India’s home textile sector to outpace global CAGR during 2023-24
21 September 2023, Mumbai
Worldwide, home textiles as a sub-sector of the global textile industry is expected to clock in good CAGR of 5.7 per cent for 2023 to 2030, says a Grand View Research report on the growth pattern of the global home textile industry. While in 2022 the value of home textile sector was $119 billion in 2022. Post Covid, home textile as a category is experiencing stable growth with demand for designed interiors is increasing, allowing the sector to provide a variety of options in terms of fabrics, hues and textures.
Business as usual
With real estate back in business in many parts of the world, new properties are coming up, opening up a bigger market. In 2022, within the home textile sector, 45 per cent share lied with bedroom linen and polyester ruled the popular fabric of choice position with 37 per cent.
Compared to the global growth rate, India’s home textile sector is forecasted to be on a higher plane with a CAGR of 9.8 per cent in from 2023-2030. In 2023, the value of the domestic sector is projected to close at around $8.7 billion. India accounts for almCAGost 7 per cent of global home textiles trade and is one of the top suppliers to the US, the world's biggest home textile consuming market.
India’s home textile gaining global edge
Increasing efforts in quality improvement, innovations through R&D programs, and other preferential value-added features have helped India's home textile products become popular globally.
Superior quality makes companies in India a leader in the US and the UK, which is contributing two-third to their exports. Delhi has emerged a major production and export center. Traditional craftsmanship along with its distinctive appeal is being effectively used for producing value-added home textile items.
Domestic growth drivers
The home textiles market in India is growing in leaps and bounds and in the process has attracted the attention of foreign brands that have entered the markets on their own or through joint ventures.
This has happened due to the growing affluence levels of Indian consumers who are becoming more demanding asking for exquisite home textile fabrics. The growth in Indian home textiles is supported by growing household income, increasing population, rising income levels, increase in organized retail, and growth of end-use sectors like housing, hospitality, healthcare.
Winning formula; In October 2020, Trident was granted patent for ‘Fitted Sheet With Improved Gripping Effect” by the United States Patent Office. The grant of this patent provides further recognition of the quality of the innovation being carried out by Trident.
Meanwhile, Trident’s eponymous brand MyTrident is on a winning streak as it ambitiously works towards increasing its turnover to Rs 1,000 crore.
Part of the $3-billion Trident Group, the textile division had a turnover of Rs 3,460 crore as of March 2023, comprising 55 per cent of the net sales. This was a 14 per cent decrease from the financial year ending March 2022.
CRISIL report indicates favorable growth
Now a CRISIL Ratings report that analyzed 40 Indian home textile manufacturers that account for 45 per cent of the sector’s revenues says 75 per cent of the revenue is derived from exports and the US is the biggest market yet.
Data points; The domestic home textile sector can expect a rise of between 7 and 9 per cent in revenues in fiscal year ending March 2024. This comes after a 15 per cent fall in the last fiscal – clearly driven by stabilizing domestic cotton prices and restocking by large retailers worldwide.
This growth pattern looks feasible as domestic consumption increases rapidly to balance the ongoing international export orders being challenged.
