Cotton Processing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Cotton Processing Market is projected to register a CAGR of 4.1% during the forecast period (2021-2026). The restrictions imposed, aiming at containing Covid-19 have resulted in the shutting down of ginning mills due to decreased demand for yarn and fabrics. The market has suffered various challenges in terms of procurement of raw materials, production, transportation problems, non-availability of skilled labor, sale of products, export, and import orders cancellation due to Covid-19 related restrictions. Hence, Covid-19 has a negative impact on the cotton processing market. The market is likely to be driven by the rising demand for processed cotton especially from the cotton textile and medical and surgical markets. Raw cotton is used as a key ingredient in textile manufacturing applications, and there are no raw materials to substitute it. Hence, the textile segment has accounted for the largest share of the global cotton processing market as of 2019. The market is dominated by the Asia-Pacific region owing to the high production of cotton in the countries of China, India, and Pakistan. Cotton lint finds application in the manufacturing of different types of surgical bandages, apparel, and household textiles. The rise in urbanization and change in the lifestyle of consumers has led to an increase in the demand for textiles, which, in turn, is projected to drive the growth of the lint segment further.

Key Market Trends

Increasing Textile Production is Driving the Market

In recent years, the production of textiles for both apparel and non-apparel use has increased globally. The textile industry is also a major sector of the global economy, employing hundreds of millions around the world, and is therefore driven by an increasing global population. Textiles used in automobiles are generally non-apparels that are broadly used in cars, buses, and trains and the market is also experiencing good growth owing to the flourishing automobile production and rapid industrialization in emerging nations across the world. The emerging textile markets across the world are increasingly relying on the cotton processing market for raw materials, which is driving the market globally. The cotton lint segment experiences the highest demand from the textile industry. The rise in urbanization and change in the lifestyle of consumers has led to an increase in the demand for textiles, which, in turn, is projected to drive the growth of the lint segment further. In addition to this, the growing awareness about product quality among consumers is projected to reflect positively on the growth of the cotton processing market in the coming years.

Asia Pacific Leads the Cotton Processing Market

Asia-Pacific dominates the current cotton processing market which is also estimated to lead the market in the forecast period. Some factors influencing this dominance in the market include the rising textile industry, consumer goods, and animal feed in countries like China, India, Bangladesh, and Pakistan. The countries in the region have favorable climatic conditions for cotton production. This encourages cotton processors to invest in the cotton processing market in this region. Additionally, the rising incidents of chronic diseases and accidents along with increasing awareness and hygiene concerns among consumers have given rise to the consumption of processed cotton in hospitals and medical use. Moreover, technological advancements to increase productivity are also propelling the market further.

Competitive Landscape

The global cotton processing market is consolidated with a few major players occupying a majority of the share of the market. The leading players in the market like Lummus Corp. and Bajaj are focusing on increasing their presence through undertaking investments and expansions and developing products specific to consumer preferences in these regions.Most of the major companies have a strong presence in the Asia-Pacific and North America regions.

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