The nylon category is anticipated to grow at a CAGR of 6.5% from 2024 to 2030. The increasing demand for lightweight and durable materials in industries such as automotive, textiles, and consumer goods are driving the growth of the category. The increase in car manufacturing is anticipated to boost the need for nylon employed within the automotive sector. The surge in automobile production can be attributed mainly to the rapid expansion of the Chinese market and the steady growth of the European automotive industry. Furthermore, the vehicle industry has experienced significant growth in recent years, particularly in the Asia-Pacific region. According to the International Organization of Motor Vehicle Manufacturers, a total of 85,016,728 vehicles were produced globally in 2022, with China, the U.S., and Japan are the top three producers. Anticipated growth in automobile demand is expected to have an indirect impact on the production of nylon, consequently giving rise to a surge in the overall category expansion.
Advancements in nylon technology are driving sustainable practices by tackling plastic waste through recycling. For instance, in October 2023, the U.S. DOE’s BETO department announced that researchers at Los Alamos National Laboratory created biosensing technology which is aimed at tackling the issue of plastic waste, particularly focusing on nylon-based waste found in textiles, carpets, tires, and fishing nets. These products are made from nylon-66, which is made from a polymer building block known as adipic acid (ADA). However, petroleum-based ADA releases nitrous oxide into the environment. Depolymerizing nylon with biocatalysts could open avenues for minimizing nylon waste in landfills and oceans. This can facilitate the repurposing of nylon components into fresh products without emitting nitrous oxide. Another instance of a company utilizing biotechnology is Genomatica, Inc. It employs microorganisms to generate caprolactam from plant sugars. Using its proprietary platform, the company converts renewable carbon into precursors to nylon. The resultant nylon-6 product is completely renewable carbon-based, thereby fostering sustainability.
Rising concerns about the environmental impact of the textile industry has led to the increasing demand for recycled nylon. Recycled nylon is becoming the preferred material by avoiding the polluting and resource-intensive processes of traditional nylon production. Scientists from Aarhus University in Denmark developed a new technology that can help to increase garment recycling rates in January 2024. This technology has the potential to assist in the extraction of elastane from nylon, a frequently used fabric combination in garments such as leggings, activewear, shapewear, and swimwear. Companies such as Patagonia, Finisterre, and Mara Hoffman are among the most sustainable recycled nylon clothing brands. These companies utilize low-impact materials, try for textile circularity, and employ full traceability.
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The carpet industry, especially in Europe, is witnessing a considerable increase in demand for Nylon 6. Turkey, with its substantial textile industry, centered around nylon, stands out as one of the leading importers of this material. Moreover, the apparel sector is experiencing dynamic growth, driven by consumer preferences for exploring diverse raw materials.
Nylon comes under the family of synthetic polymers. The plastics, polymers, and in turn the nylon category are fragmented in nature. The fragmentation is attributed to its wide array of different specifications and end-use industries. Fragmentation is expected to decrease as recycling procedures become standardized and monitored with advancing technology and policy changes.
Substitutes for nylon, such as other synthetic polymers like polyester or fibers like silk, wool, and rayon, can pose a threat, particularly if they offer comparable performance at a lower cost or with environmental advantages. Also, bio-based products are gaining traction due to the environmental impact of fossil-based nylon. This is expected to create a moderate threat of substitutes.
Raw material, labor, machinery, facilities, and packaging & transportation are some of the key cost components incurred in producing nylon. Other costs are rent and utilities, repair and maintenance, and legal charges. The average cost of starting a nylon production business can be around USD 35,000. Raw materials and labor account for a major part of the overall cost structure. The price of nylon 6/6 as of December 2023 was around USD 2.69/kg in China, USD 3.35 in the U.S., and USD 3.20 in Germany. In H1 2023, nylon prices fluctuated at the lower end of the pricing spectrum due to falling demand accompanied by over-stocked inventories and the availability of cheap imports from China. With the stabilization of freight and supply chain processes in H1 2023, there was a notable reduction in upstream cost pressures.
Under sourcing intelligence, end-use companies such as automotive firms usually outsource nylon production. These companies may have partnerships or contracts with nylon manufacturers to ensure a reliable supply of materials for various components in their vehicles, such as engine compartments, interior trims, and exterior components. For instance, Jaguar Land Rover, a part of Tata Motors, works with ECONYL nylon to develop quality interiors. Automotive companies seek to source bio-based nylon to increase their sustainability. These companies also maintain long-term relationships with nylon suppliers to get discounts on bulk orders, and consistent and on-time delivery.
Nylon Procurement Intelligence Report Scope
• Nylon Category Growth Rate: CAGR of 6.5% from 2024 to 2030
• Pricing growth Outlook: 5% - 9% (annual)
• Pricing Models: Volume-based pricing, competition-based pricing
• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence
• Supplier selection criteria: Type and quality of nylon, end-use served, geographical presence, years in services, regulatory compliance, operational and functional capabilities, and others.
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
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Key companies
• BASF SE
• Lanxess AG
• Huntsman International LLC
• AdvanSix Inc.
• UBE Corporation
• DOMO Chemicals
• Toray Industries Inc.
• Alliance Polymers
• Ascend Performance Materials Operations LLC
• Toyobo Co., Ltd