In 2025, global economic uncertainties, such as inflation, trade tensions and supply chain problems, contributed to slower sales growth and investment among nonwovens producers. Despite these challenges, product development, innovation and entrepreneurialism remained strong. 

Major shifts across the industry this year included capacity adjustments among global nonwovens producers, the formation of the Global Nonwovens Alliance and growth in sustainable products like baby diapers, period products and wipes.

Here are some of the key topics that have shaped 2025.

Magnera Begins Global Capacity Reduction

In September, the world’s largest nonwovens producer, Magnera, announced a plan to reduce its global capacity by 5%. The company, formed in November 2024 through the merger of Berry Global’s Health, Hygiene and Specialties Global Nonwovens and Films business (HHNF) and Glatfelter, plans to save upwards of $20 million as it enters fiscal 2026 through its recently launched Project CORE (capacity optimization and resource efficiency) program. The initiative is designed to streamline Magnera’s global footprint, enhance operational agility and deliver greater value to customers and partners.

“The program represents a significant step forward in optimizing our global capacity and cost reduction and positioning us to deliver improved financial performance over the medium to long term,” says CFO Jim Till.

Amidst challenges in the global hygiene business, particularly in Latin America where Magnera operates several large spunmelt assets, the company conducted a thorough evaluation of its portfolio and identified areas of opportunity for savings. From a capacity optimization standpoint, this will lead to an idling of approximately 5% of Magnera’s global production capacity.  

As a result, Magnera has begun winding down operations at its Pilar, Argentina site. The company will continue to fulfill pre-existing commitments out of the site and ensure continuity for customers during this transition.

“This was not a decision taken lightly,” says Curt Begle, Magnera CEO. “It reflects our commitment to building a more efficient, responsive and sustainable organization—one that is better positioned to meet the evolving needs of our customers and the market.”

More than 60 employees will be impacted by the closure of the Pilar facility. Magnera is working closely with local teams to provide support. “We are deeply grateful for the dedication and contributions of our Pilar team,” adds Begle. “Supporting them through this change is a top priority.”

Throughout the process, Magnera remains fully committed to maintaining exceptional service and honoring its customer commitments. The company is actively leveraging its global portfolio to ensure seamless continuity and consistent delivery across all markets. In parallel, Magnera is investing in advanced systems and technologies to enhance responsiveness, accelerate innovation, and strengthen its long-term operational capabilities.

“This is a moment of evolution, but also of opportunity,” says Begle. “Through Project CORE, we are building a stronger, more agile organization—ready to lead with purpose and deliver new possibilities for our customers and communities.”

Capacity Reduction in Japan 

Amidst a declining domestic birth rate and intense competition from China, the Japanese nonwovens industry continues to face struggles. 

Mitsui Chemicals Asahi Life Materials is reportedly restructuring its nonwovens business in response to shrinking demand for diapers in Japan. The company, which was formed in 2023 through a combination of Mitsui Chemicals and Asahi Kasei, is one of Japan’s largest nonwovens producers.

The restructuring effort includes the closure of two production lines in Japan. Following these closures, the company will import materials for the domestic market from its two subsidiaries in Thailand, where it makes a reported 77,000 tons of polypropylene spunbond nonwovens per year. Of this, 47,000 tons are made at AKST, which was established by Asahi Kasei before the merger, and the remaining 30,000 are made at MHM, Mitsui’s Thai subsidiary. The company’s Japanese operations made 55,000 tons of polypropylene spunbond nonwovens per year, as well as PET and nylon spunbond nonwovens; it is unclear how much of this capacity will be impacted by the line closures.

Mitsui’s Thailand facility makes high-strength, hollow fiber spunbond nonwovens under the brand name Airyfa, which is primarily used in diapers as topsheet and side panel materials. The AKST lines will be converted to enable Airyfa manufacturing.

Meanwhile, following an announcement late last year that it would exit its fiber and textiles businesses, Japanese nonwovens producer Unitika reportedly sold its Japanese-based spunbond and spunlaced nonwovens operations in two separate operations in September.

Unitika’s Japanese polyester spunbond business, capable of making 10,000 tons of material per year, is being transferred to Seiren, whose main business is dyeing woven fabrics. Seiren, which is also engaged in a wide range of businesses, including the production of synthetic fibers and automotive interiors, reportedly plans to revitalize the business and develop chemical recycling at Unitka’s Okazaki Plant

Additionally, Unitika has sold its 7000-ton-per-year spunlace business to Cotex. Japanese hygiene machinery manufacturer Zuiko established Cotex in 2024 with a focus on developing and manufacturing cotton products for hygiene applications.

The integration of Unitika’s spunlace technology will allow Cotex to expand into the manufacturing and sale of cotton-based spunlace nonwovens, targeting both existing customers and new opportunities in domestic and international hygiene markets. The transferred business recorded net sales of approximately $26 million for the fiscal year ended March 31, 2025. 

Tusco, Unitika’s Thailand-based polyester spunbond business, has not yet found a buyer.

Unitika’s decision to exit the textiles business was reportedly after growing competition from Chinese companies increased the company’s losses for two straight years, significantly shrinking its equity. Unitika began efforts to revamp its struggling fiber-related operations in 2014, including moving production to Thailand and cutting costs, but the efforts have been unsuccessful, especially given the recent weakness of the yen.

The company plans to focus on food packaging films and other polymer products that are experiencing growth in Southeast Asia and other markets. 

Another Japanese producer, JNC Fibers, which specializes in thermal bonded nonwovens for baby diaper applications, has ceased production at its Japanese facility and sold one of its two Chinese sites to a local company, reducing its nonwovens output in Asia in two separate actions late last year. The company attributed weakening demand within the baby diaper market to both decisions. JNC, which has been active in the Asian nonwovens industry since 1995, will continue to produce thermal bonded materials at its remaining Chinese site as well as in Rayong, Thailand.

A Transformative Year for Kimberly-Clark

In 2025, Kimberly-Clark made two significant moves aimed at strengthening its manufacturing base and expanding its reach in consumer health.

In May, the company announced it would invest $2 billion over the next five years in its North America business, marking the company’s largest domestic expansion in more than 30 years. Amid rising demand for its consumer brands, which include Huggies diapers, Kleenex tissue, Depend incontinence products, Scott kitchen towels and Cottonelle bath tissue, these investments will significantly enhance its U.S. manufacturing capacity, accelerate its innovation plans and support its ambitious growth targets. 

This broad-based investment program centers on two projects: a new advanced manufacturing facility in Warren, OH, and an expansion of its Beech Island, SC, site with a state-of-the-art automated distribution center. It also includes additional capital expenditure linked to innovation and automation upgrades across its North America supply chain network.

“This landmark investment represents a strategic bet on the American consumer and our ability to drive innovation-led sustainable growth for Kimberly-Clark,” says Russ Torres, group president, Kimberly-Clark North America. “It reflects the confidence we have in our long-term growth plans and complements a broad range of commercial and R&D investments we have been making throughout the business as part of our Powering Care transformation journey.”

The new facility in Warren, OH, will serve as a vital hub for the Northeast and Midwest regions. It will be spread across more than a million square feet and provide the capacity needed to unleash future growth for Kimberly-Clark’s fastest-growing personal care categories. Its proprietary manufacturing technologies will enable the creation of new and improved next-generation consumer products, rooted in material invention, product engineering and manufacturing process innovation.

The new Regional Distribution Center (DC) in Beech Island, SC, will create the infrastructure necessary to support future scale and unlock network efficiencies. Located next to the company’s largest manufacturing facility, the automated DC will significantly increase the site’s ability to direct-ship and streamline its distribution footprint. The facility will leverage advanced robotics, AI-powered logistics systems and high-density automated storage to dramatically improve operational efficiencies and fast-track speed to market.

Meanwhile, last month, Kimberly-Clark announced it will acquire Kenvue Inc., a global consumer health leader and the manufacturer of consumer products like Tylenol, Neutrogena, BAND-Aid, Johnson’s and Listerine. The terms of the agreement value Kenvue at an enterprise value of $48.7 billion based on the closing price of Kimberly-Clark common stock on October 31. 

This transaction brings together two iconic American companies to create a combined portfolio of complementary products, including 10 billion-dollar brands, that touch nearly half the global population through every stage of life. 

“We are excited to bring together two iconic companies to create a global health and wellness leader,” says Mike Hsu, Kimberly-Clark chairman and chief executive officer. “Kenvue is uniquely positioned at the intersection of CPG and healthcare, with exceptional talent and a differentiated brand offering serving attractive consumer health categories. With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life.”

Hsu will remain at the head of the company, while three Kenvue board members will join the K-C board of directors. The combined company will maintain Kimberly-Clark’s headquarters in Irving, TX, and continue to have a significant presence in Kenvue’s locations.  

“Over the last several years, Kimberly-Clark has undertaken a significant transformation to pivot our portfolio to higher-growth, higher-margin businesses while rewiring our organization to work smarter and faster. We have built the foundation, and this transaction is a powerful next step in our journey. We look forward to working with the Kenvue team to bring these companies together and are confident that we will drive significant value for our combined shareholders,” says Hsu.

Global Nonwovens Alliance Forms

In June, the boards of directors of INDA and EDANA officially approved the formation of the Global Nonwoven Alliance (GNA) and have concurrently agreed to become its founding members. 

This move marked a major milestone in the collaborative vision outlined in the organizations’ jointly signed Letter of Intent from September 2024. The board votes follow extensive planning and consultation and include the recommendation to formally establish GNA as a non-profit association under the laws of the U.S.

By aligning strategic resources and deepening collaboration, the GNA will provide a unified and coordinated approach to the key opportunities and challenges facing the global nonwovens industry. The Alliance is designed to accelerate innovation, improve operational efficiency, expand international reach, and foster long-term industry growth—all while strengthening the services and support delivered to members at both regional and global levels. 

Under the GNA framework, INDA and EDANA will continue to operate as independent legal entities, maintaining their regional focus and advocacy efforts. As founding members, however, both organizations will participate in aligning leadership, staffing programmatic initiatives to advance shared objectives and cross-border priorities. 

The inaugural board of the GNA was established in September with split representation between INDA and EDANA.

EDANA president Murat Dogru has been appointed CEO of the GNA. INDA will be led by a regional executive director and will report to Dogru.

Dogru will lead the GNA’s strategy, operations and engagement with global stakeholders. As CEO, he will be responsible for ensuring that the organization delivers on its mission to represent and advance the industry at large. The position will officially start January 1, 2026.

In the months ahead, Dogru and the new board will work collaboratively to identify and align on the GNA’s top priorities. This collective process will ensure that the Alliance begins its work with clear direction, focused initiatives and a strong foundation to deliver value to the nonwovens industry worldwide.

Sustainable Hygiene Advances

Increasing concerns among consumers for health, wellness and the environment, paired with growing government action to curb plastic use, have driven companies and brands in the absorbent hygiene industry to use cleaner, more natural ingredients in their products.

As demand for plant-based products continues to grow, the number of new product launches has continued to increase. Globally, value sales of online retail disposable hygiene SKUs with the “natural” claim (including menstrual care, baby diapers, adult incontinence and personal wipes) grew almost 20% from 2020-2023, according to Euromonitor International’s Sustainability tracker.

In the feminine hygiene category, Lola expanded into postpartum care earlier this year with the launch of Organic Cotton Postpartum Pads. The pads are engineered to be three times more absorbent than standard heavy pads, while also featuring 100% organic cotton. The extra-long pads include a moisture-wicking topsheet and are free from chlorine bleach, dyes, fragrances and PFAS.

Cotton is also the fiber of choice for Harper Hygienics, which launched into the tampon category this year with Cleanic Pure Cotton Tampons, made from 100% organic cotton. Designed to adapt to the body and absorb efficiently, the tampons feature special grooves that direct liquid into the tampon, ensuring leak-free comfort. The plastic-free tampons are also gynecologically and dermatologically tested and free from chlorine, fragrances and synthetic fibers.

“The decision to enter the tampon category was a natural extension of both our market success and our long-term strategy,” says Dmitrij Kostojanskij, CEO of Harper Hygienics. “Building on strong sales in our existing feminine hygiene portfolio, we saw tampons as an opportunity to expand our offerings and provide women with a more comprehensive choice under one trusted brand.”

In baby care, diaper brands are responding to parents’ growing desire for cleaner and safer products. 

Kudos, which launched a disposable diaper lined with 100% cotton in 2021, grew its brick-and-mortar presence this year by doubling its Target store expansion to over 800 stores in the U.S. this year. 

“Year over year, we’re continuing to see demand for natural disposable diapers outpace demand for traditional disposable diapers, with smaller brands, like Kudos, increasingly capturing market share from industry incumbents,” says Moira Finicane, head of marketing, Kudos.

As Kudos was launching into Target, the brand also moved its manufacturing to the U.S. and is adding a second manufacturing line. Finicane says the biggest driving force behind moving manufacturing to the U.S. was that their customers wanted it. “We’re constantly talking to our customers, and we knew that made in the U.S.A. was important to them,” she says. “Furthermore, because our cotton and most of our materials were already U.S.-sourced, it allowed us to put our raw material suppliers and our manufacturer right next to each other.”

Looking ahead, the brand plans to launch cotton-lined training pants.

While Kudos uses 100% cotton in the topsheet of the diaper, Cottonsie, a new diaper brand, is using 100% cotton in three key diaper layers, including the topsheet, backsheet and acquisition distribution layer (ADL).

Nicole Richards, the founder and CEO of Cottonsie, has a background in textiles and polymers, specifically, the challenge of making cotton behave more like plastic when it comes to moisture transfer.

“Cotton is such a beautiful, natural material—soft, breathable, and environmentally-friendly—but it’s also known for holding onto moisture, which isn’t great when that moisture is sitting right next to a baby’s delicate skin,” she says. “I developed a patent-pending method that transforms how cotton handles liquid, allowing it to release and transfer moisture more like synthetic plastic-based materials found in conventional diapers.”

With that breakthrough, Cottonsie was able to create a diaper that’s made with 100% cotton in the topsheet, backsheet and ADL—offering the comfort of cotton with the performance of plastic. While the diapers contain some synthetic ingredients to enhance performance, including spandex in the leg cuffs for a comfortable fit, and plastic ear tabs for safety and quality, as well as a biodegradable superabsorbent polymer (SAP) to prevent leaks, most of the parts of the diaper that touch the baby’s and parent’s skin has been swapped out for cotton.

Sustainability is also driving change among major players in the market. Hygiene manufacturer Ontex Group has begun to use bio-based superabsorbent polymers (bioSAP) in its diapers, with an initial rollout in selected products. This new material replaces virgin fossil-based plastic SAP in the core absorbent component, helping to lower the product’s carbon footprint while maintaining its performance. 

SAP (superabsorbent polymer) is essential to diaper performance, yet it is traditionally made from fossil-based plastic. It is also one of the most carbon-intensive components in hygiene products. The bioSAP now being introduced has a 15% to 25% lower carbon footprint than conventional SAP, with a promising outlook as the technology continues to evolve. 

While it is initially rolled out to selected products under the Moltex Pure and Nature brand, Ontex’s baby diaper brand available in retailers and online across Europe, the development also lays the groundwork for broader application. This includes future products and offerings for retail partners.

The conventional SAP available in the market is currently not recyclable or industrially compostable. However, Ontex views biodegradable SAP as a key enabler for multiple circular solutions in the future. The company continues to monitor innovation in this area closely, while remaining realistic about current limitations.

“Consumers today want sustainable products that don’t compromise on affordability, quality, or comfort,” says Laurent Nielly, president, Europe division, Ontex. “By taking this step now, we’re laying the groundwork for future breakthroughs.”

Plastic-Eating Innovation

As diaper brands expand the use of plant-based raw materials in their products, a new brand, Hiro, is taking an entirely different approach to eco-friendly diapers—one powered by fungi. 

In April, Hiro Technologies announced the world’s first MycoDigestible Diapers (meaning “digested by fungi”), a first-of-its-kind product designed to break down in a landfill thanks to fungi-powered decomposition technology. Co-founded by entrepreneurs Miki Agrawal, the founder of Thinx period underwear, and Tero Isokauppila, Hiro’s launch marks the debut of an entirely new category of sustainability—a natural end-of-life solution for plastic waste, beginning with baby diapers.

“Diapers are the number one source of household plastic waste and the third largest contributor to landfills overall,” says Agrawal. “Each baby goes through ~5000 diapers. The very first disposable diaper ever made? It’s still in a landfill today. We knew there had to be a better way.”

Each MycoDigestible Diaper comes with a small packet of shelf-stable, plastic-eating fungi. Parents simply throw the packet away with the used diaper—no extra steps required. Once the diaper reaches a landfill, the fungi activate in the presence of moisture and begin to break down the diaper’s materials from the inside out. These fungi secrete enzymes that target and sever the carbon bonds in plastic, transforming the waste into mycelium and nutrient-rich soil over time. Traditional landfill conditions are typically too dry, oxygen-poor, or contaminated for decomposition to occur naturally, but Hiro’s innovation brings its own biological degradation system directly into the waste stream—no industrial composting or special infrastructure is required.

In parallel, Hiro is working with waste facilities and landfill operators to embed fungi more broadly across their systems, with a long-term goal of creating an ecosystem where fungi can help accelerate the breakdown of other plastic waste at scale.

While plastic-eating fungi were first discovered by scientists over a decade ago, their potential has remained locked in labs—until now. Hiro has pioneered a commercial, shelf-stable fungi technology that targets plastic at a molecular level, breaking it down into soil and mycelium (the root system of mushrooms) without harmful emissions or energy-intensive processes. This patented, award-winning innovation won the 2024 Hygienix Innovation Award.

“It’s literally in mushrooms’ DNA to break down complex carbon materials,” explains Isokauppila. “They already break down lignin which has a similar carbon backbone to plastics. We’ve simply re-trained them to do what they already kind of knew how to do.”

The company’s long-term vision is to become a global supplier of plastic-eating fungi, partnering with manufacturers, brands and waste management companies to address plastic pollution at scale. Hiro is actively building an international fungi-powered infrastructure—designed to serve the industries most in need of viable, sustainable disposal methods.

“In the absence of effective recycling, we’ve built a circular, scalable alternative,” says Isokauppila. “We believe the end of plastic begins with mushrooms—and with Hiro.”

Sustainability Drives Wipes Innovation

Like other nonwoven product categories, there is a growing demand for cleaner ingredients and a reduction in plastic in wipes. In response, nonwoven suppliers have invested in new production lines and upgrades to existing lines, enabling them to create wipe substrates using plant-based fibers. At the same time, wipes manufacturers are responding by reducing plastic in packaging, incorporating post-consumer recycled materials and reformulating products with safer cleaning agents. 

Earlier this year, RAAN launched a new wet wipe bearing the natural cotton seal—reserved exclusively for products made entirely of cotton. Formulated with 99% purified water, the wipes contain just five clean ingredients, including organic aloe, and are processed using a waterless cleaning method that saves water and energy, avoids bleach and chemicals

RAAN is the first wipe brand to use the TruCotton process, which retains the natural soothing waxes and oils that make cotton naturally hypoallergenic. This farmer-owned, farmer-operated process produces unbleached premium cotton fibers that ensure superior hygiene, softness and biodegradability. The TruCotton process, which separates cotton fibers from natural impurities without chemical alteration, is OEKO-TEX standard 100-certified, having been rigorously tested for 316 chemicals and leverages regenerative farming practices.

Meanwhile, Dude Wipes is targeting toddlers with its latest launch, LiL’ Dude Wipes. Like all Dude Wipes, LiL’ Dude Wipes are flushable and made with 99% water and plant-based ingredients like aloe vera and vitamin E. They’re hypoallergenic, phenoxyethanol-free, and contain no parabens, phthalates, dyes, chemical binders, or alcohol. Parents can choose from two options: classic Fragrance Free or Bubble Bum, a bubble gum-scented wipe.

The shift towards sustainability extends beyond the baby care aisle and is expanding on the industrial side. Early this year, CloroxPro released its 2024 Clean Index report, detailing the perceptions, needs and challenges of more than 1500 cleaning professionals and consumers from the past year. Responses from the study show that eco-conscious cleaner adoption is becoming widespread: two in three cleaning professionals stated that their facility is using such solutions and 60% reported that their facility has set a business goal to use more eco-conscious products.

CloroxPro recently expanded its Clorox EcoClean product platform with the launch of Clorox EcoClean Disinfecting Wipes. The wipes are made with a 100% plant-based substrate and naturally-derived, citric acid active ingredient that kills 99.9% of germs without bleach, ammonia or alcohol. The wipes clean and disinfect without harsh chemical odors and with 38% less plastic.

Targeting healthcare settings, Ecolab also introduced a new eco-friendly wipe. The disinfectant 1 wipe, the first EPA registered 100% plastic-free, readily degradable, one-minute hospital disinfection wipe, is derived 100% from wood pulp fibers. The product supports healthcare facilities looking to help improve patient safety and achieve their sustainability goals, citing an urgent need to address the environmental impact of traditional single-use plastic-based disinfectant wipes, which currently dominate the North American market.

In the U.K., wipes manufacturer Harrisons has long focused on greener wiping practices while maximizing performance without unnecessary waste or cost.

Stephen Harrison, managing director at Harrisons, says there is a clear push to move away from plastic in wiping across the industry. “The U.K. government has already banned single-use plastic wet wipes for consumers, and while that doesn’t yet extend to the professional market, the direction of travel is obvious,” he explains. “Businesses are under pressure, from regulators, customers, and their own ESG goals, to reduce plastic use wherever possible.”

Harrisons’ new Industrial Range includes two plastic-free innovations: the Tech 100, made with 100% cellulosic fibers for high-performance absorbency, and the Prem 100, which combines wood pulp and lyocell for outstanding strength and a soft, low-abrasion texture.

“Both demonstrate that sustainability and performance no longer need to be at odds,” says Harrison, adding that advances in nonwovens allow compostable and cellulosic fibers to rival traditional synthetics in absorbency, durability and softness. Looking ahead, he notes, the next major challenge is finding ways to recycle wipes used in heavy industrial environments—a breakthrough that could transform the sector’s sustainability profile.