Market Size of South America Cotton Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 2.10 % |
Major Players*Disclaimer: Major Players sorted in no particular order |
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South America Cotton Market Analysis
The South America cotton market is projected to register a CAGR of 2.1% over the forecast period.
- The increasing rates of mechanization for cotton picking in developing and developed countries, shrinking land and water resources, and the shortening of the labor force increased the need for farm mechanization for cotton in the major producing countries. In recent years, the demand for cotton for apparel and non-apparels increased tremendously.
- The textile industry is a major sector of the global economy and is driven by increasing cotton production in the region. Brazil is the largest cotton producer in South America, followed by Argentina with 83.5% and a 15.2% production share in 2021. Brazil has ranked in the top 5 world producers in recent years, alongside China, India, the United States, and Pakistan. Brazil is the world's second-largest exporter of cotton, with an export value share of 11% in 2018.
- According to the United States Department of Agriculture (USDA) report, in 2022, the total cotton planted area accounted for 11% compared to the current season of 1.6 million hectares. Brazil's growers responded by using ample arable land in crucial growing states and increasing equipment capacity to maximize returns. In 2022, the cotton production was 13.2 million bales, or 2.9 million metric tons, up from 11.6 million bales, or 2.5 million metric tons, in 2021. The planted area of cotton was estimated to be lower during the year 2020 because of a higher cost of production and excellent margins for alternative crops such as soybeans and corn, but owing to the higher inclination of the textile industry by cotton will further propel the market studied.
- In 2022, Brazil's Center-West state of Mato Grosso and the northeast state of Bahia accounted for 9 out of 10 hectares of all cotton area planted in Brazil (71% and 19%, respectively). Brazil's cumulative soybean planted area rose by almost 50%, yet, out of almost 470,000 cotton hectares added across Brazil, Mato Grosso accounted for 82%, or 387,000 hectares, of the new area. In the 2020 season, growers in Mato Grosso increased the cotton planted area by over 300,000 hectares - more than the total cotton area sown in all of Bahia.
South America Cotton Industry Segmentation
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective case, around the seeds of the cotton plants of the genus Gossypium in the mallow family Malvaceae. Cotton is one of the important cash crops which is extensively used in the textile industry. '
The South American cotton market is segmented by Geography into Brazil, Argentina, and Others. The report includes production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis.
The report offers market size and forecasts in terms of value (USD Thousand) and volume (Metric Ton) for all the above segments.
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South America Cotton Market Size Summary
The South American cotton market is experiencing a steady growth trajectory, driven by increasing mechanization and the rising demand for cotton in both apparel and non-apparel sectors. Brazil stands out as the largest cotton producer in the region, with significant contributions from Argentina. The country's robust production capabilities have positioned it among the top global producers, alongside nations like China, India, the United States, and Pakistan. Brazil's strategic use of arable land and enhanced equipment capacity has bolstered its production, making it a leading exporter of cotton worldwide. The textile industry, a crucial component of the global economy, continues to benefit from the region's cotton production, with Brazil's exports primarily directed towards major markets such as China, Japan, and Spain.
The South American cotton market is further supported by the region's strong textile-producing countries, including Peru, Brazil, and Colombia. The Brazilian textile industry is poised for recovery, with projections of increased domestic processing and manufacturing activities. However, the industry faces challenges due to high raw material costs and currency devaluation, which impact profit margins. Despite these challenges, the global textile market's expansion presents opportunities for Brazilian cotton exports. The region's cotton cultivation has seen notable growth, particularly in areas like the Northeast and North regions of Brazil, although infrastructure improvements are needed to enhance export efficiency. Sustainable farming practices are also gaining traction, with a significant portion of Brazil's cotton production certified by the Better Cotton Initiative, reflecting a commitment to sustainable agriculture.
South America Cotton Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain Analysis
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2. MARKET SEGMENTATION
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2.1 By Geography
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2.1.1 Brazil
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2.1.1.1 Production Analysis
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2.1.1.2 Consumption Analysis and Market Value
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2.1.1.3 Import Market Analysis (Volume and Value)
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2.1.1.4 Export Market Analysis (Volume and Value)
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2.1.1.5 Price Trend Analysis
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2.1.2 Argentina
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2.1.2.1 Production Analysis
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2.1.2.2 Consumption Analysis and Market Value
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2.1.2.3 Import Market Analysis (Volume and Value)
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2.1.2.4 Export Market Analysis (Volume and Value)
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2.1.2.5 Price Trend Analysis
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2.1.3 Others
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2.1.3.1 Production Analysis
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2.1.3.2 Consumption Analysis and Market Value
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2.1.3.3 Import Market Analysis (Volume and Value)
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2.1.3.4 Export Market Analysis (Volume and Value)
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2.1.3.5 Price Trend Analysis
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South America Cotton Market Size FAQs
What is the current South America Cotton Market size?
The South America Cotton Market is projected to register a CAGR of 2.10% during the forecast period (2024-2029)
What years does this South America Cotton Market cover?
The report covers the South America Cotton Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Cotton Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.