In 2021, the global economy recovered from the previous year’s recession, despite the ongoing COVID-19 pandemic.
The International Monetary Fund estimates that growth amounted to 5.9 percent in 2021 (–3.1 % in 2020). The economy in industrialized nations is expected to have expanded by 5 percent (2020: –4.5 %). Despite the economic recovery, 2021 was characterized by numerous economic challenges: supply failed to keep pace with demand in many areas of the global economy. In addition to further reasons, including structural reasons, this led to significant price increases, particularly in the energy area, and to problems in global supply chains.
Following the pandemic-related shock in the previous year, the demand situation in the textile and apparel industry largely recovered in 2021. Retail sales of apparel returned to pre-crisis levels worldwide. However, major regional differences were evident. The extensive recovery in the textile and apparel industry and continuing high demand for medical and hygiene products, which also led to strong demand for nonwoven fibers in 2021, fed through to a significant recovery in the world fiber market.
Thanks to its strategic focus on specialty fibers and a largely positive market environment, the Lenzing Group recorded a significant year-on-year improvement in revenue and earnings trends in 2021. Growing optimism in the textile and apparel industry as a consequence of the progress made with vaccinations and the continuing recovery in the retail sector ensured a significant rise in demand and prices on the global fiber market, particularly at the beginning of the year under review. The focus on wood-based specialty fibers, such as those of the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands, also exerted a positive impact on revenue growth. The earnings trend mainly reflects Lenzing’s position within the current market environment. Significant increases in energy, raw material and logistics costs were recorded throughout the reporting year.
