Apparel / Textiles & Accessories

In recent years, with the rapid development of China's economy, China's polyester industry has gradually improved its global market position. Data shows that China's polyester production has increased from 43.54% of the global share to around 64.35% in the past ten years.

2010-2020 global and China polyester production:

China is the global polyester production and consumption center, and the Jiangsu and Zhejiang regions are China's main polyester production areas. As can be seen from the figure below, the production capacity of polyester in the two provinces of Zhejiang and Jiangsu accounts for about 77% of the total production capacity of polyester in the country.

Distribution map of China's polyester production capacity in 2021:

Zhejiang is the largest production and marketing province, while Zhejiang is mainly concentrated in Huzhou, Xiaoshao, and Ningbo, where the polyester industry is relatively concentrated.

Production capacity of TOP10 polyester manufacturers in China (unit: 10,000 tons):

At present, the CR10 industry concentration in the polyester industry has increased from 54.2% in 2019 to the current 61.9%. According to Longzhong statistics, it is expected that CR10 will further increase to over 80% in 2023. According to the classification standards of the American economist Bain and the Japanese Ministry of International Trade and Industry on the degree of industrial concentration, the industrial market structure is roughly divided into two types: oligopolistic (CR10≥40%) and competitive (CR10<40%). Among them, the oligopolistic type is subdivided into extremely high oligopoly (CR10≥70%) and low concentration oligopolistic type (40%≤CR10＜70%); the competitive type is subdivided into low concentration competition type (20%≤CR10＜40). %) and decentralized competition (CR10<20%). At present, the industrial concentration of China's polyester industry applies this theory, which can be classified as low concentration and oligopoly.

In the current international economic situation, the high degree of industry concentration means that the comprehensive competitiveness of the industrial chain is enhanced, and the competition among enterprises is becoming more and more intense. As far as the current polyester filament yarn industry is concerned, the industry is highly concentrated, and larger companies play a leading role in the market, jointly promoting market development and maintaining the industry's profit level. To a certain extent, it is also conducive to the healthy and stable development of the industry. In the future, competition in the polyester market will further intensify, the granularity of business operations will be refined, and cost control will become more stringent. Polyester manufacturers will grow and widen the industrial chain through horizontal or vertical integration, with large scale, strong strength, and supporting industrial chains. A well-established company will have more voice. Therefore, in the future polyester industry, brand effect and large-scale development are important bargaining chips for companies to compete for the market.