From the Sector

The European textiles and clothing sector is set for a major transformation which will affect both industry and workers. The EU’s strategy for sustainable and circular textiles aims to ensure that by 2030, textile products placed on the EU market are long-lived and recyclable with the industry moving from a linear to a circular business model. This strategy is accompanied with the EU’s transition pathway for a more resilient, sustainable, and digital textiles ecosystem linking the green transition with the digital transition while stressing the need for the sector to remain competitive.

IndustriAll European Trade Union (industriAll Europe) and Euratex, representing the workers and employers in the textiles and clothing sectors respectfully, jointly highlight both the challenges and opportunities of the giant forthcoming transformation of the sector and call for action to ensure that European industrial policy is fit for purpose and enables the sector to transform without negatively impacting workers or European industry.

Specifically, the European social partners jointly call for:

1. EU action to guarantee that the European textiles ecosystem remains competitive, including ensuring a level global playing field.
2. Measures to increase the demand of sustainable products including awareness raising campaigns, incentives such as lower VAT rates, and sustainability criteria in public procurement.
3. Measures to ensure access to green and affordable energy.
4. Policy gaps to be addressed, such as promoting a harmonised Extended Producer Responsibility approach across the EU and ensuring that SMEs can use Product Environmental Footprints.
5. Action to ensure that the Sustainable Products Regulation and the forthcoming Digital Product Passport will offer a transparent, predictable and SME-friendly framework.
6. Investment in attracting, training and reskilling workers including via concrete support for the EU Pact for Skills.
7. Appropriate funding, sound metrics and legal incentives at regional, national, and European level to support the green and digital transitions of the textile and clothing sectors.
8. Regional and national authorities to coordinate with sectoral social partners to ensure that the green and digital transitions are fair and just and do not leave the industry, regions or workers behind.

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Beyond the weakening macroeconomic environment, there also may be factors associated with cotton supply chains that could affect demand during the 2022/23 crop year.  Downstream consumer markets for cotton can be viewed as more discretionary than other spending categories, such as food, energy, and lodging, that experienced some of the sharpest effects of inflation.  Given price increases for necessities, consumers may have less income to devote to apparel and home furnishings.

In the U.S., consumer spending on clothing has been flat for the past year.  However, it has been holding at levels that are 25% higher than they were in 2019.  If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.  In weight volume, the cotton contained in U.S. apparel imports was up 22% year-over-year in the first half of 2022.  Relative to 2019 (pre-COVID and pre-shipping crisis), the volume in the first half of 2022 was up 23%.  Given strong import volumes, if there is a dip in consumer demand, inventory could build both at retail and upstream in supply chains.  This could lead to cancelations, potentially all the way back to the fiber level, where contracts signed at prices higher than current values could be particularly susceptible.

Tight U.S. supply is on the other side of price direction arguments.  Cotton is drought tolerant, and that is why it can be viably grown in perennially dry locations like West Texas.  However, cotton requires some moisture to germinate and generate healthy yields.  West Texas has had very little rain over the past year, and drought conditions have been extreme.  As a result, abandonment is forecast to be widespread.  It remains to be seen exactly how small the U.S. crop will be, but the current USDA forecast predicts only 12.6 million bales in 2022/23 (-5.0 million fewer bales than in 2021/22).

Meanwhile, demand for U.S. cotton has been relatively consistent, near 18 million bales over the past five crop years (an average of 15.5 million bales of exports and 2.7 million bales of domestic mill-use).  A harvest of only 12.6 million falls well short of the recent average for exports alone, and U.S. stocks were near multi-decade lows coming into 2022/23.  All these statistics suggest shipments from the world’s largest exporter may have to be rationed in 2022/23.  If cotton is not readily available from other sources, the scarcity of supply from the U.S. could support prices globally.

Simultaneously, there is weakness from the demand side.  The market has struggled to find the balance between the weakened demand environment and limited exportable supply in recent months.  The conflict between these two influences makes it difficult to discern a clear direction for prices and suggests continued volatility.

A new interview study from NGO ChemSec shows that there is a gap between supply and demand when it comes to recycled materials, causing confusion and bottlenecks. Among other things, suppliers go out of their way using elaborate trade schemes to reach the coveted ”100% recycled” tag, which – it turns out – is not that important to consumer product brands. Far more crucial aspects, according to several major B2C companies, are:

• Honest communication towards customers
• Comprehensive information from suppliers
• Clear standards for recycled material

These are some of the conclusions from NGO ChemSec’s survey and interview study with 26 highly well-known consumer product brands. All brands responded to a survey concerning their current plastic use, as well as their needs, expectations and challenges regarding using more recycled material, to enable the shift to a circular economy for plastics.

Ten of the brands then participated in in-depth interviews on the same topics:, Essity, H&M, IKEA, Inditex , Lego, Mars,  SC Johnson, Tarkett, Unilever and Walgreens Boots Alliance.

Is non-mechanical recycling the answer?
Only about ten percent of all discarded plastics is recycled today, which is of course not nearly enough to achieve a circular plastics economy. Despite ambitions and initiatives to reduce plastics use – replacing the materials with other, more sustainable ones – the “plastic tap” is not expected to be turned off anytime soon. Quite the opposite, which makes raising the recycling rates more important than ever.

Although commercially viable, traditional (mechanical) recycling is afflicted with severe flaws, such as legacy chemicals, quality and functionality issues, as well as the lack of clean and sorted waste streams. The brands cited quality and functionality issues as the main obstacles for using more recycled material in their products.

This opens up for non-mechanical recycling, sometimes referred to as chemical recycling, where the plastic is either dissolved or broken down into smaller building blocks. Harmful additives and other hazardous chemicals can be removed in the process, and a material comparable to virgin plastic can be achieved – at least in theory.

So far, however, non-mechanical recycling technologies are costly, energy-intensive, and often require the addition of a great deal of virgin plastic to work – the very material that needs to be phased out.

The chain of custody models needs to be detangled
Apart from these production issues, there is a wide range of chain of custody models surrounding non-mechanical recycling, including mass balance and book & claim, which enable trade of credits or certificates for recycled material.

This cuts the physical connection between input and output, making it possible for a supplier to sell a material as “100% recycled”, when the actual recycled content could be zero.

This is a major issue for the brands ChemSec has spoken to, who value honest and correct communication towards customers. It turns out, perhaps somewhat surprisingly, that being able to slap a “made from 100% recycled plastic” label on a product is not all that important to brands.

To the brands, a physical connection between input (the discarded plastic waste headed for recycling) and output (the product at least partially made from recycled plastics) is far more important.

A physical connection, along with correct and adequate information from suppliers, as well as clearer standards and guidelines than what is available today, is what brands require to increase the use of recycled material and move us closer to a circular economy for plastics.

• More than 30 leading pioneers of the chemical and material sector welcome the latest political papers from Brussels, Berlin and Düsseldorf

The political situation for renewable carbon from biomass, CO2 and recycling for the defossilisation of the chemical and materials industry has begun to shift fundamentally in Europe. For the first time, important policy papers from Brussels and Germany take into consideration that the term decarbonisation alone is not sufficient, and that there are important industrial sectors with a permanent and even growing carbon demand. Finally, the need for a sustainable coverage of this carbon demand and the realisation of sustainable carbon cycles have been identified on the political stage. They are elemental to the realisation of a sustainable chemical and derived materials industry.

The goal is to create sustainable carbon cycles. This requires comprehensive carbon management of renewable sources, which includes carbon from biomass, carbon from Carbon Capture and Utilisation (CCU) – the industrial use of CO2 as an integral part – as well as mechanical and chemical recycling. And only the use of all alternative carbon streams enables a true decoupling of the chemical and materials sector from additional fossil carbon from the ground. Only in this way can the chemical industry stay the backbone of modern society and transform into a sustainable sector that enables the achievement of global climate goals. The Renewable Carbon Initiative’s (RCI) major aim is to support the smart transition from fossil to renewable carbon: utilising carbon from biomass, CO2 and recycling instead of additional fossil carbon from the ground. This is crucial because 72% of the human-made greenhouse gas emissions are directly linked to additional fossil carbon. The RCI supports all renewable carbon sources available, but the political support is fragmented and differs between carbon from biomass, recycling or carbon capture and utilisation (CCU). Especially CCU has so far not been a strategic objective in the Green Deal and Fit-for-55.

This will change fundamentally with the European Commission's communication paper on “Sustainable Carbon Cycles” published on 15 December. The position in the paper represents an essential step forward that shows embedded carbon has reached the political mainstream – supported by recent opinions from members of the European parliament and also, apparently, by the upcoming IPCC assessment report 6. Now, CCU becomes a recognised and credible solution for sustainable carbon cycles and a potentially sustainable option for the chemical and  material industries. Also, in the political discussions in Brussels, the term “defossilation” is appearing more and more often, complementing or replacing the term decarbonisation in those areas where carbon is indispensable. MEP Maria da Graça Carvahlo is among a number of politicians in Brussels who perceive CCU as an important future industry, putting it on the political map and creating momentum for CCU. This includes the integration of CCU into the new Carbon Removal Regime and the Emission Trading System (ETS).

As the new policy documents are fully in line with the strategy of the RCI, the more than 30 member companies of the initiative are highly supportive of this new development and are ready to support policy-maker with data and detailed suggestions for active support and the realisation of sustainable carbon cycles and a sound carbon management. The recent political papers of relevance are highlighted in the following.

Brussels: Communication paper on “Sustainable Carbon Cycles”
On 15 December, the European Commission has published the communication paper “Sustainable Carbon Cycles” . For the first time, the importance of carbon in different industrial sectors is clearly stated. One of the key statements in the paper is the full recognition of CCU for the first time as a solution for the circular economy, which includes CCU-based fuels as well. The communication paper distinguishes between bio-based CO2, fossil CO2 and CO2 from direct air capture when addressing carbon removal and it also announces detailed monitoring of the different CO2 streams. Not only CCU, but also carbon from the bioeconomy is registered as an important pillar for the future. Here, the term carbon farming has been newly introduced, which refers to improved land management practices that result in an increase of carbon sequestration in living biomass, dead organic matter or soils by enhancing carbon capture or reducing the release of carbon. Even though the list of nature-based carbon storage technologies is non-exhaustive in our view, we strongly support the paper’s idea to deem sustainable land and forest management as a basis for the bioeconomy more important than solely considering land use as a carbon sink. Surprisingly, chemical recycling, which is also an alternative carbon source that substitutes additional fossil carbon from the ground (i.e. carbon from crude oil, natural gas or from coal), is completely absent from the communication paper.

Berlin: Coalition paper of the new German Government: “Dare more progress – alliance for freedom, justice and sustainability”
The whole of Europe is waiting to see how the new German government of Social Democrats, Greens and Liberals will shape the German climate policy. The new reform agenda focuses in particular on solar and wind energy as well as especially hydrogen. Solar energy is to be expanded to 200 GW by 2030 and two percent of the country's land is to be designated for onshore wind energy. A hydrogen grid infrastructure is to be created for green hydrogen, which will form the backbone of the energy system of the future – and is also needed for e-fuels and sustainable chemical industry, a clear commitment to CCU. There is a further focus on the topic of circular economy and recycling. A higher recycling quota and a product-specific minimum quota for the use of recyclates and secondary raw materials should be established at European level. In the coalition paper, there is also a clear commitment to chemical recycling to be found. A significant change for the industry is planned to occur in regards to the so-called “plastic tax” of 80 cents per kilogram of non-recycled plastic packaging. This tax has been implemented by the EU, but most countries are not passing on this tax to the manufacturers and distributors, or only to a limited extent. The new German government now plans to fully transfer this tax over to the industry.

Düsseldorf: Carbon can protect the climate – Carbon Management Strategy North Rhine-Westphalia (NRW)
Lastly, the RCI highly welcomes North Rhine-Westphalia (NRW, Germany) as the first region worldwide to adopt a comprehensive carbon management strategy, a foundation for the transformation from using additional fossil carbon from the ground to the utilisation of renewable carbon from biomass, CO2 and recycling. For all three alternative carbon streams, separate detailed strategies are being developed to achieve the defossilisation of the industry. This is all the more remarkable as North Rhine-Westphalia is the federal state with the strongest industry in Germany, in particular the chemical industry. And it is here, of all places, that a first master plan for the conversion of industry from fossil carbon to biomass, CO2 and recycling is implemented. If successful, NRW could become a global leader in sustainable carbon
management and the region could become a blueprint for many industrial regions.

• Monforts customer Kipaş has been selected as the sole denim manufacturing partner in the €6.7 million European Union-funded New Cotton Project, involving the brands adidas and H&M, working in a consortium with suppliers, innovators and research institutes.

Kipaş, based in Kahramanmaraş, Turkey, is currently installing its third Monforts Montex stenter along with a third Monfortex compressive shrinkage system in a combined configuration dedicated to denim production.

This follows the successful installation and commissioning of the second Montex and Monfortex lines at the Kahramanmaraş plant in 2018, which Kipaş Vice Chairman of the Board Ahmet Öksüz said had immediately exceeded expectations.

“We performed a very thorough technical investigation based on the latest Industry 4.0 analysis before the purchase, to determine what we needed, and the Monforts technology met all our requirements,” he said, in an interview with Textilegence magazine. “The Monfortex is equipped with a variety of features not found on classical shrinkage machines and the production can be monitored from beginning to end. It also exceeded our expectations in energy cost savings.”

Kipaş subsequently received a special certificate from Monforts in recognition of its exceptional utilisation of the technology to its full potential.

The latest Montex stenter now being installed at Kipaş is a 12-chamber unit with a working width of 2 metres featuring all of the latest automation features. The Monfortex unit, also with a working width of 2 metres, is in a ‘double rubber’ configuration, comprising two compressive shrinkage units and two felt calenders in line. This allows the heat setting of elastane fibres and the residual shrinkage of the denim to be carried out simultaneously, for a significant increase in production speeds.

“Around 90-95% of denim fabric production now contains elastane fibres and the Monforts system has allowed us to simultaneously increase our production and quality in this respect,” Mr Öksüz said.

Regenerated cotton
For the next three years within the New Cotton Project, Kipaş will manufacture denim fabrics based on the cellulose-based fibres of Infinited Fiber Company of Finland, made from post-consumer textile waste that has been collected, sorted and regenerated.

The patented technology of Infinited, which is leading the consortium of 12 companies, turns cellulose-rich textile waste into fibres that look and feel like cotton.

“We are very excited and proud to lead this project which is breaking new ground when it comes to making circularity in the textile industry a reality,” said Infinited co-founder and CEO Petri Alava. “The enthusiasm and commitment with which the entire consortium has come together to work towards a cleaner, more sustainable future for fashion is truly inspiring.”

Take-back programmes
Adidas and H&M will establish take-back programmes to collect the clothing that is produced, to determine the next phase in their lifecycle. Clothing that can no longer be worn will be returned to Infinited, for regeneration into new fibres, further contributing to a circular economy in which textiles never go to waste, but instead are reused, recycled or turned into new garments.

The aim is to prove that circular, sustainable fashion can be achieved today, and to act as an inspiration and stepping stone to further, even bigger circular initiatives by the industry going forward.

The EU has identified the high potential for circularity within the textile industry, while simultaneously highlighting the urgent need for the development of technologies to produce and design sustainable and circular bio-based materials. Making sustainable products commonplace, reducing waste and leading global efforts on circularity are outlined in the European Commission’s Circular Economy Action Plan.

Fashion brands produce nearly twice as many clothes today as they did 20 years ago and demand is expected to continue growing. At the same time, the equivalent of one garbage truck of textiles is landfilled or burned every second. Most of the textile industry’s environmental problems relate to the raw materials used by the industry – cotton, fossil-based fibres such as polyester, and viscose as the most common man-made cellulosic fibre, are all associated with serious environmental concerns.

Retailers invest in emotionalisation and digitalisation +++ Top theme: linking online with offline shopping +++ Focus on sustainability +++ Accompanying Stages and Specials received very well

The World’s No.1 Retail Trade Fair, EuroShop 2020, drew to a close on Thursday (20 February 2020) after five successful days in Düsseldorf: 2,300 exhibitors from 57 nations reported of very good leads and concluded business deals. Furthermore, lively follow-up business is expected. 94,000 visitors travelled to the Rhine to gather information on the line-up of products, trends and concepts for retailers and their partners featured in 16 exhibition halls.  

“We are delighted that EuroShop once again successfully proved to be the most relevant platform for the global retail community when it comes to trends, inspirations and networking. Our exhibitors deserve the highest praise for their loyalty. With their innovative power they again proved the major attraction for an entire industry,” said Erhard Wienkamp, Managing Director at Messe Düsseldorf, voicing his great satisfaction with EuroShop 2020 results.

Exhibitors especially applauded the high international attendance at EuroShop. 70% of the EuroShop audience travelled to Düsseldorf from abroad. Large delegations came for example from Brazil, Australia and New Zealand. Trade visitors from a total of 142 countries attended EuroShop 2020.

“This high level of international interest clearly documents the dynamism of the global retail world and the exceptional position EuroShop enjoys as its economic engine,” said Michael Gerling, Chairman of the EuroShop Advisory Board and CEO of the EHI Retail Institute Cologne.

“The success of eCommerce is a real encouragement for retailers: they have understood they have to give their shoppers good reasons beyond the ranges to enter their stores. This competition has taken retail as a whole to the next quality level. Investment is being made in shop fitting so as to create customer journeys,” explains Gerling who adds: “Beyond this, retail digitalisation is booming. It enables retailers to offer their shoppers even more services and link online and offline channels, on the one hand, while simplifying process flows, logistics and lots more, on the other.” At EuroShop 2020 digital transformation was therefore a key focus, also in terms of achieving the highest energy efficiency and sustainability possible.

Exhibitors underlined the high level of expertise among visitors at the event, especially their pronounced decision-making powers, because 70% of the trade fair guests were in international top management. Many of them also used their visit to EuroShop to learn about best practice cases and forward-looking trends in retail at the in total eight Stages. The varied programme of lectures held on the individual Stages on such topics as Retail Technology, Architecture and Store Design or Expo & Event was well attended across the board. Meeting with the same high level of approval were the numerous Specials at EuroShop, including the Start-up Hub, the Designer Village and Premium City.

Numbers speak for themselves here: 96% of trade fair visitors were satisfied with their visit to the trade fair. Just as many confirmed the outstanding position of EuroShop as a trend barometer, networking platform and largest event for the retail sectors.

Due to the current situation associated with the Coronavirus 19.000 visitors less attended this time than at the record event 2017.

The next EuroShop will be held in Düsseldorf from 26 February to 2 March 2023.  

At EuroShop 2020 from 16 to 20 February, ECOpark will focus on energy storage solutions, cost reduction and climate protection
In future, the ENERGY STORAGE EUROPE (ESE) trade fair will cooperate with EuroShop, the world’s leading trade fair for retail investment requirements. As part of this cooperation, commercial enterprises will receive information on how they can use storage systems to implement energy saving measures, which in turn help them secure competitive advantages and commit to climate protection. ESE is expanding the user initiative that was started last year and which also comprises the cooperation with ProWein, the world’s leading trade fair for wines and spirits, as well as GNTM, the world’s leading trade fairs for metallurgy and foundry technology. The next ENERGY STORAGE EUROPE will take place in Düsseldorf from 10 to 12 March 2020.

“Our analyses show that many commercial users in retail, the metal industry and viticulture currently don't see storage as an integrated part of their energy systems and thus do not tap potentials for energy efficiency and climate protection,” says Andreas Moerke, Director ESE. “By cooperating with the leading trade fairs in these industries, we can show thousands of companies how energy storage can contribute to climate protection. In the coming months, we will approach the numerous customers of these trade fairs and connect them to energy storage system providers at ESE.”

EUROBIKE, the world’s leading trade fair for the cycling industry, will include ROICA™ smart innovations into the race. Cycle retailers, brands and manufacturers will discover ROICA™ premium stretch that provides comfort and movement as it energizes.

ROICA™ will go the distance as they join this year’s EUROBIKE Academy line-up and host an interactive panel focused on sustainability as an added value for the cycling market. Whether an expert or newcomer, the must attend panel titled; What is Smart Innovation in the Biking Market? will be held on Monday, July 9th from 12:00-12:45 in Conference Center East, Room London. Moderated by Giusy Bettoni, CEO, C.L.A.S.S. (Creativity Lifestyle And Sustainable Synergy), a Milan based company generating global strategies and identifying new values essential for today’s knowledgeable conscious consumer. The panel will lead the way, as they share their expertise and discuss what they are doing to push the boundaries of innovation. They will highlight responsible dimensions and processes currently available. The all-star lineup includes:

Uwe Schmidt, Asahi Kasei’s ROICA™, Managing Director introduces cycle enthusiasts, brands, retailers and manufacturers to the world’s first premium sustainable stretch yarn: ROICA™ Eco-Smart and the ROICA™ Feel Good family dedicated to well-being.
 
Laura Gambarini, marketing and communication manager at M.I.T.I. S.p.A.: M.I.T.I. Since 1931, M.I.T.I. develops and creates premium and innovative stretch warp knitted fabrics for all the high performance sports. Cycling brands recognize M.I.T.I. as the market leader for the outstanding features of their innovative fabrics. Green soul is their ultimate creation, the first fully sustainable stretch warp knitted range of fabrics in the world, created with ROICA™ Eco-Smart family for the new generation sustainable performance garments.
 
Sven Koehler, Head of production Maloja Clothing GmbH: Maloja, an outdoor specialty brand with its roots in nature and wellbeing have developed new amazing biking sets constructed of M.I.T.I. SpA fabrics using certified yarns belonging to ROICA™ Eco-Smart family.
 
Sergio Alibrandi, Executive Marketing Director Sitip S.p.A.: SITIP creates high-tech innovative sports fabrics that are made in Italy and optimize the latest technology. Committed to smart innovation, learn how they developed their ground-breaking multi-panel thermal bib tights able to generate heat for riders that want to conquer cold winter training. Made from BeHOT fabric constructed with ROICA™ StretchEnergy™, the next level of well-being providing a new dimension to active performance.  The audience will learn how leading international cycling brand Santini is using BeHOT with ROICA™ on select products to generate additional heat – up to 2 degrees C as the cyclist moves their body, thanks to ground-breaking heat generating technology as certified by CeRism, Outdoor Sport Research Centre at Verona University.
 
Spearheading the premium stretch market, ROICA™ partners’ materials elevate new standards for high-tech performance that can enhance cycling products to compete responsibly. ROICA™ partners excite you as they show a fantastic range of stretch essentials for cycling clothing, gear, and apparel that offer solid performance perks. Most importantly, visit ROICA™ partners at EUROBIKE to learn about their ongoing commitment to responsible innovation and creativity.

 Patagonia’s Clean Color Collection is a new capsule collection that Patagonia has just released in the last days of April. The products in the collection have been colored with dyes made from natural sources, including, along with other supply sources, EarthColors by Archroma, a range of dyes synthesized from agricultural waste.
Many of Patagonia’s synthetic dyes use less water, energy and CO2 when compared with conventional processes, however Patagonia is always looking for ways to do less environmental harm. The company, who already collaborates with Archroma for the Patagonia Denim collection based on Archroma’s Advanced Denim, therefore contacted Archroma to have a closer look at Archroma’s EarthColors dyes. The selected EarthColors dyes are the gorgeous Palmetto Green and Citrus Brown colors made respectively from non-edible palmetto green parts and bitter orange peels left over from agriculture industry or pharmaceutical extraction.

EarthColors is a line of plant-based dyes, sourced from up to 100 percent renewable resources. The colors change and fade over time, which is part of what makes these dyes unique.
“We are so proud that, once again, Patagonia has chosen Archroma’s eco-advanced dyeing technologies for their newest sustainable clothing endeavor,” comments Paul Cowell, Head of Brand Marketing in Archroma’s Brand & Performance Textile Specialties business. “We at Archroma are committed to challenge the status quo in the deep belief that we can make our industry sustainable. Because it’s our nature! Trail blazers like Patagonia bring us invaluable support in accelerating sustainable concepts in the textile value chain. Together we are showing the apparel industry the way to go, one collection at a time.”