Textiles and Apparel Industry- Global Scenario
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Textiles and Apparel Textiles and Apparel Industry- Global Scenario Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile Global Overview Global Apparel Market Size (US$ Bn) 600 14 510 500 12 12 10 400 350 10 315 8 300 237 6 200 5 4 4 ► Global apparel market worth US$ 1.7 trillion, 93 CAGR (in %) US$ US$ (Trillions) 59 56 3 100 2 40 25 2 2 as on 2015. 1 1 0 0 ► Constitutes 2% of the World’s GDP ► EU, USA & China are among largest apparel market with combined share of 54% (2015). Regions ► Top 8 apparel consuming nations form 2015 Projected CAGR (%) dominating share of 70% of the global apparel market size Foreign Direct Investments (FDI) in the sector ► Global apparel market expected to reach US$ 2.6 trillion in 2025 growing by a ► Global FDI stood at US$ 1.2 Trillion in 2014 projected rate of 4% with 2015 as base year. ► After China, India is a emerging apparel market adding around US$ 121 Billion by 2025. The Textile and Clothing Manufacturing Chain Finished Yarn •Weaving/ Product Knitting •Natural •Ginning •Bleaching •Clothing •Man made •Carding •Dyeing •Home •Combing •Finishing Furnishings •Spinning •Industry •Dyeing Fibres Fabric The Clothing Value Chain Outbound Logistics Inbound Manufacturin Packaging Marketing/ R&D Design Retailing Logistics g and Branding Warehousing Delivery Source: InfoDev.org (2008), The Global Textile and Garments Industry: The Role of Information and Communication Technologies (ICTs) in Exploiting the Value Chain Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile 3 Market Scenario 30 25 World Textiles and Clothing Exports and 20 Imports By Region 2015 Advantage India! 15 ► Abundant and low price supply of raw-materials: More 10 cost-competitive than China 5 and Brazil across a range of 0 materials; diverse supply of raw materials ► Availability of low cost skilled labour: Labour costs WORLD Africa Pacific significantly low as compared to South Asia South Europe and Europe Central Asia Central other countries East Asia and Asia East Saharan Sub- North Africa North Latin America Latin North America North and Caribbean and Middle East and East Middle Source: IBEF, Textiles and Apparel: Market Export Produce Share (%) Import Produce Share (%) & Opportunities Source: World Bank (2015), World Integrated Trade Solutions Emergence and Localisation of Textile Industries Scenario till 80’s Present Scenario Source: Global Shifts in Textile Industry & India’s Position, 2016 Low cost advantage ► Till 1980s, production base was centered in USA and s European Union (EU). ► High cost of production and unprofitability leads to search for alternative locations. ► Production of commodities shifted majorly to developing FACTORS Asian countries Abundant Favourable AFFECTING & cheap policies LOCALIZATI manpower ► China emerged as major hub due to liberalization of its ON industrial Policy in 1980s. ► Asian economies such as India, Bangladesh, Indonesia, Pakistan, Vietnam, Cambodia and Thailand experience upsurge in the sector ► Over the time, USA and EU have become largest Vast natural resources consumption base while Asian countries such as India, Bangladesh, Vietnam etc.as manufacturing base. Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile 4 Other Potential Areas Hosiery Knitwear Processing Non- woven textiles Global Hosiery market 2015-2020 (INR trillion) ► Global nonwoven market is expected grow at a CAGR of 7% during 2013-2020. Increasing consumption in emerging economies of China, India and Brazil is expected to have a 2.3 2.4 positive influence on the market growth. 2 2.1 2.2 1.9 ► Asia Pacific was the leading regional market and accounted for 42.4% of total market demand in 2013. ► Spun-laid is the leading technology used in the global nonwoven fabrics market and accounted for 48.5% of total 2015 2016 2017 2018 2019 2020 market volume in 2013. ► India is forecasted to be the 11th largest market for U.S. ► Well defined into three product segments: non‐wovens by the year 2015. socks, tights, and nylons. Socks accounts for 70% of the market, followed by tights (20%) ► Major growth drivers include increasing Agrotech concern about personal appearance, rise in Geotech 1 Global Technical demand for hosiery from older and plus size Packtech 6 consumers, increasing demand for more Textiles Market Protech 6 comfortable and stylish hosiery and rise in e- commerce sales AGROTECH 6 ► Product innovation through technological Meditech 6 advancement helps manufacturers to lend Clothtech 7 product differentiation, such as Hometech 7 improvements in cutting accuracy with the Buildtech 8 use of the ultrasonic cutting system Sportech 15 Indutech 17 Meditech Mobitech 22 ► The global meditech industry is expected to ► The global technical textile industry is estimated at US$142 reach USD 20.23 billion by 2022 from billion as of 2015 and is forecasted to reach US$165 billion US$14.94 billion in 2014 by 2019. ► Growth factors include rise in elderly ► Global demand is driven by developing countries such as population, ongoing technological China, India, and Brazil. advancements and increase in health ► Agro textiles with US$8.4 billion market, accounts for 6% of consciousness. the total technical textiles market globally. ► Non-implantable products accounts for about 30% of the global medical textile industry on account of increasing incidence of injuries, rising prevalence of diabetes and obesity. ► The global sutures market was valued at US$2.80 billion in 2014 and is expected to reach US$3.59 billion by 2020, growing at a CAGR of 4.2% between 2014 and 2020. ► On the other hand, global hygiene product market will grow to US$78.9 billion, over 551 billion units, by 2018. Sources: Euromonitor Technavio EY research “Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 29 March 2016 http://www.technicaltextile.net/promotion/nonwoven-report/ Global Technical Textiles Market 2015-2019, Technaviovia EMIS Database Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile 5 Textile and Apparel Industry in India Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile India Overview ► Global textile and apparel trade is nearly 5%. ► Second largest textile manufacturing capacity. ► Accounts for 18% of world's spindles and 9% of world's rotor. ► Largest cotton and jute producer in the world. ► Sector contributes 10% of manufacturing production, 2% of GDP and 13% of India’s export earnings ► Nearly 9 million tonnes of fibre production in 2015- 16. ► Export of Textile and Apparel, for year 2016-17, reported as 19,594 USD Million Subsectors Fibre Spinning Weaving Apparel •Largest cotton •Second largest •Contributed highest i.e. •World's highest producer worldwide installed spindle 42% to the textile and installed weaving with 5,984 mn. kg capacity in the world apparel export basket capacity with more production in 2015-16. with more than 50 of India during 2015- than 4.9 million looms •2nd largest producer of million spindles in 16. (including 2.4 million Manmade Fibre and 2014-15. handlooms) in 2014- Filament in the world •Second largest 15. with 2,511 million kg installed rotor capacity production in 2015-16 in the world with more •Worldwide leading than 8 million rotors in producer of Silk and 2014- 15. Wool Evolution of Indian Textile Sector Pre 1990s 1st cotton mill in 1901-2000 Mumbai (1857) and TUFF (1999) Ahmedabad (1861) was setup 2000-15 was established NTP (2000) was SITP was 2016 onwards announced implemented Make in India launched Free trade Technology Mission for agreement with Technical Textile ASEAN countries continued Source: Make in India, Textile Annual Report, 2016-17, Ministry of Textiles Vendor Development and Investor Summit 2017- Textile and Apparel Sector Profile 7 Funding and Investments Textile market size was USD 137 billion Import and Export of Textile Items (in in 2016 and is expected to touch US$ million USD) 226 billion market by 2023, growing at Other Textiles a CAGR of 8.7 per cent (between Made ups 2009-23) RMG Fabrics Domestic textile and apparel industry is projected to reach from USD 137 billion Yarn in 2016 to US$ 223 billion by 2021, with Fibre incl waste CAGR of 12.84%. 0 10,000 20,000 Import Export Textile and apparel exports from India Source : Monthly Statistics of the Foreign Trade of India. DGCIS, is expected to increase from USD Kolkata. 36.63 billion in FY17 to US$ 82 billion Top 10 Export Markets of India by 2021 with CAGR of 12.06%. USA, United Arab Emirates, China, United Kingdom, Bangladesh, Germany, France, Spain, Italy and Turkey Total cloth production in India stood at Top 10 Import Markets of India 53.5 billion square metres in FY17 (upto China, Bangladesh, USA, Australia, Taiwan, January 2017). Republic of Korea, Thailand, China, Hong Kong, Japan and Germany Foreign Direct Investments ► As on 2015, cumulative amount of inflow of FDI equity in the sector 1.75 USD (in Billion) ► Percentage inflow of FDI to cumulative amount of FDI Equity inflows is 0.7 %. Top 5 Countries by FDI inflow in Indian Textile Sector (USD Mn.) FDI inflows in Textiles 100 16 2 14 1.8 1.6 12 1.4 10 1.2 50 8 1 6 0.8 FDI amount (in billion) FDI amount (in billion) 0.6 4 0.4 2 0.2 0 0 0 Mauritius Singapore Belgium Japan USA 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Years 2010-11 2011-12 2012-13 2013-14 2014-15 Textiles (Including Dyed, Printed) in INR % of FDI in Textiles in terms of INR Source: FDI Scenario