Handloom Products Market Size, Share & COVID-19 Impact Analysis, By Type (Sarees, Apparel & Accessories, Bedding & Bath, Carpet, Mats, & Rugs, and others), Material (Cotton, Silk, Linen, and Wool), and Regional Forecast, 2023-2030

The global handloom products market size was valued at USD 7.29 billion in 2022 and is projected to grow from USD 7.77 billion in 2023 to USD 13.68 billion by 2030, exhibiting a CAGR of 8.41% over the forecast period. Asia Pacific dominated the handloom products market with a market share of 55.97% in 2022.

The market continues to thrive, driven by consumer demand for sustainable, unique, and culturally significant products. The growth of the market is attributed to a convergence of economic, ethnic, and environmental factors. Primarily, there is a growing appreciation for artisanal craftsmanship and eco-friendly products in consumer preferences. Handloom products are observed as a testament to the skill, tradition, and ethical production method, appealing to conscientious consumers. Moreover, the rise of e-commerce and social media has spurred the reach of handloom artisans, enabling them to present their art and craft to a global audience.

Digital exposure has increased the demand for exclusive, handmade textiles, and clothing globally.

Handloom products hold cultural significance in many regions, reflecting heritage and identity. As globalization blurs cultural boundaries, people seek products that preserve and celebrate their roots, further fueling the demand for these products, such as carpets, mats, rugs, apparel, and handbags, among many others. In terms of sustainability, handloom textiles are eco-friendly alternatives to mass-produced fabrics. As environmental concerns intensify, more consumers are trying to make mindful choices and are turning toward handloom, which often uses natural fibers and dyes, reducing the carbon footprint.

COVID-19 IMPACT

Disruptions in Artisans' Businesses Globally During Pandemic Hampered Market Growth

The advent of the COVID-19 pandemic necessitated a shift in societal behaviors and prompted organizations to reconfigure their operational strategies. This abrupt transformation had a profound global impact, resulting in the complete closure of traditional and contemporary markets for artisans. The imposition of lockdowns and restrictions disrupted the supply chain for raw materials and the distribution of finished goods, resulting in significant delays and financial strain for handloom weavers. With economic uncertainty and reduced consumer spending, the demand for handloom products diminished, leading to reduced income for weavers. Payment flows were halted as buyers were unable to meet their financial obligations, and sales ground to a halt.

Weavers encountered order cancellations, particularly from the export market, as retailers themselves were compelled to close their doors due to nationwide lockdowns and travel restrictions. This further eroded the income of artisans. Handloom weavers confronted financial hardships due to limited savings and restricted access to credit, subsequently affecting the livelihoods of many and impeding their ability to procure essential raw materials for their craft. Various governments implemented relief measures and financial support programs for the handloom sector to mitigate the impact of the pandemic. For instance, to support the handloom sector and to enable a wider market for handloom weavers/artisans/producers, steps have been taken to on-board weavers/artisans in the Government e-Market place (GeM) by the ministry of textiles, India. This is expected to enable them to sell their products directly to various Government departments and Organizations.

LATEST TRENDS

Growing Appreciation for Traditional Craftsmanship, Sustainable Practices, and Unique Handmade Textiles to Aid Market Growth   

In recent years, the handloom sector has witnessed a remarkable resurgence, with several exciting trends shaping its future. Consumers are increasingly becoming conscious of the environmental impact of fast fashion, leading to a demand for apparel made using natural fibers and dyes that are biodegradable and have a lower carbon footprint. Further, there is a renewed interest in the skill and artistry of weavers and artisans. Consumers are seeking out handwoven fabrics that display intricate craftsmanship and preserve cultural heritage. This trend, in turn, has led to collaborations between traditional weavers and contemporary designers, resulting in excellent and marketable products.

Handloom textiles are no longer confined to traditional patterns and motifs and are being experimented with modern and innovative designs, blending traditional techniques with modern aesthetics. This fusion of old and new is grabbing the attention of the younger demographic to handloom products. Moreover, the industry is also embracing digital platforms for marketing and sales. Artisans and cooperatives are leveraging e-commerce and social media to reach a global audience, eliminating intermediaries and ensuring fairer prices for their products. The trend of personalization and customization is driving the creation of made-to-order and bespoke handcrafted apparel and textiles.

Additionally, many handloom clusters are forming collaborations and partnerships with fashion brands and retail giants, garnering increased visibility for handloom products and wider distribution channels, benefitting both consumers and artisans. Furthermore, these products from various regions are gaining international recognition. For instance, the Indian handloom is making its way on global runways and in the wardrobes of fashion-conscious individuals globally.

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DRIVING FACTORS

Revival of Handloom Industry Driven by Rising Demand for Sustainable Fashion to Boost Market Growth

The growing demand for handloom products can be attributed to factors, such as changing consumer preferences, a shift toward environment-friendly products, renewed appreciation for traditional craftsmanship, and a growing emphasis on conserving cultural art and heritage. This revival of the handloom industry is not merely a trend and represents a paradigm shift in the global textile industry. Particularly, millennials and Gen Z are attracted to ethnic as well as sustainable fashion choices. As concerns regarding the environmental impact of fast fashion continue to rise, people are increasingly seeking alternatives that align with their values. Handloom fabrics are often produced using age-old methods that have a minimal ecological footprint. This has emerged as a preferred choice for those looking to reduce fashion-related carbon footprint. These textiles tend to use organic fibers and natural dyes and require less energy in their production processes, making them a sustainable choice.

Increasing Government Auxiliary Activities to Support Handloom Sector Drives Market Growth

The handloom sector symbolizes the rich culture and artistic diversity of the country. It has always been an area of prime focus for the government in order to preserve and protect the cultural heritage of that region. The government adopts various measures and schemes for the promotion and development of the handloom industry by means of different policies and programs. For instance, India, the producer of a whopping 85% of handloom globally, implemented six schemes in total, including Integrated Handloom Development Scheme, Handloom Weavers Comprehensive Welfare Scheme, Marketing and Export Promotion Scheme, Mill Gate Price Scheme, Diversified Handloom Development Scheme, Revival, and Reform and Restructuring Package for Handloom Sector. These schemes have other sub-components, such as the cluster development program, marketing incentives, handloom marketing assistance, and the development and strengthening of handloom institutions, among others.

RESTRAINING FACTORS

Weavers Moving Away from Profession Due to Lack of Provisions and Income Impede Market Growth

Although the cultural significance of handlooms has been on the rise and has not yet lost its special charm in the textile market, its effect does not translate into an improvement in the socio-economic status of the weavers. This is apparent when the income of weavers is compared with the production of handloom cloth. According to the Handloom Census 2019-2020, the overall number of weavers dropped by 19% in 2019-2020 as compared to 2009-2010. According to the minimum wage rule, a handloom worker should be able to earn a minimum amount of USD 75 per month. However, 67% of the weavers in the sector earn less than USD 60 per month. This is encouraging many families to move away from the profession, restricting market growth.

Moreover, handloom weavers are facing difficulties in carrying out their livelihood on handloom owing to the competition with the power loom sector, infrastructural constraints, marketing problems, and ever-rising yarn prices. Similarly, scarcity of appropriate raw materials, lack of working capital, lack of entrepreneurial skills among artisans, lack of knowledge about appropriate technology, and competition from machine-made products are a few other aspects hampering the handloom products market share.

SEGMENTATION

By Type Analysis

Sarees Segment Lead the Way in Fashion with Rich Cultural Traditions

Based on type, the market is segmented as sarees, apparel & accessories, bedding & bath, carpets, mats, & rugs, and others. The sarees segment accounted for the majority of the market share of 44.92% in 2022. The rise of sustainable fashion has created a huge appetite for handcrafted and hand-loomed items. The level of artistry achieved on handloom sarees is unique and different, belonging to each region’s cultural heritage in India. Some of the most popular types of Indian handloom fabrics for sarees include Chanderi silk, Banarasi silk, Maheshwari silk, and Tussar silk. These handloom sarees transmit the experience and feelings of the weaver. In addition, present generations are investing in handloom products to do their bit in preserving a traditional craft and supporting an artisanal community, which is supplementing the growth of the segment. Brands such as Etro, Eileen Fisher, and VAYU, among many other international brands, are embracing Indian handloom fabrics.

Meanwhile, segments, such as bedding & bath and carpets, mats, & rugs are gaining traction and are projected to grow at the fastest CAGR over the forecast period from 2023 to 2030. The rise in renovation and remodeling activities, the growing interest of consumers toward interior decoration, and handloom fabrics imparting richness, authenticity, versatility, and sustainability are expected to drive its demand among consumers. Handloom bedding offers numerous benefits over machine-made products such as cotton bed sheets. These products are durable, breathable, sustainable, unique, and comfortable.

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By Material Analysis

Cotton Segment Dominates Market Revenue, Embraced for Comfort and Versatility

Based on material, the market is segmented into cotton, silk, linen, and wool. The cotton segment accounted for the majority of material share in terms of revenue. It is one of the most popular choices for handloom products with characteristics, such as lightweight, soft, comfortableness, versatility, and durability. Also, cotton is hypoallergenic, breathes well, and can be found in virtually any type of clothing, including shirts, dresses & Co Ord sets, sarees, kurtas & kurtis, dupattas, stoles, and scarfs, among many other garments. They are eco-friendly, skin-friendly, and exude an aura of affordable luxury, making them accessible to a wide range of people. Additionally, handloom cotton sarees are deeply rooted in Indian culture and are worn during weddings, festivals, and other special occasions, attributing to its large handloom product market share.

Linen material, one of the oldest known to humankind, lightweight yet strong, is projected to grow significantly over the next few years. Its properties include absorbent, cool, smooth, durable, and machine-washable, although it needs regular ironing. The material can be used in clothing items and is mostly used in household textiles such as tablecloths, napkins, drapes, bedsheets, and towels. The strength of flax fibers threaded inside linen fabric gives the material the ability to endure the test of time and, hence, is likely to increase its demand in the years to come.

REGIONAL INSIGHTS

Encouraging Traditional Craftsmanship and Cross-Cultural Interest to Boost Handloom Products Demand in Western Market

Geographically the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific handloom market is a vibrant and diverse sector that holds deep cultural significance. The market has evolved to blend age-old techniques with modern innovations, boosting a rich tradition of craftsmanship and textile production. India, Bangladesh, and Indonesia are renowned for their handloom textiles. These fabrics, often created using traditional wooden looms, showcase intricate patterns and vibrant colors unique to each region. They serve as cultural symbols and provide a livelihood to countless artisans and weavers. Governments and organizations in the Asia Pacific region have also recognized the importance of preserving and promoting this traditional craft, contributing to the region’s highest market share. Its impact extends beyond commerce, influencing the global fashion landscape and promoting sustainable practices, consolidating market growth.

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North America is projected to experience moderate market growth owing to increasing interest in sustainable and locally-made artisanal products. These products are traditionally associated with Indian and other South Asian cultures and have indeed been making their way into Western markets in recent years. Western consumers are recognizing and appreciating the craftsmanship and uniqueness of these products, which are often made using traditional techniques and natural fibers. Moreover, many Western retailers and designers have initiated collaboration with artisans from South Asia and other regions to bring these handloom creations to a broader audience. Overall, the incorporation of handloom products into the North American and European market is a positive development that is likely to support old-style artisanship, sustainable practices, and cross-cultural appreciation, driving the growth of the market.

KEY INDUSTRY PLAYERS

Collaboration between Artisans and Designers to Drive the Handloom Products Market Growth

In an increasingly fast fashion marketplace with a churn of retail chains and dynamic online sellers, varying prints, patterns, silhouettes, and shades are released every day by market key players to stay competitive. Slow regional artists and handcrafted textiles, though not regulated by seasonal or rapidly shifting fashion trends, are still produced for designers and retailers who commission or collaborate with weavers for projects. In contrast, brands with the knowledge of branded communication in terms of labeling, packaging, and advertising, traditional handlooms are not protected by branded makers and carry the risk of losing those intrinsic geo-cultural traits that make them exclusive in the face of mass-produced fakes.

Non-profit organizations and governments take various initiatives to encourage and preserve the livelihood of these artisans and the art itself. In 2019, Tata Trusts and Microsoft India signed a MoU to jointly revive the handloom clusters in the eastern and north-eastern parts of India. Through this partnership, both companies are leveraging each other’s strengths to provide communication skills and business, design education, and digital literacy to handloom weavers in order to build a sustainable future. In 2019, a trio started Pickmycloth, an e-commerce platform for artisans/weavers to sell handloom and handicraft products directly to consumers across the globe. The artisan decides the prices on the platform. The company also provides a platform for local boutiques/designers to present their designs and engage in customized clothing, bulk sales, pre-orders for marriages, and corporate gifting.

LIST OF KEY COMPANIES PROFILED:

• Maheshwari Handloom Works (India)


• GoCoop (India)


• Chandan Rugs (India)


• Sri LaxmiNarasimha Handloom Sarees (India)


• Manisha Silk Weaves (India)


• Medusa Exim (India)


• Dhananjay Creations (India)


• Shree Jee (India)


• Global Floor Furnishers (India)


• Dream Home Carpets Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: In order to digitize the handloom and handicraft sector in North East India, Tide, UK's SME-focused business financial platform, entered into a MoU with North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC). As part of the one-year-long partnership, the company is set to amplify scalability, financial inclusion, and market reach for the community of nearly 2.1 million handloom weavers and 3.5 handicraft artisans across 800 clusters in Northeast India.


• August 2023: E-commerce platform Flipkart collaborated with the government of Gujarat on National Handloom Day through a MoU with the Commissioner of the Cottage and Rural Industries, the government of Gujarat, under the Flipkart Samarth program. This partnership aims to digitize local businesses, emphasizing the development of crafts in every district and making concerted efforts to revive struggling crafts within the state.


• July 2023: The Central Cottage Industries Corporation of India Ltd. (CCIC) collaborated with Open Network for Digital Commerce (ONDC) to provide handicraft and handloom-products to the online consumer base. This campaign provided a 30% discount as a part of the ‘Mega Sale’ promotional activity on handicraft and handloom-products as a debut to promote traditional Indian art, craft, and craft persons.


• March 2022: Maati by Neha Kabra collaborated with technical and design consultant and handloom specialist Fatima Radiowala and The Handloom Project to create a sustainable womenswear collection. The brand’s new collaborative collection, named ‘Summer Sorbet,’ features pastel stripes, relaxed silhouettes, and summery separates and is the label’s first collaboration with The Handloom Project.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, services, and leading product types. Besides this, the report offers market insights and highlights key industry developments. In addition to the aforementioned factors, the market report encompasses several factors that have contributed to the growth of the market in recent years.

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