Sri Lanka’s garment and textile industry has an ambitious target of USD 8 billion export target by 2025 amid the stronger demand witnessed in 2021.
After the dip witnessed in 2020 owing to COVID – 19, recovery in the global context is expected to favor apparel and fabric manufacturers in Sri Lanka, according to FC Research. With imported raw materials amounting to USD 2- 3.billion, local textile manufactures can significantly enhance their contribution. An opportunity exists for fabric manufacturers (TJL, MGT and HELA) to capture the market share by enhancing its capacity. With an improved industry look, and the continued interest in reducing China exposure, US fashion companies actively explore new sourcing opportunities.
The global apparel market is projected to grow in value from USD 1.5 trillion in 2020 to about USD 2.2 trillion by 2025, showing that the demand for clothing and shoes is on the rise across the world.
The apparel industry lost an estimated USD 342.0 billion in 2020 revenue compared to 2019 due to the COVID -19.
The Asia Pacific region is the largest apparel market in the world, consuming 33 % of global demand. Western Europe is second with 28 % of the global apparel market, while Africa represents the smallest share of global demand.
More than 85 % of respondents plan to increase sourcing from a few Asian countries over the next two years including India, Bangladesh, Indonesia, Philippines, Vietnam, Cambodia and Sri Lanka.
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