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The cotton market size is estimated to grow by USD 7.86 billion at a CAGR of 2.96% between 2023 and 2028. The market share growth is mainly attributed to its versatile nature. Being the most commonly used natural fiber in textile production, it accounts for one-third of all fibers produced worldwide. In 2018, China held the largest market share, projecting an annual revenue of USD 15.15 billion. Cottonseed oil and traditional diapers are among diverse products derived from cotton, impacting export volumes and market trends. In this market growth and analysis report, the market size, historical data (2018-2022), and future forecasts are presented in terms of value (in USD billion) for all the mentioned segments.
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In the global markets, stakeholders navigate price volatility using OTC, futures, and options-based solutions to manage margins and ensure long-term profitability. Risk management is crucial, with consulting and advisory services providing a strategic edge. Textile mills and apparel manufacturers rely on stable cotton markets to produce cotton fibers, yarn, and various textile products meeting export demand. Global cotton production and consumption metrics, including metrics like bales, metric tons, and crop yields, influence market dynamics. Understanding these dynamics is essential for optimizing strategies in the dynamic cotton production and apparel manufacturing sectors. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market witnessed economic growth and a source of livelihood and government initiatives and support have significantly impacted this market growth. Cotton is the most widely used natural fiber in textiles, accounting for one-third of the total fibers manufactured worldwide. Cotton is a truly global commodity that is produced in more than 70 countries, including many underdeveloped countries, where cotton production and processing are important contributors to economic stability and job creation. It is also a critical means of livelihood for millions of smallholders and their families, as it provides employment and income. It represents a good source of export revenues for some of the poorest countries in the world, helping them pay for their food import bills.
The market is segmented by Applications such as cotton fiber, cottonseed oil, and cotton seed. The cotton fiber segment is contributing the most in the forecast year. Cotton is a soft, natural fiber that grows in shrubs in tropical and subtropical regions around the world.
The vendors are focusing on sustainable cotton production and farming, is an upcoming trend in the market. Farmers have started focusing on sustainable cotton farming. The US Cotton Trust Protocol sets a new standard for more sustainably grown cotton. The US Cotton Trust Protocol brings quantifiable and verifiable goals and measurements to sustainable cotton production and drives continuous improvement in six key sustainability metrics, namely land use, soil carbon, water management, soil loss, greenhouse gas emissions, and energy efficiency. Choosing Trust Protocol cotton will give brands and retailers the critical assurance they need that the cotton fiber element of their supply chain is more sustainably grown, with lower environmental and social risks. Sustainable cotton farmers are slowly adopting precision agriculture, because of which irrigation water use has decreased by nearly 80 percent on a per-hectare (acre) basis. As demand for sustainable products increases, the cotton market is expected to witness high growth during the forecast period
The trade war between the US and China has fueled uncertainty over the level and stability of global cotton demand, as the US is a major importing country of textiles and apparel products coming from China. Moreover, the potential continuation of US-China trade tensions will probably influence the projected deficits in cotton supply at the spinning mill. Chinese fabric and garment manufacturers are facing a huge inventory pile-up because their garment exports to the US have declined.
Because of the trade war between the US and China, the demand for cotton yarns in the international market has gone down. The second-largest cotton-producing country in the world, India, has been observing uncertainties in its spinning sector due to this. The US government has decided not to uplift the tariff imposed in the year 2020 for textile products being imported from China. This, in turn, is having an adverse effect on the textile industry of China. Such factors in key cotton markets are expected to hinder the growth of cotton during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the cotton fiber segment will be significant during the forecast period. Consumer tastes and preferences are driving the demand for cotton fiber. The cotton industry is experiencing a huge boom with the growth of the global textile mills and apparel manufacturing market.
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The cotton fiber segment was valued at USD 36.28 billion in 2018. Cotton fiber accounts for one-third of all fibers produced worldwide as it is the most commonly used natural fiber in textiles. Although cotton is an export crop, most of its processing takes place in major producing countries such as China and India. The rising demand for natural fiber is expected to propel the demand for cotton fiber which in turn will boost the growth of the market during the forecast period.
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APAC is estimated to contribute 87% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC dominates global cotton production and most of the cotton produced is domestically consumed in contrast to Western countries where cotton is grown mainly for exports. China is leading the global production and export market. The textile industry in APAC is growing due to the growing usage of cotton as prime material in clothing, the rising population, increasing disposable incomes, and a rise in the demand for home furnishing products. This has a positive impact on the market in APAC. Cotton is the prime cash crop in most of the countries in APAC, such as China, India, Bangladesh, and Pakistan.
The development of China's textile industry has increased the consumption of cotton, along with the consumption of cotton linters, cotton waste, and comber noil. India is considered one of the largest players in the market in APAC. The Indian textile industry is predominantly a cotton-based industry. India is considered next in line to dominate the APAC market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a cornerstone of the textile industry, with textile mills and apparel manufacturing markets driving demand for these fibers worldwide. Export demand for cotton yarn and other textile products fuels production in countries with high consumption rates. It finds applications beyond garments, including medical dressings, knitted fabrics, and industrial products. Government bodies like METI and the USDA play pivotal roles in monitoring exports and export volume, ensuring market stability. It is also utilized in medical supplies such as medical gauze, cotton swabs, and cotton rounds, as well as traditional diapers and cottonseed oil production.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.96% |
Market growth 2024-2028 |
USD 7.86 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.77 |
Regional analysis |
APAC, Middle East and Africa, North America, South America, and Europe |
Performing market contribution |
APAC at 87% |
Key countries |
China, India, Pakistan, Bangladesh, and Turkey |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ambika Cotton Mills Ltd., Asha Cotton Industries, Banswara Syntex Ltd., Carr Textile, Damodar Group, Fazal Cloth Mills Ltd., Hengli Group Co. Ltd., Huafu Fashion Co. Ltd., Loyal Textile Mills Ltd., Lu Thai Textile Co. Ltd., Oswal Group, Shri Vallabh Pittie Group, Sintex Industries Ltd., Sutlej Textiles and Industries Ltd., The Bombay Dyeing and Manufacturing Co. Ltd., The Lakshmi Mills Co. Ltd., Trident Ltd., Unifi Inc., Vardhman Group, and Weiqiao Textile Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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