United States Cotton Market Report by Production, Consumption, Import, Export , States and Company Analysis, 2025-2033

United States Cotton Market is expected to reach US$ 15.78 billion by 2033 from US$ 12.94 billion in 2024, with a CAGR of 2.23% from 2025 to 2033. With Texas leading output, the US cotton industry is sizable and driven by both robust local demand and export activity. Global prices, weather trends, and trade policies that affect supply and demand all affect market size.

United States Cotton Market Report by Production - States, Consumption - States, Import - States, Export - States and Company Analysis, 2025-2033.

United States Cotton Industry Overview

As one of the leading producers and exporters of cotton worldwide, the US cotton industry continues to be one of the most important aspects of the nation's agricultural economy. Through both domestic consumption and foreign trade, the industry makes a substantial contribution to the American economy. The Southern states produce the most cotton, with Texas leading the pack, followed by Georgia, Mississippi, and Arkansas. Although most of the cotton produced in the United States is upland, the country also produces extra-long staple (ELS) cotton. In recent years, technological developments in robotic harvesting, precision farming, and seed genetics have increased output and efficiency. Furthermore, government initiatives like crop insurance and subsidies offer farmers vital assistance in the face of fluctuating world prices and erratic weather.

One of North America's main cash crops and a significant regional export is cotton. Upland cotton and Pima (extra-long staple) cotton are the two types of cotton that are grown commercially in the area. Production is dominated by upland cotton. In 2023, upland cotton made up 99 percent of the United States' entire cotton growing area, according to the US Department of Agriculture (USDA). About 40% of the cotton produced in the US comes from Texas, making it the leading producer.

According to USDA, the United States produced 12.07 million bales of cotton in the 2023-2024 marketing year, ranking it as the fourth-largest producer in the world. Cotton's adaptability and breathability, as well as the growing demand for apparel, household textiles, and other cotton-based products, are driving the market's expansion. China, Pakistan, and Vietnam accounted for 52% of US cotton export volume in 2023, making them the country's top buyers, according to USDA. The main factor driving the market, the textile industries worldwide demand, has led to a steady increase in cotton cultivation in the area.

Consequently, the state of the U.S. cotton industry is greatly impacted by trade policies, tariffs, and international market conditions. Profitability and export schedules can also be impacted by persistent supply chain interruptions and shifting freight prices. Another long-term danger associated with climate change is the impact of droughts and other extreme weather events on yield and quality. With greater expenditures in sustainable practices, certification schemes (like the U.S. Cotton Trust Protocol), and technical advancements targeted at enhancing traceability and environmental effect, the U.S. cotton sector is still developing in spite of these obstacles. It is anticipated that these initiatives, together with robust worldwide demand and a favorable policy environment, will maintain competitiveness and moderate growth in the years to come.

Key Factors Driving the United States Cotton Market Growth

High Demand Worldwide and Export Possibilities

With around 80% of its cotton production going abroad, the US is one of the top exporters of cotton in the world. The stable quality, dependable supply, and sophisticated fiber categorization system of U.S. cotton make it a popular import for nations like China, Vietnam, Bangladesh, and Turkey. International textile and garment sectors' increasing demand keeps driving U.S. exports. The worldwide market share of American cotton is also supported by trade agreements and competitive pricing. Furthermore, the need for premium cotton is still high as emerging nations boost textile output to satisfy rapid fashion and worldwide retail demand. This ongoing need for exports gives American producers a steady flow of income and encourages investment in technologies for production, transportation, and quality enhancement.

Developments in Cotton Farming Technology

The productivity and efficiency of cotton cultivation in the United States have been greatly increased by developments in mechanization, precision agriculture, and biotechnology. Even in harsh climatic conditions, genetically modified (GM) cotton types that are resistant to pests and drought can increase yields while lowering the need for chemical inputs. Data-driven crop management technologies, GPS-guided planting, and precision irrigation assist farmers in maximizing resources and reducing their negative effects on the environment. Growers can now scale their operations and cut expenses thanks to mechanized harvesting equipment, which has sped up the harvesting process and decreased reliance on labor. These developments have promoted sustainable agricultural methods while increasing crop resilience and profitability. The U.S. cotton industry is growing more competitive in both local and foreign markets as technology advances.

Growing Interest in Natural and Sustainable Fibers

Cotton is becoming more and more well-liked as a natural substitute for synthetic fibers as consumer demand for eco-friendly and biodegradable products rises. As customers and brands become more conscious of the environmental impact of rapid fashion and microplastic contamination, they are looking for cotton that is supplied sustainably. In line with international sustainability goals, programs like the U.S. Cotton Trust Protocol encourage traceability, less water use, and appropriate land management. In their supply chains, major clothing firms are now giving certified sustainable cotton priority. This change not only raises the market value of cotton grown in the United States but also promotes industry-wide investment in sustainable practices. The demand for responsibly produced, U.S.-grown cotton will continue to rise as environmental awareness increases.

Challenges in the United States Cotton Market

Variability in the Climate and Severe Weather

The United States' cotton industry is seriously threatened by climate change, particularly in important growing regions like Texas and the Southeast. Cotton is extremely vulnerable to changes in temperature, droughts, and unforeseen precipitation. An increase in extreme weather events, like protracted droughts, storms, and unexpected frosts, can harm crops, lower yields, and degrade the quality of fiber. For example, drought conditions in Texas have recently resulted in significant crop failures. Even with the assistance of crop insurance, these uncertainties make it challenging for farmers to efficiently plan and manage risk. To maintain long-term productivity and profitability as climate patterns grow more unpredictable, the sector needs to make investments in water-efficient technologies, adaptable farming methods, and resilient seed varieties.

Uncertainty in Trade Policy and Global Competition

Low-cost producers like India, Brazil, and Uzbekistan pose a serious threat to the U.S. cotton industry. These nations frequently get government assistance and reduced labor expenses, which raises the price of their cotton on the international market. Additionally, trade policies and geopolitical concerns, particularly with important purchasers like China, have a significant impact on U.S. cotton exports. Changes in policy, import limitations, or tariffs can have a big impact on export prices and volumes. For example, decreased cotton exports and market uncertainty are the results of recent trade disputes between the United States and China. Because of its excessive reliance on exports, the business is susceptible to changes in global markets. Overcoming this obstacle requires preserving solid trading ties, expanding export markets, and highlighting the distinctive qualities of American cotton.

United States Cotton Market Overview by States

States like Texas, Georgia, Mississippi, and Arkansas dominate the U.S. cotton market because of their enormous fields, robust infrastructure, and hospitable temperatures, which enable high production volumes and provide a substantial contribution to both domestic and international supply. The following provides a market overview by States:

California Cotton Market

California plays a niche but important role in the U.S. cotton market, primarily producing high-quality extra-long staple (ELS) cotton, such as Pima cotton. Grown mainly in the San Joaquin Valley, California’s cotton is prized for its superior fiber length, strength, and softness, making it ideal for premium textiles and luxury apparel. However, the state's cotton industry faces significant challenges, particularly due to ongoing water scarcity, drought conditions, and strict environmental regulations. High input costs and competition for land and water with other high-value crops have led to a steady decline in planted cotton acreage. Despite these challenges, California remains a key supplier of specialty cotton, with a focus on sustainability, quality, and value-added applications in global markets.

Texas Cotton Market

Texas is the largest cotton-producing state in the United States, accounting for more than 40% of the nation’s total output. The state's vast land area, favorable growing conditions, and well-established farming infrastructure support large-scale cotton cultivation, particularly in the High Plains and Southern Texas regions. Texas primarily grows upland cotton, which is widely used in the global textile industry. However, the state’s cotton sector faces challenges from recurring droughts, water scarcity, and increasingly variable climate conditions that can affect yield and quality. Despite these issues, strong export demand, technological advancements in irrigation and farming practices, and support from federal crop insurance programs continue to sustain production. Texas remains a vital contributor to both domestic supply and global cotton exports.

New York Cotton Market

New York does not play a direct role in cotton production, as its climate and soil conditions are not suitable for large-scale cotton cultivation. However, the state holds indirect importance in the U.S. cotton market due to its strong presence in textile design, fashion, and commodity trading. New York City, in particular, serves as a hub for apparel brands, importers, and retailers that drive demand for cotton-based products. Additionally, financial institutions and commodity exchanges based in the state contribute to the pricing, hedging, and global trade of cotton. While it doesn’t produce cotton, New York influences market dynamics through its economic, fashion, and commercial activities that shape consumer trends and international sourcing strategies.

Florida Cotton Market

Florida has a modest role in the U.S. cotton market, with limited production concentrated in the northern part of the state, particularly in the Panhandle region. The state primarily grows upland cotton, which is used in basic textiles and blended fabrics. While cotton is not one of Florida’s leading crops - compared to citrus or vegetables - it remains important for local farmers who rely on crop diversification. Challenges such as hurricanes, unpredictable weather, and competition for land with more profitable crops impact production stability. However, advancements in seed technology and sustainable farming practices are helping improve yields. Although Florida contributes only a small share to national output, its cotton industry supports local economies and complements the broader Southeastern U.S. cotton belt.

Recent Developments in U.S. Cotton Market

• June 2024: Leaders of the US and Indian textile industries highlighted the growing trade ties at a Cotton Council International (CCI) gathering in New Delhi, noting that Indian spinners are increasingly choosing US cotton. The conversations emphasized how the needs of the Indian textile industry and US cotton are complimentary, resulting in a win-win collaboration for Indian manufacturers, textile mills, and spinners.

Market Segmentations

All the States are covered from 4 Viewpoints:

• Production
• Consumption
• Import
• Export

States

• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• New Jersey
• Washington
• North Carolina
• Massachusetts
• Virginia
• Michigan
• Maryland
• Colorado
• Tennessee
• Indiana
• Arizona
• Minnesota
• Wisconsin
• Missouri
• Connecticut
• South Carolina
• Oregon
• Louisiana
• Alabama
• Kentucky
• Rest of United States

All the Key players have been covered

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Company Analysis:

• Aarti International Limited
• Coats Group plc
• Damodar Group
• Fortex
• Huafang Group
• KPR Mill Limited
• Maharaja Shree Umaid Mills Limited
• Nahar Spinning of Companies
• Nitin Spinners Ltd.
• Weiqiao Textile Company Limited (Shandong Weiqiao Pioneering Group)