Global cotton production is forecast to outpace consumption in the 2024/25 season, according to the latest update from the International Cotton Advisory Committee (ICAC).
Production is expected to reach 25.9 million tonnes, up 7.38% from the previous season, while consumption is projected to grow more modestly - 2.27% to 25.5 million tonnes. The imbalance reflects ongoing pressure on global cotton use, driven by economic uncertainty, fibre market competition, and regulatory challenges.
World trade is estimated to remain steady at 9.9 million tonnes, but underlying that figure are key shifts in trade dynamics - particularly between the United States and China, two of the world’s leading cotton exporters and importers. Ongoing tariff escalations between the two nations have the potential to reshape cotton flows globally.
In past periods of trade friction, China diversified its sourcing, increasing imports from Australia and Brazil. Should similar patterns emerge in 2025, Australian cotton could be well-positioned to meet shifting demand.
Known for its high-quality, locally grown fibre, Australia remains a trusted supplier in a dynamic market. Cotton Australia continues to monitor global developments and advocate for strong trade relationships to support local growers.
Note: This article is based on the ICAC’s April 1, 2025 update. The up to date balance sheets are available on the ICAC Data Dashboard.
April 2025