Africa Cotton Market Report and Forecast 2024-2032

Africa Cotton Market Size

The Africa cotton market stood at a value of around USD 6.33 billion in 2023. The market is projected to grow at a CAGR of 3.6% between 2024 and 2032 to reach a value of around USD 8.71 billion by 2032.

Africa Cotton Market Outlook

• Cotton production in the African Franc Zone has experienced a significant upward trend from 2010/11 to 2021/22, with notable peaks in 2014/15 at 5,914 thousand bales and a near-record production of 5,855 thousand bales in 2021/22.

• As per the USDA, Mali leads cotton production in the African Franc Zone with 1,475 thousand bales from 795 thousand hectares. Benin follows with 1,300 thousand bales, Côte d'Ivoire with 1,050 thousand bales, and Burkina Faso with 950 thousand bales. These four countries dominate the region's output.

• Region’s smaller producers include Cameroon (600 thousand bales), Chad (280 thousand bales), and Togo (125 thousand bales).

Africa Cotton Market Growth

The growing expansion of the textile sector in Africa is heightening the demand for cotton to manufacture high-quality clothing items and fashion products. Cotton offers various advantages, including breathability, absorbability, excellent wicking, and non-toxicity, due to which it is a widely preferred natural fibre. A surge in per capita incomes as well as rapid urban development are likely to boost the Africa cotton market value in the forecast period.

Growing cotton production, owing to the strong presence of small-scale cotton farmers across Sub-Saharan Africa, is a key market driver. In addition, surging attempts by organisations and governments to promote cotton farming among small-scale farmers are crucial Africa cotton market trends.

Industry Outlook

The South African textile industry statistics from 2017 to 2021 reveal significant trends and shifts that are reflective of broader patterns within the African cotton market. As per International Textile Manufacturers Federation, over the five-year period, employment in the textile industry showed a fluctuating decline, dropping from an average of 30,102 in 2017 to 26,763 in 2021. Sales also experienced variability, peaking at R24,705 million in 2019 before dipping in 2020 and rebounding to R26,229 million in 2021. Imports and exports of textile products similarly showed fluctuations, with imports rising sharply in 2020 to R26,218 million but falling to R23,014 million in 2021, while exports increased steadily from R11,662 million in 2017 to R14,278 million in 2021.

In terms of fabric production, cotton fabric output decreased from 80 million square meters in 2017 to a low of 69 million square meters in 2020, before increasing to 85 million square meters in 2021. This resurgence in cotton fabric production is indicative of a renewed focus on cotton within the textile industry, potentially driven by increased demand and better market conditions. This is further evidenced by the stability in cotton lint consumption, which saw a significant drop to 10,000 tons in 2020 but returned to 19,000 tons by 2021, mirroring the production trends.

Manufacturing sales demonstrated resilience with an overall upward trajectory, rising from R2,137,631 million in 2017 to R2,528,214 million in 2021, despite a dip in 2020 due to global disruptions. Within the textile sector, the sales of spin, weave, and finish products increased from R8,385 million in 2017 to R8,903 million in 2021, reflecting ongoing demand and possibly enhanced productivity or product diversification. This growing demand within the textile sector is expected to have a positive impact on the growth of the Africa cotton market.

The "other textiles" category saw significant growth, rising from R14,313 million in 2017 to R17,326 million in 2021, reflecting strong performance across various textile segments. Overall textile sales followed this positive trend, increasing from R22,698 million to R26,229 million over the same period. Sales in knitting mills (fabrics and garments) fluctuated, peaking at R2,624 million in 2017 before declining to R2,218 million in 2021, indicating potential shifts in market demand or production capabilities. Similarly, the wearing apparel segment experienced volatility, peaking at R18,393 million in 2019 and then falling to R17,246 million by 2021.

The total sales for textiles and clothing rose from R43,615 million in 2017 to R45,692 million in 2021, despite a notable dip in 2020, likely due to the COVID-19 pandemic's impact on global supply chains and consumer demand. This recovery underscores the industry's resilience and adaptability.

Country’s Favorable Climate and Labor Force Benefit the Africa Cotton Market Share

• Favorable Climate: Many African regions have ideal conditions for cotton cultivation, which supports the Africa cotton demand growth.

• Large Labor Force: Availability of a substantial labor force for cotton farming.

• Government Support: Governments are taking various initiatives to boost cotton production, which is expected to positively impact the Africa cotton market revenue.

• Export Potential: High demand for African cotton in international markets significantly supports the Africa cotton market dynamics and trends.

Key Challenges Hindering the Africa Cotton Market Growth

• Infrastructure Deficiencies: Poor infrastructure for transportation and storage.

• Low Productivity: Relatively low yield per hectare compared to global averages.

• Quality Variability: Inconsistent cotton quality affecting market competitiveness.

• Limited Access to Technology: Insufficient access to modern farming technologies and practices can impact the Africa cotton industry revenue.

Africa Cotton Industry Trends

• The increasing cultivation of sustainably produced cotton in the region will likely positively influence the Africa cotton demand forecast.

• Market Diversification: Potential to diversify markets and reduce dependency on a few key buyers.

• Value Addition: Opportunities for value addition through processing and manufacturing.

• Investment in Technology: Scope for enhancing productivity through the adoption of advanced agricultural technologies.

Climate Change and Other Risks Could Impact the Africa Cotton Market Growth

• Climate Change: Vulnerability to climate change and extreme weather conditions.

• Pest and Disease: Risks from pests and diseases that can significantly impact yields.

• Market Volatility: Price volatility in global cotton markets affecting income stability.

• Trade Barriers: Potential trade barriers and tariffs impacting export competitiveness.

Key Dynamics Shaping the Africa Cotton Market Landscape

• Key Producers: Mali, Burkina Faso, Benin, and Tanzania.

• Global Competition: US, India, and China.

• Price Pressure: Improve efficiency and quality.

• Quality Variability: High-quality commands premium prices.

• Market Access: Trade agreements and tariffs.

• Technological Adoption: Modern agriculture technologies.

• Sustainable Practices: The adoption of eco-friendly farming practices is likely to drive the Africa Cotton market demand. 

• Supply Chain Efficiency: Logistics and infrastructure.

• Government Support: Subsidies and farmer education.

• Cooperatives' Role: Improved bargaining power.

• Pest and Disease Management: Innovations in pest control.

Africa Cotton Industry Segmentation

Based on type, the market is segmented into organic and conventional. On the basis of application, the Africa cotton market segmentations include cotton fibre, cottonseed, and cottonseed oil. The major regional markets for cotton in Africa include South Africa, Egypt, Nigeria, and Algeria, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the Africa cotton market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• China-Africa Cotton Development Limited

• Olam Agri Holdings Pte Ltd

• JMV Textiles (Pty) Ltd.

• Standerton Mills

• Cottco (Pvt) Ltd.

• Ivoire Coton

• Compagnie Malienne pour le Développement des Textiles (CMDT)

• Others

Market Share by Application

According to the Africa cotton industry analysis, cotton fibre accounts for a significant portion of the market. Cotton fibre is used to manufacture a wide range of clothing such as underwear, socks, towel, denim, and bathrobe, among others. In addition, cotton fibres offer excellent resistance to heat, which is further escalating their demand in clothing owing to the intense heat conditions across several parts of Africa.

Africa Cotton Market Regional Insight

The global cotton market positively impacts the cotton market of Africa. China leads global cotton production with an average output of 28,167 thousand bales from 2018 to 2020. India closely follows with 27,633 thousand bales. The United States ranks third with 17,629 thousand bales. Brazil's production stands at 12,510 thousand bales, while Pakistan produces 6,100 thousand bales. The African Franc Zone (WASDE) ranks sixth globally with an output of 5,395 thousand bales. Uzbekistan and Turkey produce 3,425 thousand bales and 3,367 thousand bales respectively.

As per the USDA, Mali leads cotton production in the African Franc Zone with 1,475 thousand bales from 795 thousand hectares. Benin follows with 1,300 thousand bales, Côte d'Ivoire with 1,050 thousand bales, and Burkina Faso with 950 thousand bales. These four countries dominate the region's output. Smaller producers include Cameroon (600 thousand bales), Chad (280 thousand bales), and Togo (125 thousand bales). Yield per hectare varies significantly, with Benin achieving the highest at 457 kg/ha, while Togo and the Central African Republic have lower yields at 272 kg/ha and 288 kg/ha, respectively.

As per the industry reports, global organic cotton production has seen a significant upward trend over the past 15 years, peaking at 342,265 tonnes in 2020/21. For Sub-Saharan Africa, organic cotton production has grown steadily over the last five years, reaching close to 30,000 tonnes by 2020/21, indicating a rising interest and capacity in organic farming within the region. The global shift towards more sustainable agricultural practices and the increasing organic cotton production in the region are expected to contribute to the market growth.

Reportedly, Sub-Saharan Africa is one of the key regions driving this growth, alongside South and Southeast Asia, which saw the highest production levels of over 140,000 tonnes.

Competitive Landscape

China-Africa Cotton Development Limited is a company which manufactures products such as extract oil, cottonseed hull, cotton planting, and general cotton, among others. It was founded in 2009 and aims to enhance the production of high-quality cotton in Africa.

Olam Agri Holdings Pte Ltd is a leading company which produces grains and oilseeds, edible oils, cotton, rice, integrated feed and protein, and wood products, among others. It is a known leader in the field of feed and fibre products across the globe.

JMV Textiles (Pty) Ltd. is one of the leading clothing and textile manufacturers which produces knitted fabrics, along with offering services such as dyeing and finishing. The company was founded in 1971 and is headquartered in KwaZulu-Natal, South Africa.

Other market players include Standerton Mills, Cottco (Pvt) Ltd., Ivoire Coton, and Compagnie Malienne pour le Développement des Textiles (CMDT), among others.

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