Denim Industry

Presentation by
Miss. Tejasi Shyam Bhandari

Index

Key Highlights
3
Global Denim industry: Overview
4
Indian Denim industry: Overview
5
Import export analysis
6-8

Process flow chart : Technology involved in making of denim

fabric
9
Major players10
Sources 10

Key highlights

Global denim industry is growing at CAGR 2.1 % & expected to reach 60 Billion by 2020
North America & Europe are the two major markets having~55% market share
China, Turkey, Brazil ,Vietnam ,India & Pakistan are major suppliers with more than
50 % of the global denim production
Indian denim industry is one of the fastest growing having CAGR of 21.1% (2011-2018)
characterized by domination of men's wear market , 60% presence of unbranded
players & low market penetration
Global Export of denim fabric declined at CAGR of -2.74% while import declined at17% due to low demand in western countries , over supply situation & popularity
of low cost knitted wear
China dominates export (54% ) & import (41% ) of denim fabric
(cotton<85%);China ,Pakistan ,Turkey, Japan, Italy, Mexico ,Cambodia serve as
huge supply base and production hubs for apparels
Overall trade of denim fabric having more than 85% cotton has declined due to
introduction of synthetic fiber; China is the key trading country contributing 30% of
total export & 21% of imports
Ball warping, Dye beam warping , Dye beam warping are 3 alternate technologies to
manufacture denim fabric
There is a gradual rise in sales of major denim fabric producers; Arvind is one of the
main players increased its revenue at CAGR of 14% during 2011 to 2014

Global denim industry is growing at CAGR 2.1%;North America &Western Europe

being the major market & expected to reach USD 60 Billion by 2020

Overview: Global denim industry

Market
Market size
size (USD
(USD Billion)
Billion)

64.0

1.67%
1.67%
1.23%
1.23%

2.
1
%

xxx
xxx CAGR
2007
51.6

2014
56.2

2020

World
World denim
denim market:
market: regional
regional market
market share
share
(2014)
(2014)

31%

39% North America

Rest of World
Japan &Korea

10%
20%

Western Europe
4
4

Market
Market grew
grew at
at CAGR
CAGR of
of 1.23%
1.23% since
since 2007
2007
and
expected
to
grow
further
at
CAGR
of
and expected to grow further at CAGR of 2.19%
2.19%
to
reach
USD
64
billion
by
2020
to reach USD 64 billion by 2020

Dominated
Dominated by
by jeans
jeans segment
segment with
with more
more than
than
85%
share
while
other
emerging
segments
85% share while other emerging segments
have
have small
small market
market share
share in
in industry
industry

2.1
2.1 billion
billion pairs
pairs of
of jeans
jeans has
has been
been consumed
consumed in
in
the
year
2014
the year 2014

US
US &
& Europe
Europe consumes
consumes mort
mort than
than 55%
55% of
of the
the
denim
jeans.US
is
the
biggest
market
for
denim
denim jeans.US is the biggest market for denim
fashion,
fashion, with
with per
per capita
capita denim
denim consumption
consumption is
is
88 pairs
pairs

Denim
Denim purchase
purchase is
is driven
driven by
by factors
factors such
such as
as fit,
fit,
comfort,
comfort, price,
price, durability
durability &quality
&quality

Germany
Germany ,France
,France ,UK
,UK are
are major
major markets
markets in
in
western
western Europe
Europe while
while eastern
eastern European
European
countries
countries such
such as
as Turkey,
Turkey, Tunisia
Tunisia are
are key
key
sourcing
sourcing destinations
destinations for
for Europe
Europe

China,
China, Turkey,
Turkey, Brazil
Brazil ,Vietnam
,Vietnam ,India
,India &
&
Pakistan
Pakistan are
are major
major suppliers
suppliers with
with more
more than
than 50
50
%
% of
of the
the global
global denim
denim production
production

Indian denim industry is one of the fastest growing having CAGR of 21.1%
characterized by domination of men's wear market , 60% presence of unbranded
players & low market penetration
Overview: Indian denim industry
Market
Market size
size (USD
(USD Billion))
Billion))
21.16%
21.16%

14.8%
14.8%

Market
Market break
break up
up (2013)
(2013)

4.6

6%

9%

38%
38%

women's wear
xxx
xxx

2011
1.2

2013
2.3

85%

CAGR

2018

0.3
1.0

China

Men's wear
Branded

40%
60%
Unbranded

Per
Per capita
capita denim
denim consumption
consumption

USA
8.0

Kids

India

5
5

Denim is a promising category projected to grow at a CAGR of

14.8 % to become USD4.6 billion market in 2018.
Accounts for 5 % of the total apparel market in the country
3% share in global denim industry in year 2013
Mega metros & metro cities contributes 49 % of the market
share
Mens segment holds 85% share ,purchase is driven by
increasing disposable income, westernization of work
culture and the ensuing rise in popularity of denim jeans as
business casual wear.
60 % market share with unbranded denim players operating
on the lower price segment where awareness of quality of
fabric, finishing and washes, design and fit are relatively low.

Export of denim fabric declined at CAGR of -2.74% while import declined at17% due to low demand in western countries.
Denim fabric : World import export trend
Import
Import trend
trend (( Billion
Billion USD)
USD)

Export
Export trend
trend (Billion
(Billion USD)
USD)

3.6

4.4
4.6

3.3

4.
8
3.3

4.6

2.9

3.3
More than85%
cotton denim fabric
Less than 85%
cotton denim fabric

3.3
2.5

3.5

2.5

2.4

1.8

1.4

1.3

1.5

1.7

0.97

0.88

0.9

0.74

2011

2012

2013

2014

2011

2012

2013

2014

More than 85%

cotton denim fabric
Less than 85%
cotton denim fabric

Overall
Overall Export
Export of
of Denim
Denim fabric
fabric has
has declined
declined at
at CAGR
CAGR of
of -2.74
-2.74 %
% while
while import
import declined
declined at
at CAGR
CAGR of
of -17
-17 %
% between
between 2011201114
14 mainly
mainly due
due to:
to:

Popularity
Popularity of
of low-cost
low-cost knitted
knitted wear
wear which
which has
has gained
gained considerable
considerable market
market share
share

Oversupply
Oversupply situation.
situation. Demand
Demand is
is growing
growing at
at 3-5
3-5 %
% while
while supply
supply is
is growing
growing at
at 6-7
6-7 %
% ..
Trade
Trade of
of denim
denim containing
containing more
more than
than 85%
85% cotton
cotton has
has been
been declining
declining due
due to
to introduction
introduction of
of man
man made
made synthetic
synthetic fiber
fiber
6
and
and its
its growing
growing acceptability
acceptability by
by consumers.
consumers.
6

China dominates the export & import of denim fabric (cotton<85%);China ,Pakistan ,Turkey,
Japan, Italy, Mexico ,Cambodia serve as huge supply base and production hubs for apparels
World import export analysis : Denim fabric (Wov Cotton Denim
cotton <85% +manmade fibre, >200g/m2b)
Top
Top
Top 55 exporters
exporters trend
trend (Mio
(Mio USD)
USD)
Top 55 importers
importers trend
trend (Mio
(Mio USD)
USD)
China
Japan

Pakistan
Italy

Turkey
India

China
Cambodia

Columbia

319

1200

1100

319

243

963

925

Turkey
Mexico

204

122
109

28.7

31
28.8

2011

90 36

54 65

2012
25

100
77 69
112
51 622648

2013

91116
282774

2014

2011

63

57 68

81

2012

42

60 56

76
31

2013

57 67

33

20140

China
China dominates
dominates the
the trade
trade of
of denim
denim fabric
fabric contributed
contributed 54%
54% of
of export
export while
while 41%
41% oo import
import in
in this
this category
category
China,
China, India,
India, Turkey,
Turkey, Japan,
Japan, Italy,
Italy, India,
India, are
are key
key exporters
exporters in
in the
the segment
segment .. More
More than
than 50
50 %
% of
of denim
denim is
is being
being produced
produced
in
in the
the region
region mainly
mainly because
because of
of ample
ample availability
availability of
of raw
raw material,
material, low
low cost
cost of
of semi
semi skilled
skilled &
& skilled
skilled labor
labor and
and
favorable
favorable duty
duty structure.
structure.

China
7 Mexico
China ,, Turkey
Turkey ,Columbia
,Columbia ,Cambodia,
,Cambodia,
Mexico are
are key
key importers.
importers. Imported
Imported fabric
fabric is
is being
being used
used to
to manufacture
manufacture
apparels
such
as
jeans
and
other
accessories
and
it
is
then
exported
to
other
nations
such
as
Eu-28,
USA,
apparels such as jeans and other accessories and it is then exported to other nations such as Eu-28, USA, China
China etc.
etc.

Overall trade of denim fabric having more than 85% cotton has declined due to introduction of
synthetic fiber; China is the key trading country contributing 30% of total export & 21% of imports

World import export analysis : Denim fabric (Wov Cotton Denim

cotton >85% +manmade fibre, >200g/m2b)
Top
Top
Top 55 exporters
exporters trend
trend (Mio
(Mio USD)
USD)
Top 55 importers
importers trend
trend (Mio
(Mio USD)
USD)
China

Pakistan

Turkey

#REF!

USA

China

Turkey

Tunisia

666

1120

1120

467
912

348
316
292
270
2011

458

281
216
226
2012

Italy

626

606

1340

Mexico

498
322
228

198

2013

330
315
259

445
334

175

206
200
181
129

209

2014224

2011

2012

224
202
202
194
124
130 140
177

2013

2014

China
China dominates
dominates the
the trade
trade of
of denim
denim fabric
fabric && contributed
contributed 30%
30% of
of export
export while
while 21%
21% oo import
import in
in this
this category
category in
in
year
year 2014
2014
The
The overall
overall trade
trade of
of this
this segment
segment has
has declined
declined due
due increase
increase use
use of
of man
man made
made fiber
fiber in
in making
making of
of denim
denim fabric
fabric
China,
China, Turkey
Turkey ,Tunisia,
,Tunisia, Mexico
Mexico ,Italy
,Italy are
are key
key importers
importers where
where Imported
Imported fabric
fabric is
is being
being used
used to
to manufacture
manufacture
8
apparels
apparels such
such and
and then
then exported
exported to
to other
other nations
nations such
such as
as Eu-28,
Eu-28, USA,
USA, China
China etc.
etc.
8

Process flow chart- Technology involved in making denim fabric

Yarn Spinning
Ball warping

Dye beam
warping

Rope dying

Beam
dying

Slasher
dying

Slashing(u
ndyed)

Re beaming

Slashing

Weaving

Weaving

Slashing

Weaving

Weaving

Finishing

Finishing

Beam Warping

Finishing

Desizing
Dying
Finishing

Finished fabric
operations

Finishing

There is a gradual rise in sales of major denim fabric producers; Arvind is one of
the main players increased its revenue at CAGR of 14% during 2011 t0 2014
Major denim fabric producers

Major denim retail brands globally

Sr.no Compan
y

2014-15
(Mio
USD)

2013-14
(Mio
USD)

2012-13
(Mio
USD)

2011-12
(Mio
USD)

Arvind

836

764

607

559

Nandan
denim

175

143

112

91

Aarvee
Denim and
Exports

119

109

115

105

KG
Denim

Country
Japan
Italy
USA

94

94

82

64

Sweden
5

6.

Raymond
UCO
denim
private ltd
Black
Peony
(Group)
Co., Ltd

139

134

124

120

780

576

520

501

India

10

Brands

Sources

http://www.indiaretailing.com/7/1/83/12640/Denim-Market-in-Indiahttp://agoa.info/news/article/5537-the-global-market-for-denim-challenges-and-opportunities.html
http://www.cottoninc.com/corporate/Market-Data/SupplyChainInsights/Driving-Demand-For-Denim-Jeans/
http://www.suryalakshmi.com/Uploads/PDF/whitepaper002%20Global%20Denim%20Outsourcing.pdf
http://www.companiesandmarkets.com/Market/Textiles-and-Clothing/Market-Research/Denim-Jeans-A-Global-Strategic-Business-Report/RPT766373
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http://www.denimsandjeans.com/reports/search.php
http://www.slideshare.net/prkonceptanalytics/us-jeans-market-2014
http://www.slideshare.net/WazirAdvisors/international-denim-industry-wazir-advisors
http://www.slideshare.net/denimsandjeans/denim-mills-around-the-world?related=1
http://www.slideshare.net/WazirAdvisors/wazir-indigo-confdenim-wear30-aug2012?related=2
http://www.statisticbrain.com/denim-jeans-industry-statistics/
http://www.fibre2fashion.com/industry-article/22/2159/2159.pdf
http://www.dhakatribune.com/business/2015/apr/12/denim-industry-gets-new-economic-dimension
http://archive.financialexpress.com/news/indian-denim-industry-it-s-all-in-the-jeans/1249449
http://www.denimassociation.com/
http://www.scribd.com/doc/126861401/Global-Denim-Market-Study#scribd
http://www.indiaretailing.com/7/1/15/12639/Delving-Deeper-into-Denim-Fabrics-in-India
http://www.business-standard.com/article/companies/india-s-denim-capacity-to-touch-1-bn-mts-by-2013-112050500058_1.html
http://www.indiaretailing.com/7/1/15/12639/Delving-Deeper-into-Denim-Fabrics-in-India
http://www.fibre2fashion.com/news/industrial-textiles-news/newsdetails.aspx?news_id=163577
http://www.indiaretailing.com/7/1/83/12640/Denim-Market-in-Indiahttp://www.suryalakshmi.com/Uploads/PDF/whitepaper001.pdf
http://in.fashionmag.com/news/Denim-Jeans-imports-up-8-6-in-Europe-in-2013,410863.html#.VfuvoJcV7NQ
http://www.denimsandjeans.com/category/latest-denim-reports/denim-data-figures/
http://www.indiaretailing.com/7/1/15/12639/Delving-Deeper-into-Denim-Fabrics-in-India
http://www.londonisttextile.com/textile-export-turkey/
http://articles.economictimes.indiatimes.com/2014-02-06/news/47089851_1_textiles-industry-textiles-sector-textiles-ministry
http://comtrade.un.org/

11