Cotton Trade Analysis Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
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Cotton Trade Analysis Market Analysis
The global cotton trade market is projected to register a CAGR of 4.5% during the forecast period.
- Cotton is essentially grown for its fiber, which is used as raw material for textile industries. It is an important commodity in the world economy which is produced in more than 100 countries and heavily traded agricultural commodity, with around 150 countries involved in the export and import of cotton. Cotton is also a very political crop because of its significance in world trade and in improving the economies of many developing countries.
- In many countries, cotton exports are not only viewed as a key contributor to foreign exchange earnings but also for a noteworthy proportion of GDP and tax income. It is playing a vital role in economic growth in Africa where 37 of the 53 African countries produce cotton and 30 are exporters. Many Central Asian countries such as Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, and Turkmenistan are also very dependent on cotton exports.
- The cotton industry is witnessing a significant increase as global textile mills and the clothing manufacturing market expand. According to the data from FAO, cotton (seed cotton, unginned) production increased to 73.7 million metric ton in 2021 from 71.9 million metric ton in 2018. Cotton is an export crop even though its processing takes place mostly in the main producing countries.
- In 2021, total cotton exports was valued at USD 18.23 billion. The United States is the largest exporter in the world with 2.9 million metric ton of exports in 2021, representing 31.3% share in terms of value. Weather fluctuations are causing havoc on almost all of the world's largest cotton suppliers, such as a heat wave in China is raising concerns about the country's next harvest. A severe drought is damaging crops in the United States, and is likely to reduce production in 2022.
Cotton Trade Analysis Market Trends
This section covers the major market trends shaping the Cotton Trade Analysis Market according to our research experts:
United States Dominates the Global Exports
The United States plays a major role in the world cotton market in terms of the production and export of cotton. During 2020-2021, the United States produced approximately 2.6 million metric tons of cotton, contributing to nearly USD 7.0 million of its total value. The United States is the leading exporter in the world's cotton market, accounting for 31.3% of global cotton exports in 2021. The increase is supported by additional investment in textile operations in the United States to assist in solving logistics problems responsible for the growth.
Exports support the world's textile industries and provide opportunities for domestic farmers to market their products globally. Between 2018 and 2021, United States export decreased by 12.7% in terms of value owing to the drought and low production. However, cotton production is expected to rise due to the rising harvested area. The United States is also a major player in the exports of cotton goods. As it exports a majority of cotton fiber, it also imports textiles and apparel products from India, China, and Bangladesh, owing to 50% of the country's cotton product imports.
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China Dominates Global Cotton Imports
China was the largest importer of cotton in the world. Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. The value of cotton imports raised significantly from USD 3.16 million in 2018 to USD 4.10 million in 2021, an increase of 29.6%. The major exporters of cotton to China are the United States, Brazil, India, Australia, and Sudan. In 2021, the United States and Brazil's cotton export to China were valued at USD 1.6 million and USD 1.2 million, respectively. China's imports are likely to increase as Chinese textile demand grows and government-held stocks are replenished.
Cotton consumption in China is expected to grow due to the rising demand for textiles and clothing from domestic and overseas markets. Owing to the price advantage, many cotton textiles continue to be exported despite the steady rise in domestic demand. As a result, China's overall demand for cotton is anticipated to increase gradually in the forecast period.
China's government is taking various measures to reduce imports and enhance domestic production. According to the National Development and Reform Commission, China allocated 894 thousand metric tons of tariff quotas on cotton in 2023, with state-owned enterprises receiving around 33%. This limits cotton imports by a quota and encourages textile manufacturers to purchase cotton in remote regions where 90% of China’s cotton is grown.
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Cotton Trade Analysis Market News
- February 2023: The US Department of Agriculture's Foreign Agricultural Service collaborated with the Hispanic Association of Colleges and Universities (HACU) to address agricultural export market challenges and to solve simulated world trade problems. This collaboration creates new market opportunities for cotton exporters.
- December 2022: An agreement was signed by the Cotton Corporation of India Limited and the Cotton Textiles Export Promotion Council to market Kasturi cotton, a domestically produced brand of cotton, globally. This collaboration promotes exports of Indian Cotton textile products, including raw cotton, worldwide.
Cotton Trade Analysis Market Report - Table of Contents
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
4.3 Market Restraints
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
18.104.22.168 United States
22.214.171.124 Rest Of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.1.4 South America
220.127.116.11 Rest of South America
18.104.22.168 South Africa
22.214.171.124 Rest of Africa
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cotton Trade Analysis Industry Report
Statistics for the 2023 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 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.