Cotton Processing Market Report 2026

The cotton processing market size has grown strongly in recent years. It will grow from $86.05 billion in 2025 to $91.23 billion in 2026 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to expansion of textile and apparel manufacturing, growth in cottonseed oil production, increasing mechanization of spinning operations, availability of modern processing equipment, rising global cotton consumption.

The cotton processing market size is expected to see strong growth in the next few years. It will grow to $118.27 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing adoption of sustainable textile production, rising demand for organic cotton products, expansion of technical textiles, growing investments in automated spinning mills, increasing focus on supply chain transparency. Major trends in the forecast period include increasing automation in cotton processing facilities, rising demand for high-quality yarn and fabric, growing integration of energy-efficient machinery, expansion of value-added cotton byproducts, enhanced focus on traceability.

Rising demand from the textile industry is expected to drive the growth of the cotton processing market going forward. The textile industry encompasses the manufacturing, exporting, and importing of various clothing and apparel. Cotton is a comfortable, hypoallergenic, low-maintenance, and naturally sustainable material widely used in textiles and apparel. For example, in September 2023, a report by the U.S. Department of Agriculture (USDA), a US-based government agency, projected that global cotton mill use would increase by 5 million bales (4.5%) to reach 115.9 million bales in 2023-24. Therefore, the rising demand for cotton processing in the textile industry is driving the cotton processing market.

Leading companies in the cotton processing market are innovating new methods, such as contamination-free yarn, to improve product quality and comply with rigorous industry standards. Contamination-free yarn is produced without impurities, foreign materials, or contaminants, ensuring a high level of quality and purity in textile production. For example, in June 2024, GIMATex Industries Pvt. Ltd, an Indian manufacturer of cotton yarn and grey fabric, introduced siro compact yarns and high-quality chief value cotton yarns (CVC yarns) that offer a contamination-free option. Siro Compact Yarns are specifically designed to fulfill the high demands of contemporary fabric manufacturing, providing notable benefits over traditional yarns. The compact spinning technology utilized in their production reduces imperfections and enhances the yarn's overall quality, resulting in smoother, stronger, and more durable fabrics.

In December 2024, the Louis Dreyfus Company (LDC), a merchant and processor of agricultural products based in the Netherlands, purchased Namoi Cotton Co-operative Limited for $160 million. This acquisition is intended to bolster LDC's standing in the cotton processing market by enhancing its supply chain capabilities, improving operational efficiencies, and expanding its cotton processing and marketing operations.

Major companies operating in the cotton processing market are Lummus, Bajaj Steel Industries, Nipha Exports, Shandong Swan Cotton Industrial Machinery, Rieter, Toyota Industries, BALKAN, Mitsun Engineering, Oswal Industries, Lagan Engineering Company, Lianyungang Huantai Machinery, Qingdao New Shunxing Environmental Protection and Technology, Qingdao Hoper Machinery, Hebei Hanwu Cotton Machinery, Qingdao Tonglijia Mechanical Science and Technology, Shandong Xinjie Industry, Shandong Huanhai Group, Shandong Wanhong Intelligent Equipment Group, Shandong Shunxing Machinery, Shandong Luming High-tech Cotton Industry Machinery, Shandong Lintianzhiyuan CNC Equipment, Shandong Jiafeng Textile Machinery, Shandong Changsheng Cotton Machinery, Shandong Baimai Agricultural Machinery, Shandong Baiyuan Machinery, Shandong Aolong Group, Shandong Aichener Machinery.

Asia-Pacific was the largest region in the cotton processing market in 2025. The regions covered in the cotton processing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cotton processing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cotton processing market consists of sales of blow room's machinery, carding machine, draw frame, lap former, comber, roving frame or simplex, spinning frame, and winding machine. 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.

This product will be delivered within 1-3 business days.