The global cotton yarn market, valued at US $94.40 billion in 2022, is anticipated to witness robust growth, reaching around US $100.68 billion by 2028, with an expected Compound Annual Growth Rate (CAGR) of 4 percent over the estimated period, according to a report by Fortune Business Insights. The increased valuation is attributed to the distinctive characteristics of yarn that significantly impact the quality of finished textile goods.
Among various yarn types, the segment of carded yarn is predicted to experience substantial expansion, primarily due to its heightened use in the production of woolen threads. Additionally, the apparel segment is poised for reasonable growth during the estimated period, driven by factors such as the growing influence of e-commerce, increased disposable income, and more.
Key contributors to the growth of the cotton yarn market include government initiatives aimed at supporting domestic textile sectors. These initiatives focus on skill development, infrastructure creation, and sectoral advancement within the textile industry.
However, potential challenges arise from pricing competition, particularly in comparison to the lower costs associated with synthetic yarn. The industry's expansion may face hindrances due to these pricing dynamics.
The Asia-Pacific region is expected to dominate the cotton yarn market share, experiencing substantial growth over the forecast period. This growth is attributed to the escalating demand for the product driven by a growing population and increased consumer expenditure.
Conversely, the European market is projected to exhibit a lucrative pace of growth during the forecast period. This growth is fueled by the rising demand for raw materials and the increasing prominence of technical textiles in recent years.
Source: Fortune Business Insights