As per latest Allied Market Research report, the global denim fabric market is estimated to grow at a CAGR of 4.4 per cent from 2021 to 2030 to reach $27.9 billion by 2030. Market growth will be driven by the availability of denim fabrics at affordable prices and socio-economic trends, adds a report by the Textile Value Chain. Demand for denim fabrics is abundant in countries like India, China, Brazil, Italy, and Bangladesh due to the easy availability of cotton. The entry of new manufacturers is encouraging leading players in these markets to expand their international presence

However, growth in these markets is also being hindered by the uncertainty in raw material prices and environmental concerns arising due to usage of synthetic dyes. This is leading to a fluctuation in cotton prices, as seen from USDA stats. Statistics shows drop of 5.3 million bales in cotton production from May 2020 to September 2021 compared to the same period in previous year. Additionally, the use of synthetic chemicals during dyeing processes and other hardware materials including rivets and metal buttons is leading to environmental pollution, restraining market growth.

Biodegradable fibers present new opportunities

On the other hand, the launch of biodegradable denim fabrics is creating new opportunities for denim manufacturers. These biodegradable materials are expected to reduce the volumes in landfills and decompose to ensure environmental protection.

In 2020, the pandemic negatively impacted denim fabric market as manufacturing facilities remained closed and supply chains were disrupted. Several denim fabric manufacturing companies and mills had to shut down their facilities or reduce operational capacities to prevent their workers from getting infected. This not only hampered production volumes but also increased prices of raw materials, specifically cotton and cotton yarn.

A report by the Denim Manufacturers Association of India (DMAI) states, prices of cotton and cotton yarn increased 20-30 per cent in December 2020 compared to March 2020.

Pandemic impacts denim products demand

The pandemic also led to a reduction in disposable income. This impacted their demand for premium denim products. Besides, the industry faced various challenges related to transportation, unavailability of skilled workforce, and ban on export/import activities. This led to a reduction in overall revenue in the market. It also compelled several organizers to postpone their textile shows and exhibitions, impacting the possibility of getting new clients and increasing global sales for the denim fabric manufacturers.

Raw cotton segment poised for highest growth

Based on raw material, the denim fabric market can be segmented further into cotton, spandex, polyester, and others. Holding the highest revenue in 2020, the cotton segment is expected to grow at a CAGR of 4.5 per cent from 2021 to 2030. Having less weight and more durable, the segment is further divided on the basis of fabric type into raw, crushed, sanforized, selvedge, stretch, and others. Of these, the raw segment accounted for the highest share in 2020, and is anticipated to witness a CAGR of 4.4 per cent during the forecast period.

Based on end-use industry, the denim fabric market is fragmented into clothing and apparel, décor and homeware, and accessories. Geographically, the denim fabric market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific market is expected to grow at a CAGR of 4.6 per cent during the forecast period. This growth will be mainly spurred by easy availability of cotton and rise in utilization of denim fabric to produce a wide range of products such as jeans, jackets, shirts, and others.