Market Trends of North America Cotton Industry
Demand from the Global Textile Industry Drives the Market
- Demand from the textile industry is one of the prime drivers of the North American cotton market, as cotton is the most important raw material used by the textile industry in cloth manufacturing. The textile industry is one of the key aspects of the United States apparel market. In 2021, the United States textile and apparel shipment market was valued at USD 76.8 billion. Texas (1,775 units), California (1,284 units), and North Carolina (985 units) were the States with the most textile mill units in 2022.
- The United States is the world leader in textile research and development, with the US textile complex developing next-generation textile materials such as conductive fabric with anti-static properties, electronic textiles that can monitor heart rate and other vital signs, antimicrobial fibers, lifesaving body armor, and new fabrics that adapt to the climate to make the wearer warmer or cooler.
- The textile industry in North America is expected to be increasing due to an increase in investments by textile companies and exports to other countries, such as the United States. For instance, in 2021, Costa Rica exported USD 564 million of textiles to different countries, such as the United States and Guatemala.
- One of the main drivers of the textile trade in North America is the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020. The USMCA has increased trade between the three countries and boosted North America's textile industry.
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United States Dominates the Export Market
- The United States remains a major cotton producer for the international market, ranking third after China and India and the top cotton exporting country in North America, accounting for 11.4% of global cotton exports in 2021. China, Vietnam, and Pakistan are the major importers of cotton from the United States, with an import value share of 18.8%, 14.4%, and 9.9%, respectively, in 2021.
- According to Office of Textiles and Apparel (OTEXA) data, the total value of US textile and apparel exports to Canada and Mexico increased from USD 22.1 billion in 2019 to USD 22.9 billion in 2020, despite the challenges posed by the COVID-19 pandemic. The US government promotes and supports cotton exports through programs such as the Market Access Program (MAP) and the Foreign Market Development (FMD) program. These programs provide funding and resources to help US cotton producers and exporters expand their markets and increase exports.
- The vast textile industry is the key reason for such a huge import demand from those countries. Even though the United States is the third-largest supplier of cotton in the world, the country imports minimal quantities of cotton from Egypt and Germany.
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