Market Trends of Cotton Trade Analysis
This section covers the major market trends shaping the Cotton Trade Analysis Market according to our research experts:
United States Dominates the Global Exports
The United States plays a major role in the world cotton market in terms of the production and export of cotton. During 2020-2021, the United States produced approximately 2.6 million metric tons of cotton, contributing to nearly USD 7.0 million of its total value. The United States is the leading exporter in the world's cotton market, accounting for 31.3% of global cotton exports in 2021. The increase is supported by additional investment in textile operations in the United States to assist in solving logistics problems responsible for the growth.
Exports support the world's textile industries and provide opportunities for domestic farmers to market their products globally. Between 2018 and 2021, United States export decreased by 12.7% in terms of value owing to the drought and low production. However, cotton production is expected to rise due to the rising harvested area. The United States is also a major player in the exports of cotton goods. As it exports a majority of cotton fiber, it also imports textiles and apparel products from India, China, and Bangladesh, owing to 50% of the country's cotton product imports.
China Dominates Global Cotton Imports
China was the largest importer of cotton in the world. Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. The value of cotton imports raised significantly from USD 3.16 million in 2018 to USD 4.10 million in 2021, an increase of 29.6%. The major exporters of cotton to China are the United States, Brazil, India, Australia, and Sudan. In 2021, the United States and Brazil's cotton export to China were valued at USD 1.6 million and USD 1.2 million, respectively. China's imports are likely to increase as Chinese textile demand grows and government-held stocks are replenished.
Cotton consumption in China is expected to grow due to the rising demand for textiles and clothing from domestic and overseas markets. Owing to the price advantage, many cotton textiles continue to be exported despite the steady rise in domestic demand. As a result, China's overall demand for cotton is anticipated to increase gradually in the forecast period.
China's government is taking various measures to reduce imports and enhance domestic production. According to the National Development and Reform Commission, China allocated 894 thousand metric tons of tariff quotas on cotton in 2023, with state-owned enterprises receiving around 33%. This limits cotton imports by a quota and encourages textile manufacturers to purchase cotton in remote regions where 90% of China's cotton is grown.
