[Asia Approach] Mask Shortage... Let's Reexamine the 58 Trillion Won Nonwoven Fabric Market

On the 24th, citizens lined up to buy masks at E-Mart Chilseong Branch in Buk-gu, Daegu. [Image source=Yonhap News]

Mask hoarding crisis due to COVID-19, both outer layer and filter made of nonwoven fabric
From masks to diapers, automotive interior materials to core materials of the 4th industrial revolution
Global market worth 58 trillion won... Korea lags behind the US and Western Europe, while China is rapidly catching up

[Asia Economy, Lee Kyungho, Editorial Planning Team Leader] "Do you have any masks?"

"No. Only cotton masks are left. I ordered filter masks, but..."

As the novel coronavirus infection (COVID-19) spreads simultaneously nationwide, a mask shortage phenomenon is occurring. Masks have sold out not only in online and offline stores but also in convenience stores located every other house. Although cotton masks have limited functionality, consumers desperately need filter masks with high-efficiency filters rather than cotton masks for cold protection.

The core material of filter masks is nonwoven fabric. Nonwoven fabric is defined as "a fibrous assembly bonded chemically, mechanically, or by appropriate moisture and heat treatment without spinning, weaving, or knitting processes, forming a sheet-like structure." The history of nonwoven fabric began with a registered patent in the UK in 1853, but actual production did not occur until the 1930s. In the 1940s, production of nonwoven fabric in the textile industry was only about 1 ton per year, and its applications were limited. During World War II, as material shortages worsened, production of nonwoven fabric increased for clothing interlining, and in 1950, Pellon was developed, which can be considered the origin of nonwoven fabric.

Nonwoven fabric is widely used in consumer and durable goods, from diapers to sanitary pads, wipers, automotive sound absorption and insulation materials, building insulation, and various filters. Nonwoven fabric is classified into various types depending on the process, and the main body of health masks consists of an outer layer (spunbond nonwoven fabric) and a filter (meltblown nonwoven fabric). Spunbond nonwoven fabric is mainly made by spinning polypropylene (PP) or polyester (PET) and bonding them by applying heat. If used immediately after spinning, it is long fiber spunbond; if cut into short fibers and bonded, it becomes short fiber spunbond. Spunbond nonwoven fabric is used not only for wallpaper primer, air purifier filters, and packaging materials but also for industrial materials and automotive parts as new materials.

Meltblown nonwoven fabric used in filters is a manufacturing method where thermoplastic polymers like polypropylene (PP) are melted and extruded through nozzles to form fibers. Simply put, meltblown nonwoven fabric is composed of ultrafine fibers with very small pore sizes, large specific surface area, and very weak strength.

Nonwoven fabric has advantages such as unlimited raw material selection, high-speed and simplified processes, diversified manufacturing methods, composite formation with heterogeneous fiber assemblies, and diversified final product applications. Therefore, it can replace existing textile products or create new uses across daily life and industries, making it a high value-added technology field with very high future growth potential. Especially, as core materials and components in advanced technology industries such as artificial intelligence, Internet of Things, and robotics, demand is expected to increase further.

The global nonwoven fabric material market was about $48 billion (58.4736 trillion won, based on current exchange rates) in 2020 and is a high value-added industry expected to grow rapidly at an average annual rate of 7.3%. Although estimates vary by institution, the market size is projected to grow to $65 billion (80 trillion won) around 2024. According to previous data from the Korea Chemical Fibers Association, as of 2017, the world's top nonwoven fabric maker was Berry Global from the US with sales of $2.3 billion. Second was Freudenberg from Germany ($2.1 billion), third Kimberly-Clark from the US ($1.3 billion), fourth Alstom from France ($1.25 billion), and fifth DuPont from the US ($1 billion).

Among the top 40 companies, most of the leading positions were dominated by US and Western European companies. There are also two companies each from Israel and Turkey, five companies from China and Taiwan, and companies based in Brazil and Eastern Europe. As companies in emerging markets continue to grow, future ranking changes are expected. Korea did not have any companies in the top 40.

The domestic nonwoven fabric material market size is expected to grow from $540 million (657.8 billion won) in 2017 to $1 billion (1.2182 trillion won) by 2026, with an average annual growth rate of 7.1%. However, the technological capability of domestic nonwoven fabric companies is still lacking compared to Japan, and due to demand avoidance by large companies caused by quality degradation of finished products, the trade deficit phenomenon is worsening.

The global nonwoven fabric material industry technology level has about a 5-year gap compared to leading countries, with high dependence on foreign technology in most fields, limiting the ability to secure a high value-added global market. The technology gap with China, a latecomer, has narrowed to one year, and due to declining technological and price competitiveness, maintaining the global market and domestic supply self-sufficiency is expected to be difficult.

Industry experts say Korea's nonwoven fabric material technology level is 65 compared to the US (100), trailing Japan (95) and Europe (90), but ahead of China (55). The technology gap compared to the US is 5 years for Korea, while Japan (1 year) and Europe (2 years) are catching up slightly. The technology gap between the US and China is 6 years, only one year behind Korea, indicating China's rapid pursuit in nonwoven fabric. While the top priority of COVID-19 is the life and safety of the people, looking a bit beyond, it is clear that there is still a long way to go for localization of materials, parts, and equipment (SoBuJang) even in the COVID-19 era.