Due to the lack of investment in airlaid during the last few years, as well as lines shuttering, the global airlaid market has been described as tight by industry observers. But with the growth of the feminine hygiene market in developing countries and the rapid rise in the aging population in developed countries—leading to more users of adult inco products—airlaid could see greater demand in the future, which could encourage expansion among airlaid producers. According to a recent study from Smithers Apex, the current $1.64 billion airlaid market is expected to grow at an annual growth rate of 4% to reach $2 billion by the year 2020. Airlaid’s key markets—feminine hygiene, adult incontinence, wipes and food pads—are all growing and demand in these markets is strong, the report says. It also states that North America’s supply is the tightest globally, at nearly 95% utilization, with the continent even importing some airlaid from Europe, which has some leeway at 87.5% consumption. Utilization in Asia—“the fastest growing major region” for airlaid—currently stands at 90%. Industry consultant Phil Mango sees global capacity as the airlaid industry’s biggest challenge. “There’s a little bit of a shortage and it comes and goes,” he says. “A year or two ago, the shortage was so tight that there was no airlaid to be had. Now, because Europe is sort of in a ‘mini recession’ and their demand for airlaid has weakened somewhat, there’s a little bit of a capacity around in certain regions of the world.” The airlaid market has always gone through boom and bust cycles, he adds. “Occasionally there’s no airlaid capacity around, the prices go way up and nobody wants to do any product development work with airlaid because there is not any airlaid to be had, so they go to other substrates. Then, the airlaid companies react, and they overreact, and everybody builds airlaid lines.”