Relaxed Government Laws Will Help Drive The Knitted Fabrics Manufacturing Industry
Governments in developing countries are relaxing certain laws to help drive the manufacturing industries. Norms related to foreign direct investments in developing countries are being relaxed to encourage investments from foreign companies. In 2017, the government of India allowed 100% foreign direct investments (FDI) in single brand retail and 51% FDI’s in multi-brand retail, thus aiding foreign retailers in setting up their stores in India. The set-up of stores in India also made international companies set up manufacturing plants in the country to save on shipping costs, and to have improved availability of raw materials and access to cheap labor. Nike, an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, and accessories, has eight manufacturing plants in India that produce apparel and footwear, and supply finished products to Nike stores around the country. In another example, in 2017, the Export-Import (EXIM) Bank of Ghana issued $10 million to support the textiles and garments industry from the first quarter of 2018.
Such favorable foreign investment policies of a country are expected to increase the number of apparel brands entering the country, thus driving the demand for knitted fabrics. The global knitted fabrics market is expected to grow from $55.8 billion in 2018 to $66.9 billion in 2022 at an annual growth rate of more than 4.5%.
A knitted fabric is a fabric formed by the process of knitting (interlocking of yarns to create fabric) in knit fabric mills. Plain fabrics, purl fabrics, and ribbed fabrics are common types of knitted fabrics. Knitted fabrics are different from crocheted fabrics, and the knitting produces fabric by interlocking fibers with a knitting needle, loops of wool or yarn, while crochet produces fabric with a crochet hook. The knitted fabrics market is segmented by type of material into dyed synthetic fibres, pile fabrics, elastomeric yarn, cotton dyed, synthetic fibres printed, artificial fibres dyed, lace, and others.
Going forward, the increasing applications of synthetic fibers will also contribute to the growth of the global knitted fabrics market. The demand for synthetic fibers is expected to be driven by increasing applications of synthetic fibers in the apparel and construction industries. Synthetic fibers give specific characteristics such as thermal insulation and low soiling characteristics, which can be modified for a wide range of products such as table cloths, napkins, curtains and carpets. These fibers are also being used in new areas of applications such as roof insulations, geotextiles for stability of roads, walls and dams. Examples of synthetic fibers include nylon, rayon, polyester, polyethylene, polypropylene and acetate. In 2017, synthetic fibers accounted for around 64% of the global fiber market. The increasing demand for synthetic fibers will drive the demand for knitted fabrics made using synthetic fibers.