Cotton Trade Analysis Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 51.32 Billion |
| Market Size (2029) | USD 64.15 Billion |
| CAGR (2024 - 2029) | 4.56 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Cotton Trade Analysis Market Analysis
The Cotton Market size is estimated at USD 51.32 billion in 2024, and is expected to reach USD 64.15 billion by 2029, at a CAGR of 4.56% during the forecast period (2024-2029).
- Cotton stands as one of the most extensively traded agricultural commodities, primarily due to its widespread use in the textile and apparel industries. The trade dynamics are shaped by production levels, textile manufacturer demand, price fluctuations, and international trade policies. Cotton plays a significant role in the global economy, with production occurring in over 100 countries and trade involving approximately 150 nations in export and import activities. For many countries, cotton exports are crucial for foreign exchange earnings, contributing significantly to GDP and tax revenue. Cotton plays a vital role in Africa's economic growth, with 37 of the 53 African countries producing cotton and 30 engaging in exports. Similarly, Central Asian countries such as Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan heavily rely on cotton exports for their economies.
- The United States leads as the world's largest cotton exporter( Cotton, neither carded nor combed), with an export volume of 2.8 million metric tons in 2023. Top exporters, including India, Brazil, Australia, Turkey, and Greece collectively accounted for more than 25% of global cotton exports in 2023. These nations have established cotton industries and are recognized as key players in the international cotton trade.
- The cotton market is experiencing growth due to increased demand from various industries, including apparel manufacturing, home furnishings, and industrial products. Cotton is utilized in medical gauze, cotton swabs, traditional diapers, and numerous other products. Additionally, cottonseed oil, a byproduct of the cotton plant, serves multiple purposes such as cooking, soap making, and cosmetics. This expansion in applications has led to a rising global demand for cotton.
Cotton Trade Analysis Market Trends
United States Dominates the Global Exports of Cotton
- The United States dominates global cotton exports due to its large-scale production capabilities, advanced agricultural practices, favorable government policies, and well-established trade networks. The country is one of the major cotton producers globally, with around 8.4 million metric tons of seed cotton (unginned) as of 2023. States like Texas, Georgia, and Mississippi account for the bulk of production, with Texas alone producing nearly half of the United States cotton output.
- The United States is the leading exporter in the world's cotton market, accounting for 35.8% of global cotton exports in 2023. This increase is supported by additional investment in textile operations in the United States to address logistics problems responsible for the growth. For instance, in 2024, The United States is focusing on enhancing textile and apparel trade partnerships in Central and South America through four key initiatives aimed at improving supply chain sustainability, addressing forced labor concerns, and enhancing security such as the bipartisan Americas Trade and Investment Act (Americas Act), which includes over USD 45 billion in incentives to promote circularity in the apparel industry. The act is designed to bolster trade and stabilize the region, with a commitment of USD 105 million annually for five years to support the creation of a circular textile industry. The United States exports much of its production to Asian markets for textile manufacturing. However, growing competition from Brazil and the effects of recent trade policies are shifting global market trends.
Asia-Pacific Dominates Global Cotton Imports
- Asia - Pacific dominates global cotton imports due to significant textile and apparel manufacturing base. Countries like China, Bangladesh, Vietnam, Indonesia, Pakistan, and India are among the largest textile producers globally, driving the need for massive cotton imports. For instance, according to ITC Trade Map, China alone accounted for 27.2% of the global cotton imports in 2023. As the world's leading cotton importer, China has considerable influence over the global cotton trade. The nation's vast textile manufacturing sector drives its growing demand for raw cotton imports. In 2023, China imported 1.9 million metric tons of cotton (neither carded nor combed), primarily sourced from major suppliers like the United States, Brazil, and Australia. To cater to its booming textile industry, the Chinese government has rolled out policies to stabilize domestic prices and ensure a steady supply of premium cotton.
- After a dip in early 2023, textile and apparel exports bounced back, fueling a heightened demand for imported cotton. Coupled with reduced production and rising domestic consumption, China's need for imports intensified. Favorable import prices, like the A-index, compared with domestic rates, further increased demand. Even with a 1% import tariff and a 9% value-added tax, cotton prices delivered to Chinese mills hovered about 5 cents above import prices, amplifying the import surge. Moreover, 2023 witnessed a 12.9% increase in retail sales of clothing, shoes, hats, and knitted textiles. Online sales of wearable goods also climbed 10.8% year-on-year, emphasizing China's strong demand for cotton imports.
- Furthermore, certain nations, including Bangladesh and Vietnam, face production constraints, such as limited domestic cotton cultivation, leading to increased import volumes. Additionally, the geographic proximity to significant cotton producers like India and Australia facilitates the importation of cotton into the Asia-Pacific region.
Cotton Trade Analysis Market News
- September 2024: The U.S. Department of Commerce’s Economic Development Administration (EDA) is awarding a USD 800,000 grant to the Industrial Commons in Morganton, North Carolina, to support textile manufacturing in the region.
- February 2023: The US Department of Agriculture's Foreign Agricultural Service, in partnership with the Hispanic Association of Colleges and Universities (HACU), tackled challenges in the agricultural export market and addressed simulated global trade issues. This partnership paves the way for fresh market opportunities for cotton exporters.
- December 2022: The Cotton Corporation of India Limited and the Cotton Textiles Export Promotion Council signed an agreement to globally market Kasturi cotton, a domestically produced brand. This collaboration promotes the worldwide export of Indian cotton textile products, including raw cotton.
Cotton Trade Analysis Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Cotton Exports
4.2.2 Expansion of Textile Industry
4.2.3 Increased Support from Goverment
4.3 Market Restraints
4.3.1 Lack of Well-Organized Marketing System
4.3.2 Increased Infestation of Pest and Weather Variability
5. MARKET SEGMENTATION
5.1 Geography (Production (Volume), Consumption (Value and Volume),Import (Value and Volume), Export (Value and Volume), and Price Trend Analysis)
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Canada
5.1.1.3 Mexico
5.1.1.4 Rest Of North America
5.1.2 Europe
5.1.2.1 United Kingdom
5.1.2.2 France
5.1.2.3 Italy
5.1.2.4 Spain
5.1.2.5 Germany
5.1.2.6 Rest of Europe
5.1.3 Asia-Pacific
5.1.3.1 China
5.1.3.2 India
5.1.3.3 Vietnam
5.1.3.4 Australia
5.1.3.5 Rest of Asia-Pacific
5.1.4 South America
5.1.4.1 Brazil
5.1.4.2 Argentina
5.1.4.3 Rest of South America
5.1.5 Africa
5.1.5.1 South Africa
5.1.5.2 Rest of Africa
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cotton Trade Analysis Industry Segmentation
Cotton is a major agricultural commodity, which is highly traded across the world. Cotton, primarily utilized in the textile industry, is a perennial crop. It thrives in moderate rainfall and is harvested during frost-free periods abundant in sunshine.
The Cotton Trade Market is Segmented by Geography (North America, Europe, Asia-Pacific, South America, and Africa). The Study includes the Production (Volume), Consumption (Value and Volume), and Trade in terms of Import (Value and Volume), Export (Value and Volume), and Price Trend Analysis. The report offers the market size and forecasts in terms of volume in metric tons and value in USD for all the above segments.
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Cotton Trade Analysis Market Research FAQs
How big is the Cotton Market?
The Cotton Market size is expected to reach USD 51.32 billion in 2024 and grow at a CAGR of 4.56% to reach USD 64.15 billion by 2029.
What is the current Cotton Market size?
In 2024, the Cotton Market size is expected to reach USD 51.32 billion.
Which is the fastest growing region in Cotton Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cotton Market?
In 2024, the North America accounts for the largest market share in Cotton Market.
What years does this Cotton Market cover, and what was the market size in 2023?
In 2023, the Cotton Market size was estimated at USD 48.98 billion. The report covers the Cotton Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cotton Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cotton Trade Analysis Industry Report
Statistics for the 2024 Cotton Trade Analysis market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cotton Trade Analysis analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Cotton Trade Market Report Snapshots
