The termination of the global quota system in 2005, as outlined by the Agreement on Textiles and Clothing, had profound effects on the global textile and garment industry.
Unsurprisingly, the upstream segments of the industry—fibres, yarn, and fabrics also experienced significant transformations over the past three decades.
This study explores these changes across different fibre types and processing stages from 1996 to 2023.
Synthetic fibres now account for almost three quarters of global fibre production (up from 45% in 1996), while cotton declined to about one fifth of the market share. However, niche fibres such as flax and hemp are gaining traction.
Man-made fibres surpassed cotton in traded value for the first time in 2023. While cotton trade peaked in 2022 before declining due to supply chain disruptions, synthetic fibres maintained steady growth. Man-made fibres also dominate yarn and fabric trade, accounting for 65-70 per cent of traded value in these categories.
Although tariffs have generally declined since 1996, there is persistent tariff escalation, where processed goods (e.g., fabrics) face higher duties than raw materials. Additionally, non-tariff measures (NTMs) — such as sanitary and phytosanitary measures and technical barriers to trade — disproportionately affect natural fibres, possibly creating challenges for exporters.
Distinct production and trade integration strategies are revealed by the analysis.
In 2023, China lead across all stages, producing 73% of synthetic raw materials and exporting 44% of fabrics, supported by domestic inputs and scale economies.
Viet Nam excelled in intermediate processing, exporting 26% of global cotton yarn while relying on imported raw materials.
Italy focused on high-value niches, capturing 50% of wool fabric exports through design and quality.
India and Bangladesh dominated natural fibres (e.g., 48% of jute production) but retain high tariffs (20-24.6%) to protect domestic industries.
