Cotton exports seen rising 3.3% in 2026

Brazil’s cotton sector is expected to post a 3.3% increase in exports in 2026, after cotton industry association Abrapa revised its outlook upward. Last year, shipments from the apparel-related market rose 8%, generating export revenue of $908 million. Despite the positive export performance, the segment remains under pressure from a heavy inflow of imports, which totaled $6.6 billion and resulted in a $5.7 billion trade deficit for the sector.

Brazil’s textile and apparel complex comprises more than 25,000 companies and accounts for around 1.31 million jobs, generating R$39.1 billion a year in wages. Between January and November 2025, the textile industry created 9,400 jobs, while the apparel segment added a further 12,400 positions.

Below is an overview of Brazil’s containerized cotton shipments. The data is sourced from DataLiner, Datamar’s foreign trade intelligence platform.

Cotton Exports | Jan 2022 – Dec 2025 | TEUs

Fonte: DataLiner (Click here to request a demo) 

Over the same period, textile output grew 6.8%, while apparel production advanced more modestly, rising 0.7%. For 2026, Abrapa projects overall activity growth of 1.1%.

Although they operate at different stages of the production chain — textiles transform fibers into yarns and fabrics, while apparel uses these inputs to manufacture clothing and other goods — both segments are directly affected by volatility in the cotton market, a key raw material for the fashion and furniture industries.

Textile and apparel industry group Abit has struck a cautious tone on the sector’s outlook. According to the association, a return to stronger growth depends on a gradual recovery in domestic credit, lower interest rates and a more stable inflation environment. High capital costs remain one of the main constraints on investment, particularly in the face of external competition, notably from Chinese imports.

Globally, Abit estimates the apparel market will reach $2.3 trillion by 2030, growing at an average annual rate of 4%. Fernando Valente Pimentel, the association’s executive director, said the sector has shown resilience despite a challenging economic backdrop.

“Even in a difficult environment, the sector managed to move forward. We enter 2026 at a slower pace than at the start of 2025, but still facing significant structural challenges, especially related to competitiveness and international trade,” he said in a January industry review.

On the production side, Abrapa highlighted gains in the quality of Brazilian cotton lint. According to the association’s executive director, Marcio Portocarrero, Brazil has been strengthening its position in the global market.

“Brazil competes with top-grade cotton. The textile and apparel industry demands sophisticated inputs, and the country has made advances in quality and sustainability over the past six years — a decisive factor for global competitiveness,” he told CNN Brasil.

Industry executives say the main challenge remains competition from synthetic fibers and fabrics, which are cheaper and widely used in low-cost manufacturing. Even so, producers and manufacturers see room to expand cotton use in finished products.

“We have managed to increase cotton’s share in products, which has boosted its use by the textile industry. However, we still face strong demand for synthetic inputs, which are cheaper but have negative impacts on health and the environment,” Portocarrero said.

Source: CNN Brasil

Sharing is caring!