt and Road countries totaled $11.34 billion, up 5.5%, accounting for 60% of total exports. This share has increased further, reflecting a shift from traditional developed markets to emerging ones.
Raw Material Volatility and Cost Pass-Through
In June, international oil prices dropped sharply as geopolitical premiums receded. Polyester, nylon filament, and polypropylene prices weakened, while viscose staple fiber rose due to cost support. The trading logic for chemical fibers is shifting from geopolitics to supply-demand fundamentals.
For downstream companies, lower raw material costs should ease profit pressure. However, actual data show most sub-segments' margins have not improved significantly, indicating intense end-market price competition. Nonwovens' profit resilience stems from the relatively rigid demand for downstream hygiene products and stronger pricing power.