The Indonesian textiles Industry is expected to record a CAGR of greater than 5%, during the forecast period. Accelerating exports growth is a major driving factor for the market. - High dependency on imported raw material is likely to act as a restraint for the market.
New York, May 12, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Indonesia Textiles Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06067783/?utm_source=GNW
- Textile and Textile Product Industry (TPT) was encouraged by the government to innovate to meet the needs of fashion industry, and is expected to be able to capture business opportunities.
Key Market Trends
Accelerating Exports Growth to Drive the Market
- Indonesia is among the top 10 textile-producing nations in the world. The country is also the 12th largest textile and apparel exporter, with major exporting destinations, including the United States, the European Union, and the Middle East.
- Indonesia is accelerating a strategy to utilize its connections with the Muslim world to tap new export markets and boost trade amid downward pressure from the US-China trade tensions.
- Several Muslim-majority countries, from the Middle East to Africa, now represent half of Indonesia’s trade missions and negotiations. Textile products are now being hugely shipped to these countries, which provides the needed positive impact on the market growth.
- According to the Mordor’s Analysis, Indonesia’s competitiveness has improved in the textile sector, which has attracted more investment because of the country’s stable economy.
- In 2015, Indonesian Textile Association (API) mentioned that 47 textile factories were moved from West Java and Banten to Central Java, as the minimum wages rose too steeply in West Java and Banten. Central Java still offers a relatively cheap production environment.
- In addition, Australia and Indonesia signed the Indonesia-Australia Comprehensive Economic Partnership Agreement. It is reported that the textile industry of Indonesia is expected to benefit the most from the agreement.
- The country majorly imports cotton from the United States, Australia, and Brazil, which amounts for USD 300 to USD 600 million per year.
- Thus, the above-mentioned factors are driving the textile industry in Indonesia.
Fabrics Stand Out as the Largest Segment
- The Fabrics segment accounted for around 28%, by volume, and around 40%, by revenue.
- Domestic demand for garments is also rising, owing to the rising purchasing power of people, demand for new fashion, expansion of internet retailing, and growing sales channels.
- Industry 4.0 technologies have been regarded as the key to creating smart factories in Indonesia’s apparel sector, with the country rolling out an ambitious plan to digitalize the industry, as part of its plan to make the world’s top five textile and apparel producers by 2030.
- Making Indonesia 4.0 encourages the county’s growing apparel sector to adopt new technologies, such as virtual reality, 3D design, automation, and using the IoT (Internet of Things).
- Such factors in turn are boosting the demand for the market studied.
The Indonesian textile industry is highly fragmented in nature, with the presence of a huge number of local and international players in the market. The key players in the polycarbonate market are PT. Sri Rejeki Isman Tbk, PT. Asia Pacific Fibers Tbk, Indorama Corporation (PT. Indo-Rama Synthetics Tbk), PT. Pan Brothers Tbk, and PT. Tifico Fiber Indonesia Tbk, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06067783/?utm_source=GNW
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