In the first four months of 2026, China's textile industry posted a set of indicators showing a broad slowdown. Industrial value-added, fixed asset investment, retail sales, and exports all recorded low growth or partial contraction, while revenue and profit faced notable pressure. This data signals a clear shift from volume-driven expansion to efficiency-based competition.
Growth Slowdown: Industrial Output and Investment Decelerate
According to official data from the National Bureau of Statistics, from January to April 2026, textile industry value-added increased by 2.8% year-on-year, down about 1.2 percentage points from the same period in 2025. Chemical fiber value-added grew 4.1%, still above the textile average but nearly 2 percentage points lower than a year earlier. Apparel value-added grew only 1.5%, the lowest in three years. Fixed asset investment in textiles rose 3.2%, compared to 5.6% in 2025, indicating a cautious expansion mood among enterprises.
Weak Domestic Demand: Retail Sales Hit Five-Year Low
Retail sales of textile categories (including apparel, footwear, hats, and knitwear) grew 2.1%, down 3.4 percentage points from 2025. Apparel retail grew 1.8%, home textiles 2.5%, and chemical fiber retail was nearly flat. The core reason is weak consumer confidence and fading online traffic dividends. For brands and fabric suppliers reliant on the domestic market, this means higher inventory pressure and a need for precise selection and flexible supply chains.
Export Structure Shift: Volume Down, Value Up
Customs data shows total textile and apparel exports fell 1.3% in value, but unit export price rose 3.6%. Textile exports dropped 0.8%, apparel exports fell 1.9%, while chemical fiber exports grew 2.4%. This indicates a shift from volume-driven to value-driven exports, with high-value products like functional fabrics and eco-friendly fibers gaining share, while low-end orders move to Southeast Asia. For exporters, product upgrading is urgent to avoid losing orders and margins.
Profit Pressure: Revenue Up, Profit Down
Revenue of textile enterprises above designated size grew 1.6%, but total profit fell 3.2%. The gap between revenue and profit growth reached 4.8 percentage points, the largest since 2024. Cost pressures come from volatile cotton and chemical fiber raw material prices, plus rising labor and energy costs. Profit is squeezed by downstream customer price pressure and weak terminal demand. For fabric and yarn companies, lean production, supply chain collaboration, or differentiated products are key to protecting margins.
Regional and Category Divergence: Keqiao Stable, Shengze Up, Nantong Under Pressure
Major textile clusters showed divergent performance. In Keqiao (fabric cluster), output grew 2.1%; in Shengze (chemical fiber and fabric cluster), output grew 3.8%, benefiting from chemical fiber exports and differentiated demand; in Nantong (home textile cluster), output grew only 0.9%, dragged by weak domestic demand. By category, chemical fibers (especially polyester filament and nylon) performed relatively well due to downstream weaving demand. Among apparel fabrics, knits outperformed wovens, and casual sportswear fabrics outperformed formalwear. In home textiles, bed sheet sets declined, but functional pillows and towels grew.