Cotton is one of the major cash crops recognized for its profitability globally. With a market size of $63.6 billion, this industry is expected to grow at a CAGR of 3.1% during 2020-2024. Cotton is known as the raw material of wealth. World cotton production and consumption trends have changed the market. Advanced technology with biotech has greatly affected the industry. The introduction of biotech in 2006/07 took the market to the next level by contributing 26 million tons in production.
The cost of cotton production varies from country to country. Prices can range from 0.52 to 0.72 per pound. Globally, over 100 million families are involved in the cotton industry. It uses additional millions of people and brings the world’s engagement to 350 million.
Impact on Social and Economic Development
As a global commodity, cotton is known as a political crop. It affects the social and economic development of the world. Emerging industries and newly industrialized countries depend on cotton for their development. For agricultural countries, cotton is white gold. Especially in Asia, the industry employs more than 30 million families. The industry is growing in more than 100 countries and with the inclusion of 150 countries; the industry is affecting the foreign exchange rate. This affects the country’s GDP and tax rates. Over the past decade, trade has grown by 40% in world production. Changes in supply and output can cause global price fluctuations.
After the United States, China and India have a significant share in the cotton industry since 2017. The same pattern was followed in 2019 when the US stood as a major contributor in the cotton industry After India and Brazil, the United States was the largest exporter of cotton in 2019. After China and Turkey in 2017, Vietnam ranked first in 2019 as the largest importer.
Cotton Transformation from Raw to Fabric
Cotton goes through two processes to turn into fabric. The process of spinning, when raw cotton is turned into yarns. The process of turning threads in a fabric is known as weaving.
The spinning process consists of 8 steps.
- Mixing and Blowing
- Sliver lap former
The weaving process includes the following steps;
Why Cotton is the Right Choice for Business
In case you are thinking about what is the scope of this industry and how it influences other industries, here is the answer.
BabyCare Market Growth
As the childcare market grows, so does the cotton industry. From the diaper market to wipes, parents rely on cotton for their baby’s skin. According to a report by Euromonitor International (2019), 173 billion wipes and more than 180 billion diapers were sold in 2018. 84% of parents said that no matter what brand they use, their first priority is cotton products for their child.
Safe and Secure Product
Cotton is the first choice when it comes to comfort and safety. Both natural and purified cotton varieties are considered a priority in the apparel industry. Millions of people with sensitive skin rely on cotton to eliminate the possibility of itching on the body. A test was performed on a group of 200 people by an independent lab using HRIPT. More than 50% of the participants had sensitive skin. It turned out that there was no sign of irritation after applying both types of cotton. Because it is medically proven that cotton is safe and protects the skin, people rely more on cotton products than polyester. This opens up new avenues of business for the industry.
Awareness of how cotton helps in environmental issues plays an important role in the development of this industry. From clothing to baby care, people tend to use all kinds of products made from cotton and yarn instead of plastic or polyester. This ensures protection against the anti-movements that many other businesses face.
Women Hygiene Industry
The women’s hygiene industry includes wipes, sanitary pads, undergarments, and tampons that rely on cotton. Some say they use cotton products as they are comfortable. Some women choose cotton items as they are hygienic, safe, and absorbent. Cotton protects them against body rashes.
How Cotton Industry Manage Inventory?
Like many other industries, the cotton industry is still under the control of outdated and old inventory management techniques. Most businesses believe that they can manage and track their raw material as they have to manage the same type of products.
Due to this, they face many issues and this causes them to lose financially and socially. With the passage of time, managing the supply chain is getting harder. Without using proper inventory management software, you have to face many challenges.
Why is Inventory Management Software Important?
There are hundreds of benefits that an efficient inventory management software brings into your business.
- Without keeping track of your inventory, you won’t be able to know the exact amount of your inventory. These results in an out-of-stock and dead stock situation that leads to financial loss. An efficient inventory management software keeps the data updated and prevents overbuying and overselling occurrences.
- Manual inventory management handling won’t allow you to keep a record of the entire process. Due to the limited visibility, you cannot manage the inventory process efficiently. With the help of inventory management software, you can get all information in the system.
- It is hard to manage multi-warehouses without having an integrated system. An inventory management software helps you to locate all the products in the same system. No matter where your products lie you can find them with one click.
- An inventory management software allows you to set reorder points. You can set the minimum number of products available in inventory. This saves money and time.
In this blog, we have discussed the scope and benefits of working in the cotton industry. We help you manage your inventory by guiding you through why inventory management tools are essential to your business. The market is full of innovative and efficient software. They auto-generate the inventory process for you. They also offer many other features that will help you grow your business. Did we miss any part or point? If you think we did then let’s share it in the comment box.