Cotton Consumption Faces Strain Amid Rising Production & Trade Challenges

Washington, DC — The global cotton industry may be heading toward a bearish market as cotton lint production is forecasted to rise by 7%, reaching 25.8 million tonnes, while consumption is expected to increase by only 2%, totaling 25.5 million tonnes. This growing gap between supply and demand raises concerns, especially in a sector already grappling with supply chain disruptions due to its fragmented structure, ongoing geopolitical tensions such as the instability in the Suez Canal, and widespread logistics delays.

Adding to the pressure, global cotton trade forecasts have been revised downward to 9.45 million tonnes, primarily due to reduced import demand from China. Although countries like Bangladesh, Egypt, Turkey, India, and Vietnam have shown slight gains in cotton imports, these are not expected to offset the overall global decline.

The International Cotton Advisory Committee (ICAC) has projected the season-average A Index for 2024/25 to range between 79 and 88 cents per pound, with a midpoint of 83 cents. These price estimates are provided by Lorena Ruiz, Economist at ICAC.

For improved accuracy and real-time updates, the cotton balance sheets have been moved to the ICAC Data Dashboard, ensuring that all figures are sourced directly from the database. Although the current PDF report includes the data, users are encouraged to rely on the dashboard for the most accurate and current statistics.

Additionally, Dr. Matthew Looney has stepped down from his role as ICAC’s Data Scientist. The new author of Cotton This Month is Parkhi Vats, Economic Affairs Officer at ICAC, who now handles inquiries related to the publication.

Subscribers can access their accounts to read the full report, while new readers are invited to subscribe. The next edition of Cotton This Month will be released on June 2, 2025.