Market Size of South America Cotton Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.10 % |
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South America Cotton Market Analysis
The South America cotton market is projected to register a CAGR of 2.1% over the forecast period.
- The increasing rates of mechanization for cotton picking in developing and developed countries, shrinking land and water resources, and the shortening of the labor force increased the need for farm mechanization for cotton in the major producing countries. In recent years, the demand for cotton for apparel and non-apparels increased tremendously.
- The textile industry is a major sector of the global economy and is driven by increasing cotton production in the region. Brazil is the largest cotton producer in South America, followed by Argentina with 83.5% and a 15.2% production share in 2021. Brazil has ranked in the top 5 world producers in recent years, alongside China, India, the United States, and Pakistan. Brazil is the world's second-largest exporter of cotton, with an export value share of 11% in 2018.
- According to the United States Department of Agriculture (USDA) report, in 2022, the total cotton planted area accounted for 11% compared to the current season of 1.6 million hectares. Brazil's growers responded by using ample arable land in crucial growing states and increasing equipment capacity to maximize returns. In 2022, the cotton production was 13.2 million bales, or 2.9 million metric tons, up from 11.6 million bales, or 2.5 million metric tons, in 2021. The planted area of cotton was estimated to be lower during the year 2020 because of a higher cost of production and excellent margins for alternative crops such as soybeans and corn, but owing to the higher inclination of the textile industry by cotton will further propel the market studied.
- In 2022, Brazil's Center-West state of Mato Grosso and the northeast state of Bahia accounted for 9 out of 10 hectares of all cotton area planted in Brazil (71% and 19%, respectively). Brazil's cumulative soybean planted area rose by almost 50%, yet, out of almost 470,000 cotton hectares added across Brazil, Mato Grosso accounted for 82%, or 387,000 hectares, of the new area. In the 2020 season, growers in Mato Grosso increased the cotton planted area by over 300,000 hectares - more than the total cotton area sown in all of Bahia.
