Cotton Yarn Market Size, Share & Industry Analysis, By Type (Carded Yarn, Combed Yarn, Others), By Application (Apparel, Textiles, Others), and Regional Forecast, 2024-2032

The global cotton yarn market size was valued at USD 82.81 billion in 2023 and is projected to grow from USD 86.11 billion in 2024 to USD 117.79 billion by 2032, exhibiting a CAGR of 4.0% during the forecast period. Moreover, the cotton yarn market in the U.S. is projected to grow significantly, reaching an estimated value of USD 759.55 million by 2032, driven by rising demand from the textile and apparel industries, propelled by fashion trends and sustainable product preferences.

Cotton yarn is made using natural cotton harvested from the cotton plant. These yarns are produced using different types of spinning processes. Based on the spinning process used to manufacture cotton yarn, the yarn produced across the globe can be primarily categorized into two types, carded and combed yarns. Different types of yarns have unique characteristics which ultimately influence the type of application it will be employed in and the quality of finished textile goods. For example, combed yarn is produced using high-quality cotton fiber by adding the combing process to the carded yarn.

Combed yarn is a finer and better quality product, making it useful for manufacturing fabrics with premium texture and durability. The majority of cotton yarn produced across the globe is used to manufacture apparels. Currently, consumers and brands are promoting sustainable fashion like never before, and clothing made using cotton yarn is an excellent choice for sustainability.

Lockdown restrictions enforced during the COVID-19 pandemic caused supply chain disruptions for various industries across the globe, with this market being no exception. The lockdowns imposed across several countries resulted in logistics challenges, raw material and labor shortages, and other inevitable challenges. Several yarn-manufacturing units were either closed or operating at a reduced capacity owing to the labor-intensive nature of manufacturing facilities. The manufacturing companies in this industry witnessed significant price fluctuations due to supply shortages and the effect of this disruption still affects the current prices. However, with significant control over the spread of the pandemic, the prices of cotton are returning to normalization as the supply chain is getting back on track. This is expected to help the revival of the industry over the next few years.

Cotton Yarn Market Trends

Rising Demand and Awareness of Sustainability in Fashion Industry to Augment Market Growth

Cotton yarn is used in apparel and textile production. Nowadays, manufacturing operations of key fashion houses and retailers have started to progressively incorporate organic cotton into the supply chains. This has resulted in a significant increase in the product demand. Cotton is one of the most consumed natural fibers in the textile industry. Yarns made using cotton have unique characteristics such as softness, strength, and high absorbency. Due to its characteristics, cotton is suitable for the production of various types of clothing. Developed as well as developing countries are raising their cotton production. China and India are the major producers of cotton and cotton-based products across the globe. The growing population and rapid urbanization in such developing economies are likely to fuel the demand for apparel and clothing. This is anticipated to benefit and create new opportunities for the market growth during the forecast period.

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Cotton Yarn Market Growth Factors

Rising Support from Governments to Expand the Domestic Textile Industry to Drive Market Growth

The growth of the textile sector is likely to positively impact the market. Various governments worldwide are taking initiatives to support their domestic textile sector growth by launching new policies and schemes. For example, the Indian government has launched different policies to promote the growth of the textile sector, which include schemes such as allowing 100% Foreign Direct Investments in the sector under the automatic route.

Another example is the U.S. textile industry, which has witnessed an investment of USD 20.2 billion in new plants and equipment over the past decade. These initiatives are focused on promoting technology upgradation, creation of infrastructure, skill development, and sectoral development in the textile sector. These initiatives are likely to create a positive environment and provide a conducive environment for textile manufacturing across the globe. Cotton has a prominent share in the textile manufacturing sector. Thus, rising demand from the global textile industry is likely to drive market growth.  

Growing Preference for Natural Yarns to Fuel Market Growth

Natural yarn includes cotton, silk, and wool. These are made up of plant or animal sources. On the other hand, artificial yarn includes polyester, viscose, nylon, and acrylic yarn, which are made from chemical substances. Cotton is the natural yarn mostly used for the manufacturing of apparel, home textiles, medical, and sports products. The preference for natural yarn is increasing owing to rising awareness about the sustainability and relatively superior functionality offered by natural yarns in certain applications.

Natural yarn such as cotton and jute have low elasticity and are extremely breathable. Cotton is the most common plant fiber of the natural yarn category used in several end-use industries. It is the most important natural fiber across the globe owing to its superior properties, such as high strength, absorption, and color retention. Developed and developing countries are actively making efforts to increase their cotton production. The major economies across the globe, including China, India, and the U.S., are the major producers of cotton and cotton-based products. Several countries, including the U.S., China, India, Japan, the U.K., France, and Germany, are witnessing heavy demand for cotton yarn owing to the rapidly growing consumer expenditure and the expansion of the industrial sector, driving the growth of the market.

RESTRAINING FACTORS

High Price of Cotton Yarn Relative to Synthetic Yarn is Likely to Hinder Market Growth

The major restraining factor anticipated to limit the cotton yarn market growth is its high cost relative to other commercially available synthetic yarns. The high cost of cottonseed, farming processes, and raw materials is increasing the overall cost of yarn. Synthetic yarn is a chemical compound that is mass-produced using petrochemical-based raw materials. They are cheaper and offer additional benefits such as high resilience and strength compared to natural ones.

The demand and consumption of synthetic fibers, such as polyester, are relatively high compared to cotton-based yarn. Even though the demand for cotton-based yarn is rising steadily, the supply is short, widening the supply and demand gap. This has led to high price fluctuations over the past few years, further restraining market growth.

Cotton Yarn Market Segmentation Analysis

By Type Analysis

Carded Yarn Segment Accounted for a Significant Share Owing to its Wider Adoption in Textile Manufacturing Sector

Based on type, the cotton yarn market is fragmented into carded yarn, combed yarn, and others.

In 2023, the carded yarn segment dominated the market. Carding is a technique where teethed cards are used to remove short fibers and impurities from cotton. Carding separates the cotton fibers to spread them into a web-like structure. This web is further compressed into a continuous untwisted strand of fibers. Carded yarn is generally used for producing woolen threads that are used in manufacturing different types of textiles. These types are relatively cheaper than combed yarn, prompting wider adoption in textile manufacturing.

By Application Analysis

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Apparel Segment to Hold a Considerable Share Driven by Surging Demand from the Clothing Industry

On the basis of application, the cotton yarn market is segmented into apparel, textiles, and others.

The apparel segment held a major cotton yarn market share in 2023. The Gen Z and millennial population is growing across the globe. They have a high purchasing power and a habit of spending relatively more on clothing than their predecessor generations. This is expected to generate high demand for cotton yarn used in manufacturing apparel. In addition, rising penetration of e-commerce, rising disposable income, and growing per capita expenditure on clothing, especially in developing economies are likely to augment market growth.

REGIONAL INSIGHTS

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Asia Pacific accounted for a market size valued at USD 66.94 billion with a market share of 80.84% in 2023.

 The region is expected to maintain a leading position over the estimated period owing to growing demand from its expanding population. The textile industry is growing rapidly in Asia Pacific, mainly attributed to the presence of key countries such as China, India, Japan, and Southeast Asia. The apparel industry is growing rapidly in China owing to the large production facility and the presence of various leading companies. Growing urbanization coupled with increasing consumer expenditure for purchasing clothes is expected to elevate the demand for yarn derived from cotton during the forecast period.

The textile and apparel industries play an important role in the economy of Europe. These industries cover a range of activities from the transformation of natural products including cotton into fabrics and yarns, to further manufacture bed linens, hi-tech synthetic yarns, clothing, and industrial filters. Rising demand for technical textiles & raw materials will augment the market growth in Germany and France.

The textile industry in North America is estimated to offer lucrative growth opportunities for market growth. The U.S. textile industry mainly comprises fabric and yarn manufacturing and supplies a wide range of products made using cotton, wool, and different types of synthetic fibers. The growing population across the U.S. coupled with rising consumer preference toward fashion & clothing is anticipated to prompt cotton consumption, especially in the apparel segment.

The cotton yarn market in Latin America is anticipated to grow at a positive rate during the forecast period. This is attributed to the constant research and innovation in technology for cotton products, such as the use of high-tech machinery, seeds certified by international and national technological protocols, constant genetic improvement, and the installation of biofactories. According to Cotton Brazil, the country focuses on producing cotton yields in drylands, and 92% of Brazilian cotton is in dryland areas. Hence, such factors would lead to an increase in the manufacturing of cotton yarn in countries such as Brazil.

Growing consumer preference toward online clothing shopping and rising research and innovation in the apparel industry would fuel the demand in the Middle East & Africa. The Clothing, Textiles, Footwear, and Leather (CTFL) industry in South Africa plays a major role and offers 14% of production employment in the country. Moreover, growing urbanization in Saudi Arabia is further propelling the adoption of textile-based products. This, in turn, is anticipated to create new opportunities for market growth.

List of Key Companies in Cotton Yarn Market

Creating Brand Identity by Companies to Strengthen their Position in the Market

The competitive landscape of the market includes major companies such as Texhong, BROS, Huafu, Weiqiao Textile, and Vardhman Group. The market is highly fragmented and has become saturated with manufacturers offering almost identical products. The market has not seen any major innovation over the years, making it difficult for any player to gain prominence. However, creating a brand identity has enabled a few companies to price their apparel at premium rates.

LIST OF KEY COMPANIES PROFILED:

• Texhong (China)


• Vardhman Group (India)


• BROS (China)


• Weiqiao Textile (China)


• Lutai Textile (China)


• Huafu (China)


• Alok (India)


• Huamao (China)


• China Resources (China)


• Nahar Spinning (India)


• Nishat Mills (Pakistan)


• Trident Group (India)


• Fortex (Vietnam)


• Aarti International (India)


• KPR Mill Limited (India)

KEY INDUSTRY DEVELOPMENTS:

• December 2021 – Circular Systems entered a deal with Nishat Mills for enhancing the production capacity of its Agraloop BioFibre and Texloop RCOT Primo recycled cotton yarns. This was the first formal collaboration of Circular Systems with a Southeast Asian company in a licensing capacity.

REPORT COVERAGE

An Infographic Representation of Cotton Yarn Market

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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies and their various initiatives for industry expansion. Also, it offers an insight into the market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

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