The market
Global production of natural fibers from plants and animals reached $50 billion in 2010, totaling 35 million tons, of which 23 million tons were used for textiles and clothing. The remaining 12 million tons were used in a range of industrial and consumer product applications, such as reinforcing thermoplastic panels in European cars, creating composite panels with coconut fibers stronger than teak in Indian construction, using sisal-reinforced roofing in Brazil, and using hemp mixed with cement in China for the 2008 Olympic Games. The global market for natural fiber composites in the automotive, construction, sports, and leisure industries was valued at $2.1 billion in 2010 and was expected to more than double by 2015. BMW vehicles contain up to 24 kilograms of flax and sisal, which are processed into composites for interior panels and dashboards. The Mercedes Benz A-Class uses natural composites in the underbody panels not only because of their natural origin, but also because of their performance in terms of weight and durability.
The world's largest natural fiber, cotton, was produced at 25 million tons in 2010. The three largest cotton producers are China (32%), India (22%), and the United States (12%). However, cotton production is declining, particularly in the United States, where the area under cotton cultivation fell by 30 percent in a single year to just over 3 million hectares, the lowest level since 1983. While this decline has traditionally been attributed to the replacement of natural fibers with synthetic ones, the global trend is being exacerbated by China's desire to cultivate food on land now dedicated to cotton. China aims to largely replace water-intensive cotton farms with food crops. They have chosen to replace cotton with industrial hemp. Hemp cultivation is expected to expand from a modest 20,000 hectares currently to perhaps 1.3 million hectares within a few years. Hemp grows prolifically on hilly and less fertile soils, without needing irrigation, while also stabilizing erosion, a key ecosystem service. The second most important natural fiber produced in the world is jute, with production reaching 2.9 million tons and mainly produced in India. Its prices are higher (up to $400 per ton) than those of cotton because jute fiber is primarily used as a substitute for plastic packaging and is therefore linked to the international price of oil.
Innovation
Natural fibers are popular, and demand is generally rising. Variations in quality, low fire resistance (except for wool), and low impact resistance limit their wider industrial use. On the other hand, high stiffness and the ability to break without leaving rough, dangerous edges are considered advantages. However, one of the biggest challenges remains the fact that most plant fibers compete with food production for land and water. There are attempts to transform, for example, water hyacinth into strong fibers useful for making furniture and accessories. This invasive species clogs rivers and dams in Africa and Asia, feeding on nutrients that accumulate in waterways due to soil erosion and the overuse of fertilizers. With the exception of a few minor breakthroughs for this aquatic plant in Thailand and Bangladesh, there is a need to find natural and widely available renewable fiber resources that can be converted into quality products without competing with food.
Ji Yujun presided over the 7th, 8th, 9th, and 10th National People's Congresses of China, but he is an entrepreneur at heart. As a representative of the Party, he has always been concerned with economic growth while ensuring social welfare. He began his career in 1980 as the manager of a towel factory that was unable to meet quality standards. This was during the era of the planned economy, when the supply of cotton was still unpredictable and often beyond the control of a factory manager. Under Ji Yujun's leadership, quality improved, and production increased through the importation of advanced equipment from Japan and Germany. Mr. Yujun then merged the towel manufacturing company with state-owned and municipal enterprises under the Xi Ying Men brand. This brand emerged in 2005 as the first brand in China's textile industry. While consolidating production, he decided to invest in research to differentiate the offering.
Ji Yujun and his team were inspired by the fact that every year in June and July, green algae blooms appear along the Qingdao coast, consuming large quantities of oxygen and threatening marine life and fisheries. In 2007, an algal bloom in Taihu, China's third-largest freshwater lake, disrupted the tap water supply for more than a million people in Wuxi, Jiangsu Province, for about ten days. Volunteers and the military cleared nearly a million tons of algae from the sea before the 2008 Olympic sailing competition could begin in Qingdao. Since algal blooms often wreak havoc on Chinese waterways and threaten marine ecology and fisheries, it was agreed to undertake a joint research initiative with the National Laboratory for New Materials at Qingdao University to explore the potential of algae as a source of fiber.
The first cash flow
The original fibers were fragile and used only for medical textiles such as bandages and surgical dressings. The team then succeeded in developing a new process for extracting raw materials from kelp fibers. Motivated by the fact that these fibers were stronger and more durable than cotton, the research team tested the extraction of high-strength alginate fibers from a wide variety of brown, green, and red algae. The research team discovered that the new fibers are resistant to fire and electromagnetic waves. Thus, algae-based fibers provide a unique raw material for the manufacture of specialty clothing, such as flame-resistant garments, medical uniforms, and protective clothing for military use.
The new alginate extraction process yields 200 to 250 kg of raw material for every ton of dried seaweed. The cost of producing alginate fiber ranges from $8,000 to $10,000 per ton. As China is the world's largest seaweed aquaculture country, producing approximately half of the world's low-grade seaweed, it has an abundance of raw materials for producing alginate-based fibers. This means that low-value seaweed can be sold at high prices. Even better, each year, the cleanup of excessive seaweed blooms becomes a source of jobs and high-quality products with proven market value. Positive feedback from initial trials with customers motivated Mr. Yujun to build a 1,000-ton fiber factory in Qingdao, which became operational in 2011.
The opportunity
The first sales of seaweed-based textiles were well received by customers, who are widely aware of the ability of seaweed extracts to regenerate and maintain healthy skin. The potential production of renewable alginate fibers from China, based on the country's currently available resources, could reach 1.9 million tons per year. Seaweed fibers, which were previously completely untapped, are thus becoming the third most important natural fiber on the market. This implies that China (and the world) could further reduce its dependence on cotton—which requires the use of pesticides and large quantities of water—without needing land for agriculture. Textile applications for seaweed fibers have already expanded from bandages and specialty clothing to fashionable products.
New fashion brands are emerging, such as Twosquaremeter in Germany, a startup that offers clothing containing algae and claims that skin is soothed and regenerated by wearing algae-based textiles—a claim that has been independently verified. A skirt or dress can cost between €100 and €250, and while this is several times the retail price of Zara or H&M, it's only a fraction of the major brands. Thus, algae-based textiles are carving out a niche for clothing that is healthy for both the wearer and the environment from which they are sustainably harvested. If the source includes algae blooms, we see an exemplary application of the blue economy concept. Regardless of the cost of algae disposal, these freshwater or seawater resources then provide income, meet a real market demand and generate jobs, a marked improvement over dumping the prolific biomass in landfills where it rots and generates methane.
The potential of seaweed fibers has attracted competitors. The Qingdao Xi Ying Men Group may have the world's largest production facility, but competitors have emerged, such as Taiwan's New Fibers Textile Corporation, which manufactures a fiber combining cellulose and seaweed, both considered renewable resources. The German chemical group Zimmer AG pioneered similar fibers but sold its operations to Smart Fiber AG, which now boasts a production capacity of 500 tons per year in Rudolstadt, using seaweed harvested from the North Sea. Smart Fiber has also relocated to the Lenzing plant in Austria, a leader in cellulose fibers. The Smart Fiber team produces antibacterial, odor-reducing, skin-friendly, temperature-regulating, electrically conductive fibers that are also resistant to chemicals and temperature variations. Now, we are entering the market for therapeutic and functional textiles, opening up a new world for entrepreneurs worldwide.

