Updated Mar 19, 2023 10:21

Cotton Fabric Market in South-Eastern Asia

Market Overview
In , the Southeast Asian cotton fabric market increased by % to $, rising for the second consecutive year after three years of decline. Over the period under review, consumption, however, continues to indicate a slight slump. The level of consumption peaked at $ in 2007; however, from 2008 to , consumption failed to regain momentum.

In value terms, cotton fabric production reached $ in estimated in export price. Over the period under review, production, however, recorded a deep contraction. The pace of growth appeared the most rapid in 2017 with an increase of % against the previous year. The level of production peaked at $ in 2007; however, from 2008 to , production failed to regain momentum.

The countries with the highest volumes of production in were Indonesia ( square meters), Thailand ( square meters) and Malaysia ( square meters), together comprising % of total production.

From 2007 to , the most notable rate of growth in terms of production, amongst the leading producing countries, was attained by Thailand (with a CAGR of -%), while production for the other leaders experienced a decline in the production figures.


Consumption
In , the amount of woven fabrics of cotton consumed in South-Eastern Asia totaled square meters, increasing by % compared with the previous year's figure. In general, consumption, however, continues to indicate a mild decrease. Over the period under review, consumption hit record highs at square meters in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.

The value of the cotton fabric market in South-Eastern Asia reached $ in , picking up 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). Over the period under review, consumption, however, continues to indicate a mild setback. The level of consumption peaked at $ in 2007; however, from 2008 to , consumption remained at a lower figure.


Consumption by Country
Indonesia ( square meters) remains the largest cotton fabric consuming country in South-Eastern Asia, accounting for % of total volume. Moreover, cotton fabric consumption in Indonesia exceeded the figures recorded by the second-largest consumer, Cambodia ( square meters), threefold. The third position in this ranking was held by Vietnam ( square meters), with a % share.

In Indonesia, cotton fabric consumption remained relatively stable over the period from 2007-. The remaining consuming countries recorded the following average annual rates of consumption growth: Cambodia (+% per year) and Vietnam (-% per year).

In value terms, the largest cotton fabric markets in South-Eastern Asia were Indonesia ($), Vietnam ($) and Cambodia ($), together accounting for % of the total market.

In terms of the main consuming countries, Cambodia, with a CAGR of +%, saw the highest growth rate of market size over the period under review, while market for the other leaders experienced more modest paces of growth.

In , the highest levels of cotton fabric per capita consumption was registered in Cambodia ( square meters per person), followed by Thailand ( square meters per person), Malaysia ( square meters per person) and Indonesia ( square meters per person), while the world average per capita consumption of cotton fabric was estimated at square meters per person.

From 2007 to , the average annual growth rate of the cotton fabric per capita consumption in Cambodia totaled +%. In the other countries, the average annual rates were as follows: Thailand (-% per year) and Malaysia (-% per year).


Market Forecast
Driven by rising demand for cotton fabric in South-Eastern Asia, the market is expected to start an upward consumption trend over the next eight-year period. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to square meters 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 .