Industry Overview
1. Definition
The textile industry is an industrial sector that processes natural and chemical fibers into various yarns, yarns, threads, belts, fabrics, and their dyed and finished products. According to the textile objects, it can be divided into cotton textile industry, linen textile industry, wool textile industry, silk textile industry, chemical fiber textile industry, etc.
The textile industry is one of the important industrial sectors of light industry. Compared with heavy industry, it has the characteristics of less investment, faster capital turnover, shorter construction period, and more employment capacity.
According to the “Classification and Code of National Economic Industries” formulated by the National Bureau of Statistics, the textile industry belongs to the manufacturing industry (National Bureau of Statistics code 17).
2. Industry chain analysis: There are many participants in the industry chain
From the upstream of the textile industry chain, it mainly includes raw materials such as natural fibers and chemical fibers, as well as textile machinery and textile testing; The midstream is mainly divided into cotton textile processing, linen textile processing, wool textile processing, silk textile processing, and chemical fiber textile industry according to the different processing materials; The three application ends of downstream industries are clothing and apparel, home textiles, and industrial textiles.
The upstream raw material and ingredient suppliers in the textile industry chain mainly include Huafu Cotton Industry, China Colored Cotton, Hanya Agriculture, Fengda Cotton Industry, Real Madrid Technology, and Runtu Shares; Textile machinery suppliers mainly include Zolang Intelligent, warp and weft looms, etc; Textile testing mainly includes testing companies such as Huace Testing. The midstream enterprises in the textile industry chain mainly include Xinao Group, Zhongding Textile, Zhejiang Culture Film Industry, Kangsai Ni, Lutai Group and other enterprises. The main suppliers of downstream clothing and apparel in the textile industry chain include Anzheng Fashion, Meibang Apparel, and Hongdou Co., Ltd; Home textile suppliers mainly include Zhongwang Cloth Art, the Taihu Lake Snow, etc; Industrial textiles mainly include Ogilvy Medical and Stable Medical.
Industry Development History
As a traditional industry in China, the textile industry has gradually become a core force supporting the stable operation of the world textile industry system after years of development.
Since the establishment of the People’s Republic of China, the development of the textile industry can be roughly divided into six stages.
From 1949 to 1978, China basically established a comprehensive textile industry system with a complete range of categories and a complete supply chain.
From 1979 to 1992, as a pioneer of reform and opening up, the textile industry actively followed the trend of the times. From 1984 to 1992, the export value of textiles and clothing increased by 5.9 times, with an average annual growth rate of 27.23%. China’s share of world textile and clothing exports increased from 6.4% to 10.2%; The import of fiber raw materials has expanded from 600000 tons to 1.34 million tons; The import and export surplus increased by 5.7 times, reversing the situation of China’s sustained trade deficit in goods. The continuous deepening of reform and opening up has expanded the space for the development of the textile industry.
From 1993 to 2000, China’s textile industry entered a period of stable development; From 2001 to 2007, since China’s accession to the WTO, in the tide of economic globalization, the Chinese textile industry entered the “fast lane” and ushered in the “golden period”. The industry’s position in the global textile value chain is steadily increasing, its market share is constantly expanding, and its influence and discourse power continue to strengthen.
From 2008 to 2020, China’s textile industry began to explore transformation, adjust its product structure, and rank among the world’s top in terms of manufacturing capabilities and levels at all links of the industry chain. The production technology of high count and high-density fabrics also ranks among the world’s top.
During the 14th Five Year Plan period, the China Textile Industry Federation proposed to firmly grasp the “bull’s nose” of technological innovation, break through major bottlenecks, and create a powerful engine for industrial development. It was proposed that by 2023, China’s textile industry should become the main driver of global textile technology, an important leader in global fashion, and a strong promoter of sustainable development.
Current situation of industrial development
1. Value added of industrial enterprises above designated size in the textile industry
According to the Economic Operation Report of China’s Textile Industry, from 2018 to 2023, the added value of industrial enterprises above designated size in China’s textile industry showed a fluctuating trend. In 2023, the industrial added value of enterprises above designated size in the textile industry decreased by 1.2% year-on-year, and the growth rate has rebounded compared to 2022.
2. Number of textile industry enterprise units
According to data from the National Bureau of Statistics, the number of textile enterprises in China showed a fluctuating trend from 2017 to 2023. In December 2023, the number of textile industry enterprises in China was 20822, an increase of 3.55% compared to December 2022. With the increase in the number of enterprises, it is expected that the supply capacity of China’s textile industry will continue to grow.
3. Textile industry output
According to data from the China National Textile and Apparel Council and the National Bureau of Statistics, from 2018 to 2023, the production of yarn, fabric, silk, and interwoven woven fabrics in the textile industry showed a fluctuating downward trend. In 2023, the production of main products such as yarn, fabric, silk, and interwoven woven fabrics will be 22.342 million tons, 29.49 billion meters, and 256.417 million meters, respectively.
From January to April 2024, the main product yarn production was 7.061 million tons, a year-on-year decrease of 5.72%; The fabric production reached 10.31 billion meters, a year-on-year increase of 2.69%; The production of silk and interwoven woven fabrics reached 78.665 million meters, a year-on-year increase of 13.24%.
4. Scale and volume of textile industry
According to data from the China National Textile and Apparel Council and the National Bureau of Statistics, the operating income of China’s textile industry above designated size showed a fluctuating trend from 2018 to 2023. In 2023, the operating revenue of the textile industry above designated size was 2.28791 trillion yuan, a year-on-year decrease of 12.53%, showing a downward trend.
Note: The statistical caliber of this section is the operating income of the textile industry above a certain scale, excluding the textile and clothing industry and the chemical fiber industry.
Industry competition pattern
1. Regional competition pattern: Zhejiang, Shandong, Hebei, Guangdong, Jiangsu, Fujian and other regions have strong competitive advantages
The Chinese textile industry is mainly concentrated in provinces such as Zhejiang, Shandong, Hebei, Guangdong, Jiangsu, and Fujian. These regions have obvious competitive advantages in foreign trade, industrial supporting infrastructure, and talent attraction.
From the perspective of industrial chain links, the cotton textile industry is mainly concentrated in the middle and lower reaches of the Yellow River and the Yangtze River, which are China’s first and second cotton production areas. The hemp textile industry is mainly distributed in Harbin in Northeast China and Hangzhou at the mouth of the Qiantang River, which are the largest production areas for flax and jute; The wool textile industry is mainly distributed in Beijing, Hohhot, Xi’an, Lanzhou, Xining, Urumqi and other places, which are mainly animal husbandry areas and wool production areas close to animal husbandry areas; The silk textile industry is mainly distributed in Hangzhou, Suzhou, Wuxi, the Taihu Lake Lake basin and Sichuan Basin, where is the origin of silk or Zuo silk; The chemical fiber textile industry is mainly distributed in Zhejiang, Jiangsu, and Fujian; The printing and dyeing industry is mainly distributed in Jiangsu, Zhejiang, Guangdong and other regions, where the textile industry is relatively developed; Ready to wear manufacturing is mainly concentrated in Guangdong, Jiangsu, Zhejiang and other regions, where the textile industry is relatively developed and has a relatively complete industrial chain.
2. Enterprise competition pattern: The market competition is relatively fierce
From the perspective of segmented fields, the cotton textile industry is mainly dominated by enterprises such as Weiqiao Entrepreneurship, Tianhong International, Huafu Fashion, and Bailong Oriental; The hemp textile industry is mainly dominated by enterprises such as Jinying Shares, Huasheng Shares, and Jinda Holdings; The wool textile industry is mainly dominated by enterprises such as New Australia Group, Zhongding Textile, and Zhejiang Culture Film Industry; The silk and textile industry is mainly dominated by enterprises such as Jiaxin Silk, Dali Silk, and Jin Fuchun; The chemical fiber textile industry includes Caidie Industry, Hongda High tech, and Taihua New Materials.
Industry development prospects and trend prediction
1. Outlook forecast: The market size will exceed 3.4 trillion yuan by 2029
In 2023, the slowdown in global economic growth has weakened downstream demand in the textile industry. Upstream raw materials such as cotton and oil have experienced strong price fluctuations due to regional conflicts, and the impact from both upstream and downstream has put pressure on the overall operation of the textile industry. The progress of the textile industry’s recovery from the epidemic has become increasingly slow. In the past 20 years, China has attracted textile industry transfer from Japan, South Korea and other places with lower labor costs, and has developed into the world’s largest textile producer and exporter, occupying 9 positions among the top ten textile manufacturers in the world. With the improvement of intelligence level in China’s textile industry, the industry will usher in new development opportunities in the future. In accordance with the “14th Five Year Plan for the Development of the Textile Industry”, the average annual growth rate of industrial added value of textile enterprises above designated size will remain within a reasonable range. Looking ahead, it is expected that from 2024 to 2029, the scale of China’s textile industry will grow at a compound annual growth rate of 4%. It is estimated that by 2029, the scale of China’s textile industry will reach 3442.2 billion yuan.
2. Trend analysis: capacity transfer, “Internet plus”, green environmental protection
In the future, China’s textile industry will mainly focus on the gradual transfer of production capacity to Southeast Asia. Internet plus textile is also expected to become one of the future development trends of China’s textile and clothing industry. In addition, China’s textile industry will gradually move towards the trend of green environmental protection. Under the catalysis of industrial capacity optimization, policy guidance and other factors, green environmental protection is still one of the factors that need to be focused on in the future development of China’s textile and clothing industry.
Dongguan Liansheng Non woven Technology Co., Ltd. was established in May 2020. It is a large-scale non-woven fabric production enterprise integrating research and development, production, and sales. It can produce various colors of PP spunbond non-woven fabrics with a width of less than 3.2 meters from 9 grams to 300 grams.
Post time: Aug-15-2024