May 4, 2020   SOURCE: BusinessWire

Cotton Procurement Market Intelligence Report Forecasts Over 5MT Volume Growth in the Market

SpendEdge has been monitoring the global cotton market and the market is poised to experience volume growth of more than 5MT between 2019-2024 at a CAGR of over 3% during the forecast period. Request Free Sample Pages.

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Consumers' preference shift towards fashion that has variety, value, and is sustainable is popularizing the concept of refurbished fashion. This will create a substantial demand for cotton fabrics that befit the concept of refurbished fashion. Carbon fiber is witnessing its extensive usage across the aerospace, automotive, and wind energy industries. These factors will have cumulative impacts that will drive a large-scale cotton procurement during the forecast period.

Initiatives undertaken by governments to boost the cotton textiles industry will enable APAC to cotton its position in the global cotton market. The US is the largest exporter of cotton in the world. The frequency of cotton procurement is expected to increase in North America during the forecast period owing to the developments in the textile and apparel sector in the region.

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Insights into the cotton price trends

  • Cotton price trends hint at gradual stabilization of price with chances of gradual decline. This decline is attributed to the surge in the production of cotton against a decline in demand. Factors such as overcapacity at warehouses, the US-China trade war, government subsidies, and competition from synthetic fibers will result in the gradual decline in demand which will have a deflationary impact on the overall cotton price in the market.
  • The raw material cost will act as a substantial cost component of cotton supplier's OPEX comprises a major cost component for the manufacturers of cotton. The price of raw materials such as cottonseed is expected to increase which will inflate the cotton prices in the market.

Insights into strategies that will help buyers optimize their cotton procurement spend

  • Buyers are advised to adopt the volume-based pricing during cotton procurement as buyers can capitalize on market fluctuations by optimizing the time of purchase. This pricing model allows better transparency, as it is based on variable costs of production and market prices.
  • Buyers are advised to engage with suppliers for inventory planning by using systems such as VMI. It will enable the buyers to make high-volume procurements to mitigate price risks. However, in times of inefficient planning, the inventory might increase, which will lead to high holding costs. Hence, systems such as VMI will help in effective demand planning, according to the application requirements of buyers.

COVID-19 Impact Assessment and Market Insights

SpendEdge’s reports now include an in-depth complimentary analysis of the COVID-19 impact on procurement and latest market data to help your company overcome sourcing challenges. Our Cotton Procurement Market Intelligence Report offers actionable procurement intelligence insights, sourcing strategies, and action plans to mitigate risks arising out of the current pandemic situation. The insights offered by our reports will help procurement professionals streamline supply chain operations and gain insights in the best procurement practices to mitigate losses.

To stay on top of latest trends and supply market information, check out SpendEdge’s knowledge center on COVID-19 impact assessment.

The top cotton suppliers enlisted in this report

This cotton procurement market intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies.

  • Cargill Inc.
  • Louis Dreyfus Co. BV
  • COFCO International
  • Olam International Ltd.
  • Glencore Plc
  • Bunge Ltd.

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Some of the key topics covered in this report are:

  • Cotton market spend segmentation by region
  • Cotton supply market analysis
  • Cotton procurement best practices
  • Regional spend opportunity for cotton suppliers
  • Cotton suppliers cost structure
  • Total cost of ownership analysis in the cotton market
  • Cotton suppliers pricing models analysis
  • Category management objectives to promote an optimized cotton procurement
  • Cost saving opportunities in the cotton market

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