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Driven by domestic demand, China's textile machinery market is poised for continued growth. While the market registered a slight decline in 2024, it is projected to expand at a CAGR of 1.3 per cent to reach 13 million units by 2035. In terms of value, the market is expected to grow at a CAGR of 3.9 per cent to $70.5 billion by 2035.
In 2024, China’s consumption of textile machinery declined by 1.6 per cent to 11 million units, ending an eight-year growth streak. However, the overall trend remains relatively stable. Revenues from the market increased by 13 per cent to $46.2 billion, despite a longer-term trend of volatility. Production also declined by 2.6 per cent to 12 million units, while production value skyrocketed to $51.2 billion.
China’s textile machinery imports contracted by 26.4 per cent to 17,000 units to $1.4 billion during the year. Japan remains China's largest supplier, followed by Germany and Belgium. Weaving machines, spinning machinery, and knitting machines are the top import categories. Import prices averaged $83,000 per unit, with variations by product type and country of origin.
Exports also decreased to 18.4 per cent to 631,000 units, valued at $2.7 billion. India, the United States, and Bangladesh are the primary export destinations. Knitting machines are the dominant export product.
A recent USDA India Post report projects, India's area under cotton cultivation may decline by 3 per cent to 11.4 million hectare during MY 2025-26. This shift stems from farmers opting for more profitable crops like pulses and oilseeds, which offer quicker returns. This contrasts with the 11.8 million hectare dedicated to cotton in MY 2024-25.
Despite the reduced acreage, cotton production is expected to remain stable at 25 million 480-pound bales, mirroring the current year's output. Increased yields, projected at 477 kg per hectare, are anticipated due to concentrated production in well-irrigated regions.
Cotton cultivation in Punjab is expected to remain constant, while the are under cotton cultivation in Haryana is likely to decline by 5 per cent as farmers switch to paddy rice. Rajasthan's acreage will likely decrease by 2 per cent, with farmers favoring guar, maize, and mung beans. India's leading cotton producer, Gujarat is projected to see a 3 per cent decline due to farmers shifting to pulses, groundnuts, cumin, and sesame.
Maharashtra's cotton acreage is expected to stay consistent, as farmers explore alternatives like pigeon pea and maize after low soybean prices. Madhya Pradesh forecasts a 5per cent reduction, with farmers gravitating towards oilseeds and pulses. Southern states like Telangana, Karnataka, Andhra Pradesh, and Tamil Nadu may see a 7 per cent decrease due to ethanol production incentives favoring maize and rice.
Driven by steady international yarn and textile demand, the mill consumption of cotton is projected to rise slightly to 25.7 million bales Exports are expected to increase by 7 per cent to 1.5 million bales, supported by large carryover stocks and a weakening rupee. Imports are forecasted to decrease by 4 per cent to 2.5 million bales, though Indian mills will continue to rely on imported, contamination-free fiber.
The consumption of Extra Long Staple (ELS) cotton is expected to increase, with imports, primarily from the U.S., fulfilling demand. US ELS cotton maintains a significant market share in India, with a large portion re-exported as high-quality yarn and fabric. Concentrated in Central and Southern India, domestic ELS cotton production faces challenges due to low yields, high costs, and pest vulnerability.
The urgent need for a circular fashion revolution took center stage in Brussels and online, as the Global Fashion Agenda (GFA) recently convened crucial discussions aimed at transforming the textile industry. From a high-level policy breakfast at the European Parliament to a deep-dive podcast series, the message was clear: the time for incremental change is over; systemic transformation is the need of the hour.
Focus on policy and partnership
On March 26, the European Parliament became a hub for critical dialogue during the GFA's ‘Policy Breakfast: Re-shaping the Fashion Industry’. In collaboration with EURATEX, Finnish Textile & Fashion, Danish Fashion & Textile, and TEKO Swedish Textile & Clothing, the event brought together policymakers and industry leaders to forge a path towards a just and fair transition.
The panel, featuring experts including Sirpa Pietikäinen and Rasmus Nordqvist (Members of the European Parliament), Lars Fogh Mortensen (European Environment Agency), Dirk Vantyghem (EURATEX), and Federica Marchionni (GFA), addressed the evolving policy landscape. Key priorities included the adoption of circular business models and the effective implementation of the EU Textile Strategy.
"Let me insist on the need for more constructive dialogues between the industry and policy makers and speed action," emphasized Federica Marchionni, CEO of GFA. "I therefore, would like to encourage you, Members of the European Parliament, to help us create an industry that can be both creative and responsible, as well as competitive and sustainable."
The discussion highlighted the European textile sector's potential to drive sustainable innovation and economic growth, provided that coherent legislation, targeted incentives, and consistent enforcement are in place. Challenges like high energy costs, infrastructure gaps, and regulatory complexity were also identified as hurdles needing immediate attention. The recent EEA reports, showcasing the rapid rise in textile consumption and waste across the EU, further underscored the urgency for accelerated action.
The upstream circularity podcast
Simultaneously, the GFA launched its ‘Upstream Circularity Podcast’, a three-part series aimed at demystifying the technical innovations and systemic shifts required for effective textile recycling. Released on International Day of Zero Waste, the podcast emphasizes the urgent need to scale upstream circularity.
Hosted by Faith Robinson, Head of Content, GFA, the series features in-depth conversations with industry experts, providing practical insights on transforming waste into valuable resources. The stark reality is that only 0.3 per cent of materials used by the global textile industry come from recycled sources, despite existing technologies having the potential to unlock up to 80 per cent circularity.
"To support the transition to a circular fashion industry, we must implement solutions that transform waste into valuable resources," stated Federica Marchionni. "This podcast spotlights the industry leaders driving progress, providing inspiration and tangible guidance to accelerate change."
The podcast series, built on the findings of the GFA's "Upstream Circularity Playbook," looks into critical steps in establishing circular systems:
Episode 1: Textile waste segregation and traceability: Explores efficient waste identification, sorting, and tracing, featuring Marina Chahboune (Closed Loop Fashion) and Nin Castle (Reverse Resources).
Episode 2: Collecting, sorting, and use cases: Unpacks the challenges and opportunities of textile waste aggregation with insights from Abdur Razzaque (RECYCLE-RAW) and Ebru Özküçük Güler (RE&UP).
Episode 3: Product and systems design: Examines how brands and stakeholders can translate post-industrial recycling from theory to reality, featuring Alexander Granberg (BESTSELLER) and Karla Magruder (Accelerating Circularity).
The GFA's multifaceted approach, combining high-level policy discussions with practical, accessible content, underscores the organization's commitment to driving meaningful change. As the fashion industry faces increasing regulatory pressure and consumer demand for sustainability, these initiatives provide a crucial roadmap for a circular future.
In a significant step towards speeding up the global shift to a circular economy, Accelerating Circularity, World Wildlife Fund (WWF), and BSR have announced a collaborative project, ‘Mapping Second-Hand Material Flows’. This initiative, supported by a kickoff grant from Laudes Foundation, aims to provide a comprehensive understanding of the route taken by used materials, paving the way for more sustainable and efficient resource utilization, with a particular focus on the second-hand clothing trade and global recycling industry.
The project addresses a critical knowledge gap: the lack of clear data on the movement and processing of second-hand materials. Currently, vast quantities of textiles, plastics, electronics, and other resources are discarded, often ending up in landfills or informal recycling systems with limited transparency. This lack of visibility hinders the development of robust circular economy strategies, especially when considering the social and environmental impacts on importing nations.
Closer look at second-material flow
The project will delve into the complexities of second-hand material flows, focusing on
Data collection and analysis: Rigorous data collection and analysis, building on current data and gathering new in-depth on-the-ground information, to map the journey of materials from collection points to processing facilities, including sorting, recycling, and reuse.
Identification of key stakeholders: Mapping the roles of various stakeholders, including collectors, sorters, recyclers, manufacturers, retailers, and crucially, exporters and importers, to understand their interactions and influence on material flows, and to promote equitable systems.
Environmental and social Impacts: Evaluating the environmental and social impacts of current practices, including waste generation, pollution, and labor conditions, with an emphasis on local environmental, social, and economic factors in importing countries.
Development of traceability systems: Exploring the potential for developing traceability systems to enhance transparency and accountability in the second-hand material market.
Case studies: The project will also be built around case studies from different regions and industries, with a focused approach to mapping in depth the second-hand material flows from key exporters (US, UK, EU) to five importing countries.
Actionable insights: The initiative aims to provide actionable insights on redesigning textiles for reuse, supporting local infrastructures, and aligning exports with legislative frameworks.
Human rights and livelihoods: Promoting opportunities to improve human rights, livelihoods, and environmental stewardship in importing countries as recycling systems scale.
The importance of mapping
The current linear economy, where resources are extracted, used, and discarded, is unsustainable. A circular economy, on the other hand, aims to minimize waste and maximize resource utilization by keeping materials in circulation for as long as possible.
Most important is the environmental benefit as by understanding and optimizing second-hand material flows, the project can help reduce waste, conserve resources, and mitigate climate change. For example, as per the Ellen MacArthur Foundation, a circular economy for plastics could reduce the volume of plastics entering oceans by 80 per cent annually.
Also, a well-functioning second-hand material market can create new economic opportunities, including jobs in collection, sorting, recycling, and remanufacturing. Mapping material flows, particularly in the context of the global clothing trade, can also help identify and address social inequities within the waste management sector, ensuring fair labor practices, improved working conditions, and just transition pathways for circular systems globally. This work will build a more ground-proofed foundation for effective policy and infrastructure development.
The project is expected to deliver its initial findings within a timeframe, providing a valuable resource for policymakers, businesses, and civil society organizations working to advance the circular economy.
A global leader in sustainable fiber and technology solutions for the apparel industry, The Lycra Company has partnered with the Sapphire Group-owned textile mill, Diamond Denim to launch an innovative denim collection at Kingpins Amsterdam, to be held from April 16-17, 2025
Titled, ‘7 Styles for 7 Days,’ the capsule collection showcases garments made with bio-derived Lycra EcoMade fiber. It highlights the significance of sustainable stretch denim in elevating both men's and women's wardrobes while significantly reducing environmental impact. Each piece in this collection is designed to seamlessly fit into a modern lifestyle, allowing the wearer to transition effortlessly throughout the week.
Ebru Ozaydin, Global Product Category Director - Denim, Wovens, and Ready-to-Wear, The Lycra Company says, Diamond Denim was among the first mills globally to acquire renewable fiber from the company to create four high-performance fabrics that form the foundation of this versatile collection, ideal for any occasion.
Later this year, bio-derived Lycra EcoMade fiber, made with QIRA, will be commercially available. This sustainable solution, composed of 70 per cent renewable dent corn grown annually in Iowa, has the potential to reduce the carbon footprint of Lycra fiber by up to 44 per cent, while maintaining the original LYCRA fiber's performance.
Diamond Denim remains dedicated to adopting sustainable practices in textile production, states Jayesh Mandalia, Head –Design, Diamond Denim. The company’s partnership with The Lycra Company helps deliver low-impact, high-performance denims to consumers, while also advancing its decarbonization goals.
The 7 Styles for 7 Days collection will be displayed at Kingpins Amsterdam, located at the Sugar Factory in Halfweg, Netherlands. As a leading provider of innovative fiber and technology solutions for the global apparel and personal care industries, The Lycra Company is committed to offering sustainable products made from renewable, pre-, and post-consumer recycled materials that reduce waste and promote circularity.
Headquartered in Wilmington, Delaware, United States, the company owns well-known brands such as Lycra, Lycra HyFi, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex and Tacgactel. The Lycra Compay adds value to its customers' products by providing unique innovations that meet consumer demands for comfort and long-lasting performance.
American retail corporation Target aims to achieve sales worth $15 billion by 2030. The company also plans to add 20 new stores this year besides investing $4-5 billion towards physical store expansions, enhancing online delivery, and streamlining supply chain.
Released during its annual investor meeting, Target’s Q4, FY25 results indicate a dip in sales and profits during the crucial holiday season. Executives attribute this to cautious consumer spending and warn of ‘meaningful pressure’ on profits due to tariffs imposed on goods from Mexico, Canada, and China. Brian Cornell, CEO cautions, consumers might witness a rise in prices ofc certain products. .
Despite these challenges, Target exceeded most quarterly earnings estimates. However, the company's sales declined in February due to severe weather and waning consumer confidence. Target anticipates flat sales for the year due to economic uncertainty.
Tariffs and trade tensions, particularly with China, are significantly impacting Target's operations. The company is accelerating efforts to diversify its sourcing, reducing its reliance on China from 60 per cent in 2017 to a projected 25 per cent by the end of next year. It is also shifting sourcing to countries like Guatemala and Honduras and exploring domestic options.
Target is also strategically adjusting its pricing to mitigate the impact of rising costs. The company focuses on maintaining affordability for essential items while adjusting prices on products with greater flexibility. This approach helps balance profitability with consumer affordability.
Exceeding Wall Street expectations, Target reported a net income of $1.1 billion in FY24. For the current year, the company forecasts earnings per share of $8.80 to $9.80. It remains cautiously optimistic, despite the economic challenges, expecting net sales to increase by 1 per cent this year.
The British Fashion Council (BFC) has quietly canceled the June edition of London Fashion Week, a move that further reflects the event’s diminishing significance compared to the major fashion weeks during the global fashion calendar.
Instead, the BFC is shifting its focus to London Show Rooms Paris, scheduled from June 26 to July 1, with a particular emphasis on menswear.
Caroline Rush, Outgoing CEO, BFC, says, the Paris showroom will help British designers generate sales and build relationships with international media outside of a traditional runway setting. The council remains committed to create meaningful commercial opportunities for UK-based fashion brands outside the country
Paused since mid-2023, the Paris showroom event was successfully relaunched last September.
Originally launched 13 years ago as London Collections: Men—later rebranded as London Fashion Week Men’s—the June event once enjoyed strong industry interest during the height of men’s fashion week buzz. However, in 2020, it transitioned into a co-ed format, and many brands began favoring February or September shows - or opted to showcase their collections in other major cities.
While the June event remained fairly strong through 2022, it began losing traction in 2023, due in part to the lasting effects of the pandemic and shifting industry preferences.
With the move to Paris, the BFC aims to give UK menswear brands a new platform at the heart of the global fashion scene, especially as international labels continue to dominate the menswear space.
India’s home textile export sector grew by over 10 per cent during the first nine months of FY 2025, a sharp rise compared to approximately 3 per cent in FY 2024. This growth was driven by a robust global demand, strategic inventory replenishment by international retailers, and ongoing vendor diversification efforts across export markets.
The United States remained India's top export destination for home textiles, accounting for 56 per cent of the market in the first nine months of FY 2025, a slight decline from 59 per cent in FY 2024. The sector’s medium-term momentum, however, hinges on the resolution of U.S. tariff uncertainties and the outcomes of free trade agreements with the European Union and the United Kingdom.
Rising consumer interest in home décor and wellness also contributed to the growth. The carpets/floor coverings and bed, table, toilet, and kitchen linen segments expanded by roughly 13 per cent Y-o-Yduring the first three quarters of FY 2025. In contrast, categories such as blankets and general furnishings showed slower growth.
Although US retail sales at furniture and home furnishings stores declined by 2 per cent Y-o-Y year-over-year in calendar year 2024, signs of recovery emerged in Q4 with a 5.5 per cent Y-o-Y, signaling improving consumer sentiment.
According to ICRA, four key companies—representing about 50 per cent of the sector—posted a 14 per cent revenue increase in FY 2024, backed by strong export volumes, domestic demand, and inorganic expansions. However, revenue growth moderated to around 8 per cent in the first nine months of FY 2025.
ICRA forecasts industry revenues to grow by 7-9 per cent in FY 2025, fueled by rising volumes, higher realizations, and supportive macroeconomic factors such as the ‘China Plus One’ sourcing strategy, post-pandemic inventory normalization by global importers, and favorable exchange rates.
On the cost front, while raw material prices have remained relatively stable during FY 2025, rising logistics and operational expenses are expected to compress operating margins by 100–150 basis points—bringing margins into the 13–15 per cent range. In FY 2026, margins are expected to stabilize, supported by consistent export incentives, currency tailwinds, and enhanced operational efficiencies through scale.
American clothing retailers and brands are urging Indian apparel manufacturers to share the burden of potential price increases caused by recent US tariff policies. On their part, US companies are trying to prevent significant price hikes for American consumers after tariffs were imposed on Indian goods.
While the tariffs on India are significant, at 26 per cent, they are lower than those placed on other major textile exporters to the US, including Vietnam (46 per cent), Bangladesh (37 per cent), Cambodia (49 per cent), and Pakistan (30 per cent), says KM Subramanian, President, Tiruppur Exporters Association (TEA).
US companies are suggesting, the weakening of the Indian rupee has given them some flexibility to adjust prices and lessen the impact of the 26 per cent tariff, which would affect American consumers, he explains. Tiruppur is India's knitwear center, known for supplying basic apparel to numerous countries at prices ranging from $2 to $5 per item.
US buyers with offices in the US have already approached Indian exporters. They are offering a maximum 5 per cent discount of India’s tight margins. However, they'd need to provide Indian exporters with more business compared to what they give Bangladesh, adds Lalit Thukral, President, Noida Apparel Export Cluster. The Noida cluster has 4,000 units that produce fashion embroidered garments priced between $5 and $30 per piece.
Apparel exporters from Noida in Uttar Pradesh and Tiruppur in Tamil Nadu plan to seek capital subsidies from the Indian government to expand production capacity, modernize factories, and establish new facilities. They will also request interest rate subsidies on exports to maintain competitiveness with Bangladesh.
These exporters intend to approach the commerce ministry next week, when they have a clearer picture, Subramanian stated. They need to boost production to capitalize on the lower tariff compared to other exporting countries. For that, these require capital subsidies and government support.
The Indian government has officially rolled out its Production Linked Incentive (PLI) Scheme for Textiles across the country, aiming to significantly strengthen the sector, according to Pabitra Margherita, Minister of State for Textiles.
The PLI Scheme is designed to boost the production of man-made fiber (MMF) fabrics, MMF garments, and technical textiles, as reported by Apparel Resources India. The Ministry of Textiles stated that the program aims to expand manufacturing capacity, enhance global competitiveness, and attract investment in value-added textile products.
Out of the 74 approved applications under the scheme, 24 are from micro, small, and medium-sized enterprises (MSMEs). The Ministry projects a total turnover of $25.32 billion (Rs 2.16 trillion) over the course of the scheme, encompassing both domestic and international markets.
For FY 2026, approximately 22 per cent of the Ministry’s total budget is allocated to the PLI Scheme, according to the Apparel Export Promotion Council. The Ministry of Textiles’ overall budget stands at $616 million (Rs 52.72 billion), reflecting a 19 per cent increase compared to the previous year.
To further support exporters, the government continues to provide incentives through key schemes. These include the Rebate of State and Central Taxes and Levies (RoSCTL) for garments and made-ups, and the Remission of Duties and Taxes on Exported Products (RoDTEP) for other textile products. Additionally, funding is being channeled through the ‘Market Access Initiative’ to support Export Promotion Councils and trade organizations in participating in both domestic and international trade fairs and events.
