Updated Jan 9, 2023 19:04

Cotton Lint Market in Algeria

Market Overview
The Algerian cotton lint market contracted to $ in , with a decrease of -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, recorded noticeable growth. Over the period under review, the market reached the maximum level at $ in 2019; however, from to , consumption remained at a lower figure.

In value terms, cotton lint production dropped to $ in estimated in export price. In general, production, however, recorded a pronounced curtailment. The most prominent rate of growth was recorded in 2010 with an increase of %. Over the period under review, production attained the peak level at $ in 2013; however, from 2014 to , production stood at a somewhat lower figure.

The average yield of cotton lint in Algeria reduced slightly to kg per ha in , therefore, remained relatively stable against the previous year's figure. In general, the yield showed a noticeable descent. The pace of growth appeared the most rapid in 2011 when the yield increased by %. Over the period under review, the average cotton lint yield reached the maximum level at kg per ha in 2007; however, from 2008 to , the yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In , approx. ha of cotton lint were harvested in Algeria; increasing by % on . In general, the total harvested area indicated a buoyant expansion from 2007 to : its figure increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, cotton lint harvested area decreased by -% against indices. The pace of growth appeared the most rapid in 2010 with an increase of % against the previous year. The cotton lint harvested area peaked at ha in ; however, from to , the harvested area stood at a somewhat lower figure.


Consumption
Cotton lint consumption in Algeria shrank slightly to tons in , waning by -% on the previous year's figure. Over the period under review, consumption, however, enjoyed notable growth. Cotton lint consumption peaked at tons in 2019; however, from to , consumption stood at a somewhat lower figure.

The revenue of the cotton lint market in Algeria contracted to $ in , which is down by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, posted tangible growth. Over the period under review, the market hit record highs at $ in 2019; however, from to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for cotton lint in Algeria, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Cotton lint market in Algeria consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Algeria remains a net importer of cotton lint; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.