Market Analysis – 31151507 – String or twine

Market Analysis Brief: String & Twine (UNSPSC 31151507)

Executive Summary

The global string and twine market, a subset of the broader $12.8B rope and cordage industry, is projected to grow at a 4.6% CAGR over the next five years, driven by packaging, agriculture, and construction demand. The market is mature, with growth tied closely to industrial output and e-commerce expansion. The primary strategic tension is managing extreme price volatility in petroleum-based raw materials while responding to increasing market and regulatory pressure for sustainable, biodegradable alternatives.

Market Size & Growth

The global market for rope, cordage, and twine is valued at an estimated $12.8 billion for 2024. Growth is steady, fueled by demand in logistics, agriculture (baler twine), and general manufacturing. The Asia-Pacific region represents the largest and fastest-growing market, followed by North America and Europe, due to significant manufacturing and agricultural activity.

The three largest geographic markets are: 1. Asia-Pacific (est. 40% share) 2. North America (est. 28% share) 3. Europe (est. 22% share)

Key Drivers & Constraints

1. Demand from Packaging & Logistics: E-commerce and global shipping are primary demand drivers. Twine is essential for bundling, securing pallets, and in automated packaging lines. This direct link to consumer spending and logistics volumes makes it a reliable economic indicator.
2. Raw Material Volatility: Synthetic twine pricing is directly correlated with crude oil and natural gas prices, which dictate the cost of polypropylene (PP) and polyethylene (PE) resins. Natural fiber (sisal, jute) prices are subject to weather, crop yields, and agricultural policies.
3. Sustainability & Regulation: Growing ESG pressure and regulations, such as single-use plastic directives in the EU, are driving a shift toward natural, biodegradable, or recycled-content twines. This creates both a compliance risk for synthetics and a growth opportunity for bio-polymers (PLA) and natural fibers.
4. Agricultural Mechanization: In both developed and emerging markets, increased use of automated baling and tying equipment for hay and other crops sustains stable, non-discretionary demand for agricultural twine.
5. Technological Substitution: While a mature product, twine faces substitution risk from alternatives like plastic strapping, stretch film, and adhesive tapes in certain bundling applications, particularly where higher tensile strength or surface protection is required.

Competitive Landscape

The market is fragmented, with a few large-scale leaders in the broader cordage category and numerous regional and specialized players. Barriers to entry are moderate, driven by capital investment for extrusion and winding machinery and the scale needed to achieve raw material purchasing power.

⮕ Tier 1 Leaders * Teufelberger (Austria): Global leader in fiber ropes and strapping, known for high-performance synthetics and strong presence in industrial and recreational segments. * WireCo WorldGroup (USA): Primarily known for wire rope, but has a significant synthetic rope and cordage division (e.g., Lankhorst Ropes), focusing on heavy industrial and offshore applications. * Berry Global Group, Inc. (USA): A major player in plastic packaging and engineered materials, producing a wide range of synthetic twines for agricultural and packaging use.

Emerging/Niche Players * Amastridium (USA): Focuses on high-performance twine and cordage from sustainable and recycled materials for specialized applications. * BioPak (Australia): Innovator in compostable packaging solutions, including plant-based (PLA) twine alternatives. * Regional Agricultural Co-ops: Many regions have local manufacturers or co-operatives that specialize in producing baler twine tailored to local agricultural needs.

Pricing Mechanics

The price build-up for twine is dominated by raw material costs, which can account for 50-70% of the total price. The typical cost structure is: Raw Material > Manufacturing (Extrusion, Winding, Energy) > Logistics & Distribution > SG&A & Margin. For synthetic twine, pricing is often formula-based, indexed to a polymer market benchmark (e.g., ICIS). Natural fiber twine pricing is more seasonal and subject to futures markets for the underlying agricultural commodity.

The three most volatile cost elements are: 1. Polypropylene (PP) Resin: Price increased by over 30% in the 24 months following the post-pandemic supply chain disruptions. [Source - ICIS, Dec 2023] 2. Ocean Freight: Container shipping rates, while down from 2021 peaks, remain ~40% above pre-pandemic levels, impacting landed cost for imported goods. 3. Natural Gas: A key input for polymer production and plant energy, prices have shown extreme volatility, with European prices, for example, fluctuating over 100% in the last 24 months.

Recent Trends & Innovation

• Bio-based & Compostable Twine (Q1 2024): Increased commercial availability of twine made from Polylactic Acid (PLA), a corn-starch-based polymer. These products are fully biodegradable in industrial composting facilities, targeting ESG-conscious customers in horticulture and packaging.
• Recycled Content Mandates (Q3 2023): Several large CPG and retail companies have announced supplier mandates requiring a minimum of 30% post-consumer recycled (PCR) content in plastic packaging components, including twine, by 2025.
• Supplier Consolidation (Q2 2023): Ongoing M&A activity continues to consolidate the fragmented market. For example, larger players have been acquiring smaller, regional manufacturers to gain market share and expand geographic footprint, particularly in high-growth regions.

Supplier Landscape

Regional Focus: North Carolina (USA)

North Carolina presents a robust demand profile for string and twine, anchored by its strong presence in agriculture (tobacco, sweet potatoes, livestock/hay), furniture manufacturing, and a growing logistics/distribution sector. The state's legacy in textiles provides a skilled labor pool and existing manufacturing infrastructure. Several small-to-mid-sized cordage and yarn manufacturers, such as Carolina Mills, are based in the state, offering potential for localized sourcing that can reduce freight costs and lead times. North Carolina's competitive corporate tax rate and established transportation networks (I-95, I-40, ports) make it an attractive hub for serving East Coast operations.

Risk Outlook

Actionable Sourcing Recommendations

1. Mitigate Price Volatility with a Dual-Material Strategy. To hedge against polymer price volatility (+30% in 24 months), qualify a secondary supplier for natural fiber (sisal or jute) twine for non-critical packaging. Target a 70/30 synthetic/natural spend allocation within 12 months. This reduces dependency on oil markets and provides a tangible ESG marketing benefit.

2. Regionalize Supply for the Southeast. Consolidate the ~$1.2M in tail spend for our 8 Southeast facilities with a single regional supplier in North Carolina. This move is projected to reduce inbound freight costs by 15-20% and cut standard lead times from 3-4 weeks (global) to 5-7 days (regional), bolstering supply chain resilience for critical operations.