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Global polyester market eyes sustainable evolution through 2033
The global polyester fiber market is undergoing a significant transformation, with valuation projections placing the industry on a robust growth trajectory through 2033. Current estimates value the market at approximately US$ 140.7 billion for 2026, with expectations to reach US$ 191.4 billion by 2033.
This expansion is underpinned by the enduring demand within the textile and apparel sectors, where polyester remains favored for its high tensile strength, wrinkle resistance, and moisture-wicking properties. While the industry has historically relied on virgin petroleum-based feedstocks, recent strategic investments are favoring advanced yarn engineering and circular manufacturing practices. Leading manufacturers are increasingly scaling production capacities for specialized high-tenacity and high-performance fibers, catering to the exacting requirements of the automotive, home furnishing, and technical textile industries.
Sustainability mandates reshape industry standards
The sector is simultaneously addressing mounting regulatory and consumer pressure regarding environmental impact. With polyester currently accounting for approximately 59 per cent of global fiber output, the industry is accelerating the adoption of recycled polyethylene terephthalate (rPET) technologies to mitigate microplastic concerns and reliance on virgin plastics. Major market participants are forging strategic partnerships with recycling innovators to establish closed-loop systems, targeting the conversion of post-consumer plastic waste back into high-quality textile fibers.
This shift toward circularity is not merely a compliance measure but a strategic necessity, as brands increasingly seek traceable and sustainable raw material sources to align with environmental, social, and governance (ESG) mandates. Despite feedstock price volatility, the fundamental utility of polyester in fast-fashion and high-performance activewear ensures its continued dominance as a critical component of the global textile value chain.
Polyester fiber is a synthetic polymer used extensively across apparel, home textiles, automotive interiors, and industrial fabrics. Key markets include the Asia-Pacific region, which dominates global production. Industry growth strategies prioritize increasing recycled content, enhancing performance through microfiber innovation, and expanding footprints in emerging infrastructure-heavy economies.
Bhilwara textile industry navigates operational headwinds as fabric shipments stall
The textile manufacturing sector in Bhilwara, Rajasthan is currently navigating severe operational headwinds as the escalating conflict in West Asia disrupts critical trade routes. Industry representatives report, fabric and yarn shipments valued between Rs 800 crore and Rs 1,000 crore are currently stalled, either held at manufacturing sites or delayed at major ports like Mundra and Kandla. The primary challenge stems from significant shipping constraints, with maritime vessels rerouting to avoid volatile zones in the Gulf and the Red Sea. Consequently, transit times for shipments bound for European and Gulf markets have surged by two to three weeks, forcing manufacturers to contend with sharply elevated ocean freight rates and increased marine insurance premiums.
Market uncertainty and operational pressures
Beyond logistical delays, the sector is experiencing a contraction in new business as international buyers temporarily pause order placement amid regional instability. Export orders are being deferred, and the prevailing uncertainty is impacting business sentiment across the cluster, notes RK Jain, General Secretary, Mewar Chamber of Commerce and Industry. For Bhilwara’s 450-plus fabric units and denim manufacturers, the conflict has created a dual-pressure environment of softening overseas demand and inflated input costs for petrochemical-based synthetic fibers.
With the region heavily reliant on these routes, prolonged geopolitical instability threatens to erode margins and challenge production stability for the cluster's workforce of over two lakh people.
Bhilwara is a cornerstone of India’s textile industry, renowned for its extensive fabric production, spinning mills, and denim manufacturing. The hub traditionally serves key markets in the Gulf, Europe, and Bangladesh. Industry leaders are currently prioritizing supply chain resilience and exploring diversified logistics strategies to mitigate these geopolitical risks.
Gymshark debuts in Germany in partnership with Engelhorn and Breuninger
Gymshark has officially entered the German physical retail market, launching dedicated retail spaces within two of the country’s most established shopping destinations. As of February 2026, the activewear brand operates a 150-sq-m shop-in-shop at Engelhorn in Mannheim and a 100-sq-m concession at the Breuninger department store in Stuttgart. This expansion represents a departure from the company's traditional e-commerce-only model in Central Europe, providing local fitness enthusiasts with a tangible touchpoint for its men’s and women’s performance collections. These partnerships with high-end, multi-brand retailers allow Gymshark to establish a physical presence in a key market while maintaining the operational agility necessary for a brand that began its journey in a garage.
Community-centric retail strategy
The move into Germany is a deliberate step in Gymshark’s broader omnichannel trajectory, which prioritizes ‘unit-led’ expansion over high-volume store counts. Rather than saturating the market with standalone boutiques, the brand continues to focus on finding high-quality locations that function as community hubs, aligning with its successful retail footprints in London, New York, and Dubai. By integrating these retail spaces within established department stores, Gymshark effectively leverages existing high-traffic environments to engage its core community of strength and hybrid training athletes. Ben Francis, Founder and CEO has emphasized, the physical store strategy is fundamentally about enhancing the brand experience, enabling customers to interact directly with product innovations and participate in localized community events.
Gymshark is a prominent British activewear and fitness brand specializing in performance apparel, including seamless leggings, shorts, and training tops. The company primarily targets the global fitness community through a robust direct-to-consumer digital model, while increasingly integrating physical retail locations to build long-term brand loyalty. With revenue exceeding £600 million, the brand is currently focused on strategic international expansion and enhancing its digital infrastructure to support a fully omnichannel business model, aiming for long-term growth as a global fitness icon.
Cotton markets hold firm as tariffs, higher supply reshape global fiber economics

In a year marked by tariff escalations, geopolitical brinkmanship and a recalibration of global trade flows, the international cotton market showed an unexpected performance: stability. While the broader commodities complex oscillated sharply amid fragile diplomatic signals between the US and China cotton prices largely held within a narrow trading corridor throughout 2025.
At the annual meeting of the Discover Natural Fibres Initiative (DNFI) in Frankfurt in January 2026, analysts described the year as a revealing stress test for the fibre economy. According to Jon Devine, Senior Economist at Cotton Incorporated, the global cotton sector endured what he termed a “supply chain squeeze”, a complex mix of tariff shocks, increased supply and downstream margin decline that collectively defined the industry’s operating environment.
The result was a paradox: a commodity facing intense geopolitical disruption yet demonstrating remarkable price discipline.
Tariff pressure redraws trade
The defining storyline of 2025 was the abrupt return of aggressive tariff policies between the US and China. What began as targeted trade measures quickly escalated into a sequence of retaliatory actions that reshaped cotton trade flows and injected uncertainty into procurement decisions across the textile supply chain.
The first signals emerged early in the year when the US introduced a new set of so-called ‘fentanyl tariffs’ on Chinese imports.
Implemented on February 1 and reinforced again on March 3, the measures added two successive 10-percentage-point tariff increases.
By early April, tensions reached a peak. On April 2, Washington announced a broader framework of reciprocal tariffs aimed at balancing trade deficits. Beijing responded almost immediately with matching measures. Within a week, the escalation intensified: between April 8 and April 9, US tariffs on Chinese goods were increased by an additional 125 percentage points, layered on top of earlier hikes. China retaliated with its own 125-point increase on US cotton imports.
For a brief period, the tariff standoff appeared capable of freezing cotton trade between the two economies entirely. Yet the confrontation proved short-lived. By May 12, negotiations had already begun easing the measures, and by late October a sequence of trade arrangements with Asian partners resulted in halving of US fentanyl-related tariffs. By the week of October 26, Chinese tariffs on US cotton had effectively returned to a 10-percentage-point level.
For commodity traders and textile mills, the episode underscored how quickly policy decisions could alter the economics of fibre sourcing.
Surprisingly calm futures market
Despite the headlines surrounding tariff announcements, cotton futures markets displayed an unusual level of stability during 2025. Analysts at Cotton Incorporated said, prices largely remained confined to a tight band between 63 and 68 cents per pound throughout the year. To appreciate the significance of this stability, it is useful to examine cotton’s longer-term volatility.
Table: Cotton price range
|
Period |
Price range (NY/ICE futures) |
Context & Trend |
|
Last Decade (2014–2024) |
50-150 cents/lb |
Historical Range: Broad volatility driven by cycles of Chinese demand and U.S. weather events. |
|
Spring 2022 |
155 cents/lb |
Post-Pandemic Spike: Multi-decade highs caused by West Texas droughts, fertilizer shortages, and a surge in consumer demand. |
|
Late Feb 2024 |
100 cents/lb |
Pre-2025 Peak: Brief rally led by record Chinese imports (15 million bales) and tightening supply forecasts. |
|
2025 Range |
61-68 cents/lb |
Tariff Turmoil: Prices dropped significantly due to high global production (Brazil/India) and 50% U.S. tariffs on major importers. |
|
Post-2025 Outlook |
64-66 cents/lb |
New Equilibrium: Return to price stability as global supply (121M bales) slightly outpaces cooling mill consumption. |
The table illustrates the contrast between the volatility seen in earlier years and the restrained movement observed during 2025. Cotton prices reached an extraordinary high of 150 cents per pound in spring 2022 as supply chain disruptions and pandemic-era demand spikes converged. By early 2024, futures had already moderated to roughly 100 cents per pound.
Against that backdrop, the narrow trading band of 63 to 68 cents per pound in 2025 represents a significant normalization of the market. According to Devine, the return to the mid-60-cent range reflects the gradual unwinding of pandemic-era distortions in textile demand and global logistics. In essence, cotton prices appear to have settled back into what analysts describe as a structural equilibrium closer to long-term averages rather than the extraordinary peaks witnessed earlier in the decade.
Record exportable supply anchors the market
A critical factor behind the market’s price stability was an increase in global cotton availability. Exportable supply from major producing countries reached unprecedented levels during the 2025/26 season, totalling approximately 7.8 million tonnes.
Large harvests from exporters such as Brazil and the US created a substantial buffer against geopolitical shocks. Even as tariff announcements introduced uncertainty into bilateral trade routes, the sheer abundance of fibre in the global market ensured that buyers had alternative sourcing options.
This supply increase effectively imposed a natural ceiling on prices. Whenever futures began to drift upward, traders were reminded that large volumes of cotton remained available from multiple exporting countries. As a result, speculative price rallies struggled to gain traction. For textile mills operating in Asia and Europe, this surplus provided a welcome cushion against procurement risk, even as diplomatic tensions continued to dominate headlines.
China’s import strategy goes through a reset
While tariffs dominated the public narrative, an equally significant development was unfolding quietly in the background: China’s cotton import appetite was already shrinking. Data compiled by the United States Department of Agriculture (USDA) and Cotton Incorporated show that Chinese cotton imports saw a swing within just two seasons.
Table: Cotton imports (2020-26)
|
Marketing Year |
Imports (mn bales) |
Imports (mn tonnes approx.) |
|
2020/21 |
13 |
2.21 |
|
2021/22 |
2.8 |
0.48 |
|
2022/23 |
1.7 |
0.29 |
|
2023/24 |
15.0 (Peak) |
3.3 |
|
2024/25 |
5.0 (Forecast) |
1.1 |
|
2025/26 |
5.0 (Forecast) |
1.1 |
The table reveals a striking reversal. After declining steadily between 2020 and 2023, Chinese imports increased during the 2023/24 marketing year, reaching approximately 15 million bales. That figure represented a Covid-era peak, as Chinese textile mills rushed to rebuild inventories following pandemic disruptions.
Yet the rise proved temporary. By the 2024/25 season, imports fell to roughly 5 million bales, a decline of nearly two-thirds. Notably, this drop occurred even before the most severe tariff escalations of 2025 were implemented.
Analysts believe the shift reflects: stronger domestic cotton production, strategic reserve management by Chinese authorities, and slower growth in textile exports. In other words, China’s reduced import demand was already embedded in the market before geopolitical tensions intensified. This shift altered global trade flows, forcing exporters to diversify their customer base beyond the world’s largest textile manufacturing hub.
The supply chain squeeze
While cotton prices remained stable, the economics of textile manufacturing became increasingly strained. Devine sats, the industry is now confronting a “Supply Chain Squeeze.” The concept refers to the widening gap between rising production costs and stagnant retail pricing for cotton goods. Across major manufacturing hubs in Asia, energy prices, labor expenses and compliance costs linked to sustainability regulations have all increased significantly over the past two years.
At the same time, apparel brands and retailers have struggled to raise prices in consumer markets that remain highly price-sensitive. With inflation weighing on household budgets across North America and Europe, many brands have prioritized maintaining competitive price points rather than passing costs on to shoppers.
The result is a margin decline that reverberates throughout the supply chain. Textile mills, yarn producers and garment manufacturers are absorbing a growing portion of these cost increases, squeezing profits at the very stages of the industry responsible for transforming raw cotton into finished apparel.
In effect, the cotton market may appear calm on the surface, but deeper within the value chain financial pressure is steadily intensifying.
Legal and policy uncertainty looms over 2026
Looking ahead, new policy developments could once again reshape market sentiment. On November 5, 2025, oral arguments were heard before the US Supreme Court on the legal foundation for the tariff measures imposed under the International Emergency Economic Powers Act (IEEPA). The case centers on whether the executive branch possesses the authority to deploy emergency economic powers to justify broad tariff regimes unrelated to traditional national security threats. A ruling in the case could influence the durability of the trade measures introduced in 2025. For the cotton industry, the implications are substantial. Any judicial decision altering the legitimacy of these tariffs could quickly shift trade flows and price expectations.
A market stabilized by abundance
As the global cotton industry enters 2026, the immediate turbulence of last year’s tariff battles appears to be subsiding. Prices have stabilized near pre-pandemic levels, global supply remains abundant, and traders have largely adapted to the shifting trade environment.
Yet beneath this apparent equilibrium lies a more complex challenge. Record harvests from major exporters such as Brazil and the US are keeping fibre prices low, while rising regulatory and production costs are steadily eroding margins across the textile manufacturing sector.
In that sense, the cotton market’s resilience during 2025 may prove to be only the opening chapter in a deeper structural adjustment. The defining issue for the year ahead will not simply be geopolitics, but whether the industry can reconcile the growing demands of sustainability, cost inflation and consumer price resistance within a single economic framework. For cotton producers and textile manufacturers alike, the squeeze has only just begun.
Beyond Cotton How Kapok could redefine sustainable insulation in textiles

In the lush, humid heart of Southeast Asian rainforests stands a giant, a silent sentinel of the forest canopy. Growing to almost 77 meters, a height that rivals the most colossal of skyscrapers the Kapok tree (Ceiba pentandra) has for centuries offered a gift of incredible utility, a fiber as light as a whisper and as buoyant as a life raft. While less celebrated than its ubiquitous cousin, cotton, kapok is a fiber with a story woven with fascinating facts, from its unique pollination by bats to its essential role in wartime life-saving gear.
Similar to cotton but different
Often mistaken for a type of cotton due to its similar fluffy appearance, kapok fibers are in fact harvested from the large, leathery seed pods of these magnificent trees. The fiber itself is a marvel of natural engineering, characterized by a unique honeycomb structure that makes it incredibly soft, highly breathable, and remarkably water-resistant. In fact, it's more buoyant than cork, a property that was put to critical use during the Second World War when it was used to fill the life preservers of airmen. This same cellular structure also makes it an excellent insulator, offering superior thermoregulation, which makes it a compelling candidate for blending with other fibers in modern sportswear.
The kapok tree's life cycle is as intriguing as the fiber it produces. Unlike many other plants that flower annually, the kapok tree is a fickle bloomer, flowering only once every five to ten years. This unpredictable schedule, combined with a unique pollination process carried out almost exclusively by bats, presents a significant challenge to large-scale cultivation and consistent supply. The fleeting nature of its bloom has made scalability a considerable hurdle for any industry looking to embrace this fiber on a massive scale.
Multiple uses and properties
While its buoyant and insulative properties are well-known, kapok’s applications extend beyond simple fillings and stuffings. The fiber itself is notoriously difficult to spin into yarn due to its rigid and relatively short length. As a result, its primary use in its raw fibrous form has been for fillings in items like pillows, mattresses, and upholstery, or in blends to enhance the properties of other textiles. However, the kapok pod yields more than just fiber. The seeds are a source of oil that can be processed into soap, a more financially viable endeavor than creating garments from the fiber itself.
In recent years, kapok has garnered attention from sustainability advocates. It is often lauded as an eco-friendly alternative to cotton, primarily because the trees do not require irrigation, thriving naturally in their rainforest habitats. This makes it a far less water-intensive crop than cotton, which in many parts of the world demands vast quantities of water. However, the growing threat of climate change and the shrinking of its native rainforest habitat, which requires well-drained soil, raises questions about its long-term climate resilience.
Challenges despite all the pluses
Despite its unique properties, kapok is not without its challenges. The fiber itself is highly flammable, a key difference from cotton. Furthermore, dyeing the fiber is a complex and intensive process. While the tree's flowers can be used as a natural dye for other materials like wool, the fiber itself has a low color uptake. In 2008, researchers at Shanghai University patented a specialized mordant using rare earth minerals to improve the dyeing process, but it still requires significant pre-treatment.
Table: Kapok vs. cotton an ecological comparison
|
Parameter |
Kapok |
Cotton |
|
Water Requirement |
Minimal (rainfed, no irrigation needed) |
Extremely high (up to 10,000 liters per kilogram of cotton) |
|
Pesticide Use |
None (naturally pest-resistant) |
High (cotton cultivation uses 16% of global insecticides) |
|
Carbon Footprint |
Low (naturally grown, minimal inputs, no deforestation) |
Moderate to high (intensive farming, processing, transportation) |
|
Harvest Method |
Manual pod collection (sustainable, provides local employment) |
Mechanized harvesting (energy-intensive, potential for fiber damage) |
|
Fiber Type |
Hollow, wax-coated, buoyant, silky (difficult to spin into fine yarn alone) |
Solid, soft, easy to spin, absorbent (versatile for textiles) |
The environmental advantages are striking, kapok requires no irrigation, fertilizers, or pesticides, thriving naturally in tropical ecosystems. In an era of water stress and synthetic pollution, this positions kapok as a poster child for regenerative materials. However, its scalability remains its Achilles’ heel. Without structured farming or predictable yields, kapok cannot yet match the industrial efficiency of cotton or the consistency of viscose.
From inspiring the magical ‘soul tree’ in the film Avatar to saving lives in the most critical of circumstances, the kapok tree and its remarkable fiber remain a fascinating, if sometimes overlooked, part of the natural world. While it may never replace conventional fibers like viscose or cotton on a global scale due to its cost and cultivation challenges, kapok continues to find its niche, a testament to the enduring ingenuity and utility found in the heart of the rainforest.
Regenerative potential in a changing climate
As the textile industry races toward carbon neutrality and material circularity, kapok’s future could lie not in mass production, but in niche, high-value regenerative textiles. Research collaborations between biomaterial startups and luxury brands are exploring its potential in eco-luxury fashion, sustainable footwear padding, and plant-based insulation. If scaled sustainably through agroforestry models, fair-trade harvesting, and biotech-driven fiber modification kapok could emerge as one of the most promising forest-to-fabric innovations of the decade.
From cushioning pilots’ lives during wartime to inspiring modern eco-designers, the kapok tree remains one of nature’s quiet revolutions a whisper of the rainforest that refuses to fade. As global fashion seeks to reconnect with the natural world, the once-forgotten kapok fiber is ready for a renaissance not as a mass commodity, but as a symbol of what sustainable ingenuity can achieve when science listens to nature.
LS & Co to overhaul digital infrastructure across US, Canada and Europe
Levi Strauss & Co. (LS&Co) aims to overhaul its digital infrastructure across the US, Canada and Europe. The company has entered a definitive global partnership with enterprise commerce leader Scayle for this project. It will migrate to Scayle’s modular, API-first architecture to deploy advanced AI-powered capabilities - including its ‘Outfitting’ style tool and conversational AI stylists - at significantly higher velocities than its previous legacy systems allowed. This technological upgrade is fundamental to showcasing the brand’s expanding ‘head-to-toe’ denim lifestyle assortment to a global consumer base, moving beyond its traditional identity as primarily a denim-bottoms manufacturer.
Scaling efficiency amidst $10 billion growth target
With site migrations scheduled from 2026 through 2027, the replatforming project is engineered to eliminate the ‘integration tax’ associated with monolithic legacy software while optimizing checkout and promotion engines.
This operational efficiency is central to LS&Co’s objective of scaling net revenues from $6.3 billion to $10 billion, while simultaneously expanding operating margins toward 15 per cent. We are rewiring Levi’s to operate as a best-in-class, DTC-first retailer, states Jason Keinath, Vice President-Product Management, LS&Co.
By leveraging Scayle’s retail-born technology, the brand intends to drive omnichannel consistency and premium digital experiences for its fans in over 120 countries, solidifying its competitive posture in an increasingly fragmented digital retail landscape.
Levi Strauss & Co is a global denim and apparel leader managing iconic brands like Levi’s, Dockers (recently divested), and Beyond Yoga. The company is currently executing a multi-year strategy to scale its direct-to-consumer business, which now accounts for approximately half of its total revenue. With e-commerce growing at double-digit rates, the firm is prioritizing premiumization and AI-driven customer engagement to achieve its ambitious mid-single-digit revenue growth targets for 2026 and beyond.
G-III Apparel accelerates direct-to-consumer shift as License exits pressure top line
G-III Apparel Group is navigating a high-stakes transition, reporting a 7 per cent decline in sales to $2.96 billion in FY25. This decline was primarily driven by the scheduled wind-down of its massive Calvin Klein and Tommy Hilfiger licenses. Despite this revenue contraction, the New York-based fashion house is successfully reclaiming its narrative through its ‘Big Four’ owned brands - DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin. These labels now account for 60 per cent of total revenue, up from 50 per cent last year, reflecting a deliberate shift toward higher-margin, full-price sell-throughs. Donna Karan, in particular, emerged as a standout performer with 40 per cent Y-o-Y growth, boosted by high-profile marketing featuring Adriana Lima and Joan Smalls.
Navigating external headwinds and operational overhauls
The transition phase faces immediate friction from a volatile retail landscape. Fourth-quarter results were impacted by a $17.5 million bad debt expense linked to the Saks Global bankruptcy and $65 million in unmitigated tariff costs. To protect future profitability, management has initiated a cost-savings program targeting $25 million in run-rate efficiencies by fiscal 2028. Fiscal 2026 was a pivotal year of reshaping our portfolio, stated Morris Goldfarb, CEO, noting, the company maintains a robust $900 million liquidity cushion to fund its pivot toward digital-first distribution and international expansion.
G-III is a global fashion leader managing a portfolio of over 30 owned and licensed brands. The company is currently executing a multi-year strategy to replace approximately $1 billion in expiring licensed revenue with high-growth owned labels. With a clean inventory position and a new quarterly dividend program, G-III is focusing on lifestyle category expansion in North America and luxury beachfront residences under the Karl Lagerfeld brand globally.
India mandates year-round manufacturing to secure 14.7% global trade share
The Ministry of Textiles has initiated a structural overhaul of the domestic manufacturing framework, directing the industry to abandon its traditional ‘summer-centric’ focus in favor of a 12-month operational cycle. Union Textiles Minister Giriraj Singh recently identified, India’s current concentration on a four-month peak export window leaves significant revenue on the table, as the global apparel market demands year-round procurement. By diversifying production into winter wear and transitional garments, the government aims to boost India’s share of global textile trade from the current 4.7 per cent to an ambitious 14.7 per cent. This transition is supported by the National Fiber Mission, which seeks to scale annual fiber output from 15 million to 23 million metric tons, ensuring a steady supply of raw materials for diverse seasonal collections.
Strategic capital deployment and technical fiber adoption
Achieving the $100 billion export target by 2030-31 necessitates a projected $100 billion investment in automation and advanced manufacturing technologies. A critical component of this strategy is the shift from cotton-dominance to Man-Made Fibers (MMF) and Technical Textiles, which are essential for high-value functional clothing.
The upcoming Bharat Tex 2026 exhibition in New Delhi will act as a commercial catalyst, leveraging $465 billion in market access recently secured through new Free Trade Agreements. Scaling up manufacturing excellence is no longer optional if we are to compete with the diversified seasonal calendars of Vietnam and Bangladesh, noted a senior ministry official. This shift is expected to stabilize employment for 45 million workers by eliminating the seasonal troughs that historically disrupted industrial output.
The Indian textile industry is a primary economic driver, contributing 2.3 per cent to national GDP. Current growth plans involve the establishment of seven PM MITRA parks to centralize the value chain. Historically a cotton-led hub, the sector is now modernizing toward high-tech synthetic and functional fabrics to meet evolving global standards
Bangladesh experiences 3.73% Y-o-Y contraction in T&A exports from July-February FY25-26
The linchpin of the national economy, Bangladesh’s T&A sector recorded a 3.73 per cent Y-o-Y decline in exports, totaling $25.80 billion during the July-February period of the FY25–26. This contraction is largely attributed to a convergence of domestic energy shortages and escalating freight costs. Manufacturers report, raw material expenditures have increased by approximately 32 per cent, primarily due to geopolitical volatility affecting major shipping lanes. While the European Union remains the largest destination, earnings from the bloc fell by 5.49 per cent to $12.69 billion, reflecting weakened consumer sentiment and intensified competition from regional peers.
Market reorientation and strategic trade adjustments
Despite the broader downturn, the industry is seeing a significant shift toward market diversification and high-value technical textiles. Exports to non-traditional markets like China rose by 19.12 per cent, demonstrating a successful, albeit early-stage, move away from over-reliance on the US and EU. However, the US market remains volatile following the implementation of reciprocal tariffs, leading many American buyers to pause new commitments.
Exporters are currently navigating a high-cost environment where buyers are unwilling to absorb price hikes, noted Mohiuddin Rubel, Additional Managing Director, Denim Expert. To maintain competitiveness, the sector is increasingly leveraging its 273 LEED-certified green factories, positioning sustainability as a core trade infrastructure ahead of the 2026 LDC graduation.
As the world’s second-largest garment exporter, the Bangladesh T&A sector contributes 11 per cent to the nation’s GDP and employs 4 million workers. Dominating the knitwear and woven segments, the industry is transitioning toward man-made fibers (MMF) to meet global demand. Following the 2023 removal of fumigation mandates, the country remains a top global cotton importer, aiming for a $65 billion export target by FY26 through premiumization and integrated logistics hubs.
Levi’s leverages K-pop influence to expand women’s segment globally
Levi Strauss & Co (LS & Co) has formalized a multiyear global partnership with the globally acclaimed singer-songwriter and member of Blackpink, Rosé to accelerate its brand resonance within the high-growth women’s apparel sector.
Following a teaser campaign during Super Bowl LX, this collaboration represents a calculated move to integrate the brand into the intersection of music and lifestyle. The partnership is already yielding visibility; during her recent three-night concert residency in Tokyo, Rosé performed in handcrafted, custom Levi’s ensembles, which are currently headlining a high-profile exhibition at the Harajuku flagship store.
Under the leadership of Michelle Gass, CEO, the company is prioritizing a ‘DTC-first’ strategy, with direct-to-consumer revenues growing by 8 per cent in Q4, FY25. By anchoring its marketing in Asia-Pacific - a region projected to see a 7 per cent CAGR in denim through 2030 - Levi’s is positioning itself to capture a significant share of the expanding women’s market, which research identifies as the fastest-growing end-use segment in the territory.
Wholesale scaling and lifestyle diversification
Beyond celebrity endorsements, Levi’s is aggressively expanding its physical footprint. A strategic partnership with Target will see the brand’s presence grow to over 1,000 locations by FY26-end. This expansion includes a 20 per cent increase in the women’s assortment for the Spring/Summer 2026 season, focusing on trend-forward silhouettes such as relaxed fits and ‘loose boot’ jeans. Our evolution into a head-to-toe lifestyle brand is resonating globally,’ states Heidi Manes, Senior Vice President, Levi’s - US and Canada, highlighting the brand's shift from a legacy denim manufacturer to a comprehensive fashion provider.
Founded in 1853, LS & Co is the global leader in denim, operating brands including Levi’s, Dockers (divestiture pending), and Beyond Yoga. With a 2025 gross margin of 61.7 per cent, the company is executing a pivot toward premiumization and lifestyle categories, targeting 1,000+ wholesale doors and expanding DTC channels across Asia and North America.










