Global Market Overview of Cotton

Delivery

This report comes in PPT.

Key findings

Global demand for cotton to increase over the long term

Fuelled by rapid urbanisation, population growth, rising incomes and substantial economic development, particularly in Asia Pacific, the long-term forecast indicates a growing demand for products such as apparel and furniture. As the production of these end-products expands, there is an anticipated surge in demand for related materials, including cotton.

Technological improvements drive productivity growth

The global adoption of genetically engineered cotton is enhancing productivity, as scientists endeavour to develop new cotton varieties that can enhance fibre quality, yield higher outputs and withstand increasingly challenging climate conditions. Technological innovations are expected to play a pivotal role in future agricultural development, by mapping resources and providing cost-effective solutions for improved production.

Climate change remains a major threat

Cotton production remains highly susceptible to the warming climate and adverse weather events, such as heatwaves, floods and droughts along with rising global water scarcity. In 2022, for example, severe flooding in Pakistan has damaged around 40% of the year’s cotton harvest, according to the non-profit Better Cotton initiative. As climate conditions change, the optimal zones for cotton cultivation may shift geographically. This could impact the global distribution of cotton production.

Sustainable cotton trends are changing the industry

Amid sustainability concerns and evolving consumer choices, the demand for eco-friendly alternatives such as recycled and organic cotton is on the rise. Cotton recycling addresses environmental issues by diminishing water and chemical usage and minimising the depletion of natural resources. Simultaneously, the demand for organic cotton is growing, focusing on environmentally conscious farming practices, promoting soil health and biodiversity.