Competition in Nonwovens: A Market Being Rewritten

Competition among nonwoven producers has historically been determined by three factors: nonwoven type, end-use market, and target region. That framework still applies in 2026, but it no longer operates in isolation. Supply/demand imbalances, geopolitical disruption, sustainability mandates, and volatile transportation and supply chain costs now shape competitive outcomes as much as product strategy. Smithers’ latest market report - The Competitive Landscape for Nonwovens to 2031 - quantifies these dynamics across the industry’s 30 largest producers. The findings point to five trends defining competitive advantage across the sector.

Overcapacity restricts growth

Capacity expansion, the traditional route to market share gains, is no longer a viable strategy across large parts of the industry. Spunlace and spunlaid nonwovens are structurally oversupplied, forcing major producers to scale back expansion plans and, in some cases, close existing lines. Even in categories without overcapacity, weak demand and economic uncertainty are limiting new investment. Capital that would previously have funded expansion is instead being retained as a reserve against further external shocks.

External forces are the real competitor

Producer performance is increasingly determined by conditions outside direct competitive control. Magnera’s position illustrates this: its challenge is not competing airlaid producers, but a broader slump in feminine hygiene demand and falling wipes usage in Europe, compounded by weakness at its largest customer, P&G. Pricing is similarly constrained. Producers unable to raise prices previously for fear of being undercut now face a different barrier: cost-of-living pressure has reduced what consumers are willing to pay.

Consolidation has overtaken expansion

With capacity expansion carrying higher risk and lower certainty of return than in the pre-2020 market, consolidation has become the dominant strategic tool. Kimberly-Clark’s acquisition of Kenvue and the Berry/Glatfelter merger forming Magnera represent the largest transactions to date, alongside dozens of smaller deals completed or in progress. This shift has direct implications for competitive positioning across all tiers of the market.

Sustainability is non-negotiable, despite costs

Retailers and regulators continue to require more sustainable nonwoven products, and this has not softened despite constrained consumer spending. Producers face a compounding requirement: meet sustainability mandates without increasing cost or compromising performance. Material conversion, particularly away from PP, is proceeding more slowly than market expectations, given the scale of existing plastic-based infrastructure and the limited availability of viable substitutes.

East and West are diverging fast

The gap between Western and Asian strategic behaviour is widening. Western producers are constrained by capital discipline and lower risk tolerance; once a production line is closed, it stays closed. Asian producers face fewer regulatory constraints, have more direct access to raw materials, and continue to invest at pace regardless of near-term ROI, including through raw material sales that support their position even where end-product margins are thin.

Despite the onshoring incentive that Covid exposed, the pull toward Asia is winning out. Production is slowly but surely moving East – every up-and-comer in the top 30 is now an Asian company, and several didn't even exist in the top 10 a decade ago. The larger multinationals are hanging on, but growing slower, because they're not investing at the same rate. They are competing only where they already hold a distinct advantage, with limited risk of losing ground.

What this means for market participants

The competitive landscape through 2031 will be defined less by product innovation and more by capital discipline, consolidation activity, and regional divergence in investment behaviour. Producers, investors, and suppliers assessing risk and opportunity in this market require detailed visibility into capacity, tonnage share, and strategic positioning across all tiers of the industry.

Authored by Phillip Mango, a nonwovens industry expert with over 45 years of experience, The Competitive Landscape for Nonwovens to 2031 is the most comprehensive analysis of its kind: a data-led benchmark of tonnage, value and capacity share across the industry’s 30 largest producers, and full projections and analysis through 2031.