Textile Value Chain Analysis– Assessing the Scale of Regenerated Cellulosic Fibers

A textile industry player sought to analyze the entire textile value chain to identify emerging technology trends, strategic entry points, and collaboration opportunities across each segment. The comprehensive market intelligence from Stellarix guided the organization’s partnership, investment, and innovation strategies, enabling long-term growth and competitive advantage. 

Client Background:

The manmade cellulose fibers, commonly known as viscose fibers, are made from dissolving pulp and cotton linter. The Client is an existing market leader in the dissolving pulp market, keen to explore and expand business in the field of Kraft pulp.

Engagement Objective:

The objective of the study was to comprehensively evaluate the viscose staple fiber (VSF) market by identifying key conventional and emerging technologies across the entire value chain, while simultaneously scouting potential partners to assess the applicability and scalability of innovative technologies. Additionally, it aims to identify strategic entry points within the value chain and assess the long-term growth potential and market opportunities associated with each segment.

Key Business Questions:

• What technological advancements are taking place in pulp production for making VSF?
• What are the various types of regenerated cellulose fibers, their production technologies, pricing strategies, and market shares?
• Are there any sustainable technologies or practices within the textile value chain?
• Who are the various stakeholders in the textile value chain, and what are their respective profit margins?

Methodology:

• A patent analysis was conducted to identify existing and emerging technologies in the field of VSF manufacturing. Novel technologies were identified and assessed across a range of parameters to determine their Technology Readiness Level (TRL).
• A comparative analysis of companies operating in the VSF market was conducted. A PESTEL and Porter’s Five Forces analysis was performed to assess the strengths and limitations of the market. 
• Value chain analysis was conducted to estimate profit margins, analyze market needs gaps, and inform market entry strategies.
• Approximately 15 primary interviews were conducted for partner scouting, estimating profit margins, and assessing market opportunities.

Client Impact:

An emerging technology assessment helped the client understand the risks associated with substitute products and parallel technologies. Benchmarking of technologies, with a focus on sustainability, helped the client shortlist players for further collaboration.

Value chain analysis helped the client understand the different actors involved in the value chain and the level of integration within the value chain; Pricing analysis helped the client understand the net profit across the value chain.

Outcome Snapshot:

Exploring opportunities in the textile value chain?

Partner with Stellarix to identify high-impact innovations, evaluate strategic entry points, and drive informed decisions for sustainable growth.