Driven by an increasing demand, Australia's cotton lint market is projected to expand to 2.6 million tons by volume by 2035. As per a report by IndexBox, the market is expected to grow at a CAGR of +1.5 per cent from 2024-2035.
In terms of value, the market is forecasted to grow at a CAGR of +3.0 per cent, reaching $7.2 billion by 2035.
In 2024, Australia’s cotton lint consumption increased by 38 per cent to approximately 2.2 million tons. However, overall consumption showed a relatively flat trend, failing to regain the peak of 3 million tons recorded in 2022. Market revenue increased by 39 per cent Y-o-Y during the year to $5.2 billion.
Australia’s production of cotton lint expanded by 20 per cent to 3.5 million tons in 2024. This was valued at $8.6 billion in export prices. While production shows a general upward trend, it remained below the 2022 peak of $10.1 billion.
The area under cultivation of cotton lint contracted by 14.2 per cent to 657,000 hectare in 2024, following a peak of 766,000 hectare in 2023.
In 2024, cotton lint imports decreased by 22 per cent to 23 tons in 2024, after a peak of 80 tons in 2022. In value terms, imports reached $382,000 in 2024, despite a recent downturn.
Exports of cotton lint registered a slight decline of 0.9 per cent to 1.3 million tons in 2024, following a peak in 2023. In value terms, exports decreased to $2.7 billion. However, exports have generally shown a mild expansion, with a significant surge in 2021.
Vietnam remains the primary destination for Australian cotton lint exports, receiving 436,000 tons, or 39 per cent of total exports. Indonesia and India follow as significant export destinations.
