CIRFS, the European Man-Made Fibres Association, is the trade association representing the interests of the man-made fibres industry in wider Europe. It represents more than 70 per cent of the European production and includes members in the EU, Switzerland, Turkey, and Belarus. In a talk with Fibre2Fashion, CIRFS Director General Frederic Van Houte discusses the industry outlook for 2022.
What are your key takeaways from the textile and apparel industry developments in 2021?
2021 showed a challenging business scenario. We saw global stress on supply chains through logistics issues and a surge in energy prices affecting all supply chains, resulting in raw materials and component shortages and price hikes, creating hurdles for global exports/imports. Mid-2021 business appeared to improve. Vaccination was a gamechanger in some countries.
Does 2022 seem to be as uncertain as 2021? Which factors would you rank as of topmost concern?
High uncertainty in 2022 is linked to rising logistical logjams (including capacity, port closures and disruptions such as the Suez Canal issue) and shipping costs, material shortages, supply chain issues (e.g., still reduced travelling expected) and other factors (geopolitical trade tensions, new agreements, further outlet shutdowns). The fashion industry is confronted with an important level of pressure and disruption in its complex supply chains. Energy and raw material price increases will be continuing. The impact of the fourth/fifth wave is still unclear (in addition to an uneven recovery due to imbalanced vaccination availability). A possible dampening effect of inflation on consumer demand is to be watched.
By when do you expect the challenges of shipping industry to ease?
An improvement might be expected from the middle of 2022.
Do you expect any significant movement in textile and apparel supply chains in 2022 due to the geo-political scenario, particularly the US-China tension?
In Europe, there will be greater near/onshoring, supported by supply chain issues (booming Turkish fibre and textile industry) and rising digitalisation/robotisation.
On the demand side, do you expect a significant pick-up beyond pent-up consumption in 2022, without government support?
Further growth is expected in 2022, above pre-crisis levels, with an uneven evolution depending on subsectors and geographies. The evolution of the fashion market will depend on the ability to recover from the pandemic. With more freedom outside the home, consumers may spend more on other categories than loungewear and sportswear. With consumers more active in the virtual world, online sales will see their importance rise.
Following the recent COP26 meeting and given the textile industry’s influential role in climate change, what major developments do you expect in 2022?
There will be substantial new obligations in terms of 1) circular economy, reuse/recycling, waste reduction, 2) use of classified substances 3) emissions to air, water, soil (including microplastics). Closed-loop recycling will be an important factor to reduce the industry’s impact on the environment, decreasing the use of virgin materials and the production of textile waste.
Related to this, will we see brands increasingly start focusing on sourcing with sustainability/ethics as a factor?
This will be indispensable and as such a must for any brand with rising requests from consumers and lawmakers (e.g., EU Green Deal legislation). As such, it needs to be integrated fully into every business model.
Will we see greater technology adoptions in 2022 to solve transparency and traceability issues in the supply chain?
Here as well the number of requirements from EU/national legislation is rising. New technologies are appearing, supported by intensive R&D efforts. Traceability will become an obligation under the EU Circular Economy package, to be released in early 2022.
Energy prices are currently a major concern across the world. How do you see them continuing and what business strategies can we expect to cope with them?
Energy prices may remain high in near future. Business strategies will include optimisation of the production process, increased recycling, long-term contracts, group buying, co-generation, etc.
Do you expect any changes in the textile and apparel business model in the New Year?
A reflection on the excessive complexity of global supply chains and a better integration of sustainability aspects. Digitalisation, individualisation of products.
Published on: 17/01/2022
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
