Updated Jan 9, 2023 19:27

Cotton Lint Market in Malaysia

Market Overview
In , the Malaysian cotton lint market was finally on the rise to reach $ for the first time since 2019, thus ending a two-year declining trend. In general, consumption saw a prominent expansion. Cotton lint consumption peaked at $ in 2012; however, from 2013 to , consumption remained at a lower figure.


Consumption
In , consumption of cotton lint increased by % to tons for the first time since 2019, thus ending a two-year declining trend. Overall, consumption posted a prominent increase. Cotton lint consumption peaked at tons in 2012; however, from 2013 to , consumption remained at a lower figure.

The revenue of the cotton lint market in Malaysia totaled $ in , remaining constant 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 posted a prominent expansion. Cotton lint consumption peaked at $ in 2012; however, from 2013 to , consumption failed to regain momentum.


Market Forecast
Driven by increasing demand for cotton lint in Malaysia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, 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 Malaysia 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 decreased moderately ( percentage point) over the period under review.


Trade Balance
Malaysia 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.