In the nonwoven industry market competitiveness can be approached through three key strategies: product innovation, production innovation, and service innovation. Understanding how these factors shape success is essential for converters navigating an increasingly saturated market.

Production innovation: a shared challenge for converters and machine manufacturers

Production innovation is a critical factor that can be pursued both by converters—who optimize their own processes—and by machine manufacturers, who develop new methods for making the same products more efficiently. While converters focus on improving throughput, waste reduction, and operational efficiency, machine manufacturers work on creating next-generation converting systems that push the industry forward.

However, innovation in production is increasingly difficult in a mature market. The leading manufacturers of converting technologies have spent years refining their systems, optimizing every detail. At this stage, their improvements tend to be incremental, refining existing systems rather than introducing disruptive technologies.

Product innovation: a consumer-driven perspective

Unlike production innovation, which revolves around manufacturing efficiency, product innovation is consumer-facing. It concerns how the final product meets customer needs, offering improved functionality, better absorbency, superior comfort, or enhanced sustainability. The focus here is on market demand—delivering hygiene products that appeal to consumers while meeting the expectations of retailers and distributors.

Service innovation: a key to strengthening B2B relationships

Service innovation is particularly relevant in B2B relationships, where converters must differentiate themselves not only through product offerings but also through logistics, customization, supply chain reliability, and partnership models. Whether engaging with distributors, private label clients, or large retailers, innovation in service is a crucial factor in securing long-term commercial success.

The Innovator’s Dilemma and the Role of Emerging Players

One of the biggest challenges in production innovation is the Innovator’s Dilemma—the paradox where market leaders, despite their capabilities, hesitate to introduce disruptive technologies for fear of cannibalizing their existing solutions. Instead of revolutionizing the market, they focus on incremental refinements to maintain stability.

In industries like nonwoven converting, this approach stifles true technological progress. Unlike major Big Tech companies, which often create internal divisions dedicated to challenging their own flagship products, leading converting machine manufacturers rarely disrupt their own market position. As a result, genuine breakthroughs often come from smaller, specialized players—companies with no established dominance to protect, but with the ambition to revolutionize how nonwoven products are manufactured.

A prime example is the Italian company Coax Technologies, which has specialized in developing innovative machinery for the production of absorbent cores used in underpads, baby diapers, feminine hygiene products, and adult incontinence briefs.