A new wave of technical fibre innovations is helping fibre companies in higher cost economies carve out a strategy for survival. The new fibres satisfy consumer needs for "natural" materials and, at the same time, address performance and environmental concerns. Their success is critical, according to a new report in Textile Outlook International, as Chinese producers continue to tighten their grip on man-made fibre production.

Most consumer surveys of fibre preferences in Western Europe have one thing in common-people say they prefer natural fibres, especially cotton. And yet a detailed search of most people's wardrobes would show that cotton plays a secondary role to that of man-made fibres. Globally, cotton accounts for 40% of world fibre consumption-despite a record crop in 2001/02. Wool accounts for a mere 2.5% and silk for a tiny 0.2%.

According to forecasts by the US-based International Cotton Advisory Committee (ICAC), the world will consume 59 mn tons of fibres in 2010-10 mn tons more than in 2001. Furthermore, during the ten years to 2010, non-cotton consumption will grow more than twice as fast as cotton consumption, so it seems inevitable that demand growth will have to be met predominantly by expanding man-made fibre production.

In the mass market, the bulk of the extra demand for fibres will be met by polyester-and most of the extra capacity looks set to be located in China, where a 22% rise in synthetic fibre capacity is planned in 2003. This has major implications for the global textile and apparel pipeline, and will be further exacerbated by the lifting of quota restrictions after 2004.

Some indication of the impact which an unrestrained China might have on Western markets was felt in the first eight months of 2002 when the volume of US textile and apparel imports from China more than doubled.

For companies in higher cost economies, the writing would appear to be on the wall-unless they can find ways of differentiating their products from those of their low cost competitors.

One way of achieving product differentiation is through creativity. Fortunately, this is a feature which distinguishes the textile and apparel industry from most other industrial sectors and opens up plenty of niches for players who can offer something different.

The industry also continues to benefit from a stream of technical innovations, many of which are aimed at meeting future growth in fibre demand by manufacturing fibres rather than growing them, and yet satisfying consumer needs for "natural" materials at the same time.

Attempts to make synthetic fibres more natural have led, for example, to the development of a polyester fibre with improved moisture absorbency. Intriguingly, if the developers' claims are justified, the fibre has the potential to replace cotton altogether-and at a lower cost than conventional polyester. In another development, it is claimed that cotton-like lyocell fibres can be made using melt blowing-a process which has so far been used mainly for making nonwovens.

As well as trying to make fibres more natural, innovators are also addressing growing public concerns about the environment by making fibres biodegradable and manufacturing them from renewable resources. One of the best examples is Cargill Dow's PLA (polylactic acid) fibre, which is currently being made from corn (maize) and sold under the brand name "NatureWorks".

According to Cargill Dow, its PLA plant represents a total investment of nearly US$750 mn. And the company has plans to spend another US$250 mn over the next few years on commercial, product and technology development.

The capacity for making PLA polymer is already a significant 140,000 tons per annum and, so far, there is only one plant in the world-in Nebraska, USA. Admittedly this capacity is intended for a variety of uses, but if the fibre proves successful then further plants will be built, including, no doubt, some capacity in Asia.

In many respects PLA fibres have a lot in common with lyocell, which was first commercialised by Courtaulds (now Acordis) under the brand name Tencel. Both appear to have highly favourable properties in fabrics, and both meet the growing demand for "naturallike" materials. Also, both are made by an "environmentally friendly" process and use natural renewable resources as their starting materials-wood pulp in the case of lyocell and corn in the case of NatureWorks.

PLA also has something else in common with lyocell. In the 1990s lyocell earned the accolade of being the first new major generic fibre type to be officially-recognised as such for several decades. Recognition of PLA as a generic fibre type has followed hot on its heels. But lyocell is a regenerated cellulosic fibre-and cellulosics as a whole are in long-term decline. NatureWorks, by contrast, is a meltprocessable polymer-which opens up a much wider range of markets for the fibre.

So far NatureWorks has been well received by the trade. More significant, however, is the fact that it appears to offer considerable potential for creativity and product differentiation.

In the survival strategies of companies in higher cost countries, these are vital ingredients for 2005 and beyond.