Indonesia Textiles Market Trends

Statistics for the 2023 & 2024 Indonesia Textiles market trends, created by Mordor Intelligence™ Industry Reports. Indonesia Textiles trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Indonesia Textiles Industry

Increase In Exports Is Driving The Demand

  • Cotton imports in 2022/23 were expected to drop by about 22.3% to 2m bales, compared to 2.577m bales in the 2021/21 season. Cotton imports are projected to remain stable at around 2.0m bales in 2022/23/24 as spinners continue to use on-hand stocks before buying new ones.
  • Australia remained Indonesia's largest supplier of cotton between August 2022 and January 2023, with a 46.43% market share and 403k bales in total. Brazil followed at 21.2% (184k bales) followed by the United States at 19.7% (171k bales).
  • Australia's market share is continuing to decline as it faces uncompetitive prices against other competitors, as well as being far away from Indonesia compared to Australia.
  • Indonesia's cotton yarn exports decreased by 47.8% in 2022 to 90,458 metric tons (MT) from a year earlier of 173,402 metric tons (MT). In 2022, the PRC accounted for 29.4% of Indonesia's cotton yarn exports, followed by Bangladesh, 24.3%, Japan, 10.9%, and Honduras.
  • In contrast, Indonesia's cotton fabric exports decreased by 23.9% in 2022 to 8,786 metric tons (MT), compared to 11,557 metric tons exported in 2021. Japan accounted for 52.9% of Indonesian cotton fabric exports, followed by the United States, 15.3%, the PRC, 4%, and Malaysia.
  • Cotton raw materials continue to be sourced as needed by spinners. 2023/24 cotton stocks were projected to decrease slightly by 1,8% to 539,000 bales compared to 2022/23 levels of 547,000 bales. The decrease is attributed to lower initial stocks, stagnant imports, and a slight increase in domestic consumption.
Indonesia Textiles Market: Value of cotton imported, in USD Billion, Indonesia, 2013 - 2022

High Demand Of Fabrics Is Expected To Drive The Market

In the first quarter of 2022, the apparel industry's production volume may increase by 10.44% annually. The demand will only increase to 75% of its pre-COVID-19 levels. In Q2, FY2022, the amount of Indonesia's apparel industry production is projected to slow to 10.15% on an annual basis.

The clothing industry's growth slowed to 0.16% in Q4 of FY2022. But in 2022, Indonesia's apparel sector will experience yearly growth of 5.84%. In Q4 FY2022, it is anticipated that the textile or apparel raw material industries will have a fall of 1.02%. Beginning in July 2022, the textile industry will expand, while the apparel sector will experience two surges of demand in 2024.

In Indonesia, the apparel and garment sector supports the livelihoods of almost 2 million people, according to data from the International Labor Organization. The risks associated with global inflation and the current geopolitical situation are also having an impact on the apparel manufacturing industry. The Central Bank of Indonesia revised its forecast for full-year economic growth downward in April, from 4.7% to 5.5% to between 4.5% and 5.3%.

China is facing increased international pressure over the treatment of people in its far-western region of Xinjiang, which could hurt the country's textile industry and potentially increase the export chances for other Asian nations like Bangladesh, Indonesia, and Vietnam. Cotton and other goods with Xinjiang ties will soon be prohibited, according to US customs.

Indonesia Textiles Market: Textiles Industry, Fibre consumption, Indonesia,  by Textile Type, in percentage (%), 2022

Indonesia Textile Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)