Mexico Textile Market Report and Forecast 2024-2032

Mexico Textile Market Size

The textile market in Mexico is projected to grow at a CAGR of 5.4% between 2024 and 2032. The market is being driven by the growing availability of cheap and highly skilled labour in Mexico.

Mexico Textile Market Outlook

• In 2022, Mexico exported $7.6 billion worth of textiles to the United States.

• Technical textiles are expected to constitute a major portion of the textile market share in Mexico.

• Nearshoring is one of the key market trends positively affecting the market growth.

Mexico Textile Market Growth

Increased consumer spending on fashion, apparel, and home textile is contributing to the growth of the Mexico textile market. The rise of the middle class in the country as well as increasing disposable income further boost market growth. Moreover, competitive labour cost in the country allows companies to produce textile at more economical rate compared to other countries.

Mexico Textile Market Trends

The close proximity of Mexico to the United States is a key trend in Mexico textile market as it offers the country access to one of the largest consumer markets in the world. The availability of skilled workforce in the country who have expertise in textile production is another crucial trend aiding the market expansion.

Recent Developments

As per the Mexico textile market dynamics and trends, in April 2022, Mexico announced that it has raised import duties to 544 tariff lines in the range of 5% and 50% for two years. Textile is one of the major products for which the import duty has been increased in the country.

Industry Outlook

As per the Mexico textile industry analysis, free trade agreements such as NAFTA have made Mexico an increasingly attractive destination for many American textile manufacturing companies. This is because Mexico’s strategic location has made it easier for companies to export their products to the USA. Due to reduced shipping costs, short turnaround timelines, and shortened supply chains, multiple logistical challenges attributed to high oil prices have been removed. Moreover, the growing trend of nearshoring is contributing to the market development.

The availability of cheap and highly skilled labour is also contributing to the market expansion. This can be attributed to the numerous education programmes run by the manufacturing industry, which enables Mexican workers to specialise in the nuances of producing leather goods, seat covers, airbags, and other textile products. Moreover, the average rate of hiring cheap labour in Mexico is $4.75/hour, which is $0.76 lower than the labour cost of other countries such as China. This is expected to contribute to the growth of the Mexico textile industry.  The increasing focus of Mexican textile manufacturers on carving a special niche for themselves is expected to drive the market growth as consumer demand for high-quality garments increases.

As per the USDA estimates, the cotton production in the country in the marketing year of 2024-25 is expected to be 0.91 million 480-lb bales. Furthermore, the trade exchange of silk was USD 4.67 million in Mexico in 2023. Ciudad de México and Estado de México were the two states with most purchase of silk in 2023, which was expected to aid the Mexico textile industry revenue.

Factors Contributing to the Growth of the Mexico Market

• Proximity to major markets like the US enhances Mexico's textile exports, bolstered by trade agreements like the United States-Mexico-Canada Agreement (USMCA).

• Availability of skilled labor supports Mexico textile demand growth and innovation.

• Supportive policies, investment incentives, and infrastructure development in textile zones foster market expansion.

• Adoption of advanced technologies boosts efficiency and product quality in Mexico's textile sector.

• Expansion into technical textiles and eco-friendly fabrics meets diverse consumer demands in Mexico's textile market.

Challenges Faced by Producers in the Mexico Market

• Competition from low-cost manufacturing countries impacts pricing, profitability and Mexico textile demand.

• Compliance with stringent environmental standards adds operational costs and complexity.

• Vulnerability to supply chain disruptions affects production schedules and delivery reliability.

• Exchange rate volatility affects costs and international competitiveness in the textile industry.

Key Growth Opportunities in the Mexico Market

• Expanding into high-value segments like technical textiles for automotive, healthcare, and industrial applications.

• Meeting growing demand for eco-friendly fabrics and sustainable manufacturing practices can boost Mexico textile market value.

• Investing in vertical integration to control costs and improve supply chain efficiency.

• Leveraging trade agreements and geographical advantages to increase exports to North American and global markets.

• Embracing innovation in design, materials, and manufacturing processes to differentiate products and meet evolving consumer preferences.

Market Competition in the Mexico Textile Market

The key players in the Textile Market in Mexico include Aztlan Textil SA de CV, Parkdale, Incorporated, Citosa Textiles SA de CV, Novalan S.A. de C.V., GRUPO TEXTIL ALTEX, S.A. DE C.V., TURBO YARN SA DE CV, and Anglés Textil S.A.

Competitive Strategies by Key Players in the Mexico Market

• Product Differentiation: Aztlan Textil and Parkdale focus on unique product lines and customization to attract diverse market segments and boost Mexico textile market revenue.

• Cost Leadership: Citosa Textiles and Novalan emphasize efficient production processes and cost-effective manufacturing to maintain competitive pricing.

• Market Expansion: GRUPO TEXTIL ALTEX and TURBO YARN pursue geographic expansion and market diversification to mitigate risks and leverage growth opportunities.

• Innovation: Anglés Textil invests in research and development, focusing on innovative textiles and sustainable materials to boost Mexico textile industry demand.

• Vertical Integration: Some players may opt for vertical integration strategies to control quality, reduce dependency on external suppliers, and optimize supply chain efficiency.

Mexico Textile Industry Segmentations

Mexico Textile Industry Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Material

• Cotton

• Chemical

• Wool

• Silk

• Others

Market Breakup by Product Type

• Natural Fibers

• Polyester

• Nylon

• Others

Market Breakup by Application

• Household
  • Bedding
  • Kitchen
  • Upholstery
  • Towel
  • Others

• Technical
  • Construction
  • Transport
  • Protective
  • Medical
  • Others

• Fashion and Clothing
  • Apparel
  • Ties and Clothing Accessories
  • Handbags 
  • Others

• Others

Market Breakup by Region

• Baja California

• Northern Mexico

• The Bajío

• Central Mexico

• Pacific Coast

• Yucatan Peninsula

Competitive Landscape

The key Mexico textile industry players are Aztlan Textil SA de CV, Parkdale, Incorporated, Citosa Textiles SA de CV, CS Tech Contract Manufacturing, Novalan, S.A. de C.V., GRUPO TEXTIL ALTEX, S.A. DE C.V., TURBO YARN SA DE CV, Cottonella, TEXPERT, SA de CV, and Anglés Textil S.A., among others.

Key Highlights of the Report

Mexico Textile Market Report Snapshots

Mexico Textile Market Size

Mexico Textile Market Growth

Mexico Textile Market Trends

Mexico Textile Companies