The International Textile Manufacturers Federation (ITMF) has revealed that “weakening demand” is the primary concern in the global textile value chain since July 2022. The ITMF survey found that 68% of participants identified “weakening demand” as their major concern for the next six months, up from 60% in January. The issue is mainly due to a relatively high inventory built up during 2022 that requires correction rather than demand destruction at the consumer level.
Inflation, high energy prices, and high raw material prices were also significant concerns for respondents, with 46%, 32%, and 30% respectively. Geopolitics is increasingly concerning, with 27% of participants identifying it as a major worry, surpassing higher interest rates at 22%.
While “weakening demand” was the main concern in all regions, “inflation” took precedence over it in North and Central America. In East Asia, South-East Asia, South Asia, and Africa, high energy and raw material prices continue to be problematic. Meanwhile, respondents in Europe (including Turkey) and the Americas have shifted their focus to “geopolitics” and “rising interest rates” over concerns about energy and raw material prices.
All segments of the textile value chain are suffering from weakening demand and are worried that it won’t improve in the next six months. Textile machinery producers are concerned about “inflation,” “high raw material costs,” and “geopolitics,” while fiber producers are strongly concerned about “high energy prices.” Spinners are more focused on “inflation,” “rising interest rates,” and “geopolitics,” and weaver/knitters and chemical fiber producers are primarily worried about “inflation” and “high energy prices.”
The ITMF survey highlights the challenges facing the global textile industry and the need for proactive measures to address the concerns of industry players.