Cotton Market

Global Cotton Market Size (2024 to 2024):

The global cotton market size is expected to reach USD 41.79 billion in 2024 and reach USD 47.84 billion by 2029, growing at a CAGR of 2.74% from 2024 to 2029.

CURRENT SCENARIO OF THE GLOBAL COTTON MARKET

Since the eighteenth century, cotton has been an important aspect of industrial development. It also has a significant impact on the textile sector. It's a high-yielding cash crop that's mass-produced all over the world. Cotton is a major contributor to the worldwide textile mills and clothing manufacturing industries. Cotton is also a highly political crop due to its significance in the global exchange of many developing countries. Cotton may be found in practically every tropical and subtropical region on the planet. Cotton is an attractive crop for arid and semi-arid areas because it is salt and drought-tolerant.

Cotton is the most commonly used natural fiber in textiles, accounting for one-third of all fibers produced globally. It may be used to create a variety of fabrics that are robust, water-absorbent, and comfortable. It is well renowned for its versatility, performance, and comfort. Its applications, however, are not limited to textiles. Cotton plants produce lint and seeds, which are used to make fiber, edible oil, and animal feed. More specifically, fiber is derived from cotton lint, with 64 percent of the fiber produced going to clothes, 28 percent to home furnishings, and 8% to industrial uses.

Cotton seeds are crushed to produce cholesterol-free oil, which is used in cooking, cosmetics, medicines, and personal care goods.

Other industrial applications, including polymers and rubber cotton seeds are also used to make a high-protein meal for animals and fowl. "Cotton is the most widely lucrative non-food crop in the world," according to the World Wildlife Fund.

Market Drivers:

VSS-compliant cotton accounted for 14.1% of the market in 2016, compared to only 1% in 2009. Cotton, which was theoretically VSS-compliant, accounted for 0.8 percent of the market.

A major trend in the global cotton market industry over the last decade is the rising adoption of VSSs by cotton producers.

In comparison, conventional cotton production accounted for 85.2 percent of the market, indicating that VSS adoption still has room to expand. Also, since cotton is used for various purposes, the demand can never fade out. There is always room for innovation and new product development.

Market Restraints:

Every step in the worldwide cotton–textile supply chain has been impacted by the pandemic. Many factories and businesses have shuttered as a result of public health instructions, causing many Western apparel designers to cancel or suspend existing orders. As a result, cotton farms and textile industries in many countries are projected to suffer. Several factors, notably the consequences of cotton stockpiling programs and the high sensitivity of cotton output to flooding, have already caused major price volatility in the sector. Despite the greater input prices and the impact on farmer debt levels, many farmers have become reliant on these seeds. Furthermore, cotton plantations have been linked to a number of societal ills, including low worker wages and documented incidences of slave labor.

REPORT COVERAGE:

SEGMENTAL ANALYSIS

Global Cotton Market By Product:

In the forecast period 2022-2027, the lint sector is expected to account for the highest proportion of the cotton processing market. The fiber extracted from cotton seeds during the ginning process is known as lint. The rise of urbanization and changes in consumer lifestyles have resulted in increased demand for textiles, which is expected to fuel the lint segment's expansion even more. Furthermore, rising consumer awareness of product quality is expected to boost the cotton processing market in the future years.

Global Cotton Market By Application:

The cotton processing market is divided into textiles, medicinal & surgical, feed, consumer goods, and others based on application. From 2022 to 2027, the textiles category is expected to be the fastest-growing segment in the cotton processing market. This is attributable to rising per capita income and shifting customer preferences, which is propelling market expansion. Furthermore, increased government investments and policy backing have driven the rise of the textile sector in nations like India and China.

Global Cotton Market By Equipment Type:

From 2022 to 2027, the spinning segment is expected to be the leading market in the cotton equipment processing market. This is owing to rising yarn usage in the textile, medicinal, and consumer products industries. Consumer expectations are rising, which is stimulating technological advancements that will result in higher-quality items. Consumer preferences are evolving, and technology improvements are propelling the market forward.

Global Cotton Market By Operation:

From 2022 to 2027, the automatic sector of the cotton processing ginning equipment market is expected to develop at the quickest rate. This is owing to machine makers' adoption of new technologies to increase mill productivity. Automatic equipment has cut labor costs and enhanced ginning mill profit margins. As a result, the automatic category is expected to increase even more in the coming years.

REGIONAL ANALYSIS

Over the period 2022-2027, in terms of cotton production and export, the United States is a prominent player in the global market. Approximately 20.0 million bales of cotton were produced in the United States in 2019-2020, accounting for nearly USD 7.0 million of the total value. The United States is the world's biggest cotton exporter, accounting for 37.8% of all worldwide cotton exports (2019). It helps to support the global textile industry while also allowing home farmers to market their crops through global trade. The export levels of the United States have increased dramatically since 2016. This is due to high-quality crop production paired with low levels of production from other growers. In addition, the United States is a major exporter of cotton items.

China and India combined accounted for 50.9 percent of global cotton production, with the United States coming in second. Due to the dropping price trend in the international market, global cotton production is predicted to expand at a slower rate than consumption over the forecast period. Because of the country's underdeveloped textile sector, the majority of cotton produced in the United States is exported. Although Asia dominates global cotton production, the majority of the cotton produced is consumed locally. China has the greatest market share, accounting for 29.0 percent of global cotton output and roughly 49.0 percent of milled cotton consumed. Similarly, the textile sector dominates in India, as it utilizes the majority of the cotton produced in the country.

Over the next decade, Bangladesh and Vietnam are likely to be the leading importers. Both countries are expected to boost their imports by more than 43% by 2029. They will account for more than 40% of global imports when combined.

Cotton is a significant export crop for Sub-Saharan Africa, which presently accounts for 15% of world exports (with West Africa accounting for about 75% of production and shipments). The top producing countries, Burkina Faso, Benin, Mali, and Côte d'Ivoire, have seen their volumes increase as a result of increased land area and government backing.

KEY PLAYERS IN THE GLOBAL COTTON MARKET:

Unifi Inc, Weiqiao Textile Company Limited, Lu Thai Textile Co. Ltd., Gokak Mills, Vardhman Group, Damodar Group, Banswara Syntex Limited, Shri Vallabh Pittie Group, Oswal Group. Some of the market players dominate the global cotton market.

RECENT HAPPENINGS IN THE GLOBAL COTTON MARKET:

• The Indian government has eliminated the 5% basic customs charge on cotton imports in order to boost domestic supplies of the fiber, which has been severely hampered by a severe scarcity in the country's textiles and garments value chain.
• According to the Spinners Association (Gujarat), or SAG, an investment of Rs 3,500 crore would be made in Gujarat over the next year and a half, with 7 lakh new spindles being installed to improve the state's spinning capacity.

DETAILED SEGMENTATION OF THE GLOBAL COTTON MARKET INCLUDED IN THIS REPORT

This research report on the global cotton market is segmented and sub-segmented into the following categories.

By Product

• Lint
• Cottonseed

By Application

• Textiles
• Medical & Surgical
• Feed
• Consumer goods

By Equipment Type

• Spinning
• Ginning

By Operation

• Automatic
• Semi-Automatic

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East And Africa