Cotton Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Cotton Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The cotton market is projected to register a CAGR of 4.1% during the forecast period (2022-2027).

Due to COVID-19, the demand for cotton is decreased to 11.0%. The imposed global restrictions have resulted in the shutting down of ginning mills due to the cancellation and suspension of orders by many western clothing brands. This has also affected the cotton plantations and textile plantations in Bangladesh and India. Due to economic and logistic factors, the global trade of cotton has taken a downturn. It has affected every link in the global supply chain.

China, India, Pakistan, and Bangladesh are the largest cotton consumers in the world, accounting for more than 65.0% of global consumption. For many years, China and India have been the major markets for cotton consumption. However, in recent years, cotton consumption has increased dramatically in Uzbekistan and Vietnam.

Key Market TrendsUnited States Dominates the Global Exports

United States plays a major role in the world cotton market in terms of production and export of cotton. During 2019-2020, United States produced approximately 20.0 million bales of cotton, contributing to nearly USD 7.0 million of its total value. United States is the leading exporter in the global cotton market, accounting for 37.8% of global cotton exports (2019). It supports the global textile industries and provides opportunities for domestic farmers to market their products by participating in global trade. Since 2016, United States export levels raised significantly. This is due to the production of high-quality crops combined with the low production levels from other producers. United States is also a major player in the exports of cotton goods. As it exports the majority of cotton fiber, it also imports textiles and apparel products from India, China, and Bangladesh due to 50.0% of its cotton product imports.

Asia Dominates the Global Production

According to FAOSTAT, in 2019, China and India together held a share of 50.9% of global cotton production, followed by United States. Global cotton production is expected to grow at a slower pace than consumption during the forecast period due to the falling price trend in the international market. China leads the global production and exports market. In United States, most of the cotton produced is exported due to the less-developed textile industry in the country. Asia dominates global production, but most of the cotton produced is domestically consumed. China holds the largest market share of 29.0% of the world cotton production and around 49.0% of the milled cotton used in the country. Similarly, in India, the dominance of the textile sector prevails, as it consumes most of the cotton produced in the country.

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