Cotton Yarn Market size, Share, Growth, and Industry Analysis, By Type (Carded Yarn, Combed Yarn, Others) By Application (Apparel, Home Textiles, Industrial Textiles, Others) and Regional Forecast to 2033

COTTON YARN MARKET OVERVIEW

The global Cotton Yarn Market size was USD 81.88 billion in 2025 and is projected to reach USD 102.03 billion by 2033, exhibiting a CAGR of 3.7% during the forecast period.

Cotton yarn is an important player in the international textiles industry and is being pulled in a range of other end-use applications from apparel to industrial textiles. Cotton yarn is the largest input emerging in the fabric manufacturing process, providing a breathable, soft versatile product used in weaving fabrics. The apparel and home textile industries are feeding demand for cotton yarn while some innovations in spinning technologies and sustainable solutions for sourcing cotton yarn are taking shape in the supply chain. Emerging economies in Asia react to a capital-intensive environment for manufacturing and a labor force prepared to assist to position themselves to be the effective manufacturing destination. Environmental factors are causing the cotton yarn market to move away from both conventional cotton and recycled cotton yarns. The cotton yarn market is responding to changes in consumption while contending with wage pressures, fluctuating raw cotton prices, and shifting the market for these areas into a more aggressive effort through new manufacturing releases and better environmental sustainability in products.

KEY FINDINDS

• Market Size and Growth: The global Cotton Yarn Market was valued at USD 81.88 billion in 2025 and is projected to reach USD 102.03 billion by 2033, growing at a CAGR of 3.7%.

• COVID-19 Impact: In 2020, the market declined by over 12% due to supply chain disruptions and lockdowns impacting textile production.

• Latest Trends: In 2024, over 35% of new cotton yarn products incorporated organic or recycled fibers, reflecting rising sustainability concerns.

• Driving Factors: India exported USD 11.6 billion worth of cotton yarn, fabrics, and made-ups in FY2023, indicating strong global demand.

• Restraining Factors: Global cotton production declined by 2.4% in 2023 (USDA), causing price fluctuations and pressuring manufacturer margins.

• Opportunities: New spinning technologies increased production efficiency by up to 20%, while organic cotton opened access to high-value markets.

• Key Players: Parkdale Mills (U.S.) produces over 8,000 tons of yarn monthly, Vardhman Textiles (India) operates over 1 million spindles, and Weiqiao Textile (China) is among the world’s largest producers.

COVID-19 IMPACT

"Cotton Yarn Market Had a Negative Effect Due to Increase in Supply Chain Management Issues During COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing

lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic seriously affected the cotton yarn industry with the whole supply chain management issues, demand by consumer segments and logistics management. Covid-19 lockdowns resulted in complete closures of textile mills and manufacturing units affecting supply, as well as holding back shipments completely. In addition to the above, labor issues, port access problems, and lack of raw cotton supply affected the logistical channels of commerce. Demand from the retail segments declined, but each business had to make the best decisions based on their situation, and even what they thought were unessential purchases - when most shops were closed to the public. A real shift was most manufacturers having to change their path and reliance on business assets into directing their thoughts and plans into digital and automation, all the while accepting delays. The demand substantially picked back up once the world economies opened somewhat, but commodity supply constraints such as raw cotton continued to impact the marketplace, raw materials costs affected prices and profitability.

LATEST TRENDS

"Shift Toward Sustainable and Organic Cotton Yarn to Drive Market Growth"

A primary advancement within the cotton yarn industry is moving toward the production and consumption of sustainable cotton yarn. A major trend is that the general consumer is looking into and advocating for more eco-friendly textiles, and manufacturers are looking into the ecological standards for how they produce their textiles. Sustainable production means that manufacturers are looking for organic cotton that is certified, water usage is limited, and an eco-friendly way to dye without chemicals. Manufacturers are also looking into traceability, or transparency, of their products across their supply chain. Furthermore, about continuing with a circular economy, recycled cotton yarns are also gaining popularity, which is a perfect illustration of a market shift showing the ethical production of textiles is becoming a standard.

COTTON YARN MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Carded Yarn, Combed Yarn, Others:

• Carded Yarn: Carded yarn has an uncomplicated spinning process where the cotton fleece is cleaned and aligned but not combed. Carded yarn is an inexpensive option for day-to-day textiles like t-shirts, bed linens, and denim fabrics. While not as refined as combed yarn, carded yarn retains a good balance of strength and comfort that makes it very suitable for products aimed at mass-markets. Due to its reasonable prices, carded yarn is in-demand primarily because it cheaply and effectively meets the needs of large batches of yarn to make a product. Mills that produce carded yarn can produce a large quantity of it at one time and in a simple process. Carded yarn can be used in making foundational product for textile companies in emerging and developing markets.

• Combed Yarn: This premium type of yarn is produced from combed cotton using a more elaborate process that removes short and tangled fibers, resulting in a stronger, shinier and smoother yarn. Combed yarn is produced for the higher-end product range of yarn and textiles, such as, quality garments, baby clothing, and luxury products. Its durability combine with its softness results in 'maximum comfort for the wearer' and for this reason it is preferred for high-end products. Despite the additional cost to the manufacturer, Combed yarn is used in higher quality products, both for the fact that it is more durable but also because it looks aesthetically beautiful. As consumers continue to demand high-quality goods; particularly in quality apparel and clothing, the supplier base for combed yarn is growing at an equal / steady rate; specifically, within the exporting textile industry for clothing making higher barriers to entry as consumers want to assure, they'll get a purposeful and quality product.

• Others: The "Others" category consists of open-end yarn, compact yarn, and slub yarn. All these yarns are developed for more specialized uses. Open-end yarn, which is not spun but instead formed from fiber staple pieces, is developed for high speed and less cost in production (i.e., towels, socks, etc.) Compact yarn does not have the same amount of "hairiness", and is very strong, which is particularly popular going into fine fabrics and performance wear. Slub yarn can have a sort of textured look (also mentioned above) that can add interest to a garment or home textile. These variants indicate the yarns created for performance specifications and/or design aesthetics. They allow for broadening the types of products produced, while helping to develop and meet niches in the market. As demonstrated here, with the increased use of the new yarns, technical innovation in yarn making is clearly on the increase.

BY APPLICATION

Based on application, the global market can be categorized into Apparel, Home Textiles, Industrial Textiles, Others:

• Apparel: The clothing sector uses the greatest amount of cotton yarn in its finished products, ranging from casual clothing to formal clothing. Cotton yarn has a premium position in the clothing market due to its comfort, softness, and breathability that fit with organic consumerism for basic clothing. Fashion brands source both commodity and premium cotton yarn to create products such as t-shirts, pants, shirts, and undergarments. As fashion trends emerge, the clothing sector is responding to sustainable and better cotton yarns with emerging awareness from consumers and producers of ethical fashion and the environmental impacts. There is increasing sourcing of organic and recycled yarn now into many apparel products lines.

• Home Textiles: Home textiles are one of cotton yarn’s biggest markets, whether blankets, pillows, curtains or towels, cotton yarn typically provides function and comfort due to its inherent feel, durability and absorption. The home textiles category also utilizes many yarn types, while carded yarn is used for general use textiles, combed yarn is often used for higher end things that need to feel good or look good. We are also seeing a sustainable consumer shift in the home décor market as designers are incorporating eco-friendly cotton yarns into their design collections, this focus on quality, and sustainability, is elevating the prestige of cotton yarn as a product.

• Industrial Textiles: Cotton yarns are used in various industrial applications [e.g., filters, medical textiles, ropes, workwear fabrics]. Most applications require yarns that can provide the right tensile strength, absorbency, and reliability under stress. Some cotton yarns will be blended with an engineered fiber to provide durability for these applications. Cotton has natural hypoallergenic properties and breathability, making it a good fiber for healthcare applications such as bandages, wipes, etc. As manufacturers continue to modernize sourcing practices with eco-friendly function-specific yarns, the demand for eco-friendly yarns will undoubtedly rise at a quicker rate. Considered its performance characteristics, low-cost production, cotton yarn will remain relevant to any industrial application.

• Others: This miscellaneous category contains applications such as craft yarns, automotive textiles, and some sports accessories. Cotton yarn is used in DIY and craft areas for knitting, crocheting, and embroidery because it is easy to use and handled and has a natural texture. Cotton yarn is further used in automotive interiors, serving as an eco-conscience design element. Uses in sports and yoga accessories include cotton yarn knitted or crocheted into wristbands and headbands for comfort and absorbency. As more areas seek specialized cotton yarn applications, its versatility will enable the manufacturer to deliver. Even though these applications are smaller segments, they illustrate the range of usage for a yarn from lifestyle to utilitarian applications.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Rising Demand for Natural and Sustainable Fibers to Boost the Market"

The Cotton Yarn Market growth is currently benefitting from one major development, which is the global shift for natural and sustainable fibers. This move towards environmentally sustainable products and away from synthetics is driving consumers to prefer plant-based fibers while also lowering the desirability of synthetic fibers. Additionally, cotton, as a biodegradable and renewable fiber, is in high demand to satisfy those consumers. Fashion and textile brands are being more accountable than ever to their sustainability goals and objectives and thus creating demand for more organic and recycled cotton yarn. Adding in the certification and traceability requirements is truly beginning to add gas to the demand. While the demand for sustainable fibers is an older movement driven by consumers, it is now creating a responsibility for manufacturers to also be exploring other processes that will sustainably scale the production of cotton yarn.

"Expansion of Textile and Apparel Industries in Emerging Markets to Expand the Market"

The universities and apparel sectors in the emerging economies, particularly Asia, are rapidly expanding and increasing the demand cotton yarn. Some areas of Asia including India, Bangladesh and Vietnam are emerging production centers due to low-cost production labor, government assistance and greater export opportunities. This expansion is also seen in greater cotton yarn consumption as their local mills and factories are ramping up to full production. Furthermore, urbanization and increasing disposable incomes are creating domestic demand for cotton products. The growth in cotton yarn is assisting in manufacturing growth by continuing to modernize spinning technologies at record pace as well as creating the infrastructure to facilitate cotton yarn production development.

RESTRAINING FACTOR

"Volatility in Raw Cotton Prices to ""Potentially Impede Market Growth"

One of the biggest struggles facing the cotton yarn industry is price volatility in raw cotton, as prices can change due to unpredictable weather events and agro-environmental circumstances; constraints changing in rare cases in different countries in the original hosting region. Other possibilities for changes in price are speculative or artificial trade dynamics trade dynamics such as cotton price manipulation or the few countries that produce cotton simply making changes in agricultural policies and federally mandated sustainable farming practices such as soil conservation or limit pattern in location of crops for soil rejuvenation. That may limit the availability of cottons to be purchased - the result can also be shifts in flexibility in production planning and productivity for yarn manufacturers. In the event of increased costs for raw materials for variable options such as processed, organic, or dyed or the fact that they might simply disappear from the market, it could siphon margins in various low-cost environments. What is worse, price uncertainty can hinder the textile industry from offering stable and predictable prices for downstream customers and is a disincentive to facilitating chain efficiencies since investors become aware there is no incentive to build long-term contracts.

OPPORTUNITY

"Technological Advancements in Spinning Techniques to Create Opportunity for The Product in The Market"

New spinning technologies offer considerable potential to the cotton yarn industry. New spinning processes are evolving - compact spinning, air-jet spinning and rotor spinning - which are all producing better quality, quality guaranteed, better uniformity and increased productivity efficiencies. These new spinning processes also offer yarn manufacturers more opportunities to manufacture finer, stronger and uniform yarns which have value in high-end and performance markets. Additionally, more efficient digital solutions/impacts will also reduce reliance on labor in the production process and provide greater operational efficiencies as automation becomes commonplace. A far greater focus on accuracy consistent to industry standards, as well as sustainability, will lead to more, higher quality yarns manufactured to international standards and standards, while minimizing or eliminating waste and energy use and environmental impacts altogether.

CHALLENGE

"Environmental Impact of Conventional Cotton Farming Could Be a Potential Challenge for Consumers"

One of the largest challenges in the cotton yarn market is the carbon footprint associated with traditional growing of cotton. Traditional growing methods require large amounts of water, pesticides, soil degradation that all contribute to harming the environment. Raw materials and supply chains all of which pertain to growing cotton are causing sustainability concerns and concerns about the future price and availability of raw cotton. Regulators and environmental non-profits all promote sustainable methods and practices; the supply chain is under more pressure not to do well. It is complicated to convert to organic and often takes time and education for a lot of original cotton growers and suppliers.

COTTON YARN MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America, specifically the United States Cotton Yarn Market is a major player with a notable Cotton Yarn Market Share due to its robust textile manufacturing line, as well as high-quality cotton production. The U.S. has strong emphasis and market demand for premium cotton yarns used in apparel, home furnishings and industrial uses, all while sourcing sustainably, and traceable sourcing. The interest in sustainability, increased consumer demand, and eco-friendly performance textiles has fueled the innovation of yarn processing. Consumer interest in North American produced goods has also encouraged cotton yarn production in North America. Partnerships between cotton farmers and textile manufacturers are a significant trend enabling improved transparency for cotton processing and the textile value chain.

• EUROPE

Europe is a well-established, highly quality-conscious market for cotton yarn, with all demand seen in high fashion, home textile, and sustainability markets. It is notable that many end-user products are ethically sourced and certified, therefore buyers expect suppliers & manufacturers to have considerable effort and diligence, particularly because of ethical sourcing and certification. The most important importers of fine, or specialty yarns, including cotton are Italy, Germany and France. Stringent environmental policies within Europe drive the use of organic and recycled cotton fibers, however textile brand and fashion houses within Europe are forming partnerships with cotton yarn producers globally to demonstrate success in quality, innovation and sustainability throughout the supply chain.

• ASIA

Asia is the largest producer and consumer of cotton yarn in the world. The countries representing Asia comprise China's, India's, Pakistan's and Bangladesh's production of cotton yarn, which is driven by their abundant access to cotton, cost-effective labor, and strong existing export infrastructure. The growing textile and apparel industries in Asia create a steady place for many different types of cotton yarn 'take off.' All governments are investing in bringing new spinning facilities up to date and making the process of manufacturing cotton yarn more sustainable. Clearly, rising domestic consumption in emerging market economies represents an underlying support for market growth. Furthermore, Asia's end markets grow efficiently by providing brand owners with more cost, scale, and manage the speed-to-market approaches in textile and apparel sourcing. As shown in the previous statement, the global cotton yarn market continues to shift toward Asia.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

The cotton yarn industry is putting competitive pressures on everyone. Cotton yarn suppliers are essentially innovating their production processes, developing new capacity, and pursuing sustainability initiatives in this new global economic context. They understand that consumer expectations are changing and are trying to change their business models to meet that change. Cotton yarn suppliers are investing in new spinning technologies, and these companies are, likewise, also trying to change their production processes to be more responsive to environmental imperatives. They are investing in processes that allow them to form partnership working relationships with fashion brands and textile product manufacturers to have more innovative capacity, leave them with more options, product offering geographically differentiated, and build social capital with the people in the value chain. Cotton yarn suppliers are continuing investment in their value offers, also considering transparency and traceability to help with sustainable supply chain. All these initiatives are only possible with the intervention of renewable energies, along with the roles and work of organic yarn, and changing the system to make the cotton yarn supply chain more sustainable and more resilient.

LIST OF TOP COTTON YARN MARKET COMPANIES

• Texhong (China)
• Weiqiao Textile (China)
• Huafu (China)
• Henan Xinye Textile (China)
• BROS (China)
• China Resources (China)
• Huamao (China)
• Lutai Textile (China)
• Guanxing (China)
• Hengfeng (China)
• Shandong Ruyi (China)
• Huafang (China)
• Sanyang (China)
• Dasheng (China)
• Lianfa (China)
• Vardhman Group (India)
• Nahar Spinning (India)
• Alok (India)
• Trident Group (India)
• KPR Mill Limited (India)
• Nitin Spinners (India)
• Aarti International (India)
• Spentex (India)
• Daewoo (South Korea)
• Bitratex Industries (Indonesia)
• Nishat Mills (Pakistan)
• Fortex (New Zealand)
• Parkdale (U.S.)

KEY INDUSTRY DEVELOPMENT

June 2025: India filed a formal request for consultations with Indonesia at the World Trade Organization (WTO) covering the safeguard measures applied to cotton yarn imports. The measures had been extended by Indonesia beyond their intended use period and India's position is that these limitations are unfair to India’s export interests. The request to "consult" is to commence discussion under WTO rules, in the hope that discussions will lead to agreement before proceeding to a dispute. This request, while slightly formal, is important for cotton yarn exporters, as it may offer information about new policies, or minor relatively minor measures to facilitate trade, or anything else which is consist with trade policies. The request is contextualized in order to emphasize the importance of fair market access and the need for clear and transparent regulations applicable to the global cotton yarn trade.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.