Textiles

The textiles industry is a major part of the global economy, dealing with the creation, distribution, and export of various products like fibers, yarns, fabrics, apparel, and home furnishings. It has evolved from traditional methods to a technologically advanced industry. The global textile market was valued at USD 1.11 billion in 2024 and is expected to reach USD 1.61 billion by 2033, with a CAGR of 4.2% from 2025 to 2033. Besides clothing, it is important in industries like automotive, construction, and healthcare through technical textiles.

The textiles industry is influenced by economic indicators, consumer behavior, technological developments, and regulatory changes. Rapid urbanization and rising incomes, especially in emerging economies, increase demand for textiles. Inflation impacts production costs and consumer spending. Consumer preferences are shifting towards sustainable, ethical, and personalized products, leading to a focus on quality and durability. Technological advancements like AI, IoT, automation, 3D printing, and smart textiles are driving innovation. Regulatory changes promoting sustainability and circularity are shaping the industry, with initiatives like EPR frameworks and Digital Product Passports becoming more common.

The global textiles industry is highly competitive, with China, India, and Bangladesh leading in production and exports. Companies compete on price, innovation, scale, and niche markets, with business models evolving towards digital transformation and DTC approaches. While specific market shares vary, the industry includes large integrated players and specialized manufacturers. In India, notable publicly traded textile companies include Grasim Industries Ltd., Page Industries Ltd., KPR Mill Ltd., Trident Ltd., Vardhman Textiles Ltd., and Arvind Ltd. These companies differentiate themselves through product quality, technology, and sustainability. The rise of technical textiles also presents a growing segment for specialized companies.

The textiles and apparel industry faced challenges in 2023 due to high production costs and weakening demand. However, the sector is showing signs of recovery and is expected to see a slight improvement in demand in 2024. The global textile market is projected for strong growth, with an estimated increase from USD 2.12 trillion in 2025 to USD 4.01 trillion by 2034, expanding at a CAGR of 7.35%. The outlook for textile stocks remains positive, supported by domestic demand, export opportunities, and government support. The industry's future growth depends on adapting to sustainability, embracing digital transformation, and diversifying into high-value segments like technical and smart textiles. Cautious consumer spending and geopolitical uncertainty remain challenges, but the industry is investing in sustainable practices, circular economy initiatives, and advanced technologies.

The textiles industry faces intensifying global competition, especially from emerging hubs with lower production costs. It is sensitive to economic fluctuations, with inflation impacting costs and consumer spending. Volatility in raw material prices and logistics disruptions can affect profitability. Geopolitical factors like trade wars can disrupt supply chains and increase costs. The industry also faces increasing regulatory exposure related to environmental and labor standards, including restrictions on chemicals, EPR schemes, and supply chain transparency. Managing textile waste and developing recycling technologies remains a challenge.