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After a dip in May, UK retail sales volumes increased by an estimated 0.9 per cent M-o-M and 1.7 per cent Y-o-Y in June 2025, shows a report by the Office for National Statistics (ONS). This positive trend follows a significant 2.8 per cent M-o-M decline in May, indicating a renewed consumer activity.
However despite this recent growth, overall re tail volumes in June remained 1.6 per cent below their pre-COVID-19 levels recorded in February 2020, highlighting the ongoing recovery still needed in the sector.
Showing encouraging signs, retail sales volumes in Q2, FY25 increased by 0.2 per cent Q-o-Q and 1.8 per cent Y-o-Y during the quarter, as per the ONS release. This increase suggests a steady, albeit modest, improvement in consumer spending habits.
A notable highlight in June was the robust performance of non-store retailers, whose sales volumes increased by 1.7 per cent. This growth pushed non-store sales to their highest level since February 2022, underscoring a continued shift towards digital purchasing. While less dramatic, non-food store sales volumes also saw a marginal increase of 0.2 per cent M-o-M in June, with department stores and clothing retailers experiencing month-over-month growth.
The rise in online activity was particularly pronounced in terms of spending. The amount spent online, or ‘online spending values,’ increased by 2.3 per cent M-o-M and 4.5 per cent Y-o-Y in June 2025. This digital growth extended into the second quarter, with online spending values rising by 3.3 per cent Q-o-Q.
Consequently, total retail spend - combining both in-store and online sales - increased by 1.1 per cent M-o-M. This led to a slight but significant rise in the proportion of sales made online, which grew from 27.4 per cent in May 2025 to 27.8 per cent in June 2025, further solidifying the growing importance of e-commerce in the UK retail landscape.
Telangana is actively pursuing stronger economic ties with Taiwan, with D Sridhar Babu, IT and Industries Minister announcing plans to establish dedicated manufacturing zones and exclusive textile clusters in the state for Taiwanese companies. This offer was extended during a meeting with an 11-member Taiwanese textile delegation, led by Taiwan Textile Federation President Justin Huang, at the Secretariat in Hyderabad.
Urging Taiwanese industrialists to invest in Telangana's rapidly growing textile sector, Minister Babu emphasized the state's significant opportunities compared to other Indian states. He highlighted, Telangana has swiftly risen as a formidable player in the textile industry, making a notable contribution to the state's economy. The Gross State Value Added (GSVA) from industries for 2024-25 stood at Rs 2.77 lakh crore, with textiles playing a key role. Telangana produces some of the finest quality cotton in India, he stated.
A key highlight presented by the Minister was the Kakatiya Mega Textile Park (KMTP), a state government initiative described as a ‘game-changer.’ KMTP offers integrated, world-class infrastructure covering the entire textile value chain, from ginning and spinning to weaving, processing, and garmenting. Leading international companies such as Youngone, Kitex, and Ganesha Ecosphere have already invested in the park, which benefits from its strategic location along the Hyderabad–Nagpur–Vijayawada Industrial Corridor and excellent logistics.
Assuring the delegation of the Telangana government's commitment to fostering industrial growth through global partnerships, Minister Babu pointed to vast investment opportunities in areas like functional textiles, eco-friendly dyeing, and textile recycling. He underscored the state's attractive offerings including customized land parcels, plug-and-play facilities, a skilled workforce, effective leadership, a stable government and strategic geographic advantage.
Beyond textiles, Minister Babu identified other sectors ripe for collaboration with Taiwanese enterprises, including technical textiles, electronics system design and manufacturing (ESDM), sustainable manufacturing, and innovation and research and development. This proactive outreach aims to strengthen bilateral industrial cooperation and attract significant Taiwanese investment into Telangana, he affirmed.
India's Goods and Services Tax (GST) Council plans to evaluate a proposal to implement a uniform 12 per cent GST across the entire textile value chain. Expected to be discussed before September as part of the next phase of GST reforms, this reform aims to correct the long-standing inverted duty structure that has plagued the sector, as per a report by Moneycontrol.
Likely to be part of the Group of Ministers' (GoM) rate rationalization report, the proposal is being supported by the Centre. Currently, cotton is taxed at 5 per cent, yarn at 12 per cent, and synthetic fibers and their chemicals at 18 per cent. Additionally, garments priced below Rs 2,000 attract a 5 per cent GST, while those above Rs 2,000 are taxed at 12 per cent.
The proposal is to bring everything to 12 percent. The lower 5 per cent GST on cotton was originally intended to benefit farmers and keep raw materials affordable, given its status as a primary agricultural commodity. However, this rate mismatch has led to working capital getting stuck in refund claims, distorted pricing, and disincentives for investment.
The proposed reform may also eliminate the price threshold on garments, applying a flat 12 per cent rate irrespective of value for simplification.
The current rate structure not only distorts pricing but also impacts cash flow due to reliance on inverted duty refunds, which the government aims to limit. This move is part of a broader effort to streamline the GST framework, reduce hidden costs, and enhance the global competitiveness of India’s textile industry. A uniform rate is expected to simplify compliance, reduce reliance on refunds, and potentially attract new capital into textile manufacturing, particularly benefiting the synthetic segment which currently faces heavier taxation despite its mass consumption.
The global apparel trade and retail sector continues to evolve, balancing between post-pandemic recovery, macroeconomic uncertainties, and changing consumer behavior. Wazir Advisors July 2025 Apparel Trade & Retail Update reveals a complex picture: while some markets are charting strong growth, others are seeing sluggish demand and competitive pressures. From a rebound in UK imports to Vietnam's booming export performance and India’s growing domestic retail, the global apparel map is dotted with diverse paths.
Apparel Imports: UK moves ahead, US stalls
May 2025 witnessed sharply contrasting import trends among major apparel-consuming nations. The United States, traditionally the world’s largest apparel importer, saw its imports decline 8 per cent year-on-year, falling to $5.5 billion. This downturn reflects persistent inflationary pressure, inventory adjustments by large retailers, and a slight consumer pullback amid economic uncertainty.
In contrast, the European Union recorded a 4 per cent YoY increase in apparel imports, touching $7.2 billion. The EU’s demand resilience is likely tied to a strong summer fashion cycle, restocking across mass-market retailers, and improved consumer sentiment in economies like Germany and France.
The UK, however, emerged as the star performer. With a 36 per cent YoY increase in apparel imports, reaching $1.9 billion, the UK appears to be in the middle of a fast-fashion revival, boosted by aggressive buying from e-commerce giants and early festive season shipments.
Meanwhile, Japan showed a 7 per cent YoY growth in apparel imports to $1.6 billion, indicating stable recovery in consumer demand and a return to workwear and occasion wear purchases.
Apparel Exports: Vietnam shines, Bangladesh slips
In June 2025, China maintained its dominance as the world’s top apparel exporter, clocking $14.8 billion, a 2 per cent YoY increase. While this growth is modest, it signals resilience amid geopolitical scrutiny and rising production costs. Chinese exporters continue to focus on high-margin segments and nearshoring strategies.
Vietnam, meanwhile, posted the strongest export performance among major Asian exporters, registering 18 per cent YoY growth to reach $3.3 billion. The country is reaping the benefits of free trade agreements, relocation of manufacturing from China, and investments in sustainable production.
On the flip side, Bangladesh faced a setback, with exports dipping 7 per cent YoY to $2.8 billion. The decline may be attributed to energy shortages, compliance pressures, and cooling orders from Europe. Concerns about cost competitiveness and environmental compliance continue to challenge the industry.
India, however, saw its exports hold steady at $1.3 billion, showing no YoY change. While not a decline, the stagnant figure underlines India's ongoing struggle with price competitiveness and supply chain fragmentation despite global buyers’ interest in supplier diversification.
Retail Markets: India’s boom, UK’s digital edge, US recovery
On the retail front, apparel sales showed encouraging trends in most major economies during June 2025, signalling firm consumer confidence and gradual demand normalization.
In the US, apparel and home furnishing store sales rose 2 per cent YoY, reflecting steady foot traffic in physical stores. Though not dramatic, the rise indicates that brick-and-mortar retail is holding its ground against e-commerce, supported by ongoing promotions and early back-to-school demand.
The UK saw similar store-based growth, with June apparel store sales reaching £4.7 billion, a 2 per cent YoY increase. More notably, e-commerce clothing sales grew by 2 per cent in Q2 2025, a sign that online fashion retail continues to mature even as pandemic-era spikes normalize.
India, however, emerged as the most dynamic retail market in the current update. June 2025 apparel retail sales jumped 10 per cent over the previous year, pushed up by a young consumer base, digital payments penetration, and a flourishing ethnic and value-fashion ecosystem. The growth, spread across Tier-I and Tier-II cities, reflects strong domestic consumption fundamentals.
The bigger picture, world of divergence
The global apparel industry is no longer moving in lockstep. Instead, it is a story of regional divergence, multi-speed recovery, and structural adaptation.
• Manufacturing centers like Vietnam are growing, due to its agility and policy support.
• Traditional giants such as Bangladesh face hurdles, requiring urgent modernization and energy resilience.
• Consumer markets like India are witnessing a domestic boom that could reshape sourcing and retail strategies.
• Developed markets, including the US and UK, show cautious optimism, with a strong tilt toward omnichannel and discount-led buying patterns.
As supply chains rewire and retailers recalibrate, July 2025’s data is a timely reminder that agility, digital adaptation, and sustainability will define future winners in global apparel.
Outlook for Q3 2025
With peak holiday seasons on the horizon in the West and festive buying cycles beginning in South Asia, the third quarter is likely to bring more pronounced trends. Stakeholders across sourcing, retail, and logistics will be watching closely to see whether these early signals of growth sustain—or fragment further.
In a fragmented but fast-evolving market, one thing is clear: apparel’s global footprint is shifting, and those who adapt fastest will define the next chapter of fashion commerce.
As a direct consequence of a pre-announced steep US tariff hike, Bangladesh apparel exporters are facing intense pricing pressure from European buyers. Set to take effect from August 1, this looming tariff is pushing Bangladeshi manufacturers to aggressively seek new orders in the European Union to fill production gaps.
Most US buyers are currently hesitant to place new orders due to the uncertainty surrounding the potential tariff increases. This reluctance has prompted thousands of Bangladeshi exporters to turn more actively to the EU market, where, according to industry insiders, European buyers are capitalizing on the situation by demanding lower product prices.
SM Majedur Rahim, Director, Giant Group, notes, orders from US buyers have halved. Even when US buyers are placing orders, the volumes are small. Some have already offered lower prices for repeat orders, citing tariff pressure. It's unfair to expect exporters to bear the cost of tariffs, he states. Major EU retailers like H&M and Inditex, who also have significant US business, have reportedly cut their order volumes by 10-20 per cent in anticipation of the tariffs.
A 35 per cent reciprocal tariff on Bangladeshi exports to the US is expected. This means that if the proposed tariff is implemented, the total tariff burden on Bangladeshi goods in the US could rise to a challenging 50.5 per cent, up from the current average of 15.5 per cent. European buyers are leveraging this uncertainty to renegotiate and reduce apparel prices. For instance, Fazlee Shamim Ehsan, CEO, Fatullah Apparels, shares, a Dutch buyer offered 25-30 cents less per unit on a $750,000 order, citing ‘Trump-era tariff policies,’ a price he couldn't accept, making factory operations difficult.
The United States is Bangladesh's largest single export destination, accounting for $5.05 billion- or 58 per cent - of Bangladesh's total exports in FY25. Over 800 Bangladeshi firms rely on the US for more than half their exports, making them highly vulnerable.
Industry leaders fear that if Bangladesh faces higher tariff rates than competitors like Vietnam, India, and Pakistan, it will severely impact their export sector, risking millions of jobs and potential labor unrest. This ripple effect from US tariffs, combined with shrinking orders from non-traditional markets like India and South Korea due to other barriers, poses a significant threat to Bangladesh's market competitiveness.
The textile and apparel sector in Sri Lanka is reinforcing its commitment to environmental, social, and governance (ESG) transparency with the launch of a significant new sustainability program. The Improving Transparency for Sustainable Business (ITSB) initiative aims to embed world-class ESG reporting practices, enhancing the industry's resilience, competitiveness, and global standing.
Jointly launched by the Global Reporting Initiative (GRI) South Asia, the Sustainable Development Council (SDC) of Sri Lanka, the Sri Lanka Export Development Board (EDB), and the Joint Apparel Association Forum (JAAF) of Sri Lanka, the ITSB program is backed by the Swedish International Development Cooperation Agency (SIDA). It focuses on building long-term capacity for textile and apparel companies, from large multinationals to small and medium-sized enterprises.
Participating companies will receive comprehensive training on utilizing the globally recognized GRI Standards to transparently report on crucial sustainability topics. These include labor practices, climate impact, energy use, economic impact, and waste management. Beyond direct business engagement, the initiative will also collaborate closely with national and international stakeholders, including regulators, investors, industry bodies, worker groups, media, and academia.
The inaugural capacity building session, held on July 16, 2025, at Courtyard by Marriott Colombo, saw strong attendance from public and private sector leaders, including EDB Chairman Mangala Wijesinghe, JAAF Secretary General Yohan Lawrence, and SDC Director Jeevanthie Senanayake.
Rahul Singh, Senior Manager, South Asia, GRI, emphasized the program's significance: "ITSB is designed to elevate sustainability practices and transparency across South Asia’s textile and apparel sector, positioning it for long-term resilience, profitability, and global leadership." He added that adopting GRI Standards boosts corporate transparency, investor confidence, international positioning, and regulatory preparedness.
This program aligns with Sri Lanka’s Action Plan to Develop Inclusive and Sustainable Business Capacities and comes as global buyers increasingly prioritize traceability and ethical sourcing. Emerging regulations, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), are further reshaping international trade dynamics.
Highlights from the session included a preview of the draft GRI Textiles and Apparel Sector Standard (2025), interactive workshops, and a high-level roundtable discussion on integrating ESG with business, policy, and investment goals. Notably, the ITSB initiative is set to expand to India and Bangladesh later this year, making Sri Lanka a regional early mover.
With apparel accounting for over 40 per cent of Sri Lanka’s total export revenue and employing over 350,000 people, the ITSB represents a strategic move towards a future-ready, consciously sustainable industry.
Set to deliver a dynamic industry platform at the Shanghai New International Expo Centre from September 3-5, 2025, Cinte Techtextil China has already confirmed exhibitors from 12 countries and regions, showcasing a full spectrum of technical textiles and nonwovens across 12 application areas.
A significant highlight for 2025 is the debut of the Textile Chemicals and Dyes Zone. This new product category and dedicated zone will host renowned companies like CHT Germany GmbH (Germany) and Michelman Inc (USA), opening new business avenues for applications in sports and leisure, safety and protection, industrial protection, and construction. Other notable exhibitors in this zone include Dupré Minerals (UK), showcasing their flame-retardant Micashield Vermiculite Dispersion, and China's Shanghai Xinnuo Chemical and Yancheng Ruize Color Masterbatch, presenting innovative water-based emulsified waxes and high-quality masterbatches, respectively.
The fair's International Hall (W5) will feature reputable European and German Zones, offering valuable expertise and opportunities to trade visitors. These zones will host leading companies presenting their quality, high-tech products as Europe's technical textile and nonwoven production returns to pre-pandemic levels. Returning brands include Switzerland's EMS-GRILTECH and UK's Fibre Extrusion Technology, alongside new exhibitors such as Serel Industrie (Belgium) with X-ray technology for textile production, and Proton Product International (UK), a manufacturer of industrial instrumentation. The German Zone will welcome giants like Brueckner Textile Technologies (energy-efficient finishing machines), Lindauer DORNIER (weaving machines for high-performance fabrics), and newcomer Wetekam Group (technical monofilaments).
Capitalizing on market demand, Cinte Techtextil China will also feature a strong contingent of Mobiltech (automotive textile) exhibitors. Global players like China's Eastex Industrial Science And Technology, Belgium's Picanol, and Germany's Rowa Group will be present. Malaysian manufacturer JCT Industries will showcase its PVA products for construction and automotive uses, emphasizing sustainable manufacturing processes utilizing local geothermal resources. China's Jiangsu HongFeng Thread Technology will highlight its certified polyester and nylon sewing threads for automotive and other industrial applications.
The fair's comprehensive product categories span the entire technical textile industry, from upstream technology and raw materials to finished fabrics and chemical solutions, ensuring an effective business platform for all participants. Cinte Techtextil China 2025 is organized by Messe Frankfurt (HK) Ltd, the Sub-Council of Textile Industry, CCPIT, and the China Nonwovens & Industrial Textiles Association (CNITA).
Flagship Company of the Trident Group, Trident Limited reported a consolidated revenue of Rs 1,727 crore in Q1, FY26. The group’s consolidated EBITDA increased by 18.12 per cent Q-o-Q and 29.85 per cent Y-o-Y to Rs 312 crore. Consolidated net profit increased by 4.89 per cent Q-o-Q and 89.39 per cent Y-o-Y to Rs140 crore,
Trident also strengthened its financial position, reducing its net debt to Rs 879 crore as of June 30, 2025, down from Rs 910 crore on March 31, 2025, a reduction of Rs 31 crore. The company maintained a healthy Debt-Equity Ratio of 0.35 and a Current Ratio of 1.87, demonstrating robust financial health despite global economic fluctuations.
Deepak Nanda, Managing Director of Trident Limited, states, even amidst challenging macroeconomic conditions, the company has showcased quarter-on-quarter growth in terms of profitability.
Nanda points out, the company’s focus on innovative product pipelines aligned with evolving consumer preferences, combined with positive tailwinds from recent US tariff revisions and new FTA between India and the UK, positions it favorably to capitalize on emerging opportunities. He affirms Trident's ongoing commitment to sustainable growth and operational excellence, emphasizing future focus on ‘improving their volumes, value-added products and ESG.
Headquartered in Ludhiana, Punjab, Trident Limited is the flagship company of the Trident Group, an Indian business conglomerate with a global presence. It operates as a vertically integrated manufacturer across three major segments: textiles (yarn, bath and bed linen), paper (wheat straw-based), and chemicals, with manufacturing facilities located in Punjab and Madhya Pradesh.
Trident's products, including yarn, bath and bed linen, and paper, have garnered global recognition, serving millions of customers worldwide. The company is one of India's largest players in home textiles, supplying to national, captive, and retailer-owned brands. Trident is widely acclaimed for its product quality, social responsibility, and environmental stewardship, earning awards from customers, vendors, and government entities.
The PHD Chamber of Commerce and Industry (PHDCCI), with support from the Ministry of Textiles, Government of India, under the National Technical Textiles Mission (NTTM), successfully hosted a one-day Conference on Technical Textiles in Ludhiana. Held at the CICU Complex, the event brought together industry stakeholders, policymakers, innovators, and entrepreneurs to discuss ‘Market Growth, Challenges, Opportunities & Way Forward’ for the sector.
Ajay Gupta, Joint Secretary, Ministry of Textiles, emphasized on the policy initiatives and national goals under NTTM. He highlighted the strategic importance of positioning Ludhiana as a crucial hub for technical textiles. Ashok Malhotra, Mission Director, NTTM, provided an overview of the mission's progress, noting that since its launch in FY21 with an outlay of Rs. 1,480 crore, 168 R&D projects have been sanctioned with a grant of Rs 519 crore, 31 patents applied, 20 startups approved with a grant of Rs 10.34 crore, and 500 people trained across 16 skill development courses.
Rahul Chaba, Additional CEO, Invest Punjab, showcased Punjab's strengths as a textile hub, citing its integrated value chain, skilled workforce, competitive power tariffs, and world-class infrastructure. He highlighted the state's progressive industrial policies and the ‘Fast Track Punjab’ single-window portal designed for investor-friendly clearances, reaffirming Ludhiana's role in India's textile growth story.
Presentations from industry experts delved into various aspects of technical textiles. Sunil Kumar Puri discussed the transformative potential of flat-bed knitting machines for 2D and 3D structures in medical, automotive, and protective gear, emphasizing their role in sustainable, waste-minimizing production. Debabrata Ghosh, Oerlikon Textile India. highlighted their innovations in materials and manufacturing for high-demand industries like aerospace and automotive, focusing on high-performance and nonwoven textiles.
Akhil Seth pointed to India's strong potential in Packtech, Meditech, and Geotech, advocating for regional Centers of Excellence in Ludhiana and increased industry-academia collaboration. Rajiv Sajdeh emphasized the underutilized potential of natural fibers like wool in technical textiles, citing its flame resistance and sustainability. He called for policy revisions, better certification access, and a ‘TechTex Green Compliant’ certification for recyclers to boost circularity.
The conference also featured discussions on BIS standards, SIDBI support for MSMEs, circular economy models, and green certifications, with notable participation from the Ministry of MSME and Textile Commissioner’s Office. Discussions also focused on developing a future-ready talent pipeline for the sector.
Moderated by Rakesh Kumar Sangrai, Director, PHDCCI, the event was attended by over 150 delegates including large textile companies, MSMEs, consultants, R&D institutions, and academia. The conference concluded with a strong consensus to fortify Ludhiana’s position in India’s technical textile ecosystem through innovation, sustainability, and skill development, aligning with the NTTM vision for a resilient and globally competitive industry.
Polyester, once a humble synthetic, is now at the forefront of textile innovation, driven by demands for durability, affordability, and sustainability. Asia, particularly China and India, is spearheading this transformation, dominating global production and investment.
Top Players: Asia's grip on polyester capitalization
Asian companies command the top ranks in the global polyester fiber industry by capitalization, as shown below:
Table: Top global polyester fiber companies by capitalization (2025)
Rank Company Country Capitalization ($ bn) 1 Sinopec China 22.6 2 Zhejiang Hengyi Group Co., Ltd. India* 16.7 3 Reliance Industries Limited India 14.8 4 Hengli Group China 13.4 5 Indorama Ventures Thailand 10.5 6 Tongkun Group Co., Ltd. China 9.6 7 Shenghong Holding Group China 8.8 8 SASA Polyester Sanayi Turkey 5.2 9 Xinfengming Group Co., Ltd. China 4.2 10 Nan Ya Plastics Corporation Taiwan 3.6
Note: Zhejiang Hengyi operates largely in China but has growing operations and significant market presence in India.
Asia-Pacific: The fiber nucleus
The Asia-Pacific region accounted for over 60 per cent of global polyester fiber production in 2012, and in 2025, it remains the fastest-growing market. This growth is due to booming sectors such as carpets & rugs, fiberfill, apparel, industrial textiles, nonwoven fabrics, and geotextiles.
India's Reliance Industries ($14.8 billion market cap) is a leader in recycled polyester and technical fibers, while China's Sinopec ($22.6 billion) is the world's largest player, with diverse operations spanning petroleum and synthetic fibers.
Polyester’s expanding horizons
India's polyester industry is no longer just riding the coattails of global demand—it is actively reshaping the future of synthetic textiles through innovation, strategic market shifts, and a renewed focus on sustainability. Powerful growth drivers are pushing the sector into a new era, while emerging applications are steadily expanding polyester’s utility beyond traditional boundaries.
At the heart of this expansion lies the shift towards environmentally conscious production. As sustainability becomes a non-negotiable imperative across industries, the rise in eco-friendly and recycled polyester has positioned India as both a responsible producer and a competitive exporter. Recycled PET bottles are now being transformed into high-performance fibers, aligning environmental goals with commercial scalability. Indian manufacturers are investing in closed-loop systems and green technologies, a move that not only reduces dependency on virgin petrochemicals but also enhances export credibility in eco-sensitive markets like Europe and North America.
Simultaneously, polyester is increasingly replacing natural fibers such as cotton and nylon. This substitution is due to the material’s inherent advantages—lightness, durability, and versatility. In a world facing erratic climate conditions and shrinking arable land, the reliability and affordability of synthetics provide manufacturers with a stable and cost-efficient alternative. Polyester’s ability to mimic natural textures while offering superior moisture management and wear resistance makes it a popular choice across both fashion and functional apparel.
Beyond clothing, the growth in nonwoven and technical textiles has also boosted polyester’s footprint. India is witnessing rising demand for polyester-based textiles in home furnishings—from curtains and upholstery to carpets—where the fabric’s strength and longevity make it ideal for daily use. Likewise, the automotive sector is increasingly turning to polyester for car seat fabrics, roof liners, and insulation panels, while the medical industry is tapping into its potential for sterile, durable, and hypoallergenic textile solutions.
Moreover, cost competitiveness continues to be a decisive advantage. In a price-sensitive market like India, polyester remains more affordable than many natural fibers, without compromising on performance. This positions it as a go-to material for brands and consumers alike.
As the industry evolves, new applications are pushing the boundaries of what polyester can achieve. One such frontier is in the medical field, where hollow polyester fibers are being engineered into advanced medical textiles used for filtration, wound care, and surgical applications. Protective clothing for industrial and military use is another emerging segment, leveraging polyester’s strength and adaptability for high-performance wear. Perhaps most notably, polyester geotextiles are gaining traction in large-scale infrastructure projects, offering reinforcement and stabilization in road, rail, and irrigation developments.
Together, these drivers and applications not only underscore polyester’s adaptability but also signal a shift in the textile economy—one where innovation, sustainability, and multifunctionality are knitting together a new narrative for synthetic fibers in India and beyond.
Challenges on the growth path
India’s polyester sector, while ready to take off, faces mounting challenges that threaten its long-term growth. Chief among these is the volatility of raw material prices, especially those tied to crude oil, which creates uncertainty in production costs.
Environmental regulations are also tightening, with increasing scrutiny on polyester waste, emissions, and microplastic pollution. Complying with global standards demands significant investment in cleaner, greener technologies.
The industry’s fragmented supply chain adds another layer of complexity, spurring a wave of mergers and acquisitions as companies strive for scale and efficiency. Yet, consolidation alone isn't enough.
Sustainability is now a non-negotiable priority. Adopting circular economy practices—like recycled inputs and green manufacturing—is essential not just for compliance, but for future-proofing the industry against climate risks and evolving consumer expectations.
Leaders in action
• Reliance Industries (India): Focuses on diversified integration from petrochemicals to fibers, with major investments in recycling and R&D.
• Zhejiang Hengyi (China/India): A rapidly expanding regional giant with significant government backing and expansion into Southeast Asia.
• Indorama Ventures (Thailand): Pursues global acquisitions in PET and polyester chains, emphasizing sustainability and recycled PET fibers.
The road ahead
The next decade will see Asia-Pacific continue its dominance in polyester production. Sustainability and recycling will be key differentiators, with success hinging on investments in green technologies, biodegradable synthetics, and circular product life cycles. Market consolidation is also expected to accelerate.
Polyester's rebirth, a sustainable future
Polyester's resurgence is a direct response to evolving global textile needs. As cotton becomes more costly and less sustainable, recycled, functional, and engineered polyester variants are poised to define the future of fiber innovation. The leading companies are not just manufacturing powerhouses; they are driving innovation, setting sustainability standards, and enabling the global fiber economy
