Chinese Textile Industry Expected to Continue Growth

By Jim.Robinson|February 9, 2012

Although many of its competitors are seeing decreases in their textile and clothing industries, China is expected to continue growing, according to the most recent Textile Outlook International issue from Textiles Intelligence.

Although the Chinese textile industry faces rising costs, an aging population and labor shortages in some regions, it appears to have done reasonably well in 2011. From January through November 2011, its business revenues and profits each rose 27% while its industrial output was up 11%, year on year. These figures were met with some disappointment, however, as the profit growth rate during this period fell 14.7% from the first half of the year.

In 2010, the Chinese textile industry consumed a total of 11.4 million tonnes of natural fibers, accounting for 27.6% of China’s total fiber consumption of 41.3 million tonnes. By 2015, the Chinese textile industry is expected to consume 12 million tonnes of manmade fiber, accounting for 23.5% of the country’s total fiber consumption, while consumption of natural fibers will remain flat and hover at the same levels as 2010.

Several other industries in Asia saw decreases in the second half of 2011 as Western retailers cut orders for the spring/summer 2012 season due to fears of a slump in demand after the holiday season.

Nervousness in the West has led buyers to make purchases close to the season, which is benefiting suppliers in close proximity to the world’s two major markets – the European Union and the United States. Furthermore, Nike and Adidas have recently announced plans to increase production in South America. However, it is not their intention to replace China (or Asia in general) as a source, but rather to complement it.