• Analysis and Studies
• Raw cotton: import and export

Raw cotton, one of the most important natural fibers, has a long history dating back thousands of years, with early cultivation in the Indus Valley and Peru around 5000 BC. Over centuries, cotton spread to ancient cultures in Egypt, China, and India, where it was used for textiles and clothing.

The ginning process, which separates cotton fibers from seeds, was dramatically improved by Eli Whitney’s cotton gin in 1793, revolutionizing the industry by speeding up this essential step.

For every pound of cotton fiber produced, about 1.6 pounds of cottonseed are also generated, which is used in products like cottonseed oil and animal feed. Cotton's high absorbency makes it ideal for a wide range of textile applications, though its intensive water usage raises environmental concerns. The cotton industry is crucial for many developing countries, providing essential income for farmers and supporting local economies. Historically, cotton even functioned as a form of currency in Africa.

Today, its versatility and significance in the fashion industry reinforce its global importance and lasting impact on both economies and everyday life.

In 2022, Raw cotton was the world's 198th most traded product, with a total trade of $22.6B, and between 2021 and 2022 the exports grew by 22.3%, from $18.5B to $22.6B.

In 2022 the country which exported raw cotton the most was the United States, with a trade of $9.03B, ahead of Brazil ($3.71B), Australia ($3.09B), India ($1.24B), and Greece ($659M). Whereas the most significant importer was China, with a trade of $4.55B, followed by Vietnam ($3.16B), Bangladesh ($2.9B), Turkey ($2.76B), and Pakistan ($2.44B).

We can observe that the product’s exports are driven by geographic proximity and the demands of the textile industry, underscoring the importance of regional partnerships and economic interdependence.

The United States remains a key supplier to China, despite political tensions, due to China’s reliance on high-quality American cotton, and Brazil strengthened its role as a major supplier to Asian markets.  Australia's exports are predominantly destinated to Vietnam, reflecting strong regional connections. India’s cotton trade is heavily dependent on Bangladesh's garment industry, while Greece's exports are closely linked to Turkey’s textile sector.

1. United States (39.9%): 32.3% China, 12.3% Vietnam, 12.1% Turkey, 10.4% Pakistan, 5.57% India, 5.29% Bangladesh, 5.23% Mexico, 2.65% Indonesia, 2.33% Peru, 1.69% Thailand
2. Brazil (16.4%): 29.3% China, 14.8% Vietnam, 13.2% Bangladesh, 13% Pakistan, 12.7% Turkey, 7.27% Indonesia, 3.32% Malaysia
3. Australia (13.6%): 38.4% Vietnam, 12.2% Indonesia, 8.34% India, 7.52% Thailand, 7.37% Bangladesh, 6.97% Turkey, 6.87% Pakistan, 4.49% Malaysia, 2.34% China
4. India (5.47%): 76% Bangladesh, 9.24% Vietnam, 4.64% Indonesia, 2.47% China, 2.39% Oman, 0.83% Thailand, 0.68% Italy
5. Greece (2.91%): 50.9% Turkey, 15.4% Egypt, 11.5% Pakistan, 6.74% Indonesia, 5.26% Bangladesh, 1.55% Algeria, 1.52% Japan, 1.33% India, 1.32% Germany, 1.13% Italy

 We can observe the critical trade relationships and regional dependencies in the global cotton market. China is the top importer, sourcing mainly from the United States and Brazil, highlighting its dependence on these major suppliers despite its diversified global supply chain.

Vietnam follows, with most of its imports coming from Australia and the United States, underscoring strong regional ties. Bangladesh heavily relies on India, but also maintains significant imports from Brazil, the United States, and African nations like Benin and Côte d’Ivoire. Turkey's imports are led by the United States, Brazil, and Greece, showing a mix of proximity and established trade relations, while Pakistan, sourcing primarily from the United States and Brazil, also relies on neighboring Afghanistan and Australia, highlighting its diverse sourcing strategy to fuel its textile sector.

1. China (20.1%): 64% United States, 23.8% Brazil, 2.29% Egypt, 1.59% Australia, 1.16% Sudan, 0.85% Vietnam, 0.67% India
2. Vietnam (14%): 37.5% Australia, 35.1% United States, 17.4% Brazil, 3.62% India, 1.67% Argentina, 0.67% Côte d’Ivoire, 0.44% Egypt
3. Bangladesh (12.8%): 32.5% India, 16.9% Brazil, 16.5% United States, 14% Benin, 7.85% Australia, 4.43% Côte d’Ivoire, 1.81% Turkey, 1.55% China, 1.19% Greece
4. Turkey (12.2%): 39.5% United States, 17.1% Brazil, 12.2% Greece, 7.82% Australia, 5.88% Azerbaijan, 5.2% Sudan, 1.71% Turkmenistan, 0.84% Cote d’Ivoire
5. Pakistan (10.8%): 38.6% United States, 19.7% Brazil, 7.68% Afghanistan, 7.42% Australia, 6% Côte d’Ivoire, 4.68% Turkey, 3.1% Greece, 2.29% Sudan, 1.43% Benin, 1.32% Egypt

Between 2021 and 2022, the fastest growing exporter was the United States, with an increase of $3.37B, followed by Australia ($1.68B), Brazil ($292M), Sudan ($261M), and Singapore ($127M).

1. United States: from $5.66B to $9.03B
2. Australia: from $1.41B to $3.09B
3. Brazil: from $3.41B to $3.71B
4. Sudan: from $118M to $379M
5. Singapore: from $2.81M to $129M

Whereas the exports grew the fastest in China, with an increase of $1.07B, ahead of India ($842M), Pakistan ($620M), Turkey ($474M), and Vietnam ($377M).

1. China: form $3.49B to $4.55B
2. India: from $501M to $1.34B
3. Pakistan: from $1.82B to $2.44B
4. Turkey: from $2.28B to $2.76B
5. Vietnam: from $2.79B to $3.16B

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