Textile Market Trends

Growth Drivers 

• Expanding global population - As the population is constantly increasing, there is a high demand for textiles and clothing such as casual & women's, and fashionable clothing for all age groups due to which purchasing has also increased. According to a report by the UN Trade & Development in 2022, the global population in developing countries increased to 83% in 2022 from 66% in 1950 and is expected to witness an 86% gain by 2050.
   
• Ever-changing consumer preference - Consumers now seeks sustainability, and comfort in their fashion choices which has fueled the demand for textiles. There is a surge in functional textiles, organic materials, and eco-friendly fabrics. According to a report by IFOAM in 2024, the global area for organic farming surpassed 96 million hectares in 2022.
   
• Growing urbanization - Urbanization has been considered one of the major key driving forces for the textile industry owing to the increasing need for textile products such as home textiles, clothing, and many more. According to a report in 2024, about 44% of the world's population lives in cities, about 43% lives in suburbs and towns, and around 13% in rural areas in 2020. Additionally, urbanization has also led to an increasing focus on aesthetics and design, which has created a surge in the market demand for textile solutions that are not only functional but also visually appealing.
   
• Increase in disposable income- There has been a growth in disposable income which is attributed to the growing need for comfort in residential buildings, healthcare, automobiles, and many more. According to a report, by the Office for National Statistics in 2023, when compared to the gross disposable household income (GDHI) of 2020, it increased by 3.6% in 2021 in the UK. Moreover, there has been growth in residential housing which fuels the demand for this sector.

Challenges

• Growing industrial waste- One of the primary causes of the increased number of laws and regulations controlling the manufacture of textile items is the availability of uncontrolled industrial waste. This problem is especially common in developing countries that are still undergoing industrialization. One of the biggest factors preventing the business from growing faster is the build-up of improperly handled industrial waste, which can harm the ecosystem nearby.
  
  Intense competition- With a large number of suppliers and manufacturers across the globe, the textile industry is quite competitive. Price pressure and reduced profit margins can result from intense competition, particularly for commoditized textile items.