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In a significant shift toward industrial self-reliance, a high-level technical committee has reached a consensus to increase cash incentives for garments manufactured with locally produced yarn.
The proposal aims to raise the incentive from the existing 1.5 per cent to as high as 5 per cent, a move designed to decouple the $45 billion Ready-Made Garment (RMG) sector from its heavy reliance on imported raw materials. This strategic recalibration, discussed during a recent inter-ministerial evaluation, is viewed as a critical lifeline for domestic spinning mills, which have seen nearly 50 textile units shut down and others operating at just 50 per cent capacity due to high energy costs and competitive import pressures.
Boosting compliance and regional competitiveness
The incentive hike is strategically timed as Bangladesh prepares for its November 2026 graduation from Least Developed Country (LDC) status. Industry leaders, including representatives from the BGMEA and BTMA, argue, a 5 per cent support level is essential to make domestic yarn commercially viable against cheaper imports. Raising the incentive would enable us to revive over 350 idle apparel units, transforming them back into tax-contributing entities, noted Shehabuddoza Chowdhury, Vice-President, BGMEA. Beyond fiscal relief, the move strengthens ‘backward linkage’ transparency- a growing requirement for Western ‘masstige’ brands demanding verified, sustainable supply chains.
Institutional deadlines and fiscal sustainability
While the government has initially consented to the increase, the Ministry of Finance remains cautious regarding the fiscal impact. The 10-member technical committee is tasked with submitting a final impact report by February 16, 2026, analyzing the budgetary cost versus the projected gains in employment and export revenue. This policy intervention serves as a preemptive measure to safeguard market share in the EU and US, where Bangladesh faces evolving tariff regimes. By incentivizing local sourcing, the administration hopes to transition from a low-wage assembly model to a vertically integrated, high-value textile ecosystem capable of sustaining long-term global dominance.
The textile and apparel industry accounts for over 80 per cent of Bangladesh’s exports and 13 per cent of its GDP. Comprising thousands of factories, the sector is shifting from basic cotton knits to high-value technical textiles and MMF. With a target of $100 billion in exports by 2030, the industry is prioritizing green energy and local value addition.
Nike is executing a decisive return to its technical roots, reintroducing All Conditions Gear (ACG) as a standalone outdoor performance brand on February 3, 2026. A part of Elliott Hill, CEO’s ‘Sports Offense; strategy, this maneuver seeks to capture a larger share of the global outdoor clothing market, which is projected to grow to $20.95 billion by the end of 2026. Central to this offensive is the inauguration of the ‘ACG Base Camp’ in Beijing’s Taikoo Li Sanlitun, a dedicated retail destination serving as a physical manifestation of the brand’s rugged identity.
Consolidating performance and elite testing
In a significant structural shift, Nike has folded its specialized Nike Trail category entirely into the ACG umbrella. This integration leverages Nike’s legacy in road-running technology -specifically the ZoomX foam and carbon-plate architecture found in the new ACG Ultrafly - to deliver high-speed performance for the trail. To validate this technical gear, the brand has expanded its All Conditions Racing Department, a 22-athlete elite squad tasked with prototype testing. This is a recommitment to the wild, stated Scott LeClair, Vice President and General Manager, ACG, emphasizing a focus on three core pillars: hiking, trail running, and exploration.
Strategic market positioning and partnerships
The relaunch coincides with a 4.5 per cent rise in technical textile demand as consumers move from urban ‘gorpcore’ fashion toward authentic outdoor participation. Nike is securing this enthusiast base through title sponsorships of premier independent races, including the Broken Arrow Skyrace and the Chongli 168 Ultra Trail. While Nike's overall direct-to-consumer revenues faced a 9 per cent decline in Q2, FY26, the high-performance running segment grew over 20 per cent, providing a clear financial mandate for the ACG pivot. By aligning with events like the Milano Cortina 2026 Winter Olympics, Nike aims to restore its identity as the premier innovator for athletes navigating the world's most demanding environments. Launched in 1989, ACG is Nike’s specialized division for all-weather, all-terrain apparel and footwear. It targets high-performance trail runners and hikers across key markets in North America, Europe, and Asia-Pacific.
Growth and financial outlook
Under the ‘Win Now’ action plan, Nike is diversifying its portfolio to reach a $40 billion long-term export and retail target. ACG serves as the primary vehicle for high-margin, technical apparel growth, aiming to reclaim market share from specialty outdoor rivals.
The global textile and apparel ecosystem is entering a decade marked by unprecedented capacity expansion and evolving sustainability imperatives. Industrial projections indicate that polyester fiber, a core material in modern fashion will see global production climb from 75.13 million tons in 2025 to 103.67 million tons by 2035. Valued at $135.10 billion in 2025, the market is on course to more than double, reaching $274.58 billion within a decade. For multinational retailers and apparel brands, this means both a logistical lifeline and a challenge, as companies must navigate the twin pressures of low-cost sourcing and intensifying circularity mandates.
Polyester reigns supreme in global apparel volumes
Polyester continues to dominate the retail rack, forming the backbone of the modern fashion industry. Accounting for 52 per cent of global textile and apparel volumes, the fiber’s versatility and cost-efficiency have cemented its role across mass-market and premium segments alike.
Within this, Polyester Filament Yarn (PFY) is particularly critical, comprising 60 per cent of total polyester volume in 2025. PFY underpins the explosive growth of athleisure and performance apparel, where high-tenacity, moisture-wicking, and shape-retaining properties are increasingly demanded by consumers. Retailers are responding to these preferences by positioning PFY-based garments as investment pieces, products that justify higher price points through durability and functional performance, aligning with the broader shift toward quality over quantity in global consumption patterns.
The rPET bottleneck and the emergence of green premiums
While virgin polyester continues to dominate 78 per cent of global supply in 2025 remains fossil-based recycled polyester (rPET) is emerging as the fastest-growing segment in the fiber market. Over 150 global brands have pledged to integrate 40-100 per cent rPET into their supply chains by 2030, creating a surge in demand that outpaces the current supply of high-quality bottle-to-fiber recyclates.
This scarcity has led to new commercial dynamics. Brands are increasingly entering into long-term offtake agreements with producers to secure rPET volumes, and retail price structures are beginning to reflect the green premium associated with sustainably sourced fibers. The pressure is particularly acute in high-performance applications, where recycled fibers must meet stringent technical standards without compromising durability or aesthetic qualities.
Asia Pacific dominates as western markets specialize
Geography remains a defining factor in global polyester production. The Asia Pacific region continues to anchor supply chains with a 72 per cent volume share in 2025, a figure expected to rise above 75 per cent by 2035. China and India remain the primary hubs, with India now ranking as the third-largest exporter of polyester yarn globally. Indian exports are growing at a CAGR of 7.6 per cent, catering to markets as diverse as Brazil, Turkey, and Southeast Asia.
In contrast, North America is carving out a niche in high-value, technical applications, including automotive and medical textiles. Advanced grades like PCDT polyester are gaining traction due to their high-heat resistance and long-term durability, enabling brands to differentiate on functionality rather than volume.
Table: Global polyester market outlook 2026-35
|
Metric |
2025 (base year) |
2035 (forecast) |
CAGR (%) |
|
Market Value |
$135.10 bn |
$274.58 bn |
7.35% |
|
Market Volume |
75.13 mn tons |
103.67 mn tons |
3.27% |
|
rPET Volume Share |
12.50% |
Projected >25% |
High |
|
Top Region (APAC) |
72% Share |
75%+ Share |
4.50% |
The table reflects, the market is expected to more than double in revenue terms, with demand for both mass-market apparel and premium performance fabrics on the rise. Production growth reflects capacity expansions in Asia Pacific and rising adoption of specialty fibers. Recycled polyester adoption is increasing due to brand sustainability commitments, but supply remains constrained.
Reliance Industries benchmarking integration and circular strategy
Reliance Industries Limited (RIL) remains the global bellwether for polyester production. Operating fully integrated petrochemical hubs in India, RIL controls the value chain from paraxylene feedstock to branded fibers such as Recron. The company is aggressively scaling recycled polyester capacity, aligning with the global pivot toward circularity, and cementing India’s position as a top-three polyester exporter.
Financially, RIL’s strategy is tied to the projected $350 billion Indian textile market by 2030. Beyond apparel, the company is targeting specialty segments such as high-tenacity fibers for automotive, industrial, and technical textiles, leveraging its production scale and research capabilities to capture both mass-market and high-performance opportunities.
Implications for global retailers
The growing polyester market offers retailers both opportunity and challenge. On one hand, stable production hubs in Asia and integrated supply chains provide reliable access to volume and cost efficiency. On the other, the rapid shift toward recycled materials and high-performance fibers demands long-term planning, investment in supplier partnerships, and an agile response to pricing dynamics.
Brands that successfully navigate this duality balancing scale with sustainability stand to benefit from a decade of transformative growth in both revenue and consumer loyalty. For global fashion retailers, polyester is no longer just a commodity input; it is a strategic lever for competitive advantage.
Japan’s digital textile printing market is surpassing a critical $50 million valuation in 2026, marking a transition from experimental prototyping to a dominant production standard. As the global fashion industry grapples with a volume slowdown, Japanese luxury labels and street-fashion houses are leveraging inkjet precision to capture high-margin demand. By 2035, the market is forecasted to double to $99.6 million, expanding at a steady 7.2 per cent CAGR. This growth is primarily concentrated in the premium apparel segment, which currently commands a 38 per cent market share and relies on the exclusivity afforded by small-batch, digital runs.
Technological resilience against water scarcity
Environmental regulation is the most potent catalyst for this shift. With Japan aiming to cut apparel waste by 25 per cent by FY2030, traditional wet processing is under scrutiny. Digital printing reduces water consumption by up to 95 per cent, a factor that has led to the rapid adoption of Direct-to-Garment (DTG) technology, which is expected to hold nearly 48 per cent of the market by 2035. Industry leaders like Kyocera have recently introduced pigment-based systems that eliminate pre-treatment entirely, saving millions of cubic meters of water. ‘Digital is no longer just for designers; it is a necessity for corporate compliance,’ states one Tokyo-based textile analyst.
High-value ‘Glocal’ customization and MMF shift
While mass-market screen printing remains cost-effective for high volumes, Japan’s ‘precision manufacturing’ mindset is favoring Pigment Ink, projected to reach a 40.6 per cent share. This ink’s compatibility with both natural and recycled polyester (MMF) blends allows brands to navigate the rising demand for technical, eco-conscious apparel. As urban youth and luxury consumers increasingly reject ‘off-the-rack’ homogeneity, the ability to deliver high-color accuracy and intricate detailing on-demand is positioning Japan as a global hub for sophisticated, sustainable textile innovation.
An ISO-certified research organization, Future Market Insights specializes in the digital transformation of the APAC textile landscape. FMI provides data-backed forecasting for global luxury and technical textile markets, helping brands navigate the shift from analogue to high-precision digital systems. Their 2026 outlook highlights Japan as a key driver for sustainable inkjet adoption.
As the European textile market approaches a projected valuation of $193.12 billion in 2026, the industry is pivoting from mass production to high-margin, circular models. Returning to Barcelona this May, Fespa Global Print Expo 2026 arrives at a critical juncture where regulatory mandates - such as the EU’s 2025 separate textile waste collection law - are forcing a radical overhaul of garment manufacturing. The event is set to debut a dedicated ‘Textile’ showcase, specifically addressing the infrastructure gaps in fiber-to-fiber recycling and waterless production.
Digital transformation and the customization mandate
The shift toward personalization is no longer a niche trend; it is a structural market requirement. In 2026, the global custom clothing market is expected to reach $65.74 billion, with over 55 per cent of consumers preferring tailored garments over off-the-rack items. Valued at $4.3 billion this year, digital textile printing is the primary enabler of this ‘on-demand’ economy. The goal for 2026 is to automate where possible and simplify everywhere else, notes Michael Ryan, Head, Fespa Global Print Expo. By integrating AI-driven sizing and inkjet technology - which now holds a 72 per cent market share - manufacturers can reduce water usage by up to 95% while maintaining the agility needed for fast-fashion prototyping.
Scaling sustainable chemistry and circular logistics
Supply chain resilience is being tested by volatile energy costs and new environmental standards. The digital textile ink market has expanded to $2.04 billion in 2026, driven by the adoption of water-based pigment inks that satisfy stringent VOC emission regulations. However, the sector faces a significant ‘capex hurdle’; a standard 20,000-ton recycling plant currently requires nearly $87 million in investment. FESPA 2026 will serve as a commercial bridge, showcasing the automation and predictive maintenance tools necessary for SMEs to remain compliant and profitable within the EU’s emerging Digital Product Passport framework.
Fespa is a global federation of national associations for the screen printing, digital printing, and textile imaging community. With a footprint in 40+ countries, it provides essential market intelligence and technical exhibitions. The 2026 Barcelona expo serves as a premier launchpad for automation and sustainable ‘glocal’ manufacturing solutions across the EMEA region.
The Bangladesh RMG sector is navigating a complex fiscal transition, with export earnings for H1, FY2025–26 (July–December) contracting by 2.19 per cent to $23.99 billion. This softening follows a high-growth period in FY25 and reflects a cooling global appetite in traditional Western strongholds. Data from the Export Promotion Bureau (EPB) highlights a particularly sharp downturn in December 2025, where shipments plummeted 14.25 per cent Y-o-Y. While the industry has historically relied on volume-driven growth, current market dynamics are forcing a shift toward specialized, high-margin categories to offset rising domestic overheads.
Knitwear contraction and home textile resilience
Structural shifts within the apparel basket show knitwear under significant duress, with exports declining by 3.22 per cent to $10.48 billion in H1, FY25-26. In contrast, Home Textiles emerged as a rare bright spot, posting a 2.93 per cent growth to reach $423 million. This segment’s resilience is attributed to a strategic focus on value-added bedding and towels, where Bangladesh maintains a distinct price advantage over rising-cost hubs like Vietnam and India. However, manufacturers face a ‘margin squeeze’ as global buyers demand lower unit prices while domestic production costs - fueled by a 30 per cent rise in energy and wage expenses over recent cycles - continue to climb.
Strategic competitiveness and the LDC graduation hurdle
The sector’s immediate challenge is maintaining its edge against India, which recently secured a reduction in US tariffs to 18 per cent, effective February 2026. Meanwhile, Bangladesh faces an average combined duty of 35 per cent in the American market. As the country approaches its 2026 graduation from Least Developed Country (LDC) status, the looming loss of duty-free access to the EU is accelerating the adoption of AI-driven sizing and automated cutting to enhance efficiency. Industry leaders emphasize, the ‘low-value trap’ of basic cotton tees is no longer sustainable, necessitating a pivot toward man-made fibers (MMF) and high-fashion technical apparel.
The RMG sector is Bangladesh’s economic backbone, contributing over 80 per cent of total export earnings and employing 4 million people. Key markets include the EU and the US, with a strategic focus on expanding into China and the Middle East. Following a record $48.28 billion in FY25, growth plans for 2026 center on high-value MMF diversification and sustainable green factory certifications.
Amazon’s retail division is undergoing a structural shift in 2026, prioritizing high-margin fashion and advanced automation to solidify its market dominance. Despite fourth-quarter earnings slightly trailing analyst projections, the company reported a 14 per cent increase in net sales to $213.39 billion, with its apparel and footwear business projected to cross $72 billion this year. This growth is anchored by a two-pronged approach: capturing the ultra-value market with the global expansion of ‘Amazon Haul’ and securing high-end credibility through partnerships with luxury staples like Diesel, The North Face, and Bobbi Brown.
Algorithmic personalization and AI-driven commerce
The traditional search-and-click model is being replaced by agentic commerce. Amazon’s AI shopping assistant, Rufus, generated $12 billion in incremental sales during 2025 by facilitating natural-language discovery and autonomous purchasing. For the fashion sector, this means a significant reduction in the ‘discovery gap.’ Data shows, customers engaging with Rufus convert at rates 60 per cent higher than those using traditional filters. By leveraging the Lens visual search tool - which saw a 45 per cent Y-o-Y rise in usage - shoppers can now find trendy apparel using only a smartphone screenshot, effectively bridging the gap between social media inspiration and checkout.
Capacity expansion and the luxury ‘Next Gen’ push
To support this retail volume, Amazon is investing heavily in logistics, recently adding 8.6 million cu ft of storage capacity across emerging markets. CEO Andy Jassy emphasized that the company is ‘blowing out’ its luxury selection, adding over 400 beauty brands in 2025 alone. This premium push is paying off; the ‘Next Gen’ store in high-growth regions like India has seen a 3x surge in Gen Z shoppers. By combining high-touch luxury experiences with the lowest-priced everyday essentials, Amazon is insulating itself against the ‘trading down’ behavior seen in broader retail sectors.
Amazon is a global technology leader spanning e-commerce, cloud computing (AWS), and digital streaming. Its retail operations center on the North America segment, which generated $426.31 billion in 2025. Future growth is tethered to AI integration and the ‘Amazon Haul’ budget platform. Historically an online bookstore, the company now dominates the global apparel market with a 14.5 per cent share of all US clothing sales.
Filatex India has shifted its strategic focus toward high-value circularity, committing Rs 690 crore to a transformative capital expenditure program under its ‘Vision 2028’ roadmap. The center-piece of this initiative is the Ecosis facility, India’s first commercial-scale textile-to-textile chemical recycling plant with a capacity of 26,750 tons per annum. Scheduled for commissioning in September 2026, the plant utilizes proprietary glycolysis technology to convert polyester waste into virgin-grade chips. This move is timed to capitalize on an expected 20–25 per cent growth in Indian textile exports to the EU following free trade negotiations and stricter European mandates for 25–50 per cent recycled content by 2030.
Financially, the company maintains a resilient posture despite a volatile global demand environment. In Q3 FY2026, Filatex reported a 16.68 per centY-o-Y increase in consolidated net profit to Rs 55.34 crore, even as revenue softened slightly to Rs 1,049.70 crore. Operational efficiency drove EBITDA growth of 24.16 per cent, with margins expanding to 8.91 per cent. Strategic alliances, such as the recent MoU with Decathlon India to trial Ecosis materials, provide a validated demand pathway for its recycled polyester. ‘Ecosis is built on the belief that polyester textiles should not be treated as waste,’ noted Madhu Sudhan Bhageria, Chairman highlighting the sector's shift from traditional cotton to high-performance man-made fibers (MMF), which now account for nearly 60 per cent of global fiber production.
Filatex India is a leading manufacturer of polyester filament yarns and chips with over 30 years of expertise. Serving global apparel and industrial markets, it is currently expanding its Brownfield capacity by 55,000 tpa. The company reported a 54 per cent rise in PAT in 9M FY26 and targets leadership in the circular materials ecosystem by 2028.
The Jacob K. Javits Convention Center is set to host over 2,000 brands for the February 24–26, 2026, edition of Magic New York. This flagship trade event serves as a critical barometer for East Coast retail health, particularly within the women’s trend and young contemporary categories. Despite broader inflationary pressures, current registration data indicates a significant increase in mid-market buying power, with major retailers like Bloomingdale’s and Rent the Runway confirmed to attend. The show’s strategic timing allows for the finalized procurement of Fall/Winter 2026 collections while facilitating immediate ‘at-once’ orders for Spring 2026, providing a necessary liquidity boost for domestic manufacturers.
Trend alignment and technical innovation
For the upcoming season, the ‘Functional Flair’ and ‘Wild Heritage’ trends are dominating the exhibition floor, reflecting a consumer shift toward technical fabrics that blend performance with high-street aesthetics. According to Informa Markets’ latest buyer guides, breathable mesh, translucent footwear uppers, and "drapey denim" are projected to be the top performers. The focus is now on thoughtful design that balances accessible pricing with forensic-level quality, noted Greg Kerwin, SVP, Fashion by Informa. This technical pivot is supported by the Sourcing at Magic pavilion, where manufacturers are increasingly showcasing AI-integrated production tools and recycled fiber yarns to meet the sustainability mandates of 2026.
Regional dominance and strategic growth
While Las Vegas remains the volume leader, Magic New York has established itself as the intimate, connection-driven hub for the North American fashion capital. The ‘Brand Curation’ area will utilize specialized matchmaking algorithms this season to pair boutique owners with emerging designers, a move designed to counteract the 4 percent growth gap seen in independent retail versus big-box stores. Challenges such as supply chain lead times remain, yet the integration of digital showrooms - allowing buyers to browse collections pre-event—has reduced the average transaction cycle by 15 per cent. This hybrid approach ensures that regional clusters can maintain inventory consistency in an increasingly volatile global logistics environment.
Operated by Informa Markets, Magic New York is the definitive East Coast trade show for women’s sportswear and contemporary trends. Spanning price points from affordable to moderate, the event serves 150+ global markets. Growth plans involve deeper AI-driven matchmaking and expanding the 2026 Incubator Program for diverse, emerging design talent.
Jain Cord Industries secures Rs 200 crore from the Lohia family in first institutional funding round
A key supplier of premium woven fabrics to top-tier global fashion labels, Jain Cord Industries has finalized its first institutional funding round, securing Rs 200 crore from the Lohia Family Office via Indorama Capital Holdings. This Series A investment values the Gurugram-based textile powerhouse at approximately Rs 829 crore ($94.75 million). The transaction marks a significant shift in the company’s capital structure, with Indorama acquiring a 24.13 per cent stake, providing the necessary liquidity to transition from a family-run operation to a venture-backed manufacturing leader. The company’s management has confirmed, the proceeds will be strategically deployed to modernize weaving facilities and retire existing debt, optimizing the balance sheet for aggressive market capture.
Rising demand for specialist textiles
The investment arrives as global retail demand for ‘heritage’ fabrics like corduroy and velveteen experiences a strong resurgence in contemporary apparel collections. Having reported a robust 45.7 per cent revenue growth to reach Rs 783.33 crore in FY25, Jain Cord Industries is positioning itself to capitalize on this trend. By integrating end-to-end capabilities - from spinning and dyeing to final garment assembly - the firm offers international brands a streamlined, compliant supply chain. This vertical integration is critical as retail partners increasingly prioritize speed-to-market and transparency. Analysts anticipate, this fresh capital will expand the company's monthly fabric capacity beyond the current 4 million meters, directly challenging traditional European mills for dominance in the premium linen and cotton segments.
Navigating the global retail landscape
The partnership with the Lohia family, who oversee the multi-billion dollar Indorama polyester empire, provides Jain Cord with more than just financial support; it grants access to an unparalleled global distribution network. While the company already maintains a strong presence in the domestic market, the new capital is earmarked for penetrating high-value retail corridors in the EU and North America. Despite challenges such as fluctuating raw cotton prices and shifting trade policies, Jain Cord’s net profit jumped nearly 60 per cent to Rs 19.97 crore last fiscal. This performance demonstrates a resilient operational model that the Indorama investment aims to replicate on a global scale through enhanced technology and sustainable manufacturing practices.
Jain Cord Industries is a vertically integrated manufacturer specializing in premium woven fabrics and finished garments for global apparel brands. Founded in 1960, the company operates major facilities in Gurugram and Mathura. It currently targets 25 per cent annual growth, leveraging its new Rs 200 crore funding to secure leadership in the international corduroy and linen markets.
