Europe focus
Staying ahead
of the game
The European technical textiles market retains growing demand and expertise, but Asian
rivals could threaten market positions, reports Barbara Bierach
Big marketing stunts can boost sales of
Hamminkeln, Germany. Christo obviously
created by Christo are an excellent way
technical textiles and maybe one of the
loves textiles and Setex is his trusted
of showing off the utility of technical
biggest examples in Europe this year was
partner when it comes to his favourite
textiles, and the quality of the sector in
created by world renowned artist Christo.
materials: the company has also delivered
Europe in particular.
He created ‘The Floating Piers’ on Lake
the material for his ‘Wrapped Trees’
Iseo, near Brescia, in northern Italy. Over
project in Switzerland and ‘The Gates’ in
textiles, notably those organised by the
16 days (until July 3), 1.2 million people
New York City.
Frankfurt, Germany-based trade fair
Another is conferences on technical
strolled along a 3km-long walkway, held
After The Floating Piers show, the
up by a floating dock system made from
recycling of Christo’s used fabrics was
which organises the international bi-annual
high-density polyethylene cubes covered
undertaken by Altex Textil-Recycling,
Techtextil fair. Its forthcoming conference
in 100,000 square metres of bright orange
a technical textile manufacturer in
in May 2017 in its Frankfurt home town
polyamide. The material was produced by
Gronau, Germany.
is already 85% booked, with 15% of
Setex-Textil-GmbH in the small town of
Artistic demonstrations such as those
organisation, Messe Frankfurt GmbH,
participants attending for the first time.
Olaf Schmidt, vice president of textiles
and textile technologies for Messe
Frankfurt, stressed to Future Textiles
that technical textiles’ ability to replace
traditional materials, such as steel
fortifications in cement constructions,
planes or cars, mean they rank as “the
most driving forces of growth in the textile
sector”. Their expanding importance
is not only reflected in booming trade
fairs, but also in growth rates: in total,
technical textiles already amount for more
than 25% of global textiles production,
and in some countries such as Germany
Returning to Frankfurt next year, Europe‘s flagship trade show Techtextil will showcase the latest trends
driving technical textiles
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P 38-41 European profile.indd 38
it accounts for even more than 50%.
According to UK-based market research
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14/09/2016 15:41
Europe focus
firm Euromonitor International, European
divergent geographical trends in the
application areas and development of new
Union sales of technical textiles, labels,
recent past: Germany, the UK and eastern
production processes”. Grebe identifies
badges and other textile products
Europe showed continuous strong growth
three key drivers for the expected growth:
generated €27.5 billion (US$31.1bn) in
in technical textile demand following the
• Functionalisation – adding more
sales during 2015.
global economic downturn in 2008 and
capacities to traditional materials
2009; France, Italy and Spain suffered
and products, particularly in
from weak demand, in particular in the
hygiene and medical textile (Medtech)
automotive and construction sectors.
products, with the aim to boost value
“Italy and Germany own the largest
creation. Demographic growth,
Where the strength lies
Western Europe is the key region of
Europe for producing technical textiles
and other textile products, with western
technical textile and other textile
ageing populations and the
European countries making 83% of
products industries, altogether generating
construction of new medical facilities
the products made in Europe in 2015,
38% of total production in 2015,” said
are driving forces for this industry.
according to Euromonitor. The top five
Krasodomskytė. However, he explained,
Textile-based artificial arteries, bones,
producers in Europe are Italy (20% of total
the most dynamic technical textile
skin and tissue are being researched
value), Germany (18%), France (8.6%) and
industries are located in Poland (12%
as well as artificial heart valves.
Poland (6.7%), along with Turkey – only
compound annual growth rate – CAGR – in
Research facility Hohenstein Institut
partially in Europe of course – at 8.6%, for
2010 to 2015), Belgium (16% CAGR) and
für Textilinnovation in Bönnigheim,
2015, said Euromonitor.
Austria (17% CAGR).
Germany, has, for instance, developed
Overall, Jürgen Grebe, a corporate
a textile uterus to help premature
such as Protech (protective textiles) and
sector analyst at Commerzbank, and
infants to thrive.
Sporttech (sports textiles); automotive
author of the report, expects the world
• Individualisation – from personalised
textiles, also known as Mobiltech;
market for technical textiles to grow
training shoes by German sportswear
textiles for industrial use (Indutech)
from the current US$130bn to about
manufacturer Adidas to wearable
and components of furniture and floor
US$160bn by 2018. Analysts from
body metric-tracking sports apparel
coverings (Hometech) generate the
Gherzi, a Switzerland-based consulting
called Hexoskin, made by the
most demand amongst technical textiles
firm specialising in the textiles sector,
Montreal, Canada-based Carré
in European countries, according to
expect an even faster expansion, with
Technologies Inc, Clothtech (used
Euromonitor. Germany and France,
global technical textiles sales generating
in garments and shoes) and Sporttech
for example, see strong demand for
US$315bn by 2020.
particularly profit from custom-
Technical textiles for personal use,
automotive technical textiles, since
designed products. European
the motor vehicles industry is among
growth will also be reflected in Europe:
manufacturers, he predicted, will
the sector’s largest business clients,
“Technical textiles and other textile
be able to exploit such trends such
accounting for 11% of technical textile
products industry in Europe is projected
as the creation of tribo-electronic
business-to-business (B2B) purchases in
to see stronger growth over the upcoming
nano generators integrated
Germany in 2015 and 14% in France.
years. While it expanded by a CAGR of
into clothing with individual sensors
2.7% in 2010 to 2015, turnover is expected
and devices, to monitor health and
purchases [within Europe, including
to increase by a CAGR of 3.5% during
performance.
Turkey] on technical textiles and other
2016-2020.”
“Overall, around a fifth of total B2B
textile products is generated by the
Euromonitor’s Krasodomskytė says such
clothing industry, 10% by automotive
Mega-trends driving growth
industry and around 3% by each
• Environmental targets – tougher
climate targets, the development of
In Grebe’s view, technical textiles will
mainstream electrical cars and the
construction and furniture industries,”
benefit from global mega-trends such as
need to save energy by less weight
explained Vita Krasodomskytė,
demographic growth, urbanisation and
in many industries, textiles are the
Euromonitor’s industry analyst.
the need for increasing environmental
alternative material of choice,
protection. Industry growth will be driven
boosting sales particularly in
by “the permanent conquest of new
Mobiltech. Growing demand for high
A study published in 2015 by German
bank Commerzbank, though, noted
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Europe focus
since the car industry, in particular,
might suffer – and with it the suppliers of
technical textiles. After all, Britain is the
most important importer of German cars
in the world, according to Verband der
Automobilindustrie eV (VDA), the German
association of the automotive industry.
With more than 600 companies with
more than 20 employees in the sector,
Germany is widely seen as a key technical
textile player, noted a US International
Trade Administration 2016 market report.
“Technologically, Germany is regarded as
world market leader in technical textiles,
Germany and France see strong demand for automotive technical textiles. Photo credit Messe Frankfurt
thanks to a great network within a cluster
performance materials from
construction, utilities, environmental
of internationally unique research facilities
automotive industry is expected to
technologies and aviation, according to
and labs,” explained Commerzbank’s
remain a key driving force in this
the IVGT.
Jürgen Grebe. “German leadership is the
segment.
In 2015, technical textile sales by
result of successful structural change
German producers grew by 14.4%
where producers of traditional textiles
Given these background trends, Grebe
year-on-year to €2.4bn (US$2.7bn), after
moved on to become highly specialised
projects a growth rate of 3% for technical
falling 6.3% in 2014, whereas the entire
suppliers of high tech textiles.”
textiles in general and 2.5% – or possibly
German textile market only grew by 3.4%,
even more – for composites in the
according to the IVGT. Revenue within
also makes German and other European
automotive sector, for the coming years
the country grew by 8.7% to €905m
textiles cheaper in foreign markets, thus
to 2018.
(US$1.02m); revenue abroad grew by
creating a strong competitive advantage
18.2% to €1.5bn (US$1.69bn) – growth
against, for example, US production.
In Germany, the success of the
A weaker euro against the US dollar
country’s entire textile industry is driven
within the eurozone was 23% to €700m,
by growth in its key technical textiles
growth outside the eurozone was 14.3%
The Asian competition
segment, with demand dominated by
to €809m.
Still, the biggest challenge for all European
the automotive industry, one of the most
As for Germany-based sales, Michaele
producers, remains the capacity for
important German sectors, reported
Uppenkamp, expert for statistics and
technical innovation to stay competitive
Industrieverband Veredlung, Garne,
market data at IVGT, suggests that
with Asian low-cost producers. India and
Gewebe, Technische Textilien eV (IVGT),
technical textiles counts for at least 50%
China already account for almost 50% of
Germany’s biggest textile association.
of the German textile market of €10.5bn
the world’s production, said Commerzbank.
Higher safety standards, such as regulation
(US$11.87bn) – particularly if one counts
Hendrik van Delden, managing partner
number 208 of the American Federal
textiles for medical purposes or for
at Gherzi believes European technical
Motor Vehicle Safety Standards, have
construction as well.
textile producers should regard India
led to more demand for safety belts
One big worry for the German textile
as a real competitive threat: “There are
and airbags, said an IVGT note. Also, the
industry remains Brexit. In 2015, Britain
more than a billion people in India with
introduction of European Union (EU)
bought €499m (US$563.89m) worth of
at least 300 million in middle-class. All
emissions reduction standard Euro VI has
textiles from Germany, 25.1% more than
these people want cars and diapers for
generated demand for more filters.
in 2010. The IVGT does not regard new
their babies, and visit private hospitals for
possible trade barriers, tariffs, diverging
treatment and surgery, which is by itself a
demand has also driven German technical
standards and more bureaucracy that may
huge market,” he explained.
textile sales in medical technologies,
follow a Brexit as helpful for the industry,
Outside the auto segment, rising
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The strength of non-European players is
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14/09/2016 15:41
Europe focus
already playing into Europe sales: imports
sustainability. Constant updates in
Procter & Gamble want suppliers with
of technical textiles into the EU have
production technology, streamlined
a global presence, as do international
been rising at double digit percentages
operations, lean manufacturing principles
automotive manufacturers: “And for many
year-on-year, up 14.3% in 2015, according
and advanced technology are key to deal
suppliers it is faster to become global if
to the Brussels, Belgium-based Euratex,
with such challenges, as shown by Arville
they make an acquisition.”
the European Textile and Apparel
Textiles Ltd, the UK-based producer of
Confederation. With a 13.8% increase,
high performance woven and coated
theory is Belgian sail cloth maker Sioen
China held on to its comfortable position
textiles for the aerospace, defence,
Industries’ purchase of Dimension-
as the EU’s leading external supplier. Still,
pharmaceutical, automotive, medical and
Polyant, involving two manufacturing
technical textile exports from European
food industries. Arville has upgraded its
facilities in Kempen, Germany and
countries also rose 5.3% year-on-year
textile coating facility in Bury, Lancashire,
Putnam, Connecticut (USA), along with
in 2015, according to Euratex. The US
investing in new textile coating machinery
complementary technology, knowledge-
remained the main customer by far, buying
including a dedicated area for compound
sharing and the potential for future
19% of goods, up 13.4% year-on-year.
mixing, secure chemical storage areas,
synergies.
In 2014, technical textiles represented
ventilation systems, new coating heads, a
37% of EU manufacturer textile sales doe
high-speed vulcanising oven, inspection
of mergers and acquisitions, apart from
exports outside the 28 EU member states
tables and high definition video cameras
strategic moves, are the interesting
and reached slightly more than 30% of the
for in-line quality control – the upgrade
business opportunities, said van Delden.
imported textile products, according to
was completed this May (2016).
Euratex’s data.
Where such innovations in finishing
A case in point to support van Delden’s
Other reasons for the growing number
“The margins are so good that investors
are attracted,” he explained.
Another challenge continues to be
can reduce environmental impact, supply
rising costs. For example, in Germany,
bottlenecks can be eased, for instance in
before interest, taxes, depreciation,
labour costs with 22.1% are a rather small
Agrotech, a major growth driver for the
and amortisation) often reaches levels
percentage of overall production costs,
global textile chemicals market, according
between 12% and 25% of sales, “way
with material accounting for 51.8% of sales
to a new report from the US-based Market
above traditional textiles”, said van
and moderate price increases for both
Research Reports Search Engine. The
Delden. That attracts investors and family
chemical fibres and cotton expected across
environmental impact of textile chemicals
holdings such as Germany’s Henkel, which
Europe by Commerzbank. Energy costs
is a major restraint on the global market
bought Bekaert in Belgium last year, a
remains a relatively small factor, but these
at present, noted the report: “While
global player making Fleximat fabric for
are expected to grow in most European
this has currently become a bottleneck
rubber reinforcement, for example.
technical textiles producing countries in
for the industry, success in developing
coming years, it says.
eco-friendly textile chemicals will have
promote the sector, with its European
a major role to play in determining the
Economic and Social Committee having
on the rise, too. Particularly since China
competitive landscape of the global textile
a proactive policy stressing that it is
ratified new laws for the protection of the
chemicals market in the coming years,” it
“an example of traditional sectors able
environment in 2015 and closed down
continued.
to reinvent itself on a new business
Prices for dyes and textile auxiliaries are
several chemical plants, jeopardising the
In technical textiles, EBITDA (earnings
Meanwhile, the EU has been keen to
model fully suited to the needs of the
production of several upstream products
Merge and acquire
for textile dyes. The result is delivery
Meanwhile van Delden expects increasing
more inclusive and more sustainable)”.
bottlenecks for the European technical
consolidation in the European technical
It has called on all EU institutions to
textile sector, said IVGT’s Michaele
textile sector, noting that such purchases
promote the financing of technological
Uppenkamp.
are often encouraged by surges in
and non-technological innovation on the
Efficient use of raw materials and
new industrial revolution (more smart,
consumer demand, he argued – so expect
sector, boosting workforce qualifications
energy therefore is becoming increasingly
more deals in the future. Fast moving
and ensuring that EU research
an issue, not only to save costs, but
consumer goods giants such as USA based
programmes have well-funded technical
also to adhere to rising standards in
Kimberly Clark, Johnson & Johnson or
textile components.
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