Cotton Yarn Market Report 2025

The cotton yarn market size has grown strongly in recent years. It will grow from $73.46 billion in 2024 to $78.52 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to textile industry growth, natural fiber preference, global cotton production, cotton yarn innovation, affordability and accessibility.

The cotton yarn market size is expected to see strong growth in the next few years. It will grow to $103.16 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to sustainable and organic trend, e-commerce growth, regulatory emphasis on sustainable practices, demand in emerging markets, circular economy initiatives. Major trends in the forecast period include technology integration in manufacturing, sustainable and organic cotton, technological innovations in spinning processes, digitalization in supply chain management, fluctuations in cotton prices and global trade dynamics.

The growing demand from the textile industry is anticipated to drive the expansion of the cotton yarn market in the future. Textiles refer to materials made from fibers or yarn that are spun, woven, knitted, or otherwise formed into fabric or cloth. Cotton yarn is a widely used and favored material in the textile sector, produced by spinning individual cotton fibers into a continuous thread. This yarn serves as a base for various textile products, including clothing, bedding, and home décor. Textile manufacturers prefer cotton yarn due to its durability, breathability, and softness, which contribute to the market's growth. For example, in May 2023, the National Council of Textile Organizations (NCTO), a U.S.-based trade association representing the textile industry, reported that the estimated value of U.S. shipments in the man-made fiber, textile, and apparel sector reached $65.8 billion in 2022, an increase from $64.04 billion in 2021. Additionally, U.S. exports of textiles and apparel to the Western Hemisphere saw a significant increase of 14.9%, totaling $18 billion in 2022. Thus, the rising demand from the textile industry is propelling the growth of the cotton yarn market.

The surge in e-commerce and online retail is poised to significantly propel the growth of the cotton yarn market. E-commerce and online retail encompass the buying and selling of goods and services through digital platforms, facilitating transactions between businesses and consumers. Cotton yarn, serving as a fundamental material for textiles and apparel production, plays a pivotal role in this online landscape, offering a sustainable and versatile material for clothing sold via digital platforms. For instance, data from the Census Bureau in August 2023 highlighted U.S. retail e-commerce sales for the second quarter of 2023, totaling $277.6 billion. This marked a 2.1% increase (±0.9%) from the first quarter of the same year, underlining the substantial growth trajectory of online retail. As e-commerce and online retail continue to thrive, the demand for cotton yarn in producing textiles and apparel sold through these digital channels is expected to witness significant growth, driving the expansion of the cotton yarn market.

Key players in the cotton yarn market are concentrating on creating innovative yarn types, including compact spun yarns and blended yarns, to improve fabric quality and address increasing industry demands. Compact spun yarns enhance fabric quality by reducing imperfections, leading to greater strength, smoothness, and durability. Blended yarns combine natural fibers like cotton with synthetic materials to offer enhanced sheen, strength, and a softer texture. For example, in June 2024, Gimatex Industries Pvt. Ltd., an India-based textile manufacturer, introduced two new types of yarn: Siro Compact Yarns and Chief Value Cotton (CVC) Yarns. These innovations improve fabric quality and fulfill industry requirements by employing compact spinning technology to minimize defects, resulting in superior strength and smoothness. The CVC Yarns provide a cotton-like feel while incorporating polyester for enhanced sheen and strength.

Major players within the cotton yarn market are prioritizing the development of sophisticated platforms, such as traceability tools, to bolster supply chain transparency and optimize their market returns. These tools serve as systems or software designed to facilitate the monitoring and documentation of product or material flow across the supply chain, ensuring a transparent and traceable process. For instance, in November 2023, Better Cotton, the largest cotton sustainability program based in Switzerland, introduced the Better Cotton Platform, a traceability tool. This innovative tool significantly improves visibility into the intricate trajectory of cotton across the supply chain, fostering confidence among member retailers and brands regarding the sourcing of products from specific regions. Powered by ChainPoint, the platform empowers suppliers to record transactional data, establishing a transparent path from cotton ginning all the way to the retailer or brand.

In December 2023, RSWM Ltd., an India-based manufacturer specializing in synthetic, cotton, and blended spun yarns, acquired the spinning, knitting, and processing businesses of Ginni Filaments for an undisclosed amount. This acquisition is intended to enhance RSWM Ltd.'s production capacity and fortify its position in the spinning and knit fabric sector. It is expected to increase RSWM's turnover, employee count, and plant capacity, thereby establishing the company as a market leader. Ginni Filaments Ltd. is an integrated manufacturer in India, producing cotton yarn, processed knit fabrics, and knit garments.

Major companies operating in the cotton yarn market include China Resources Textiles (Holdings) Co. Ltd., Maharaja Shree Umaid Mills Limited, Aarti International, Henan Xinye Textile Co. Ltd., Huafu Fashion Co. Ltd., Vardhman Textiles Ltd., Trident Limited India, Luthai Textile Co Ltd., BROS Eastern Co. Ltd., Huafang Group Co. Ltd., Jiangsu Lianfa Textile Co. Ltd., Shandong Ruyi Technology Group Co. Ltd., Huamao Co. Ltd., Hengfeng Co. Ltd., Huafang Co. Ltd., Sanyang Textile Co. Ltd., Weiqiao Textile Company Limited, Gokul Overseas Limited, Nitin Spinners Limited, Jiangsu Dasheng Group Co. Ltd., Raymond Limited, Kedia Overseas Limited, Ambika Cotton Mills Limited, Nahar Spinning Mills Limited, Nishat Mills Limited, Huafu Top Dyed Melange Yarn Co. Ltd., Guanxing Textile Group Co. Ltd., Lingxian Hengfeng Textile Co. Ltd, Guanxing Co. Ltd., Texhong Textile Group Limited.

North America was the largest region in the cotton yarn market in 2024. The regions covered in the cotton yarn market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cotton yarn market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cotton yarn, made from cotton fibers, is widely used in textiles for its softness, breathability, comfort, and versatility in creating various clothing options.

Cotton yarn primarily comprises carded yarn, combed yarn, and other variations. Carded yarn is specifically produced through the carding process, which entails separating, cleaning, and aligning cotton fibers to form a continuous yarn strand. This type of yarn finds application across diverse sectors, including industrial textiles, apparel, and home textiles. Distribution of these yarn types occurs through both online and offline channels, catering to various end-uses.

The cotton yarn market research report is one of a series of new reports that provides cotton yarn market statistics, including cotton yarn industry global market size, regional shares, competitors with a cotton yarn market share, detailed cotton yarn market segments, market trends and opportunities, and any further data you may need to thrive in the cotton yarn industry. This cotton yarn market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cotton yarn market consists of sales of clothing, pillowcases, bedding, towels, curtains, home decor, crafts, and industrial products made using cotton yarn. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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