Textile Yarn Market Size & Outlook, 2026-2034

Textile Yarn Market Overview

The global textile yarn market size is valued at USD 82.4 billion in 2025 and is estimated to reach USD 127.4 billion by 2034, growing at a CAGR of 5.0% during the forecast period. The market growth is driven by steady expansion in demand for apparel and home textiles, the increasing use of blended and performance yarns, rising sustainability requirements, and ongoing technological upgrades in spinning and fibre processing.

Key Market Trends & Insights

• Asia Pacific dominated the market with a revenue share of 63.5% in 2025.
• The Middle East and Africa are anticipated to grow at the fastest CAGR of 6.7% during the forecast period.
• Based on Yarn Type, the Cotton yarn segment held the highest market share of 38.40% in 2025.
• By Fibre Source, the Regenerated fibres segment is estimated to register the fastest CAGR growth of 6.8%.
• Based on the Application, the Apparel textile category dominated the market in 2025 with a revenue share of 55.8%.
• Based on the Distribution Channel, the Integrated textile manufacturers segment is projected to register the fastest CAGR of 6.0% during the forecast period.
• China dominates the market, valued at USD 26.16 billion in 2025 and reaching USD 27.38 billion in 2026.

Table: China Textile Yarn Market Size (USD Billion)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 82.4 billion
• 2034 Projected Market Size: USD 127.4 billion
• CAGR (2026-2034): 5.0%
• Dominating Region: Asia Pacific
• Fastest-Growing Region: The Middle East and Africa

The global textile yarn market covers a wide range of products, including cotton yarn, polyester yarn, nylon yarn, wool yarn, viscose yarn, acrylic yarn, and blended yarns, supplied to apparel, home textiles, industrial textiles, and technical textile applications. Textile yarn serves as the primary raw material for fabric manufacturing, enabling the production of knit, woven, and nonwoven fabrics. Evolving fashion preferences, rising demand for functional and durable textiles, innovations in fibre blending and spinning technologies, and improvements in supply chain efficiency through integrated manufacturing and global sourcing all support market growth.

Latest Market Trends

Sustainability-Driven Shift Toward Recycled and Bio-Based Yarns

Sustainability is becoming a key focus in the textile yarn market as manufacturers and brands strive to minimise their environmental impact. Rising consumer awareness of textile waste, water usage, and carbon emissions is pushing companies to adopt recycled and bio-based yarns. Recycled polyester made from PET bottles is increasingly used, while bio-based cellulosic yarns sourced from responsibly managed forests are gaining preference. Regulatory requirements in major markets also encourage traceability and lower environmental footprints. Yarn producers responded by expanding recycling capacity and certifications, supporting long-term market growth.

Rising Demand for Performance and Blended Yarns

The demand for performance and blended yarns is rising as apparel brands seek improved durability, comfort, and functionality. Categories such as activewear, athleisure, workwear, and technical textiles require yarns with strength, elasticity, moisture control, and easy maintenance. To meet these needs, manufacturers are increasingly blending natural and synthetic fibres, thereby balancing performance and cost efficiency. Technological advancements in spinning have improved yarn consistency and reduced material waste, thereby reinforcing demand across both mass-market and premium segments.

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Market Drivers

Growth in Global Apparel and Home Textiles Consumption

The steady growth in global apparel and home textile consumption remains a major driver of the textile yarn market. Population growth, urbanisation, and rising incomes in emerging economies continue to boost demand for clothing and household textiles. In developed markets, replacement demand and fast-changing fashion cycles sustain yarn usage. Home textiles, including bedding, curtains, and upholstery, also showed stable growth as consumers invested in home improvement. Long-term supply contracts between yarn producers, fabric mills, and garment manufacturers help maintain consistent production and market stability.

Technological Advancements in Spinning and Fibre Processing

Technological advancements in spinning and fibre processing are enhancing efficiency and product quality in the market. Modern spinning methods, such as ring, rotor, and air-jet spinning, enable higher productivity, improved yarn uniformity, and reduced energy consumption. Automation and digital monitoring systems support quality control and reduce operational costs. These upgrades allow the production of finer and more consistent yarns for high-value applications. Technology adoption also facilitates faster customisation to meet brand-specific requirements, thereby strengthening competitiveness and supporting long-term market growth.

Market Restraint

Volatility in Raw Material Prices

Fluctuating raw material prices continue to be a significant constraint for the textile yarn market. Cotton prices are influenced by weather conditions, agricultural policies, and supply-demand imbalances, while trends in crude oil prices drive the prices of synthetic fibres. Sudden price changes create cost pressure for yarn manufacturers, especially those working under fixed-price contracts. Smaller producers are particularly vulnerable due to limited risk management options. This instability reduces pricing predictability, impacts profitability, and can delay investment decisions, slowing overall market expansion.

Market Opportunity

Expansion of Recycled Yarn Capacity and Circular Textile Models

Expanding recycled yarn production presents a major opportunity for the textile yarn market. Circular textile models that convert post-consumer and industrial waste into new yarns are gaining global acceptance. Recycled polyester yarns are increasingly used in apparel, footwear, and home textiles due to their comparable performance to virgin fibres. Partnerships among recyclers, yarn producers, and apparel companies enhanced feedstock availability and improved traceability. These initiatives support sustainability goals, attract premium contracts, and strengthen long-term resilience and growth potential.

Regional Analysis

According to Straits Research, the Asia Pacific dominated the market in 2025, accounting for 63.50% market share. The market is supported by large-scale textile manufacturing capacity, abundant labour availability, and strong export-oriented apparel production. The region serves as the primary global hub for spinning, weaving, and garment manufacturing, supplying yarn to both domestic and international markets. Rising urbanisation, population growth, and expanding middle-class consumption further support internal demand for apparel and home textiles. Governments across the region continue to promote textile manufacturing through infrastructure development and industrial incentives.

China is the leading country in the Asia Pacific due to its vertically integrated textile ecosystem and large domestic consumption base. The country benefits from advanced spinning technology, a large-scale production capacity, and strong demand from the apparel, home textiles, and industrial textiles sectors. Continued investment in automation and recycled yarn capacity supports competitiveness, while stable export demand reinforces China’s central role in the global textile yarn market.

Middle East and Africa Market Insights

The Middle East and Africa are emerging as the fastest-growing region with a CAGR of 6.7% from 2026-2034, supported by industrial diversification initiatives, increasing textile manufacturing investment, and rising domestic apparel demand. Several countries are positioning textiles as a strategic non-oil sector, supported by infrastructure development and favourable trade policies. Expansion of garment manufacturing hubs and export-oriented textile parks further drives yarn demand.

Turkey leads the MEA region due to its strong textile and apparel manufacturing base and proximity to European markets. The country benefits from skilled labour, modern spinning facilities, and export-oriented production. Demand for cotton, blended, and speciality yarns remains strong, supporting Turkey’s role as a regional textile yarn hub.

Source: Straits Research

Europe Market Insights

Europe accounted for a significant share of the global textile yarn market in 2025, driven by demand for high-quality, sustainable, and technically advanced yarns. The region focuses on value-added production rather than volume, with strong emphasis on compliance, traceability, and environmental standards. Growth is supported by demand from premium apparel, home textiles, and technical textiles, including automotive, medical, and industrial applications. European manufacturers are increasingly specialising in fine-count yarns, blends, and regenerated fibres.

Italy leads the European textile yarn market due to its strong presence in luxury fashion, high-end knitwear, and speciality textiles. Italian spinners focus on producing high-quality, design-oriented yarns and natural fibre blends, which support premium apparel and export markets. Strong collaboration between yarn producers, fashion houses, and textile mills sustains innovation and stable demand.

North America Market Insights

North America represents a technologically advanced and value-focused market for textile yarn. The region benefits from demand for performance yarns, technical textiles, and speciality applications rather than mass apparel production. Reshoring initiatives, increased use of yarns in automotive, medical, and industrial fabrics, and rising interest in sustainable and traceable fibre sourcing support growth. While overall volume growth remains moderate, value per unit is relatively high. Overall, North America is projected to grow, supported by innovation and niche manufacturing.

The U.S. dominates the regional market due to its strong technical textile industry and advanced fibre research capabilities. Demand for high-performance yarns used in protective clothing, medical textile, and industrial products supports steady growth. Investment in sustainable yarns and recycling initiatives further strengthens the market outlook.

Latin America Market Insights

Latin America is supported by growing domestic apparel consumption and regional textile manufacturing. Countries in the region are gradually strengthening spinning and fabric production to reduce reliance on imports. Rising urbanisation and income levels support demand for basic apparel and home textiles. Although cost sensitivity remains a challenge, improvements in industrial capacity and trade integration support moderate growth.

Brazil is the leading market in Latin America due to its large population, established textile base, and strong domestic apparel industry. Local yarn producers benefit from internal demand and partial supply-chain integration. Continued investment in spinning capacity and retail expansion supports steady growth across mass-market and mid-tier textile segments.

Yarn Type Insights

According to Straits Research, Cotton yarn dominated the market, accounting for a revenue share of 38.40% in 2025. Its natural breathability, softness, and comfort make it a preferred choice for everyday clothing, bedding, and household textiles. Cotton yarn remains especially popular in emerging economies, where affordability and familiarity influence purchasing behaviour. Ongoing demand for casual wear, innerwear, and basic garments continues to sustain stable consumption.

Polyester yarn is the fastest-growing yarn type, recording a CAGR of approximately 6.2%. Growth is driven by its high durability, wrinkle resistance, cost efficiency, and ease of maintenance. Polyester yarn is widely used in activewear, fast fashion, and blended fabrics, where performance and affordability are critical. Its compatibility with recycled materials and technical applications further strengthens its adoption, supporting expanding demand across both apparel and industrial textile segments.

By Yarn Type Market Share (%), 2025

Source: Straits Research

Fibre Source Insights

Synthetic fibres accounted for nearly 46% of the market in 2025, driven primarily by polyester and nylon yarns. These fibres offer consistent quality, scalability, and lower production costs compared to natural alternatives. Synthetic yarns are widely used in mass-market apparel, industrial textiles, and blended fabrics, offering manufacturers flexibility in design and pricing. Their resistance to wear, moisture, and chemicals supports high-volume production and long product lifecycles.

Regenerated fibres are the fastest-growing fibre source, expanding at a CAGR of about 6.8%. Growth is fueled by sustainability initiatives and increasing adoption of viscose, modal, and lyocell yarns derived from renewable raw materials. Apparel brands are increasingly specifying regenerated fibres to meet environmental targets while maintaining comfort and aesthetic appeal. Improved manufacturing processes and responsible sourcing certifications further support rising demand across apparel and home textile applications.

Application Insights

Apparel textiles dominated the textile yarn market with a 58.5% share in 2025, growing at a CAGR of 4.9%. Continuous demand for clothing across all income groups drives high yarn consumption. Fast fashion, casual wear, and sportswear production continue to be key contributors, particularly in Asia Pacific manufacturing hubs. Frequent style changes, export-oriented garment production, and growing global fashion consumption ensure steady and long-term yarn demand.

Industrial and technical textiles are the fastest-growing application segment, with a CAGR of around 6.5%. Growth is supported by rising use of yarns in automotive interiors, medical textiles, filtration, geotextiles, and protective clothing. These applications require high-performance and speciality yarns, offering greater value addition and demand stability. The expansion of infrastructure, healthcare needs, and industrial activity continues to strengthen this segment’s growth potential.

Distribution Channel Insights

Direct sales to textile mills held the largest market share of approximately 50.20% in 2025, growing at a CAGR of 5.1%. Yarn manufacturers prefer direct supply agreements to ensure stable demand, predictable pricing, and efficient inventory management. Long-term contracts with fabric producers support production planning and cost control, making this channel dominant across large-scale textile manufacturing regions.

Integrated textile manufacturers represent the fastest-growing distribution channel, registering a CAGR of 6.0%. Vertical integration enables companies to control yarn quality, reduce lead times, and respond promptly to shifting market trends. This model is increasingly adopted in the Asia Pacific, where scale, efficiency, and cost competitiveness are critical advantages in global textile supply chains.

Competitive Landscape

The textile yarn market is highly fragmented, characterised by a mix of large integrated fibre and yarn producers, regional spinning specialists, and sustainability-focused innovators. Established manufacturers dominate the market through their scale, long-term supplier relationships with apparel and home-textile brands, and continuous investment in spinning technology and capacity expansion. At the same time, mid-tier producers and emerging players compete through speciality yarns, recycled and bio-based materials, and flexible production models tailored to fast-changing fashion cycles. New entrants are increasingly differentiating themselves through sustainability credentials, traceability, and direct engagement with brand customers, rather than relying solely on price.

Unifi, Inc.: A Sustainability-Focused Innovator

Unifi entered the market for textile yarn as a conventional synthetic yarn producer and has evolved into a leading innovator in recycled and performance yarns. The company is best known for its recycled polyester yarn platform, which targets apparel, activewear, and home-textile brands seeking sustainable material solutions. Unifi’s core strengths lie in recycling technology, supply-chain transparency, and long-term partnerships with global apparel brands.

Latest News

• Throughout 2025, Unifi reinforced its commitment to traceable polyester yarns (primarily through its REPREVE brand) and circular textile solutions.
• In March 2025, Unifi received the first APR Recycling Technology Innovation Award for its leadership in sustainable fibers.

List of key players in Textile Yarn Market

1. Indorama Ventures
2. Toray Industries
3. Reliance Industries Limited
4. Lenzing AG
5. Aditya Birla Group (Grasim Industries)
6. Hyosung TNC
7. Unifi, Inc.
8. Toyobo Co., Ltd.
9. Nilit Ltd.
10. Weiqiao Textile Company
11. Shandong Ruyi Group
12. Parkdale Mills
13. Vardhman Textiles
14. Bombay Dyeing & Manufacturing Company
15. Texhong Textile Group
16. Hengli Group
17. Nan Ya Plastics Corporation
18. Teijin Limited
19. Sutlej Textiles and Industries
20. Far Eastern New Century
21. Raymond Group
22. Asahi Kasei Corporation

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Strategic Initiatives

• June 2025 - Lenzing AG showcased its TENCEL and LENZING ECOVERO advancements at the Fibres & Yarns Expo, specifically aimed at premium apparel.
• February 2025 - Toray has been actively expanding its bio-based and recycled yarn range under its "AP-G 2025" project. By March 2025, it confirmed plans to use a mass balance approach for bio-based and recycled content in fibres, such as Toraylon.
• January 2025 - Indorama secured a USD 20 million sustainability-linked trade finance facility specifically to optimise its integrated spun yarn and polyester production with a focus on ESG improvements and emission reductions.