Cotton Yarn Market Report 2026

The cotton yarn market size has grown strongly in recent years. It will grow from $77.75 billion in 2025 to $82.89 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to growth in global textile manufacturing, expansion of apparel production, increasing demand for breathable fabrics, availability of raw cotton supply, adoption of mechanized spinning processes.

The cotton yarn market size is expected to see strong growth in the next few years. It will grow to $108.82 billion in 2030 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to rising focus on sustainable fashion, increasing demand for eco-labeled textiles, expansion of technical and industrial textiles, growing investments in advanced spinning technologies, higher demand for premium cotton yarns. Major trends in the forecast period include increasing demand for organic and sustainable cotton yarn, rising adoption of recycled cotton yarn, growing preference for high-quality combed yarn, expansion of cotton yarn in home textiles, enhanced focus on yarn consistency and strength.

The expansion of the e-commerce and online retail sector is expected to drive the growth of the cotton yarn market in the coming years. E-commerce and online retail involve the purchase and sale of goods and services through the internet, enabling transactions between businesses and consumers on digital platforms. Cotton yarn is widely used in the production of textiles and apparel sold online, as it offers a sustainable, versatile, and widely preferred material for clothing. The growing reach of digital retail channels has increased demand for cotton-based textile products. For example, in August 2023, according to the US Census Bureau, a principal government agency, retail e-commerce sales in the United States reached $277.6 billion in the second quarter of 2023, reflecting a 2.1% increase compared to the first quarter of 2023. Therefore, the continued rise of e-commerce and online retail is supporting the growth of the cotton yarn market.

Companies operating in the cotton yarn market are increasingly focusing on innovation in yarn production, including the development of compact spun yarns and blended yarns, to improve fabric quality and address evolving industry requirements. Compact spun yarns enhance fabric performance by reducing imperfections, resulting in greater strength, smoothness, and durability. Blended yarns combine natural fibers such as cotton with synthetic fibers, offering benefits such as improved sheen, higher strength, and a softer texture. For instance, in June 2024, Gimatex Industries Pvt. Ltd., an India-based textile manufacturer, introduced two new yarn varieties - Siro Compact Yarns and Chief Value Cotton (CVC) Yarns. These products utilize compact spinning technology to minimize yarn irregularities, delivering superior strength, smoothness, and durability, while CVC yarns blend cotton with polyester to achieve enhanced sheen and strength along with a cotton-like feel.

In December 2023, RSWM Ltd., an India-based manufacturer of synthetic, cotton, and blended spun yarns, acquired the spinning, knitting, and processing businesses of Ginni Filaments for an undisclosed amount. This acquisition is intended to expand RSWM Ltd.’s production capacity and reinforce its position in the spinning and knitted fabric segment. The move is expected to increase the company’s turnover, workforce, and manufacturing capacity, strengthening its standing in the market. Ginni Filaments Ltd. is an India-based integrated producer of cotton yarn, processed knitted fabrics, and knitted garments.

Major companies operating in the cotton yarn market are China Resources Textiles (Holdings) Co. Ltd., Maharaja Shree Umaid Mills Limited, Aarti International, Henan Xinye Textile Co. Ltd., Huafu Fashion Co. Ltd., Vardhman Textiles Ltd., Trident Limited India, Luthai Textile Co Ltd., BROS Eastern Co. Ltd., Huafang Group Co. Ltd., Jiangsu Lianfa Textile Co. Ltd., Shandong Ruyi Technology Group Co. Ltd., Huamao Co. Ltd., Hengfeng Co. Ltd., Huafang Co. Ltd., Sanyang Textile Co. Ltd., Weiqiao Textile Company Limited, Gokul Overseas Limited, Nitin Spinners Limited, Jiangsu Dasheng Group Co. Ltd., Raymond Limited, Kedia Overseas Limited, Ambika Cotton Mills Limited, Nahar Spinning Mills Limited, Nishat Mills Limited, Huafu Top Dyed Melange Yarn Co. Ltd., Guanxing Textile Group Co. Ltd., Lingxian Hengfeng Textile Co. Ltd, Guanxing Co. Ltd., Texhong Textile Group Limited.

North America was the largest region in the cotton yarn market in 2025. The regions covered in the cotton yarn market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cotton yarn market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cotton yarn market consists of sales of clothing, pillowcases, bedding, towels, curtains, home decor, crafts, and industrial products made using cotton yarn. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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