Global Cotton Market Size, Share, Opportunities, And Trends By Product (Lint, Cotton Seeds), By Application (Textile, Animal Feed, Consumer Goods, Medical), And By Geography - Forecasts From 2023 To 2028

Cotton is a white-coloured, soft, fluffy fibre that develops around the seeds of cotton plants. A majority of the fibre is composed of cellulose, with traces of pectin, wax, fat, and water. Nearly every tropical and subtropical location on earth has cotton farming, which is largely used to supply the world's textile mills and the garment manufacturing industry for hundreds of years. Around 27 million tonnes or 110 million bales of cotton are now estimated to be produced yearly, which equates to 2.5 per cent of the world's arable land. The largest producer of cotton in the world is India whereas the United States is the largest importer of cotton products.

Globally, cotton is one of the most widely grown and lucrative non-food crops. More than 250 million people receive money from the production of cotton and its products. More than 7 per cent of all workforce in developing countries work in this industry. Cotton makes up around 50 per cent of all textiles. The worldwide demand for cotton is anticipated to rise as a result of the extremely competitive prices of cotton fibres on the international market and the rising export demand for cotton yarn and textile goods. Data from the Office of Textile and Apparels of the International Trade Administration shows that cotton goods reached a record US$57.0 billion in 2022, an increase of US$8.0 billion from the year before. According to the United States Department of Agriculture, data shows, that the production of cotton is anticipated to reach 29 million tonnes by 2028.

Although cotton has a large global market, the industry's capacity to sustain future production is ultimately threatened by the unsustainable nature of the existing techniques used to produce cotton bales. Cotton farming has severely damaged several ecosystems across the world, including the Aral Sea in Central Asia and the Indus Delta in Pakistan.  Moreover, volatile prices of cotton and difficulty in cotton production due to climate change is also hindering the growth of the global market during the forecast period.

During the anticipation period, the global cotton market will grow due to an increase in the desire to grow cotton sustainability.

The goal to make cotton more sustainable and ecologically friendly across its whole marketing chain while maintaining cotton's competitiveness at the farm is one of the fundamental forces driving the cotton industry's development. By using GMO seeds, less pesticide and insecticide as well as the water is needed to create a cotton bale.

New production techniques have reduced labour requirements and expenses from farm to bale. The textile business has consistently moved to low-cost nations, mostly for cheap labour, as manpower and energy are significant costs when producing cotton items. There is a drive to relocate textile and clothing manufacturing facilities nearer to cotton-growing regions to reduce the carbon impact on the ultimate customer. Moreover, governments around the world are also taking up several initiatives to boost the production of sustainable cotton. For instance, in March 2022, the Indian state of Tamil Nadu announced the establishment of a sustainable cotton growing programme. In the State Agricultural Budget, the state has allotted 33,007.68 crores to the agriculture department to aid the farmers, and 15.32 crores to increase cotton production. In March 2021, China has established a sustainable cotton standard that addresses concerns including labour rights, environmental effects, and fertiliser use. The new standard was introduced by the Chinese Cotton Association under the China Cotton Sustainable Development Plan, which was established as part of China's response to criticism from the West over the alleged use of forced labour in Xinjiang province.

Rising demand for cotton products and exports will contribute to the growth of the global market

The market is expanding as a result of cotton's expanding uses in a variety of sectors, including the production of clothes, home furnishings, and industrial goods. Cotton is used to make cotton rounds and swabs, medical gauze, and conventional diapers. Cotton plants also produce cottonseed oil, which is used in cooking, soap production, and cosmetics. According to official data, By 2030, it is anticipated that India would produce 7.2 million tonnes of cotton, spurred by rising consumer demand. India exported $44.4 billion worth of textiles and clothing in FY22, a 41 per cent YoY increase. In FY22, ready-to-wear garment exports, including cotton accessories, were US$6.19 billion.

UNCATD data shows that cotton meets 27 per cent of the world textiles demand with an estimated USD 8 billion in yearly trading value.

The US Department of Agriculture reports that in 2021–2022, the US was the world's top cotton exporter. During that time, the American cotton sector exported around 3.2 million metric tonnes of cotton. Brazil was the second-largest exporting country, with 1.72 million metric tonnes of exports.

Asia Pacific is anticipated to hold a significant amount of the global cotton market share during the forecast period

Asia Pacific region is anticipated to hold a significant amount of market share in cotton and its products. This region will witness high growth during the forecast period owing to the massive production and exporting capacity. India and China are one of the biggest producers of cotton globally. According to IBEF data, by 2030, it is anticipated that India would produce 7.2 million tonnes of cotton. According to projections made by the Committee on Cotton Production and Consumption, India would export 4 million bales of cotton overall in 2021–22. UN's COMTRADE database shows that China exported cotton worth US$13.68 billion in 2021 making it the biggest exporter of cotton worldwide. In 2020, cotton ranked as China's 37th most exported good. The dominant textile industry in both China and India is also spurring growth in this region. The government in countries such as India and China are introducing schemes and giving out financial incentives to boost the sustainable production of cotton. For instance, To reduce the number of pollutants released into freshwater bodies, the Indian government is pressuring textile firms to build zero-discharge facilities. Prime markets in the Asia Pacific region are India, China, Japan, South Korea, Taiwan, Thailand and Indonesia.

Market Key Developments

• In February 2023, a new patent-pending technique from the US-based research firm Fibre52 aims to advance the transition to sustainable cotton. Fibre52's cotton treatment process significantly decreases water and energy use, eliminates harsh chemicals, and improves durability to compete with synthetics. Fibre52 cotton utilises less heat and substitutes bioactive compounds for harmful chemicals. This reduces water, energy, and process cycle time consumption by up to 50 per cent.
• In January 2023, four cotton lines have been developed by the Agricultural Research Service (ARS) of the U.S. Department of Agriculture (USDA) to be utilised in the production of textiles that self-extinguish when exposed to fire. This will eliminate the need for flame-retardant chemicals to be added to consumer goods.
• In December 2022, Corteva Agriscience's PhytoGen cottonseed brand in the United States will roll out two new cotton types for 2023. PhytoGen brands PHY 415 W3FE and PHY 861 RF will be advanced by the firm to supplement its OVT-winning range of upland and Pima varieties. These types enhance the variety selection that has helped PhytoGen become the second-most planted brand in the Cotton Belt by offering next-level yield potential.

Global Cotton Market Scope: 

Segmentation:

• By Product
  • Lint
  • Cotton seeds
• By Application
  • Textile
  • Animal Feed
  • Consumer Goods
  • Medical
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others