Rising crude oil prices are sending shockwaves through the global textile industry, driving up costs for petroleum-based fibers and accelerating the shift toward bio-based alternatives.
Geopolitical tensions in the Middle East have pushed oil prices higher, lifting costs for downstream petrochemical products. Polyester, the world’s most widely used fiber, has been particularly affected, with partially oriented yarn (POY) prices climbing from 7,000 yuan ($1,018) per ton in January to 9,250 yuan by April 1, according to textile data platform TNC.com.
The price surge is squeezing margins across the apparel sector, especially for mass-market brands with limited pricing power. Smaller producers face the dilemma of passing on higher costs or maintaining prices at the expense of profitability. Premium brands, including Arc’teryx and Kailas, are better positioned to absorb costs thanks to strong brand equity and recyclable fiber usage.
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Industry analysts note the current disruption could mark a turning point, prompting manufacturers to diversify materials. Bio-based fibers, derived from renewable resources, are gaining traction for their cost stability, performance, and alignment with sustainability targets. Natural fibers like cotton, wool, and linen are also being reconsidered to reduce dependence on petrochemicals.
“The focus needs to shift from price competition to value creation,” said Li Kejie, Asia-Pacific marketing manager of bio-based materials maker Sorona. “Stability, sustainability, and differentiation will define the next phase of growth.”
Synthetic fibers still dominate global consumption, accounting for around 62% of the market, with polyester alone representing over half. The industry’s heavy reliance on oil-linked materials underscores the vulnerability of apparel supply chains to energy price volatility.
