Cotton Trade Analysis Market Size

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.