The technical textiles industry is undergoing a deep adjustment marked by 'volume growth but thin profits.' In the first five months of 2026, nonwoven fabric output for above-scale enterprises surged 9.5% year-on-year, accelerating 5.6 percentage points from the same period in 2025, while cord fabric output grew 3.8%. However, total industry profits still fell 3%, with an operating profit margin of only 3.6%. This contrast signals that the tightrope between costs and prices is becoming increasingly strained for both buyers and factories.
Nonwovens: Dual Engine of Output and Exports
Nonwovens are the absolute protagonist of this growth cycle. Output growth jumped from 3.9% in early 2025 to 9.5%, while exports reached $1.93 billion, up 10.7%, with export volume soaring 13.4% to 770,000 tons. Remarkably, nonwoven industry profits increased 9.9%, and the operating profit margin rose 0.2 percentage points to 2.7%. This is a rare 'volume and profit rising together' segment. The logic is clear: downstream demand for absorbent hygiene products (diapers, sanitary napkins) grew 10.7%, and wipes and wet wipes grew 4.3% and 14.7% respectively, directly driving nonwoven orders. For factories, nonwoven production lines are likely to maintain high utilization rates, but they should be wary of price competition from concentrated capacity release.
Export Structure: Belt and Road Countries Support 60% Share
From January to May 2026, total technical textile exports reached $18.81 billion, up 5.3% year-on-year. The largest single market remained the U.S., with exports of $2.21 billion, up 3.5%; Vietnam followed with $1.48 billion, growing 8.3%; Japan contributed $940 million, up 0.9%. However, the real backbone was the Belt and Road countries, with exports of $11.34 billion, accounting for 60% of the total, and a growth rate of 5.5% in line with the overall average. This means export growth does not rely on a single market but on a multilateral trade network. Coated industrial fabrics led product categories at $2.19 billion but grew only 1%; nonwovens and absorbent products showed stronger double-digit growth. Foreign trade companies should focus on localized supporting demand in Southeast Asian markets like Vietnam and India, rather than just eyeing European and American orders.
Profit Divergence: Uneven Performance Across Sub-sectors
Profit divergence within the industry is significant. Nonwovens saw profits jump 9.9%, but ropes, cables, and cordage profits plummeted 9.7%, tarpaulins and canvas fell 5.7%, and other technical textiles (construction, protective) plunged 11.5%. Notably, the latter had the industry's highest operating profit margin at 5%, indicating that high margins did not translate into profit growth—the problem lies in demand. Textile belts and cord fabric saw revenue drop 4.1% and profits fall 2.4%, but profit margins rose 0.1 percentage point, suggesting companies may be protecting profits by scaling back. For buyers, this means bargaining power varies greatly by category: nonwoven suppliers have more pricing power, while rope and canvas suppliers may be more willing to offer discounts to secure orders.
Cost Side: Oil Price Drop Offers a Breathing Window
In June 2026, international oil prices fell sharply as tensions between the U.S., Israel, and Iran eased, improving navigation through the Strait of Hormuz, and Iraq and other producers planned to accelerate output. Polyester, nylon filament, and polypropylene prices weakened. This is a major boon for the technical textiles industry, as chemical fiber raw materials account for 40%-60% of production costs. However, viscose staple fiber prices rose due to cost support and pressure, showing a divergence in raw material trends. The industry's trading logic is shifting from geopolitical premiums to supply-demand fundamentals, meaning second-half price movements will depend more on actual orders than speculation. Factories should lock in low-cost raw materials now, while buyers need to watch for the risk of raw material price rebounds.