Changing trends in textiles

Lack of innovation and not keeping abreast with global trends are just some the reasons emphasized time and again for falling textile exports. This was further highlighted by the recent SBP report which stated that US consumer preferences are changing from cotton-based apparel to man-made fibre apparel.

In 2014, for the first time in decades, the US’s imports of synthetic apparel overtook cotton-based imports with 51 percent of its garment imports made primarily of synthetic fibres. From 36 percent in 2006 to 54 percent in 2016, the share of man-made fibres as a percentage of US apparel imports has been increasing steadily over the last decade.

The trend in the US indicates the global trend. Currently, oil-based synthetic fibers have the lion’s share of 60 percent of the world fibre market whereas cotton’s share is about 25 percent.

In the US, the shift comes after years of high cotton prices and improving synthetic technology. However, the story is not as simple as man-made synthetic fibres replacing cotton based apparel. A paper by World Bank examined the co-movement between cotton and polyester prices and concluded that a strong long-run relationship exists between the two. Cotton and polyester are often blended since polyester is a cost-effective fibre and can improve functionality as well. In case of apparels, polyester dominates as a blend with cotton and viscose.

On the domestic front, the textile industry is excessively cotton based. Pakistan’s share in US’s total textile and apparel imports in 2016 was 3 percent, as per the Office of Textile and Apparel, USA, and for cotton based products it was 5 percent. US’s total man-made fiber imports in 2016 were $52 billion of which Pakistan’s share was $200 million.

Pakistan is missing the shift from cotton to man-made fiber apparel. As global oil prices have seen a general decline over the last decade, synthetic fibers have seen a surge in popularity. Other than the cost of raw material, technological advances in synthetic fibres offer textiles that are softer, hang better and have better moisture absorbency than cotton.

But Pakistan’s polyester sector continues to be under pressure from cheaper and under-invoiced imports from China and volatility in raw material prices. With the absence of sufficient support and general awareness of international trends, Pakistan’s international textile market is eroding away. Domestic players need to adapt evolving requirements of its primary markets otherwise the GSP Plus status would later appear like a short-term bonanza.