In the first four months of 2026, China's textile industry released a clear signal: growth is no longer uniform, showing significant sectoral divergence. According to the National Bureau of Statistics, the industrial value-added of the textile sector grew by 5.2% year-on-year, down 1.1 percentage points from the same period last year. Meanwhile, the chemical fiber sector's growth slowed from 8.3% to 5.9%, while the apparel sector rose slightly to 4.8%. These figures reveal how different sub-sectors are responding to market shifts.
Investment and Consumption: Reshaping the Domestic Demand Logic Fixed asset investment data further confirms this divergence. Investment in the textile sector grew by 3.5%, down 2.4 percentage points year-on-year; the chemical fiber sector dropped from 4.6% to 2.1%, nearly halving. In contrast, apparel investment remained stable at 3.8%, indicating sustained spending on channels and capacity upgrades. Retail data is more revealing: sales of apparel, footwear, hats, and knitwear above designated size grew by 4.2%, with apparel alone up 5.1%, while textiles only grew 2.8%. This suggests consumers are more willing to pay for brands and design rather than price advantages of basic textiles.
From an industrial cluster perspective, small and medium weaving enterprises in Keqiao and Shengze reported shorter order cycles and narrower profit margins. These firms rely heavily on export orders, while structural adjustments in the domestic market have not fully transmitted to production. Conversely, Nantong's home textile companies, being closer to the domestic consumer market, have increased their online retail share from 28% to 34% year-on-year, showing stronger resilience.
Exports and Profits: Squeezed Margins Amid External Volatility Customs data reveals the complexity of the external environment. From January to April 2026, total textile and apparel exports fell by 1.8% year-on-year, with textile exports down 2.5% and apparel down 1.2%. Although chemical fiber export volume grew by 3.1%, export value only rose 0.7%, indicating intensified price competition. Industry-wide revenue grew 3.9%, but total profit only rose 1.2%, with a profit margin of 4.5%, down 0.3 percentage points. This 'revenue without profit' phenomenon poses direct challenges for buyers and factories.
Cost pressure is the main driver of profit compression. Chemical fiber raw material prices rose 4.8% year-on-year, while yarn prices only increased 1.2% and fabric prices remained nearly flat. This means upstream costs cannot be smoothly passed downstream, severely squeezing intermediate margins. For foreign trade enterprises, the price advantage of Southeast Asian competitors has become more pronounced, with some orders shifting to Vietnam and Bangladesh.