Business

Mexico’s Textile Manufacturing Set To Take Off: Study

According to a latest report by Technavio, the textile manufacturing market in Mexico will grow by US$ 3.98 billion between 2021 and 2026. Technavio expects the market to have a year-over-year growth of 2.93% in 2022 and accelerate at a CAGR of 4.13% during the forecast period. Rising urbanisation and the expansion of the middle class population in Mexico have increased the demand for garments and other fashion apparel. In addition, GDP growth has boosted textile manufacturing in Mexico. Many such factors are creating significant growth opportunities for market players in the fashion industry. Textile manufacturing in Mexico is concentration among a few players, focussing on diversified products to remain competitive. Aquasea Inc., CS Tech Contract Manufacturing, Delta Apparel Inc, El Grande Group, Grupo Denim, Grupo Siete Leguas, Juegos Divertidos SA DE CV, M and O Knits, Roma Mills, and Toray Industries Inc. are some of the major players dominating the market. During the forecast period, the market is expected to witness the entry of new players. This will intensify the competition among existing players. Factors such as premiumisation through well-positioned brands, the rising demand for textiles in Mexico, and the increasing demand for natural fibres will offer immense growth opportunities. To leverage the current opportunities, market vendors must strengthen their foothold in the fast-growing segments while maintaining their positions in the slow-growing segments, suggests Technavio. By product, the market will observe significant growth in the natural fibres segment over the forecast period. Mexico is among the leading producers of cotton, wool, and silk worldwide, clocking considerable growth in production of these natural fibres over the years. In addition, the extensive use of cotton, silk, linen, wool, hemp, and jute to produce garments, construction materials, medical dressings, and automotive interiors is driving the growth of the segment. By application, the fashion segment will have the largest share of the market, as consumer demand for branded apparel is set to witness extensive growth. In addition, increasing online sales of fashion apparel in Mexico are further creating opportunities for market players.