The market is expected to accelerate at a CAGR of almost 3 per cent during the forecast period
The cotton market is expected to reach $5.59 billion during 2021-2025, as per a new report from Technavio. The report also throws light on the impact of the COVID-19 pandemic, and the new opportunities and challenges that market players can expect. In this market analysis, the market is expected to accelerate at a CAGR of almost 3 per cent during the forecast period. The cotton market growth is attributed to government initiatives and support. However, the overconsumption of water due to poor management and water pollution might hinder the market growth. On the other hand, the strategic crop due to its versatility will present new opportunities in the coming years.
Governments across the globe are taking various initiatives to support cotton farming. For instance, the Indian government has come up with several export promotion policies. India’s DRDO is helping to produce yarns and eliminate the dependence on the import of Chinese products and other foreign clothing for military uniforms. Furthermore, with two-thirds of developing countries dependent on the export of commodities, a core part of UNCTAD’s work involves building countries’ capacity to move up the value chain and diversify their exports. These factors will drive the cotton market over the forecast period.
