Global Synthetic Material Industry 
Companies operating in the global synthetic material industry produce cellulosic and non-cellulosic fibers as well as filaments in various forms such as staple, filament yarn, monofilament and tow. Acetate, lyocell and rayon are among the most common cellulosic fibers. There are many noncellulosic organic fibers, including polyvinyl ester fibers, nylon fibers, spandex fibers, polyester fibers, acrylonitrile fibers and filaments.
The production of synthetic fibers involves the polymerization of raw materials such as petrochemicals into chemical coumpounds with specific properties. Synthetic fiber properties include flame resistance, heat sensitivity, resistance to insects and density. Melt-spinning is the major method used to manufacture synthetic fibers. The four-leading products in the synthetic material market are acrylic, polyester, polyolefin and nylon. Polyester is the most common of the four, equivalent to 60% of the overall synthetic fiber market.
Key Market Segments
- The global polyester market is expected to come close to 45 million tons by 2017, reports Global Industry Analysts. Market growth is fuelled by strong demand from the Asia-Pacific region, particularly India and China. Industry performance continues to benefit from rising levels of income, fashion trends, economic growth and technology advances.
- While the US and the EU traditionally dominated the global polyester market, there has been a shift toward Asia-Pacific where labor is cheaper and there is a booming textile industry in place. Developed markets are expected to witness a declining rate of growth, while countries such as India, Indonesia, South Korea, Taiwan and China will continue to grow. Asia-Pacific is forecast to record close to 7% yearly growth through 2017. Asia accounts for around 90% of global staple production.
- The global petroleum resins market is expected to climb to almost 3 million tons by 2017, driven by growth in end-use industries such as adhesives, compounding agents, printing inks, paints and coatings, says Global Industry Analysts. Industry performance will be driven by economic recovery following the recession, a higher level of maintenance and repair activity, and growing private industrial commercial output.
- Japan and China will continue to witness strong growth related to economic pick-up and increasing resin consumption. China’s consumption of petroleum resins rose sharply in recent years as manufactured goods shipments increased. Domestic consumption continues to grow due to economic growth in the region, and the Chinese market has also benefited from a steady and cheap gas supply. Western manufacturing companies are eager to move into the Chinese market, with companies such as Eastman and ExxonMobil setting up facilities in the country. Asia-Pacific is set to take over increasing market share from the US and the EU, exceeding 6% yearly growth between 2012 and 2017.
- Freedonia estimates the global industrial rubber product market will witness 6% annual growth through 2016 to reach $140 billion. The industry will benefit from expansion in key original equipment manufacturing (OEM), with the automotive sector growth in particular driving the rubber product market. Global vehicle park growth will continue to rise, fuelling aftermarket demand for industrial rubber products.
- The global motor vehicle market is expected to record the highest gains through 2016, due to increased light vehicle production. This will boost OEM sales of industrial rubber products. The global industrial equipment market will likely continue representing the highest demand for industrial rubber products. Increasing industrial manufacturing activity will support growth in the industrial equipment sector. Increased heavy industrial equipment demand, particularly in the mining and construction segments, will also fuel industrial rubber demand. Due to growing global automotive output, mechanical rubber goods (wiper blades, vibration control devices, and body seals) will continue to represent the leading segment through 2016. The highest gains, however, will be witnessed in the rubber belts and hoses segment.
- In 2011, the Asia-Pacific region represented almost 45% of the overall global industrial rubber product market and is expected to record the highest regional gains through 2016. This regional growth will be driven by industrialization, rising levels of income and increasing manufacturing output in sectors such as household appliances and construction machinery.
Market Outlook
The global synthetic material industry is forecast to maintain strong growth over the coming years. The shift from developed markets to developing markets will continue over the next five-year period, witnessing an increasing level of demand and output in the Asia-Pacific region. In tandem, output and demand in the US and the EU will fall. Western players are expected to follow this trend, with a greater number of companies opening new facilities in the Asia-Pacific region.
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