Market Size of Indonesia Textiles Industry
Study Period | 2020 - 2029 |
Market Size (2024) | USD 13.83 Billion |
Market Size (2029) | USD 18.10 Billion |
CAGR (2024 - 2029) | 5.54 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Europe |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Indonesia Textiles Market Analysis
The Indonesia Textiles Market size is estimated at USD 13.83 billion in 2024, and is expected to reach USD 18.10 billion by 2029, growing at a CAGR of greater than 5.54% during the forecast period (2024-2029).
• The Indonesian textile industry is rapidly expanding. There are several reasons why Indonesia's textile and garment industry is now attractive to international investors and operators. Unlike many other Asian countries and the rest of the world, the Indonesian labor force is relatively young and growing at a fast pace. In 2023, there were about 5,000 active large and medium textiles and garment companies (SMEs) in the Indonesian market, while about 500,000 active small and micro businesses (SMEs).
• As one of the world’s largest producers of cotton, Indonesia has access to a wide range of raw materials, including wool, silk, and a variety of natural and synthetic fibers, ensuring reliable supply chains.
• The Indonesian textile and garment industry has a long history, dating back to the pre-colonial era, where traditional fabrics such as batik, ikat, and other traditional textiles were prized for their unique designs and craftsmanship. In part, this is because successive governments have long supported the sector for its economic and cultural contribution to the nation.
• As production technology continues to improve, the government of Indonesia has set the goal of making Indonesia 4.0 as a goal for 2030, focusing on technological advancement in five key sectors, including the textile industry. As a result, some operations are transitioning to modern, higher-margin, high-tech fabrics for use in automotive, healthcare, sportswear, etc.
• Indonesia has a population of approximately 273 million people. This means that there is a large local apparel market. As the economy has been improving recently, disposable income has been increasing.
• The growth of e-commerce and the improvement of domestic logistics is also driving local demand. Indonesia's domestic apparel market was estimated to be worth USD 21.7 billion by 2023, with an annual growth rate of 3.5%. Every Indonesian is spending USD 78.14 on clothing this year.
• There has been a worldwide trend toward sustainable and ethical apparel production in recent years. People are becoming more conscious of the environmental and social effects of the clothes they buy. The Indonesian textile and garment industry is taking advantage of this trend by implementing sustainable practices. Investing in organic cotton, environmentally friendly dyeing, and promoting accepted ethical labor practices promote new market trends and attract conscious consumers.
Indonesia Textiles Industry Segmentation
Any substance made of woven threads is a textile. It has numerous uses and many different forms. Textiles are a part of everyone's surroundings or circumstances. Textiles are used in various products, including clothes, furniture, bedding, carpeting, and even automotive parts.
The Indonesian textiles market is segmented by application type (clothing application, industrial/technical application, and household application, by material (cotton, jute, silk, synthetics, and wool), and by process (woven and non-woven). The report offers market size and forecasts in value (USD) for all the above segments.
By Application | |
Clothing | |
Industrial/Technical | |
Household | |
Other Applications |
By Material | |
Cotton | |
Jute | |
Silk | |
Synthetics | |
Wool | |
Other Materials |
By Process | |
Woven | |
Non-woven |
Indonesia Textiles Market Size Summary
The Indonesian textile industry is experiencing significant growth, driven by a combination of factors that make it an attractive destination for international investors. The country's young and expanding labor force, coupled with its status as one of the largest cotton producers globally, ensures a steady supply of raw materials. This has led to the establishment of a robust network of both large and medium-sized enterprises, alongside a substantial number of small and micro businesses. The industry benefits from a rich historical backdrop, with traditional textiles like batik and ikat playing a crucial role in its cultural and economic landscape. Government initiatives aimed at technological advancement, particularly the Indonesia 4.0 initiative, are pushing the sector towards modern, high-tech fabric production, catering to diverse industries such as automotive and healthcare. The burgeoning local apparel market, fueled by rising disposable incomes and the growth of e-commerce, further bolsters the industry's expansion.
In recent years, the Indonesian textile industry has been increasingly aligning itself with global trends towards sustainability and ethical production. This shift is characterized by the adoption of eco-friendly materials and practices, such as organic cotton and environmentally conscious dyeing processes. The industry's response to rising consumer awareness about the environmental and social impacts of fashion has been to embrace fair trade practices and collaborate with local artisans, thereby preserving cultural heritage while promoting sustainable livelihoods. Technological innovations, including 3D printing and advanced fabric development, are also being integrated to enhance sustainability efforts. These initiatives are positioning Indonesia as a key player in the global green fashion movement, demonstrating that style and sustainability can coexist. Despite challenges such as global economic conditions and competition from low-priced imports, the industry continues to evolve, with key players and strategic partnerships driving its growth and sustainability agenda.
Indonesia Textiles Market Size - Table of Contents
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1. MARKET INSIGHTS & DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.1.1 Growing domestic market
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1.2.1.2 Government support driving the market
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1.2.2 Restraints
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1.2.2.1 Competition from other countries
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1.2.2.2 Infrastructure challenges
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1.2.3 Opportunities
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1.2.3.1 Rising demand for sustainable textiles
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1.2.3.2 Technological advancements driving the market
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1.3 Value Chain / Supply Chain Analysis
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Technological Advancements in Textile industry
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1.6 Pricing Analysis and Revenue Analysis of Textile Market
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1.7 Impact of COVID-19 on the market
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2. MARKET SEGMENTATION
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2.1 By Application
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2.1.1 Clothing
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2.1.2 Industrial/Technical
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2.1.3 Household
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2.1.4 Other Applications
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2.2 By Material
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2.2.1 Cotton
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2.2.2 Jute
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2.2.3 Silk
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2.2.4 Synthetics
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2.2.5 Wool
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2.2.6 Other Materials
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2.3 By Process
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2.3.1 Woven
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2.3.2 Non-woven
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Indonesia Textiles Market Size FAQs
How big is the Indonesia Textiles Market?
The Indonesia Textiles Market size is expected to reach USD 13.83 billion in 2024 and grow at a CAGR of greater than 5.54% to reach USD 18.10 billion by 2029.
What is the current Indonesia Textiles Market size?
In 2024, the Indonesia Textiles Market size is expected to reach USD 13.83 billion.