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The growth of the Asian textile sector and the possibility of expansion of Brazilian cotton

    From t-shirts to carpets, the textile industry is present in everyone's lives in many ways and, although old and consolidated, it continues to grow.  The weaving process is millenary, however, the modern concept of textile industry only appeared in England in the 18th century, with the machines created and the fast pace of production that generated products in exorbitant quantities. Currently, with the modernization and adaptation of the machines, the process has become even greater, however, it has moved from England to several Asian countries that are increasingly expanding this sector.  

Brazilian cotton highlights

    One of the main products for the manufacture of others in this sector is cotton, something that Brazil produces and exports in abundance, being the second largest producer in the world. During the 2019/20 harvest, according to ABRAPA (Brazilian Association of Cotton Producers) there were more than 1,742,188 tons and a turnover of US$2,774,455,233.00. Of these data, in 2020 alone, there were approximately more than 710 thousand tons of cotton, together with a collection of US$1,117 billion, based on data from ANEA (National Association of Cotton Exporters).  


The possibilities of expanding Brazilian cotton to the Asian market        

    Given the size of Brazil on the export of this good, one can also see its contribution to its growth in the expansion of the textile industry in Asia, since, according to data from ANEA, of the 5 most importing countries of Brazilian cotton, 4 of them are Asian (China, Vietnam, Bangladesh and Pakistan, respectively), adding in 2020 (January to April) more than US$753,997,256, which would represent approximately 67% of all Brazilian exports. In terms of quantity, it would be more than 559,113 tons, approximately 79% of the total exported volume.

    Therefore, based on the data shown, the Asian rise in textile production is visible due to the consumption of a large part of Brazilian cotton exports and the high number of factories in the region. However, in addition to this, Brazil is also important in this growth, as according to ABDI (Brazilian Agency for Industrial Development) and ABIT (Brazilian Textile and Apparel Industry Association), the future of this sector will depend on global chains consumption and hypertext networks, integrating countries and placing Brazil in an important position, since it is highly involved in it as a raw material supplier for textile production, which can further increase its revenue from exports of these products.

The importance of assistance from an international consultancy

    Thus, although there is a Coronavirus pandemic, it is a consolidated, essential sector with a future prospect for the entire world, and thus its exports will remain high. However, for it to occur efficiently, monitoring and guidance is necessary to know which are the most profitable and profitable markets, this being the role of a consultancy, helping companies to extract greater  profits from these increasingly growing trades.

By Enzo Toledo on 07/17/2020


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