Cotton Market to Grow by USD 7.86 Billion (2024-2028) as Economic Growth and Livelihood Support Drive Demand, with AI Impacting Market Trends - Technavio

NEW YORK, Sept. 23, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global cotton market size is estimated to grow by USD 7.86 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 2.96%  during the forecast period. Supports economic growth and source of livelihood is driving market growth, with a trend towards adoption of new technologies by vendors  However, overconsumption of water due to poor management and water pollution  poses a challeng - Key market players include Ambika Cotton Mills Ltd., Asha Cotton Industries, Banswara Syntex Ltd., Carr Textile, Damodar Group, Fazal Cloth Mills Ltd., Hengli Group Co. Ltd., Huafu Fashion Co. Ltd., Loyal Textile Mills Ltd., Lu Thai Textile Co. Ltd., Oswal Group, Shri Vallabh Pittie Group, Sintex Industries Ltd., Sutlej Textiles and Industries Ltd., The Bombay Dyeing and Manufacturing Co. Ltd., The Lakshmi Mills Co. Ltd., Trident Ltd., Unifi Inc., Vardhman Group, and Weiqiao Textile Co. Ltd..

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Market Driver

The global cotton market is experiencing a significant boost due to the adoption of new technologies by vendors. Innovations in farming techniques, such as Monsanto's Bollgard 3 XtendFlex Cotton, offer season-long protection against insect damage and reduced labor costs. This technology combines three modes of action for insect control and herbicide tolerance, providing farmers with a more efficient and effective solution for cotton production. The implementation of such advanced technologies is expected to positively impact the growth of the global cotton market during the forecast period. 

Cotton markets experience intense volatility due to various factors like weather, government policy, and currency fluctuations. Producers and mills face uncertainty and threat to their cash flow. OTC trading in cotton futures, options-based solutions offer strategic edge for risk management. Century-long expertise in commodities markets provides real-time data, commentary, and market intelligence for consistent margins. Fluctuating markets demand flexibility in trading. Global professionals help cotton producers, textile mills, apparel manufacturing markets, and garment industries navigate these volatile markets. Cotton fibers, from export demand to cotton yarn and textile products, require long-term profitability plans. Natural fibers like cotton face intense competition from synthetic alternatives. Knitted fabrics and medical dressings also depend on cotton's availability and price. Stay informed and adapt with US. 

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Market Challenges

• Cotton production relies heavily on water, with approximately half grown in irrigated fields and the remainder under rain-fed conditions. Inefficient management practices can lead to overconsumption and pollution of this precious resource. Factors affecting water usage and pollution include irrigation methods, fertilizer and pesticide application, and soil types. Climate change projections may exacerbate water scarcity, while unsustainable irrigation practices deplete freshwater resources. Eutrophication from fertilizer use can contaminate drinking water sources, threatening human and animal health as well as aquatic life. These concerns may hinder the growth of the global cotton market due to increasing water scarcity and pollution.
• The Cotton Market faces consistent challenges in achieving stable margins due to volatile markets. Trading in commodities markets can be intense, with real-time data and market intelligence essential for making informed decisions. Global professionals in the industry must navigate weather conditions, government policy, and currency fluctuations, which add uncertainty and threaten cash flow. Cotton producers and global textile mills, as well as apparel manufacturing markets, rely on a steady supply of high-quality cotton fibers. Export demand for cotton yarn, textile products, and raw cotton is crucial. However, global cotton production can be affected by crop yield, consumption, and export volume in metric tons. Garments, apparel, medical dressings, natural fibers, knitted fabrics, cotton exports, home furnishings, medical gauze, cotton swabs, cotton rounds, traditional diapers, and cottonseed oil are all significant sectors in the cotton market. Producers and mills must adapt to changing market conditions, ensuring they can meet demand while maintaining profitability.

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Segment Overview 

This cotton market report extensively covers market segmentation by  

1. Application 
• 1.1 Cotton fiber
• 1.2 Cotton seed oil
• 1.3 Cotton seed
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 APAC
• 3.2 Middle East and Africa
• 3.3 North America
• 3.4 South America
• 3.5 Europe

1.1 Cotton fiber-  Cotton is a widely used natural fiber in the textile industry, sourced primarily from tropical and subtropical regions globally. India is the leading cotton producer in the world. The global textile mills and apparel manufacturing market growth have significantly increased the demand for cotton fiber. Consumers' preferences drive this demand, making cotton the most frequently used natural fiber in textiles, accounting for about one-third of all fibers produced. Although an export crop, most cotton processing occurs in major producing countries like China and India. The increasing preference for natural fibers is expected to fuel the demand for cotton fiber, thereby boosting the global cotton market's growth during the forecast period.

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Research Analysis

The Cotton Market is a dynamic and complex global industry that deals with the production, trading, and consumption of cotton fibers. It is characterized by price volatility due to various factors such as weather conditions, supply and demand imbalances, and geopolitical risks. To manage this risk, players in the Cotton Market turn to OTC (Over-The-Counter) markets for futures and options-based solutions. Long-term profitability is a key consideration for global textile mills and apparel manufacturing markets, making risk management an essential strategic edge. The Cotton Market encompasses the production of cotton fibers, with major exporting countries accounting for over 90% of global production. Consumption includes textile products such as garments, apparel, and traditional diapers, as well as cotton yarn and cottonseed oil. Export demand and volume are measured in metric tons, with major exporting countries shipping bales of cotton to importers worldwide. Crop yield and cotton production are also significant factors influencing market trends.

Market Research Overview

The Cotton Market is a dynamic and intense arena where global professionals come together to manage price volatility and secure long-term profitability. With century-long expertise, Cotton Markets offer OTC trading, futures, and options-based solutions to help cotton producers, textile mills, and apparel manufacturers navigate the fluctuating market. Strategic edge is gained through real-time data, market intelligence, and expert commentary on factors influencing cotton markets, such as weather, government policy, and currency fluctuations. Flexibility is key in managing cash flow in this volatile market, making OTC trading an attractive option for those seeking consistent margins. From cotton fibers to textile products, including garments, medical dressings, and home furnishings, the Cotton Market caters to a diverse range of industries. Global production, consumption, export demand, and export volume are all crucial factors impacting the market, with metric tons of fiber traded in bales. Crop yield, cotton production, and export volume are closely monitored to assess the impact on supply and demand dynamics.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Cotton Fiber
• Cotton Seed Oil
• Cotton Seed
• Distribution Channel
• Offline
• Online
• Geography
• APAC
• Middle East And Africa
• North America
• South America
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio