Business environment

114 million tonnes of textile fibres were produced in 2020, and the production is estimated to grow to approximately 146 million tonnes by 2030. The value of the textile fibre market is about EUR 194 billion as of 2020 and is expected to grow to approximately EUR 244 billion by 2030. Furthermore, the global fibre consumption is expected to grow to 150-155 million tonnes by 2030, a growth driven by rapid growth of the middle class globally. 

Global fibre market production value, EUR billion 1

The fashion and apparel industry accounts for 4%t of global greenhouse gas (GHG) emissions

Fashion and apparel represent approximately 75 to 85% of the global fibre market.2 The number of units sold in 2019 accounts for approximately 90 million tons of fibre, a market value of approximately EUR 160 billion. 3

The recent increase in apparel consumption is driven by several factors, most importantly the growing middle class contributing to higher consumption, shorter fashion trends and fewer usage times of apparels before disposal. 4

The fashion and apparel industry accounts for 4 per cent of global greenhouse gas (GHG) emissions, where material production stands for approximately 49% of the GHG emissions.5 The industry consumes billions of litres of water and is estimated to create more than 90 million tonnes of waste annually.6 A large share of major fashion and apparel brands have made commitments to significantly improve their environmental footprint.7

31% of Generation Z are willing to pay more for sustainable items. 8

One of the most important recent consumer trends has been the significant increase in environmental awareness as sustainability has become a key factor in consumption decisions. Consumers are willing to pay more for sustainable products.

The increased environmental awareness has not only changed consumer behaviour but also increased the political pressure for stricter legal requirements for the garment industry. 

Fibre types and fibre mix

The global fibre market consists of several fibre types, which can be divided into natural fibres, man-made cellulosic fibres (MMCF) and synthetic fibres (petroleum based). Natural fibres include plant-based fibres such as cotton and linen, animal-based fibres such as wool and silk and mineral based fibres such as glass fibre. 

Man-made cellulosic fibres can include chemically regenerated fibres, such as viscose, acetate, carbamate, lyocell, fibres produced with ionic liquids and cupro. Synthetic fibres include fibres that are produced from petroleum such as polyester, acrylic and elastane. Synthetic fibres represent the largest part of the global fibre market.

Share of textile fibre types by value, 2019 (EUR Bn)9

A shortage of natural-based fibres

As the global apparel market is growing, there is an increasing demand for fibre production. However, according to current estimates the forecasted supply of fibres will not be able to meet the fibre demand. Firstly, only 60-70 per cent of global fibre supply can be synthetic due to the limits of its applications and properties. Secondly, global cotton production has slowed down due to the shortage of cultivable land and decreased availability of water. Thirdly, other natural fibres, such as animal and plant-based fibres, have limited applications and scalability. These factors are expected to form a shortage in natural fibre production.10

About EUR 45-60 billion business opportunity by 2030

Only other fibres that could meet the capacity requirements are synthetic fibres, which are based on fossil petroleum, or natural-based fibres. Synthetic fibres lack certain properties, which make them inadequate substitutes for natural fibres. In addition, synthetic fibres have been severely criticised due to their negative environmental impacts. 11

Spinnova therefore believes that its fibre product SPINNOVA® will play an important role in the textile industry’s future efforts to meet the appropriate textile fibres demand, and also in replacing the environmentally harmful, synthetic fibres. Spinnova believes the shortage of natural-based fibres to be about EUR 45-60 billion business opportunity by 2030.

Spinnova’s target market

SPINNOVA® fibre is suitable for multiple applications and industries. Spinnova is first focusing on the apparel industry because of SPINNOVA® fibre’s cotton-like qualities and the apparel industry’s high demand for sustainable materials. 

SPINNOVA® fibre could replace MMCFs, cotton and other natural fibres, and recycled polyester

The apparel industry’s fibre demand, which is estimated to amount to approximately EUR 190 billion in 2030, can be roughly split between MMCF, cotton, other natural fibres, polyester, and other synthetics.12

Spinnova believes the SPINNOVA® fibre could replace MMCFs, cotton and other natural fibres, and recycled polyester, amounting to a target market of EUR 95 billion in 2020, which is expected to grow to EUR 110 billion by 2030, corresponding to approximately 47 million fibre tonnes in 2020 and 59 million fibre tonnes in 2030. 13


Spinnova’s target market 14

Spinnova’s position in the value chain

Spinnova operates in the apparel industry value chain, which starts from raw materials followed by many subsequent steps in order to produce the final products that reach customers. At the beginning of the value chain is the production of textile fibre. The ways in which fibre is produced varies according to the type of fibre, whether natural or synthetic. The fibre is spun into yarn, which is then weaved or knitted into fabric. Fabric can then be used to create apparel that is sold to consumers. Yarn and fabric makers as well as apparel makers typically work as contractors for the apparel brands which hold the highest level of power in the value chain.

Spinnova’s competitive position

Based on the Spinnova’s understanding, Spinnova is one of the first companies in the world that is able to produce the most natural man-made fibre, commercially manufactured from wood pulp using mechanical processes only and without chemically modifying the fibres. Thus, Spinnova believes that it has an excellent market position as both customers and apparel companies are favouring environmentally friendly solutions for the manufacturing of garment and looking for sustainable options that meet the capacity requirements.

Many other fibre producers use natural-based feedstock, but their chemical or dissolving processes change the chemical structure of the feedstock, resulting in man-made fibres, which can be classified as even plastic in certain products. 

There are also other mechanical processes that use no harmful chemicals, but these technologies and fibres require synthetic, oil-based materials or they are limited to smaller scale (e.g. cotton mechanical recycling).


1  Calculated based on 2019 fibre prices and includes the following fibre categories: Cotton: Preferred cotton, regular cotton; MMCF: Viscose, Lyocell, and other MMCF; Other natural fibres: Wool, other animal-based fibres, other plant-based fibres; Synthetics: Virgin polyester, recycled polyester, polyamide, other synthetics. FX: USD to EUR, 2019 = 0.893. Recycled polyester estimated based on synthetics to recycled polyester ration in 2019. Source: Textile Exchange, Preferred Fiber & Materials Market Report 2020, https://textileexchange.org/wp-content/uploads/2020/06/Textile-Exchange_Preferred-Fiber-Material-Market-Report_2020.pdf; International Trade Centre statistics, Yarn pricing across MMCF, Cotton, Polyester, Other synthetics (2015-2021). retrieved 04/2021; Emerging textiles database, Prices for Modal and Lyocell vs. Viscose Staple Fiber (VSF), Raw Silk and Dried Cocoon Prices, Polyester Staple Fibers, Recycled vs. Virgin Polyester Staple Fibers (PSF), Raw silk and dried cocoons, Polyester Staple Fibers (PSF): Recycled v. Virgin (monthly prices), Cotton: Organic vs. BCI vs. Conventional, (2011-2020); Coherent Market Insights, Global Lyocell Fabric Market to Reach 745.9 KT by 2027.

2 Source: Ellen McArthur foundation, A new textiles economy: Redesigning fashion’s future, 2017, available at http://www.ellenmacarthurfoundation.org/publications; Circular Fibres Initiative analysis based on Euromonitor database, International Apparel & Footwear, 2016 Edition (volume sales trends 2005–2015); Euromonitor database, Retail market for Apparel & Footwear, 2019; World Bank database, World GDP 2000-2020; Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion’s future, 2017, available at http://www.ellenmacarthurfoundation.org/publications.

3 Source: The Fiber Year 2019, 2020, https://www.thefiberyear.com/fileadmin/pdf/TOC2019.pdf; Textile Exchange, Preferred Fiber & Materials Market Report 2020, https://textileexchange.org/wp-content/uploads/2020/06/Textile-Exchange_Preferred-Fiber-Material-Market-Report_2020.pdf; OECD-FAO Agricultural Outlook report, OECD/FAO, 2020,  https://www.oecd-ilibrary.org/agriculture-and-food/oecd-fao-agricultural-outlook-2019-2028_a4b3631d-en#:~:text=Cotton%20production%20is%20sensitive%20to,countries%20in%20the%20past%20decade; Euromonitor database, Retail market value for home textile and apparel, 2019 retrieved 2021, https://www.euromonitor.com/; ICAC World textile demand Global Textile Fibre Demand: Trends and Forecast, Retail market value for home textile and apparel, 2019; Fastmarkets RISI database, DWP & softwood price 13 April 2021, https://www.risiinfo.com/service/mill-data-costs/asset-database/; The Freedonia Group, Global non wovens market report, 2019, https://www.freedoniagroup.com/industry-study/global-nonwovens-3693.htm.

4 Source: Ellen McArthur foundation, A new textiles economy: Redesigning fashion’s future, 2017, available at http://www.ellenmacarthurfoundation.org/publications; Circular Fibres Initiative analysis based on Euromonitor database, International Apparel & Footwear, 2016 Edition (volume sales trends 2005–2015); Euromonitor database, Retail market for Apparel & Footwear, 2019; World Bank database, World GDP 2000-2020; Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion’s future, 2017, available at http://www.ellenmacarthurfoundation.org/publications.

5 Fashion on Climate, McKinsey & Global Fashion Agenda, August 2020.

6 Niinimäki, K., Peters, G., Dahlbo, H. et al. The environmental price of fast fashion. Nat Rev Earth Environ 1, 189–200 (2020). https://doi.org/10.1038/s43017-020-0039-9.

7 Science-based Targets Initiative data retrieved April 2021, sector filtered: “Textiles, Apparel” 

8 McKinsey New Age of the Consumer US Survey 2019

9  Other including silk, wool, down, and plant-based fibres, e.g. as jute, linen and hemp. Source: The Fiber Year 2019, 2020, https://www.thefiberyear.com/fileadmin/pdf/TOC2019.pdf; Textile Exchange, Preferred Fiber & Materials Market Report 2020, https://textileexchange.org/wp-content/uploads/2020/06/Textile-Exchange_Preferred-Fiber-Material-Market-Report_2020.pdf; OECD-FAO Agricultural Outlook report, OECD/FAO, 2020, https://www.oecd-ilibrary.org/agriculture-and-food/oecd-fao-agricultural-outlook-2019-2028_a4b3631d-en#:~:text=Cotton%20production%20is%20sensitive%20to,countries%20in%20the%20past%20decade; Euromonitor database, Retail market value for home textile and apparel, 2019 retrieved 2021, https://www.euromonitor.com/; ICAC World textile demand Global Textile Fibre Demand: Trends and Forecast, Retail market value for home textile and apparel, 2019; Fastmarkets RISI database, DWP & softwood price 13 April 2021, https://www.risiinfo.com/service/mill-data-costs/asset-database/; The Freedonia Group, Global non wovens market report, 2019, https://www.freedoniagroup.com/industry-study/global-nonwovens-3693.htm.

10 Haemmerle, Franz. (2011). The Cellulose Gap (The Future of Cellulose Fiber). Lenzinger Berichte. 89.

11 Haemmerle, Franz. (2011). The Cellulose Gap (The Future of Cellulose Fiber). Lenzinger Berichte. 89.

12  Including silk, wool, down, and plant-based fibres, e.g. as jute, linen and hemp.

13 Textile Exchange; Preferred Fibre & Materials Market Report 2020; ITC statistics; EmergingTextiles.

14 Spinnova’s target market is expected to grow at a total CAGR of approximately 1.6 per cent between 2020 and 2030. Source: Textile Exchange; Preferred Fiber & Materials Market Report 2020; ITC statistics; EmergingTextiles; Businesswire – Global Lyocell Fabric Market to Reach 745.9 KT by 2027 – Coherent Market Insights.