U.S Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023) 

Report on U.S Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023) 

 Introduction to US Cotton Market

Cotton production is one of the United States’ most important industries. US is the world’s largest exporter, 3.37 million metric tons, of cotton although it is the third largest producer of cotton, 4.55 million metric tons, in the year 2017-18. India is the largest cotton producer followed by China. Now, Bangladesh is the largest importer of cotton, 1.65 million metric tons, followed by Vietnam and then China.

In US, Texas is the leading producer of cotton, 2.1 million metric tons, followed by Georgia, 0.5 million metric tons, followed by Mississippi, 0.35 million metric tons, in the year 2017-18. Texas alone was responsible for producing cotton worth 1.75 billion US dollars in 2014.

Upland cotton is the nation’s most commonly cultivated variety of cotton. A finer and more expensive cotton fibre, American Pima, is mainly cultivated in Arizona and California.

 

Market Dynamics

  1. Impact of Weather

According to Roger Isom, president and chief executive officer of the California Cotton Ginners and Growers Association, one of the largest threats to United states’ cotton industry is lack of water. Timing of rain is a major concern in many states of United states, which is an essential crop growing facilitator.

  1. World Economy

Economy of major cotton importers affect the demand of cotton, which finally triggers a price change. US’s type of cotton is in more demand all over the world. With increase in economic conditions of the world, the demand is predicted to rise by 5% in the year 2018. Also, lack of cotton in stock due to unsupportive weather conditions will increase the price of cotton.

  1. China – Once a major importer of US cotton

Current situation between US and China regarding the tariff rates of respective countries will pose a threat to the sales of cotton. China is a major export market of cotton for US, prices of cotton have already gone down by 12% from a 4 year high of 94.82 cents a pound. In China, Synthetic fibres are turning out to be a major substitute to cotton, reducing its short term demand.

  1. Production costs of cotton

Cotton seeds come costly to the farmers. Production costs of cotton are high, and unless producers have good yields, current cotton prices may not be enough to cover all production expenses.

 

Market segmentation

There are two types of cotton grown in the United States – American upland (Gossypium hirsutum) and American pima (Gossypium barbadense). The predominant type of cotton grown is upland, which accounts for about 97 percent of U.S. production. U.S. cotton production in 2016 was 17.1 million bales in which Upland cotton production was 16.5 million bales and ELS/pima production was 568,050 bales. The quality of cotton produced in U.S. is of higher quality and also greater in demand all over the world.

 

Geographic analysis

As discussed earlier, Cotton is produced in 17 states. Texas produces the most cotton, followed by Georgia and Mississippi. Cotton producing states of U.S. are divided into 4 regions. The Southwest region consists of Kansas, Oklahoma and Texas, produces the most upland cotton. The Delta region – Arkansas, Louisiana, Mississippi, Missouri and Tennessee – generally ranks as the number two producer of U.S. upland cotton, followed by the Southeast region, Alabama, Florida, Georgia, North and South Carolina, and Virginia. The West consists of Arizona, California and New Mexico) usually produces the least amount of upland cotton. Among all the states, Texas is the largest producer of American Upland cotton.

Key Players

At present, the key players are the environmental concerns, US – China Tariff war and US’s withdraw from Trans-pacific partnership. Every year hurricanes, untimely rainfall and floods affect the production of cotton in United states. Lack of trans-pacific partnership have affected the relationship among the big Asian importers.  Import of cotton into the Asian countries had reduced to below 20% from 40 %, which was 3 years back.

 

The report contains comprehensive analysis on:

  • U.S. cotton Market Segments
  • U.S. cotton Market Drivers, Restraints and Opportunities
  • Supply & Demand Value Chain
  • U.S. cotton Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Strategic and Critical Success Factor Analysis of Key Players

Regional and global analysis for U.S. cotton Market includes

  • Texas
  • Georgia
  • Mississippi
  • India
  • China
  • Asia Pacific
  • Rest of Asia Pacific

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macro-economic factors and other qualitative and quantitative insights. The impact of all such factors are delivered across multiple market segments and geographies.

 

Report Highlights:

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

 

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