– By Manjula Gandhi
Leading mills are confident that denim will continue to grow in the years to come, at a rate higher than the current one, and if projections are any indication, its growth will reach 10-12 per cent on a CAGR basis. This optimism is largely due to the expanding denim market, both domestically and internationally. According to a recent forecast by Research and Markets, a reputable market research firm, the global market for jeans will reach US$87.4 billion by 2027 after being revised from US$63.5 billion in 2020, growing at a CAGR of 4.7 per cent from 2020 to 2027. Denim is the market segment that has recovered the quickest from the pandemic outbreak. India has long been a leader in denim fabrics, and more recently, the domestic jeans market has been expanding steadily, in fact more quickly than the rate of global expansion. According to various market studies, the Indian domestic denim market has been maintaining an average CAGR of 8 to 9 per cent for a few years and is expected to reach Rs 91,894 crore by 2028.
India is developing its denim industry…
With an annual capacity of over 1600 million meters, India has the second-largest installed capacity for denim fabrics in the world, behind China. The estimated total number of denim fabric mills currently in operation in the nation is over 50 in the organized segment, which is around 60 per cent greater than it was ten years ago. About 850–900 million meters of the total capacity of Indian denim fabric are consumed domestically, including production of local jeans for export. The remaining fabric is exported to nations like Bangladesh, Colombia, Venezuela, Egypt, and Sri Lanka, among others.
Circularity and sustainability are highlighted
Denim mills, being one of the best-known segments of the fashion industry, are now gradually adopting circularity in their production processes. The production of more ethical denim textiles that bridge the gap between fashion and sustainability is something that Indian denim brands are working hard to achieve. For environmentally aware customers, these materials can be created into a stylish and adaptable clothing line.
In order to expand denim manufacturing capabilities, some mills are also investing in spindles in order to capture additional domestic and international markets and to lessen their dependence on the market for yarns. With the aid of this backward integration, businesses are able to better manage the availability of raw materials and schedule timely, cost-effective manufacturing. It is reassuring to see that newer businesses are striving to expand while the larger, more recognizable mills continue to consolidate.
(Manjula Gandhi is the CPO at Numero UNO)