Chile Textile Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

Chile Textile Market Growth

The Chile textile market is registering a tremendous pace of development due to the increased demand. The demand for premium household textiles has been consistent over the years which has been met by local industry. Several foreign players are also looking to tap into the market. In 2021, Rosen launched the copper health bedding line in Chile that features innovative textile technology with embedded copper particles.

The rise in sports retail is expected to prompt a 65.9% increase in new stores between 2018-2024, indicating a strong potential for the textile sector. Simultaneously, in September 2023, 25,765 new vehicles were sold, thus boosting demand for automotive textiles for seat covers, upholstery, and interior materials applications.

Chile's per capita spending rose to USD 9,833 in 2022, from USD 8,035 in 2020, encouraging consumers to invest more in fashion and clothing products, thereby supporting the Chile textile market expansion.

Further, in August 2024, retail sales in Chile saw a 6.8% y-o-y rise, with significant growth in the clothing, footwear, and accessories sectors.

The idea of a circular economy is gaining popularity in the textile market at a rapid rate. Circular economy highlights the importance of reducing waste, reusing materials, and recycling at the end lifecycle of the product. In August 2023, Procitex inaugurated a textile recycling plant in Chile and plans to recycle up to 500 tons per month. Consumers and industries are prioritising eco-friendly textiles that are encouraging sustainable and circular economy practices. Aligning with this, the Sustainable Design Chamber launched the Clean Production Agreement to manage textile waste over a 24-month initiative starting November 13, 2023.

In order to tap into the growing demand, key players are investing in order to improve their market position. For instance, Falabella – a specialist retailer for clothing and household goods recently unveiled a USD 508 million investment strategy for 2024, to bolster its omnichannel offerings and customer service.

In February 2023, Chile joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which already included 11 countries: Japan, Malaysia, Canada, New Zealand, Mexico, Singapore, Peru, Vietnam, Brunei, and Australia. This is likely to boost the Chile textile market growth by reducing tariffs and trade restrictions on textiles, further boosting trade opportunities for market players. Furthermore, Chilean textile firms can partner with CPTPP countries for technology, innovation, and sustainability to increase competitiveness.

In 2021, Chile experienced a rebound in clothing and footwear imports, reaching approx. 3 billion dollars, nearly returning to pre-pandemic levels seen in 2019.

According to the Santiago Chamber of Commerce (CCS), clothing has remained the most purchased item in Chile since 2020, accounting for 28% of total online sales that year. Additionally, during the first half of 2023, CCS estimated that 46% of Chilean consumers purchased clothing online each month, with footwear ranking second at 30%. According to the National Institute of Statistics, Chile's retail sales rose by 6.8% year-on-year in August 2024, following a 2.8% increase in July, driven by growth in clothing, footwear and accessories (15.5%), food (5%), and consumer goods (8.8%).

Between 2018 and 2022, the share of Chile's textile-clothing industry in the country's total economic value steadily declined, falling from 0.19% in 2018 to 0.11% in 2022. This decrease can be attributed to the rising competitive pressure from Asian nations, whose import dominance has significantly impacted Latin American industries, including Chile’s textile sector, reducing its overall contribution to the economy. Chile exemplifies the productive disintegration of the textile-apparel industry, which began in the 1970s when the country shifted toward importing lower-cost manufactured goods. This led to a surge in Asian garment imports and a significant decline in domestic production and employment in the sector. According to the World Bank, Chile's manufacturing industry fluctuated slightly between 2013 and 2019, peaking in 2014 at 2.20% and reaching its lowest point in 2016 at 1.71%.

Figure: Chile’s Textile-Clothing Industry: Share in Total Economic Value (2018-2022)

Economic growth enhances the purchasing power of consumers. Over the past 20 years, Chile has become Latin America's top clothing consumer per capita, with purchases rising by 233%. The average number of clothing items bought per person increased from 13 in 2015 to 50 in 2020, contributing to 572,118.9 tons of textile waste annually.

According to the World Bank, in 2019, textiles and clothing contributed 2.06% to the value added in Chile's manufacturing sector, underscoring the industry's modest yet significant role in the country's manufacturing economy.

Trade Agreements

Favourable government policies are expected to support the growth of the Chile textile market

The U.S.-Chile Free Trade Agreement (USCFTA) enhances the price competitiveness of U.S. textile and apparel exporters in the Chilean market by eliminating duties, enabling them to better compete with both domestic suppliers and suppliers from other countries without duty benefits. Additionally, by removing various non-tariff barriers, the FTA further expands market access in Chile for U.S. products.

India Chile PTA (Preferential Trade Agreement) is a framework agreement to promote economic cooperation between India and Chile. India has offered to provide fixed tariff preferences ranging from 10% to 50% on 178 tariff lines at the 8-digit level to Chile, the latter has offered tariff preferences on 296 tariff lines at the 8-digit level with a margin of preference ranging from 10% to 100%.

In 2024, European Free Trade Association (EFTA) and Chile convened to sign a Protocol of Amendment, modernizing their Free Trade Agreement (FTA), further strengthening economic ties between the two sides.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

Chile Textile Market Trends

The fast fashion sector in Chile has experienced significant growth, fueled by rising consumer demand for affordable and trendy clothing. Major international brands like Zara and H&M, along with local companies, have expanded their presence in the market, catering to a younger demographic seeking stylish options at accessible prices.

Meanwhile, the continuous growth of agriculture and related GDP from USD 20 billion in 2019 to USD 28.9 billion in 2023, with further contribution projected moving forward is likely to provide opportunities for agricultural textile products. The growing demand for such technical textile products is expected to increase the Chile textile market value.

In Chile, the most popular e-commerce categories are apparel and footwear, accounting for 48% of online purchases. These categories dominate the digital retail space, reflecting strong consumer demand in the fashion sector. Chile has a remarkable internet penetration rate, with 90.8% of its population connected in 2023. Most Chileans are highly engaged with social media, and there are approximately 1.4 mobile phones per person. Internet access reaches 92% of the population, highlighting the country’s strong digital connectivity. This is supporting the Chile textile market development by driving online sales of apparel and other textile products.

By 2026, 4G and 5G services are expected to cover 96% of the population, further enhancing the nation's digital infrastructure. This robust IT environment is attracting foreign investment, positioning Chile as a growing hub for technology development in Latin America.

The growing need for pest and disease control drives the demand for agriculture textiles like nets and covers. The IDB’s USD 50 million loan to Chile's agricultural sector will further boost this demand. Simultaneously, the growing focus on the transportation sector is expected to drive the demand for seat cover fabric, tufted carpet, seat belts, cabin filters, and others. In August 2022, the DTPM launched the Technical Transformation of the RED Network, a USD 500 million, ten-year plan to integrate Santiago’s public transportation network, improve its accessibility, and lower carbon emissions.

Chile Textile Industry Segmentation

Chile Textile Market Share

Based on material, chemical fibres account for a significant share of the Chile textile market

Chemical fibres, among other materials, are witnessing a great demand. The growing demand for synthetic fibres like polyester has prompted brands like Tiendas Paris to introduce the "Be Active" sportswear collection featuring Repreve recycled polyester for eco-friendly, high-quality garments at accessible prices.

Meanwhile, the growth of cotton-based products is attributed to the growing demand for men’s apparel in Chile. In fact, between 2012-2021, approximately a third of the apparels imported in Chile was based of cotton.

Further, in 2022, Chile produced 4,000 tons of wool while constituting 2% of the global market share of wool programs. Notably, this was the first year that RWS (Responsible Wool Standard) wool was produced in Chile.

Based on product, natural fibre is a major contributor to the Chile textile market revenue

Cotton is a key natural fibre used in the textile industry in Chile. In 2022, Chile imported USD 453 thousand of raw cotton. In August 2024, The Chilean Ministry of Environment introduced a Draft Circular Economy Strategy for Textiles, aiming to promote sustainable practices by 2040. This strategy focuses on increasing the use of natural and sustainable materials. Additionally, wool is also used in Chile’s textile sector and there has been growing popularity among wool producers to meet Responsible Wool Standard (RWS), thus further accelerating the demand for natural fibre.

On the other hand, the growth of synthetic fibres, especially polyester, has significantly impacted the textile industry's economy, driving growth in the fast fashion sector. The growth of the fast fashion industry is positively impacting the Chile textile market development.

In Chile, the demand for affordable clothing and the low production costs of polyester have solidified its position as a leading fabric. Further, polyesters are commonly used in home décor items like curtains. In 2023, Chile’s import of curtains and valances made from synthetic fibres were valued at USD 2.24 million. Furthermore, the use of recycled polyester is gaining momentum in Chile, driven by growing awareness of environmental sustainability.

In recent years, Chile has seen a significant rise in demand for sportswear, which has contributed to the growing use of nylon in the country's sportswear industry. Moreover, Chile's automotive industry is poised for growth in 2024, with forecasts predicting 340,000 new vehicle sales in 2024. This upward trend is expected to drive greater demand for nylon tire yarn, as the need for durable, high-performance tires increases in tandem with vehicle sales.

Leading Players in the Chile Textile Market

Other notable players operating in the Chile textile market are Successori Reda S.p.A, Zahr Textiles, SINGOLARE, Arja Textil LTDA, and Garware Technical Fibres Ltd, among others.