Textiles Industry Report

The textiles industry is one of the oldest in the world. This multi-trillion-dollar global market is anticipated to continue to grow at a steady compound annual growth rate (CAGR) due to the ongoing demand from the fashion industry and the burgeoning growth of e-commerce platforms. There is an increasing demand for natural fibers on a global scale, which is driving growth in the textiles sector.

Market Segmentation

By raw material:

• Cotton
• Wool
• Silk
• Jute
• Synthetics
• Others

By process:

• Woven
• Non-woven
• Knitted

By product:

• Natural fibers
• Polyesters
• Nylon
• Yarn
• Synthetic fibers
• Sewing and embroidery threads
• Others

By application:

• Household

–   Bedding
–   Kitchen
–   Upholstery
–   Towels
–   Carpets
–   Curtains
–   Others

• Technical

–   Construction
–   Transport
–   Medical
–   Protective

• Fashion & Clothing

–   Apparel
–   Ties and clothing accessories
–   Handbags
–   Others

By textile and fabric finishing and fabric coating mills:

• Dyeing and printing services
• Fabric finishing processes
• Coating for performance textiles

Key Market Trends

The cotton segment is dominant within the textile market. There is always a high demand for cotton by several industries, such as garments and medical. Additionally, the high availability of cotton in countries like the United States, India, and China drives market growth.

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The wool segment is growing rapidly due to the manufacturing of insulation products and their use in carpeting and upholstery, as well as the manufacturing of musical instruments and the production of tennis balls and sports gear. Wool items such as sweaters, socks, caps, and blankets are also driving the growth of the textile industry.

The natural fibers segment holds a large market share due to the increased awareness regarding sustainable clothing, the production of car interiors, and various medical applications.

The polyester segment continues to grow as polymers offer cost-effectiveness and durability. This segment also benefits from the use of polyester in jackets, sportswear, and athletic wear, as well as the production of both tires and safety belts for vehicles.

There is a growing worldwide demand for silk as it is being increasingly used in clothing, home furnishings, and surgical procedures.

By application, the market is led by the fashion and clothing segment. This growth can be attributed to several factors, including rising disposable incomes, the ongoing popularity of branded clothes, a growing demand for formalwear, a rising trend of t-shirts with custom designs, the expansion of urbanized populations, and an increasing demand for casualwear.

The technical segment is one of the fastest-growing due to increased demand for textiles with high-performance properties, as well as various uses in transportation, automotive, and protective clothing.

Additionally, there are more government initiatives to develop the textile sector, which are fostering growth within the textile market, as well as more research and development activities to innovate fabric manufacturing, and a growing demand for protective clothing from the construction sector.

Social media platforms have changed the way consumers interact with buying and selling clothes online, and this is further driving growth in the textile industry.

The increased use of synthetic and cellulose fibers for industrial applications is also driving growth in the market. Further, there has been ongoing adoption of smart textiles that use optical fibers, metals, and various conductive polymers to detect and react to various physical stimuli (mechanical, thermal, chemical, or electric sources).

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A worldwide increasing demand for environmentally friendly and sustainable textiles is a significant driver that is revolutionizing the textiles industry. As awareness of global environmental issues grows, buyers, regulators, and manufacturers are increasingly adopting sustainable practices to reduce their environmental footprints in textile production. Consumers are increasingly aware of their shopping options and are seeking materials with fewer environmental impacts. This is driving governments to implement strict regulations and standards, forcing textile makers to adopt cleaner production techniques and reduce chemical usage. As consumers increasingly demand sustainable products, major textile companies must focus on restructuring their business models and investing in new manufacturing practices.

Fashion remains a higher priority in many consumers’ lifestyles, especially in that of wealthy individuals. Advertising for fashionable items is known to drive impulsive buying, and today, social media has become another major factor contributing to the rising demand for fashion.

Another area boosting growth in the textiles market is smart clothing, e-textiles, or smart fabrics. These items utilize embedded systems that monitor human bodily functions through artificial intelligence (AI) and GPS technology, particularly in the sports, entertainment, and mining industries. Smart clothing is expected to create significant growth opportunities for market players well into the future.

M&A

The pace of growth in the textiles market has been accelerating. The textiles sector is constantly evolving in step with cultural influences and technological developments. Globalization is driving growth in the textiles industry by promoting the global purchase and sale of textile-based products.

The market is highly fragmented due to the presence of both large and small market players operating in the manufacturing of various products, ranging from clothing and home decor to medicinal uses, industrial applications, and more. This is especially true in countries such as India and China. The availability of low-cost labor, combined with increased government support for major players in these countries, is also driving healthy growth in the textiles industry.

The market has also seen a growing trend in strategies such as geographical expansions, mergers, and acquisitions. Companies in the sector are trying to boost sales through a range of government trade agreements and partnerships with various e-commerce portals.

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It can be expensive to keep up with new trends in a rapidly evolving operating environment. It can be beneficial to sell within a segment that has high valuation levels (such as affordable luxury or athletic wear). Additionally, brick-and-mortar retailers can sell assets to focus on the development of their flagship and online stores.

There are also many reasons to buy a company in this sector, such as the integration of the supply chain from manufacturers to wholesalers. It can also drive geographical expansion or growth into a new segment, especially in emerging markets with developing economies. Another tactic is to leverage existing brand equity, profiting from a known brand that the current owner cannot afford to maintain or grow. Plus, the ever-changing technology landscape means new opportunities within tech companies that serve the industry.

Other factors that are influencing M&A activity in the textiles sector include:

• The digitization of payments, point of sale, logistics, and delivery
• Demand for fashion at lower prices
• A growing market for fair fashion and demand for increased sustainability, as younger generations call for reduced impacts on the environment
• Cost-cutting measures and restructuring to focus on core brands
• Emerging markets of second- and third-tier cities and the assertive expansion of fast-fashion retailers
• The use of blockchain processes
• Digital textile printing inks
• Digital platforms in supply chain management
• Collaborations to design and develop smart fabrics
• Focus on the adoption of robotics, automation, and AI

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