Authored By: Sarah
25 Jun 2024

 Cotton Market Size to grow by USD 7858.1 million between 2024-2028

According to a research report “ Cotton Market” by Application (Cotton fiber, Cotton seed oil, Cotton seed) Distribution Channel (Offline, Online) Geography (APAC, Middle East and Africa, North America, South America, Europe)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 7858.1 million, at a CAGR of almost 2.96% during the forecast period. The global cotton industry is a significant player in the textile sector, accounting for approximately one-third of the total fiber production worldwide. With over 100 million family farmers cultivating cotton across 75 countries, this industry is truly global in scope. In underdeveloped nations, cotton production and processing serve as crucial economic pillars, contributing to economic stability and job creation. The industry generates an annual revenue of over USD50 billion from raw products, providing a vital source of income and employment for millions of smallholders and their families. For many impoverished nations, cotton represents a crucial export commodity, generating essential revenue to cover food import bills.

Browse market data tables, figures, and in-depth TOC on “Cotton Market” by Application (Cotton fiber, Cotton seed oil, Cotton seed) Distribution Channel (Offline, Online) Geography (APAC, Middle East and Africa, North America, South America, Europe) Global Forecast to 2028. Download Free Sample

 

By Application, the Cotton fiber segment is projected to dominate the market size in 2024

In the cotton market, farmers, who are primarily located in rural and remote areas, face various intermediaries and agencies throughout the supply chain that connects them to consumers. These intermediaries can include merchants, traders, ginners, mills, and retailers. The number of intermediaries involved significantly impacts the profitability of cotton production for farmers. Direct distribution of cotton to consumers, bypassing intermediaries, can lead to cost savings for all parties involved, particularly in transportation expenses and improved price realization for producers and bulk buyers. This streamlined approach to distribution also ensures a more efficient and transparent supply chain. However, it requires effective marketing and logistical strategies to reach consumers directly. To optimize profits, cotton farmers should explore various distribution channels, considering both traditional intermediaries and direct-to-consumer models. The choice between these options depends on factors such as market access, transportation costs, and the ability to reach consumers directly. Ultimately, a well-informed and strategic approach to distribution can lead to increased profitability and a more sustainable cotton market.

By Distribution Channel, Offline  segment is expected to hold the largest market size for the year 2024

In the global textile industry, cotton stands out as a significant natural fiber due to its soft and versatile nature, grown primarily in tropical and subtropical regions worldwide. India holds the distinction of being the largest cotton producer, catering to the burgeoning demand driven by evolving consumer preferences. The cotton sector is thriving, fueled by the expansion of textile mills and apparel manufacturing markets. Approximately one-third of all fibers produced globally are cotton, making it the most widely used natural fiber in textiles. Despite being an export crop, the majority of cotton processing occurs in major producing countries, such as China and India.

APAC is forecasted to hold the largest market size by region in 2024

As a seasoned market analyst, I'm pleased to provide insights into the current state of the cotton market. Prices have been on an upward trend due to increased demand and decreased supply. Global production is projected to decline, while consumption is forecasted to rise. This dynamic supply-demand equation bodes well for cotton producers and merchants, offering potential for profitable business opportunities. However, it's crucial to stay informed of any geopolitical or weather-related risks that could impact the market.

The Cotton Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 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
  • Weiqiao Textile Co. Ltd.
.

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Research Analysis Overview

The Cotton Market plays a significant role in the global textile industry, with cotton production being a major agricultural crop yield in many countries. According to recent data, global cotton production reached over 120 million metric tons in 2020, supplying textile mills with an abundant supply of fiber for producing textile products, including bales of cotton for apparel manufacturing markets. Cotton is not only used for textile products but also for producing cottonseed oil and traditional diapers. The export volume of cotton is crucial for many countries, providing a strategic edge in the global market. The textile industry's consumption of cotton fibers continues to grow, driven by increasing demand for apparel and garments. Textile mills require a steady supply of cotton to maintain long-term profitability and manage price volatility. Cotton markets are subject to significant price fluctuations, making risk management essential. Consulting and advisory services, options-based solutions, futures, and OTC markets are popular tools for managing risk and securing margins. In conclusion, the Cotton Market plays a vital role in the global textile industry, with cotton production influencing crop yield, export volume, and the production of textile products, including cotton yarn, apparel, and other textile products. Effective risk management is crucial for textile mills to maintain profitability and succeed in the face of price volatility.

Market Research Overview

The Cotton Market is a dynamic and intense arena where cotton production, crop yield, and global textile mills intertwine. Cotton is a significant agricultural commodity, with an estimated global production of over 100 million metric tons in 2021. The market is characterized by its volatility, with factors such as cash flow threats from uncertainty, currency fluctuations, government policy, and weather conditions causing intense volatility in commodities markets. Cotton is transformed into various textile products, including bales of cotton, knitted fabrics, apparel, and medical supplies like traditional diapers, cotton rounds, cotton swabs, and medical gauze. Cotton exports play a crucial role in the market, with major exporting countries including China, India, and the United States. The cotton market is a complex ecosystem, with players ranging from cotton producers to global textile mills, apparel manufacturing markets, and consumers. Real-time data and commentary from market intelligence professionals are essential for navigating this volatile market and achieving consistent margins. Options-based solutions, futures, and OTC trading offer flexibility for managing price volatility and risk. Century-long expertise, strategic edge, consulting and advisory, and risk management services are all critical components of a successful cotton market strategy for long-term profitability.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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