I. Market Size and Competitive Landscape

• Scale and Growth: In 2025, the Chinese polyester embroidery thread market size was approximately RMB 7.86 billion, a year-on-year

 increase of 6.8%; production capacity was approximately 900,000 tons, effective demand was approximately 700,000 tons, the industry 

average capacity utilization rate was 78.6%, and the top 3 companies reached 92.4%.

• Concentrated Competition: The CR10 reached 56.7%, dominated by leading companies such as Hengli, Tongkun, and Xinfengming; 

Asian manufacturers accounted for 76.5% of the global market share, and Chinese companies' market share of high-end threads 

increased by over 12% annually.

• Regional Distribution: Jiangsu, Zhejiang, and Guangdong accounted for 61.4% of production capacity, while green production 

capacity in the central and western regions rose to 29%, demonstrating a significant industrial cluster effect.

• Export Trends: Imports from RCEP member countries increased by 12% annually; the EU's CBAM and the US UFLPA raised compliance

 thresholds, with returned/removed goods exceeding US$250 million in the first three quarters.

II. Policy and Compliance Updates

• Domestic Environmental Protection: The "Textile Industry Carbon Peak Action Plan" is being implemented, aiming to reduce energy 

consumption per unit of production by 13.5% by 2025 compared to 2020, with recycled polyester usage reaching 60%+, and mandatory

 labeling of recycled content starting in July. Fresh water consumption per unit of product must be ≤1.8 tons/ton production line. 

VOCs control is becoming stricter, increasing compliance costs for SMEs by 67%, and approximately 120 companies with a capacity of 

<5000 tons/year face closure.

• International Compliance: The EU Digital Product Passport (DPP) and Southeast Asia's EPR system are being promoted; OEKO-TEX 

and GRS certifications are becoming essential for exports, forcing companies to build global compliance systems.

• Industry Reshuffling: The "Green Textile Manufacturing Development Action Plan" promotes green standard coverage to 70%, 

eliminates outdated production capacity, and mandates that leading companies bear **80%** of environmental protection investment,

 accelerating the exit of SMEs.

III. Technological and Product Innovation

• Functional Upgrades: Demand for antibacterial (99.8% antibacterial rate), UV-resistant, and flame-retardant products has surged, 

with the proportion of high-end functional yarns increasing from 15% to over 30%; bio-based polyester substitution is accelerating, 

with a planned substitution rate of 20% by 2028.

• Process Innovation: DTE dyes directly penetrate the yarn core, resulting in superior color fastness and feel; low-temperature dyeing 

reduces energy consumption by 30%, and intelligent color control achieves a color difference rate of ≤0.3%; gradient twisting and 

core-sheath composite structures are adapted for high-speed machines (1600 rpm), with a breakage rate of <1.2 times per 10,000 

stitches.

• Intelligent Production: AI visual inspection achieves a 99% first-pass yield; intelligent factory transformation shortens order delivery

 cycles by 40%, significantly improving production efficiency.

IV. Application Scenarios Expansion

• Core Areas: Apparel and home textiles account for 72% of sales; high-end customization and wedding attire drive a 15% increase in 

sales of 80D+ high-count yarns; in the wedding dress category, bright polyester filament accounts for 89.6% of the usage. • Emerging 

Sectors: Rapid growth in demand for automotive interiors, medical textiles, smart home products, and outdoor supplies; industrial-

grade high-strength embroidery thread growth rate reaches 12%+.

• Cross-Industry Integration: Embroidery + digital direct injection and 3D embossing processes enhance added value; 3D embroidery 

heat transfer technology is efficient and low-cost, suitable for small-batch personalized customization.

V. Raw Material and Price Trends

• Raw Material Fluctuations: The average PTA price index in 2025 is approximately RMB 5800/ton, affecting industry gross profit 

margins; some polyester staple fiber companies raised their settlement prices by RMB 50/ton starting in January, triggering a price 

difference compensation market.

• Cost Control: Leading companies have unit production costs 23%-28% lower than small and medium-sized manufacturers; vertical 

integration and economies of scale build a cost moat.

VI. Key Highlights for 2025

1. Capacity Launch: Xinfengming's 550,000-ton and Yida's 250,000-ton sewing thread-specific staple fiber capacity will come online, 

intensifying competition in the cotton-type staple fiber market.

2. Product Structure: Regenerated/bio-based and functional products are the growth engines, while low-end, homogeneous products 

are being phased out.

3. Compliance Upgrade: The establishment of international compliance systems has become essential for enterprises exporting, and

 green production and certification are driving high-quality development in the industry.