Coronavirus Impact on the Disposable Hygiene Industry Value Chain

Coronavirus Impact on the Disposable Hygiene Industry Value Chain

The Corona crisis has generated a boom in the face mask market. With the World Health Organization advising anyone to wear them in public places, the demand for raw materials that are necessary to produce them has skyrocketed. As a consequence, the price of meltblown fabrics, most of which coming from China, has ballooned, while availability remains limited.

As the coronavirus spread through North America and Europe, nonwoven demand in selective markets increased significantly. At the end of 2019, the industry was already working at full capacity. Right now, new investments have been announced in order to match the untapped demand. In fact, Europe and the US have suddenly room for growth, as China can no longer take care of the world’s supply of meltblown material. As a matter of fact, prior to COVID-19 China dominated the face mask sector with a 85% market share thanks to its manufacturing cost advantage and access to lower prices for raw materials. In 2018, China was the largest exporter of meltblown nonwovens in the world. The US was the largest importer. At the moment, China has restricted or prohibited exports of meltblown, SMS/SB and spunlaced nonwovens to supply incountry needs for converted hygiene, wipe and medical products. This has determined a global shortage of meltblown and spunbond nonwovens and, simultaneously, an expansion of the production capacity.