- Investing in technology, skills and infrastructure is crucial to boost Pakistan textile exports
The global textile market continues to demonstrate remarkable growth and resilience. Experts recorded that the market was valued at USD 1,065.45 billion in 2025, and it is projected to expand from USD 1,065.45 billion in 2026 to USD 1,955.50 billion by 2034, reflecting a compound annual growth rate (CAGR) of 7.11 percent during the forecast period. Asia Pacific dominated the market in 2025, holding a 44.17 percent share, driven by its large-scale production capacity and competitive cost structure.
Textile products include flexible materials derived from natural and synthetic fibres, yarns, and fabrics. These materials can be woven or knitted into various forms and are extensively used in clothing, home furnishings, medical applications, and industrial sectors. A notable consumer trend is the shift from traditional synthetic fabrics to organic cotton, recycled polyester, and biodegradable textiles, further propelling market growth.
Based on product type, the market is segmented into technical textiles, home textiles, apparel textiles, and industrial textiles. The apparel textiles segment remains dominant, accounting for 30.30 percent of the market in 2026. Apparel includes a wide range of products for men, women, and children, supported by advanced manufacturing technologies and extensive retail networks worldwide. Innovation in smart clothing with enhanced features is also driving growth; for instance, Indian fabrics and apparel exports surged 41 percent in FY 2022, reaching USD 44.40 billion, according to the India Brand Equity Foundation. Technical textiles are expected to register the fastest CAGR during the forecast period, reflecting increasing demand for specialised, high-performance materials.
Within Asia Pacific, the market valuation reached USD 470.61 billion in 2025 and is expected to rise to USD 489.63 billion in 2026. Countries like China, India, and Bangladesh maintain a strong position due to their extensive production infrastructure, skilled workforce, and abundant raw material supplies. Supportive trade agreements, foreign direct investment (FDI), and low labour costs enhance regional competitiveness, fostering further market growth. The Japanese market is projected at USD 40.64 billion in 2026, while China will account for USD 167.91 billion.
North America is expected to grow at a CAGR of 9.23 percent, reaching USD 274.78 billion in 2025, with the United States alone contributing USD 227.30 billion. Growth is driven by innovation, high-performance textiles, and increasing demand for eco-friendly and smart textiles. The U.S. market is anticipated to reach USD 246.75 billion in 2026, reflecting continued investment in sustainable manufacturing.
In contrast, Pakistan’s textile sector is facing short-term challenges. According to experts, Pakistan’s textile exports declined to USD 1.33 billion in February 2026, down 6.34 percent compared to USD 1.42 billion in February 2025. Rising operational costs and regional tensions are cited as key contributors, with higher freight and shipping expenses further limiting competitiveness.
Despite the monthly decline, textile exports in Pakistan showed modest annual growth over the first eight months of the fiscal year. From July to February, exports totalled USD 12.29 billion, compared to USD 12.19 billion in the same period of the previous year, reflecting a 0.82 percent increase. Meanwhile, total domestic goods exports fell by 7.30 percent, from USD 22.07 billion to USD 20.46 billion, highlighting the pressure on multiple export-oriented industries. The textile sector, accounting for the largest share of Pakistan’s exports, remains sensitive to fluctuations in freight, energy costs, and regional stability.
To strengthen Pakistan’s textile sector, several strategic initiatives are recommended. Investment in modern technology and automation can enhance productivity and product quality, making exports more competitive. Skill development programmes for workers will ensure a capable workforce for advanced machinery. Friendly policies that attract both domestic and foreign investment are essential, alongside efforts to reduce energy costs through alternative and renewable sources. Improved infrastructure, including transportation and logistics, can facilitate smoother supply chains, while research and development initiatives will encourage innovation in designs and sustainable practices. Government support through tax incentives and export subsidies will further boost the sector.
With these measures, Pakistan can capitalise on the global textile market boom while addressing its domestic challenges, positioning itself as a competitive player in international trade.