Increasing demand for PPE and its impact on the textile industry

Ever-increasing concern for worker’s safety in different industries such as oil and gas, mining, construction, manufacturing, food, healthcare, transportation, etc. are expected to drive the personal protective equipment (PPE) market trends. PPEs can be categorized, primarily, as head protection, eye and face protection, hearing protection, protective clothing, respiratory protection, fall protection, protective footwear, and hand protection. Strict regulations from bodies such as OSHA, NIOSH, and ANSI have made it mandatory for workers to follow safety protocols and hence PPE usage, which in turn is expected to be the reason for the PPE industry’s growth. The increase in demand for PPE has always had its impact on the textile industry and with the ongoing outbreak and spread of the COVID 19 pandemic, the demand for PPEs in the medical, healthcare, food, and transportation sector has skyrocketed beyond expectations.

The unprecedented demand for PPEs such as face masks, gloves, coveralls, gowns, goggles, and face shields required the European and North American manufacturers to scale up production capacities. The production is outsourced to Asian countries like India and China to the extent of about 60-70%. Companies like 3M, Ansell, DuPont, Honeywell Safety Products, Kimberly-Clark Corporation, Lakeland, Moldex-Metric, and others are putting in enormous efforts to meet the demand. “There’s a critical need for protective apparel, and we believe that working with other companies to convert their existing cut-and-sew manufacturing capacity to protective garment fabrication is the fastest way to protect more people,” John Richard, Vice President & General Manager of DuPont Safety Solutions was seen quoting.

Meanwhile, the textile and apparel sector has faced the complete wrath of the coronavirus, among other manufacturing sectors, due to the pandemic-induced lockdown. Talking about India, a major industrial hub for PPE production and supply, the brunt of the lockdown has fallen upon the migrant workers. The largest exodus ever recorded post-partition era of India occurred as this class of people were rendered jobless. 13 percent to India's total exports, 7 percent to the industrial output in value terms, 2 percent to India's GDP, 15 percent to export earnings were contributions of the sector, employing at least 60 million people, directly or indirectly. Exports in the sector, from India, were to reach $82 billion in fiscal 2020-2021 against $39 billion in the previous fiscal. The virus will be knocked out sooner or later but the post-pandemic world is expected to be much different. While the demand will see a sharp rise in most of the sectors, it will not be the case for the textile industry. The fear of virus spreading through contact, in offline, touch-based shopping, is likely to restrict people to basic necessities.

During the pandemic, the demand for protective masks and gloves increased beyond their supply and several guidelines have been issued by the Indian government to encourage firms towards the production of these products. FDA has waived a few requirements through Emergency Use Authorization (EUA) to allow NIOSH approved products’ consumption and usage. The medical facilities demand highly safe and quality PPEs in tremendously large numbers. While these have created employment opportunities, these can never compensate for the havoc wreaked by the virus to the industry, earlier. The amount of support needed from the Indian government in terms of collateral-free loan offerings or similar proposals is high, indeed. "It is time for the industry to introspect. The textile industry had been looking for packages or supports. Now, it is time for a new direction and new thinking," spoke textiles minister Smriti Irani in a webinar.

The size of the global personal protective textile market was estimated to be USD 4.8 billion in 2019 and is anticipated to rise at a compound annual growth rate (CAGR) of 3.4% in the next 7 years. Europe is keen on workplace safety and it has been the leader in the market with 33.3 % of revenue shareholdings. The stringent regulations and importance for safety protocols and procedures, explain the numbers. Moreover, the growth of the manufacturing industry and healthcare facilities across the region has provided further opportunities for the market. Product demand in the manufacturing sector in the Asia Pacific region is expected to rise at a CAGR of 3.5%, from 2020 to 2027. The well-established manufacturing hubs in India, China, South Korea, and Japan are likely to support the market for personal protective textiles. However, as stated earlier, the impact of the coronavirus pandemic on the manufacturing sector in the region is likely to stun the growth. The U.S. has come out as a critical consumer of personal protective textiles in North America. The amount of importance given to R&D in defense has had a positive influence on the market, in the form of higher demand for ballistic clothing and bulletproof wearables. In the Middle East & Africa, chemical and oil & gas industries are anticipated to drive the demand for textile products. The capacity of the workforce involved in oil refineries and related industries coupled with the European influence of workplace safety are likely to steer the demand for personal protective equipment, in the region. China and India have been the key players in the clothing and textile industries. 

The anti-Chinese sentiment, post-pandemic times could cast a hefty loss - loss in terms of buyers, on this Asian superpower, while opening up new opportunities, which if well supported from their respective governments, could benefit the developing nations, including India, that are rich in terms of labor and raw materials availability. For instance, the production of masks in India has exceeded the consumption level and is on the verge of creating new leadership positions, in terms of exports, in the global market. The standards of the products would be a major concern and limiting agent as there is a range of products, in terms of quality and price, from dedicated formal manufacturers, incorporating high-end technology and skilled workforce to informal manufacturers involving cheap labor and poor technologies. Only 15% of the current PPEs manufactured are of international standards and ready for exportation, currently. With 5.5 million patients in 213 countries and the number growing daily, the market is huge for countries like India to tap, in spite of China being the current leader though it is fast losing markets. Bangladesh and Vietnam are surprisingly capitalizing on this opportunity and quickly filling the voids created by China.