Denim Fabric Market Expected to Reach $27.9 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Denim Fabric Market by Raw Material, Fabric Type, and End-use: Global Opportunity Analysis and Industry Forecast, 2021–2030."

The global denim fabric market was valued at $18.1 billion in 2020, and is projected to reach $27.9 billion by 2030, growing at a CAGR of 4.4% from 2021 to 2030.

Denim is a robust woven twill weave, usually made up of cotton. Other fibers such as polyester or spandex, are also added occasionally in small proportions to achieve the required attributes. The cotton fibers are spun into yarns, which are then dyed and woven into wrap-faced denim fabric.

Denim fabric and dependent products are globally imported and exported. It is one of the most prevalent fabrics consumed globally and its products are a wardrobe staple for oodles around the world. Nowadays, denim fabric is not restricted to the production of jeans and garments, it is also used to produce home décor products that are aesthetically appealing and robust.

The threat facing the denim industry is the rise of athleisure wear. The garments such as sneakers, jogger pants, leggings, and sweatpants, have captured a chunk of market share from denim fabric. Though denim and athleisure are different fashion realms, consumers are opting for comfort nowadays, which can be accomplished by athleisure wear. This factor is expected to hamper the denim apparels market.

The conventional production of denim involves the use of synthetic chemicals in the dyeing process. These types of denim when becomes old are then directed to landfills for degradation. Hence, the huge accumulation of denim products comprising various synthetic chemicals possess a severe threat to the environment.

To lessen the accumulation of synthetic chemicals and dyes through the traditional production processes, several mills have developed sustainable alternatives to reflect growing demand by customers for sustainability. For instance, ITV Denim, an Italian denim mill located in the Abruzzo region in Central Italy, is backed by a mission to reduce their environmental footprints by introducing advanced technologies and techniques for spinning, weaving, dyeing, and finishing. In 2016, ITV Denim won Global Denim Awards for its initiative toward sustainability. Such initiatives taken by denim mills are expected to be favorable to the denim fabric sector during the forecast period.

The denim fabric market is segmented based on raw material, fabric type, end-use industry, and region. By raw material, the market is segregated into the market is divided into cotton, spandex, polyester, and others. The cotton segment dominated the global denim fabric market in terms of revenue in 2020, with over 90% of the total share.

On the basis of fabric type, the denim fabric market is classified into raw, sanforized, crushed, stretch, selvedge, and others. The raw denim fabric segment dominated the global market in terms of revenue in 2020, with over one-third of the total share. This was attributed to apparel made with raw denim that offers a darker tone and tough construction.

Depending on the end-use industry, the denim fabric market is classified into clothing & apparel, décor & homeware, and accessories. The clothing & apparel segment dominated the global market in terms of revenue in 2020, with over 90% of the total share. This is attributed to denim fabric having most of its usage in the clothing sector in the manufacturing of jeans, jackets, and shirts among others.

Region-wise, the denim fabric market is analyzed across the Americas, Europe, Asia-Pacific, and MEA. The Asia-Pacific denim fabric market size is projected to grow at the highest CAGR during the forecast period. This is attributed to increased production and use of denim fabric in the Asia-Pacific countries such as Bangladesh, Pakistan, China, and India.

The major companies profiled in this report include Advance Denim Co., Ltd., Arvind Limited, Bextex, CONE Denim LLC, HA-MEEM Group, House of Gold, LLC, Isko, Modern Denim Ltd., Noman Group, and Raymond UCO Denim Pvt. Ltd.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The denim fabric market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to disruptions in the supply chain for denim fabric products. Moreover, the rising prices of raw materials, mainly cotton and cotton yarn, have decreased the production of denim fabric during the COVID-19 period.

For instance, according to a report published by the Denim Manufacturers Association of India (DMAI), the prices of cotton and cotton yarn surged by 20-30% in December 2020 as compared to March 2020.

Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors toward healthcare. Also, several denim fabric manufacturing companies and mills have either shut down or shrunk their operations due to the risk of infection among the workforce. This has temporarily hampered the production rate of the denim fabric market.

In addition, the falling income of customers has led contraction in the demand for premium denim products. Furthermore, the industry has faced various problems related to transportation, the non-availability of a skilled workforce, and reduced export/ import orders amid the COVID-19 period. This has led the denim fabric market to witness a downfall in demand. In addition, several textile trade shows and exhibitions have been postponed owing to increase in the number of COVID-19 cases. This has restrained the denim fabric manufacturers from getting new clients and sales offers globally.

However, the introduction of bio-antibacterial and environmentally safe denim fabrics may boost the growth of the denim fabric market. Furthermore, several governments have conducted symposiums with textile Export Promotion Councils and other industry stakeholders for finalizing a list of potential export products against which exports of textile and apparel can be enhanced. For instance, according to a report published by the Indian Ministry of Textiles, the Government of India has decided to continue the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the remission of duties and taxes on exported textile products.

Moreover, several American and European retailers have transferred many textile orders originally produced in India to China to ensure the supply of goods on time. This may enhance the performance of the Chinese denim fabric industry amid the COVID-19 situation. In addition, as the restrictions imposed due to lockdowns are being lifted, the denim fabric manufacturing sector is expected to recover soon owing to an increase in demand for clothing, accessories, homeware, and other denim-based products in both developed and developing economies.

Key findings of the study

• On the basis of fabric type, the cotton segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.5% from 2021 to 2030.
• The stretch fabric type segment is anticipated to register the highest CAGR of 5.2% during the forecast period.
• The clothing & apparel type segment has garnered the highest share during the forecast period.
• Region wise, Asia-Pacific garnered the highest share of 81.3% in 2020, in terms of revenue, growing at a CAGR of 4.6%.