The textile industry in Latin America is a reference in the market. Even with development that is happening little by little due to the effects of the pandemic, the sector has shown growth.
However, to take advantage of some opportunities it will be necessary to invest in technology and innovation.
In this article we have gathered everything you need to know about the current scenario of the textile industry in the LATAM market. Check out!
Current panorama of the textile industry in Latin America
The textile industry in Latin America has become, over time, a great power in the sector. Historically, Latin countries are recognized for their textile work. This is due to constant internal demand, economic growth and purchasing power.
Added to this, part of the development also comes from investments in innovation and technology by companies and international fairs. All of this contributes to stable development based on research, debates and modern solutions.
According to Textiles Pan Americano , some countries on the continent stand out in certain segments. For example, Peru is the largest clothing exporter in South America due to its raw materials from llamas, alps and vicuñas. On the other hand, Brazil is recognized for its artificial and natural fibers. Furthermore, it has great international influence due to its participation in large economic blocs.
Since Covid-19, the textile industry in Latin America has understood the need to invest in the union of these countries to strengthen the sector. Since each one specializes in an area, the merger will make it easier to develop the textile market, increasingly, on the continent.
In parallel, the pandemic generated major shutdowns of international trade and the global economy. Thus, the textile sector, like all others, suffered a sudden drop in productivity and investment in Latin America.
Mexico, for example, which is one of the main textile suppliers to the United States, has suffered great difficulties in manufacturing thanks to safety and distancing measures. However, growth is expected to occur, albeit slowly.
Although forecasts are optimistic, the market has become increasingly competitive, which makes it difficult for textile companies to obtain large shares of the market. This is mainly because the sector is moderately fragmented.
The dynamics of countries
In addition to the countries already mentioned, it is worth mentioning a few more movements that directly influence the LATAM textile industry scenario. It is worth highlighting here that the market on this continent is still very segmented by its application and process.
Highlighted phrase: According to a report on the current context on the continent, it is precisely the change in Latin American fashion retail that has contributed to the market’s growth.
The Caribbean and Latin America are emerging as growth powers generated by domestic and domestic demand, economic development and changes in the population’s purchasing power.
Added to this, there is a growing possibility of investment in LATAM countries, such as Brazil, Mexico, Argentina, Colombia, Venezuela, Chile, Peru, Ecuador, Dominican Republic and Uruguay. In fact, big names in fashion, such as Tommy, Nike and Hilfiger, are starting to launch their retail operations in Mexico and Brazil.
What is expected, according to the report, is that Colombia will witness good opportunities in the textile and fashion market. Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua are competing with each other and against Haiti to stand out in niches in the North American market.
Inditex and Mango, Spanish fashion verticals, also influenced the change in people’s purchasing and consumption behavior. This has led national retailers to seek to deliver quality products.
It is necessary to reinforce the importance of textile fairs for the sector. Colombiatex, for example, which took place in January, generated economic impacts for the country and innovation for the textile industry.
According to the Medellín Tourism Observatory, cited by Portal Radar , the most recent edition generated US$8 million for the city in expenses such as accommodation, transport and food. Hotel occupancy reached 82%, in addition to generating more than 2,500 jobs.
Expectations for the coming years
All of this generates great expectations for growth, even if timid, in the textile sector in Latin America. Investment from certain countries and consumer behavioral change enhance the continent’s strengths.
The forecast for the period between 2020 and 2026 is an annual growth of 4.2% in the textile industry in the LATAM market, as shown in the aforementioned report.
On the other hand, according to Abit, mentioned by TexBrasil , there is still no Latin country that is among the 15 largest textile and clothing exporters. However, the expectation is that the scenario will change due to the delays and problems that Asian countries have suffered, since the pandemic, with exports.
Added to this, increasing cotton production has contributed to market growth in record numbers. In Latin America and the Caribbean, the growth rate of this material reached 27% in 2018/2019, which corresponded to around 0.3% of global production.
To ensure that these opportunities are taken advantage of and improved, the textile industry in Latin America will need to face challenges with a lot of dynamics, innovation, sustainability and technology.
Here, the ideal is for LATAM countries to invest in the latest advances to strengthen the internal and external market. And the first step towards this is investment in efficient machinery that helps optimize the population. According to Textiles Pan Americano, there is still great resistance to the adoption of these tools in Latin America.
Main trends
To help adapt to new developments and innovation, you need to be up to date with market trends. One of the main ones is promoting process agility to avoid wasting time and material.
A study on the subject points out some paths, such as macro trends, for the coming years. They are:
- Sustainability;
- Technological intensification;
- Production migration;
- Improvement of human resources;
- Long-lasting partnerships with ICTs;
- Internationalization and formation of P, D & I network;
- Appropriation of intangible values;
- Logistics + Global chain.
To ensure the success of these trends, it is necessary to invest in solutions that seek to promote modernity, productivity, profitability and automation. In this way, the textile industry in Latin America will be able to meet the new demands of consumers shaken by the pandemic and, thus, come out ahead in the sector’s race.
It is worth mentioning here the newest Delta solution for the national and international market. This machine is a good example of what has been covered in this text.
The Delta’s Textile Stenter promotes real-time data integration, facilitating the monitoring and control of variables. In this way, production becomes predictive, generating greater savings on raw materials, increased quality and reduced wasted time by eliminating rework.
Until then, this was a solution that Brazilian companies needed to import. With Delta’s development, there will be benefits that only a national supplier can offer. Such as reducing costs with the acquisition of machines and support and, consequently, easier access to parts and accessories. In addition to facilitated logistics, partner durability, standardization of information, less bureaucratic technical assistance.
What’s next?
The next step is to follow market news and trends to stay up to date. This will make it a pioneer in investing in new technological solutions, standing out in the competitive national and international market.
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