The Indian and Chinese markets will experience positive growth since the respective textile manufacturers benefit from government support as well as low-cost labor
State of the Global Textile Market
In 2021, the size of the global textile market was estimated to be $1041.8 billion. It is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. At present, the largest drivers of growth in the textile industry are the rise of ecommerce platforms and growing demand from the fashion industry. In North America, the United States is expected to dominate as the largest market for textiles. It is also one of the largest producers of textiles in the region. That said, the US cannot beat Asia Pacific in terms of global revenue. The latter region dominates the textile industry with 47% revenue share as of 2019.
In recent years, the textile industry has been witness to many mergers and acquisitions and in my understanding, these trends can be expected to continue. The global textile industry is (and will stay) a fragmented market. The manufacturing sector will feature many players, particularly small and medium-sized manufactures in India and China. The Indian and Chinese markets will experience positive growth since the respective textile manufacturers benefit from government support as well as low-cost labor.
The Coronavirus Effect
Despite the fact that world governments have increased vaccination rates and enforced mask mandates, it can be said that COVID-19 is, for the foreseeable future, here to stay. The coronavirus will continue to impact the textile industry. The lockdowns due to COVID-19 caused a noted decline in consumption as well as restrictions to trade mobility over the past year and this in turn disrupted textile supply chains throughout 2020. The good news, however, is that experts have labelled the COVID-19 impact as a black swan event. The term black swan event was coined by trader Nassim Nicholas Taleb and it refers to “an extremely negative event or occurrence that is impossibly difficult to predict.” The COVID-19 epidemic is an example of a black swan event and as such, its economic impact is not expected to be long-lasting.
Experts predict that the global textile market will recover from the shock of COVID in the coming years. The current economic slump is (thankfully) not because of ongoing or fundamental weaknesses in the market. The textile market should recover with all things considered.
Smart Textiles
Now, speaking of emerging trends in the textile industry, I think smart textiles seem to have a lot of potential. Smart textiles are (put simply) fabrics that can interact with the external environment. They can sense, react and adapt to physical stimuli. These stimuli can be from
thermal, mechanical, electrical and chemical sources. Manufacturers of smart textiles have been using optical fibers, metals and conductive polymers for production and such Smart textiles are highly in demand in the military, medical, transportation and fitness industries. Forecasts suggest that smart textiles will become more mainstream in the near future, with their ability to assess the wearer’s biometrics, much like smartwatches.
Sustainable Textiles
Consumers today-particularly in the fashion world-are increasingly eco-conscious. The demand for sustainable textiles is set to grow given the looming threat of climate change. The writing is clear on the wall: the textile industry must go green or go home. The future of textiles is sustainable and circular.
Natural fibers are a rage in the global textile market at the moment. They dominate demand, accounting for over 44.0% of the global revenue in 2020. These stats come as no surprise. Natural fibers are flexible, i.e., they can be applied to many parts of the fashion and apparel industry. Environmental concerns and the consumer switch to sustainable products also increase the demand for natural fibers. To sum up: textile manufacturers can expect a positive growth in the natural fibers market.
That said, don’t knock down synthetic fibres yet. Polyester and nylon will continue to experience demand in the textile industry. Their applications in clothing, household and chemical industries are yet to be exhausted.
Source: Business World
