The industrial textile industry is undergoing a clearly differentiated recovery. Data for the first five months of 2026 show that while overall profits remain under pressure, revenue has turned positive, with nonwovens and exports emerging as two key growth engines.
Production: Nonwovens Lead, Profit Recovery Diverges
According to the National Bureau of Statistics, output of nonwoven fabrics by enterprises above designated size increased 9.5% year-on-year from January to May, with the growth rate accelerating by 5.6 percentage points over the same period last year. Tire cord fabric output rose 3.8%, also picking up by 3.4 percentage points. This indicates that capacity utilization is recovering, especially in the nonwovens segment, where demand signals are more positive.
At the profit level, total industry operating revenue grew 1.7% year-on-year, reversing a previous decline. Total profit fell 3%, narrowing the decline, with an operating profit margin of 3.6%. However, performance varied significantly across sub-sectors. The nonwovens industry saw revenue and profit rise 2.5% and 9.9% respectively, with its profit margin improving by 0.2 percentage points to 2.7%, making it the standout sector. The tarpaulin and canvas industry posted 8.5% revenue growth but a 5.7% profit decline, reflecting cost pressures and price competition. The textile tape and tire cord sector saw both revenue and profit fall, by 4.1% and 2.4% respectively, indicating persistently weak demand for traditional industrial textiles.
Other industrial textile sectors (including construction and protective textiles) had the highest operating profit margin in the industry at 5%, but total profit fell 11.5%, suggesting that high margins have not translated into volume growth, possibly due to order structure or scale effects.
Exports: Steady Growth, Emerging Markets Shine
China Customs data shows that from January to May, industrial textile exports reached $18.81 billion, up 5.3% year-on-year, while imports were $2.28 billion, up 3.1%. Although the export growth rate is moderate, it is a solid performance given the uncertain global trade environment.
By product, nonwoven fabric exports were $1.93 billion, up 10.7%, with export volume reaching 770,000 tons, up 13.4%, showing clear volume and price growth. Absorbent textile products (diapers, sanitary napkins, etc.) exported $1.76 billion, up 10.7%; wet wipes exports were $490 million, up 14.7%, indicating strong demand for consumer-grade industrial textiles. Industrial coated fabrics ranked first by export value at $2.19 billion, but growth was only 1%, suggesting market saturation.
By destination, the US, Vietnam, and Japan were the top three, with exports of $2.21 billion, $1.48 billion, and $940 million respectively. Exports to Belt and Road countries reached $11.34 billion, up 5.5%, accounting for about 60% of total industry exports. This indicates that export focus is shifting toward emerging markets, reducing dependence on any single market.
Raw Materials: Oil Price Drop Reshapes Cost Expectations
In June 2026, international oil prices fell sharply as tensions between the US, Israel, and Iran eased, navigation through the Strait of Hormuz improved, and oil producers like Iraq planned to accelerate output increases. This directly impacted chemical fiber raw materials: polyester and polyester filament prices weakened, nylon filament trended lower, and polypropylene prices began a downward cycle. Viscose staple fiber prices fluctuated upward amid conflicting cost support and demand pressure.
For industrial textile enterprises, lower raw material costs could improve profit margins, especially for categories heavily reliant on chemical fibers like nonwovens and coated fabrics. However, with geopolitical premiums fading, the market trading logic is gradually shifting back to supply-demand fundamentals. If end demand does not recover in tandem, cost savings may be offset by product price cuts.
Trend Outlook: Divergence Intensifies, Exports and Consumer Products as Safety Nets
Overall, the industrial textile industry in the first half of 2026 shows three distinct characteristics:
- Nonwovens are the core category achieving both volume and profit growth, benefiting from expanding consumption scenarios in hygiene, medical, and wiping applications.
- Export structure is shifting toward emerging markets, with Belt and Road countries contributing 60% of total exports, helping to diversify trade risks.
- Profit divergence among sub-sectors is intensifying, with nonwovens and tarpaulins performing better, while traditional industrial categories like tire cord and rope/cable are under pressure.
The second-half trajectory will depend on two variables: whether international oil prices remain low, and whether demand in US and European markets weakens further due to persistent inflation. For buyers and foreign trade companies, the current period calls for greater attention to product mix and market flexibility.