HomeNewsIndia’s home textile exporters gain market share in US

India’s home textile exporters gain market share in US

The Office of Textiles and Apparel (OTEXA) data continues to reveal India’s increasing share in US home textiles market. As per OTEXA data, India’s market share in US Cotton Sheets increased to 57% over January–November 2021 as against 52% in 2020. On the other hand, China lost 2% share during the same period. In the Terry Towels segment, India’s share has risen 200bp to 44% in CY21YTD as against 42% in CY20, while China’s share has fallen 200bp.

The US and Europe are major importers of home textile products globally. The industry saw a rebound in sales due to pent-up demand. This has led to strong demand in 3Q, and the momentum is expected to continue in 4QFY22 as well. Increased global awareness about health and hygiene and emphasis on working from home are the growth drivers for home textile products – as home décor is the new ‘global favorite.’

However, huge demand has resulted in excessive pressure on logistics. Exporters are facing a shortage of containers for shipping products, which has led to a spike in logistic costs. However, the exporters expect the problem to be short-lived and may get resolved in the coming months.

The sector is expected to perform well going forward, driven by government support in the form of an extension of the RoSCTL benefits up to March 2024. This is expected to provide stability and ensure the competitiveness of Indian products globally.

However, going forward, cotton supply and its price are going to be major factors affecting the industry. The US banning products made from cotton obtained from China’s Xinjiang region will have far reaching consequences for the industry as this region accounts for one-fifth of the world’s cotton production. As a result, other cotton-supplying countries are likely to face added pressures.

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