In the first four months of 2026, China's textile industry presented a picture of slowing domestic demand and resilient exports. The industrial value-added growth rate fell to 4.2%, narrowing 1.1 percentage points from the same period last year, while fixed asset investment growth rose to 8.7%, indicating sustained willingness for capacity upgrades.
Domestic Market: Retail Growth Slows, Profit Margins Tighten
Among total retail sales of consumer goods, sales of clothing, shoes, hats, and textiles grew by 3.8%, lower than the overall retail growth of 5.2%. This suggests that textile and apparel consumption recovery is weaker than the broader market, with consumers becoming more cautious in discretionary spending. For the industry's profitability, revenue of textile enterprises above designated size grew by 2.1%, but total profit only increased by 0.9%, squeezing the profit margin to 4.3%. Cost pressures mainly stem from raw material price fluctuations and rising labor costs, while limited room for price increases has led to profit growth significantly lagging behind revenue growth.
Export: Divergence Between Chemical Fibers and Apparel, Structural Recovery Overseas
Customs data shows that from January to April 2026, China's cumulative textile and apparel exports reached $89.8 billion, up 4.5% year-on-year. Among them, textile exports (including yarn, fabric, and finished products) grew by 6.1%, while apparel and clothing accessories grew by 2.8%. Chemical fiber products became an export highlight, with exports of chemical fiber yarn, fabric, and finished products increasing by 9.3%, driven by infrastructure demand in Southeast Asia and the Middle East. In contrast, apparel export growth was more moderate, reflecting the ongoing trend of brand orders shifting to Vietnam, Bangladesh, and other countries.
Regional Industrial Belts: Investment Shifts to Central and Western Regions, Clusters Accelerate Transformation
Fixed asset investment data further confirms the industry migration trend. The growth rate in traditional eastern coastal production areas was 6.2%, while central and western regions reached 12.4% and 15.1%, respectively. Anhui, Henan, and Hubei provinces have taken over significant weaving capacity from Jiangsu and Zhejiang. Xinjiang, leveraging its cotton raw materials and energy cost advantages, has attracted integrated chemical fiber and cotton spinning projects. Meanwhile, established clusters like Keqiao and Shengze are accelerating digital transformation, with industrial robot density and smart warehouse coverage increasing by about 18% year-on-year.
Prices and Inventory: Weaving Sector Under Pressure, Gray Fabric Destocking Slow
From the midstream perspective, the gray fabric price index fell 1.7% cumulatively from January to April, while the cotton price index rose 1.2% during the same period. The widening price gap between cotton and gray fabric indicates further margin compression in the weaving sector. Enterprise inventory turnover days extended from 32 days last year to 35 days, with conventional gray fabric inventory at a two-year high. Downstream dyeing and printing mill operating rates hovered around 75%, lower than 82% a year ago, reflecting insufficient orders and shorter delivery times.
Industry Outlook: Focus on Capacity Consolidation and Overseas Order Rhythm in H2
Overall, the textile industry in 2026 is undergoing a structural adjustment. On the domestic front, consumer confidence recovery still needs time, and brands should focus on high cost-performance and functional products to stimulate replacement demand. On the export side, RMB exchange rate fluctuations and the advancement of carbon tariffs in some countries will increase compliance costs for foreign trade enterprises. It is recommended that companies use futures tools to lock in raw material costs, while accelerating the development of green products such as recycled fibers and bio-based fabrics to meet increasingly stringent ESG audits from overseas buyers.