Textile industry in Russia

Textile industry in the world

Main article: Textile industry in the world

Russian flax market

Main article: Russian flax market

2023

Textile & Apparel Market Growth by 13% to $20.4 Billion

The volume of the Russian market for textiles and clothing reached $20.4 billion in 2023, showing an increase of 13% in dollar terms and 40% in ruble terms compared to 2022. This became known in the spring of 2024.

According to RBC, for the first time in the history of observations, the clothing segment took a leading position in the market structure with a share of 45.7%, ahead of the traditionally dominant textile products, which accounted for 43.2% of the total production.

The Russian light industry demonstrated an overall production growth of 4.3% in 2023. The most dynamic development was shown by the segment of leather and leather products, an increase of 12.3% and taking 11.1% in the total production structure.

The volume of import revenues in the industry reached $18 billion, which is 20.4% higher than in 2022. The share of imported products on the Russian market amounted to 66%. At the same time, export sales decreased by 52.5%, amounting to $608 million.

In the global market of textiles and clothing, the volume of which in 2023 reached $1.69 trillion, the share of Russia is a little more than 1%. The average annual growth rate of the Russian market from 2017 to 2023 is estimated at 13.5%.

The capacity of the Russian market for equipment for textile and light industry in 2023 amounted to ₽16 billion, showing an increase of 40.1%. Taking into account the deflator index, the real growth in market capacity reached 13.4%.

Analysts predict the continuation of positive dynamics in the development of the global market for textiles and clothing until 2030 with a CAGR of 7.7%. The Russian segment retains the potential to further increase its share in the global market.^[1]

In Russia, the production of bed linen increased by 1.4% to 78.52 million

In 2023, the production of bed linen in Russia amounted to 78.52 million units. This is 1.4% more compared to 2022, when the figure was 77.44 million units. Such data are given in a study by the analytical agency GuideMarket, the results of which were published on August 6, 2024.

It is noted that the Russian bedding market is characterized by a significant volume and growing demand - both in large cities and in the regions. At the same time, consumer preferences constantly evolve under the influence of various factors, such as environmental awareness, health, comfort and new technologies. The main part of the market is occupied by domestic manufacturers.

According to estimates, in 2019 the volume of bed linen production in the Russian Federation amounted to 69.24 million units. In 2020, a decline of 2.3% followed - to 67.68 million units. The study says that the pandemic had a negative impact on the industry. COVID-19 Due to quarantine and restrictive measures, many enterprises were forced to temporarily stop working or reduce production.

In 2021, the recovery of the market began. The easing of restrictions and the return to normal economic activity allowed enterprises to resume work at full capacity. Production increased by a record 25.8% to 85.15 million products. But in 2022, another decline followed, due to the deterioration of the geopolitical situation. There is a significant increase in prices for raw materials due to disruption of supplies and additional transport costs. This increased the cost of production of bed linen and reduced the volume of output by 9.1% on an annualized basis. In 2023, market participants began to adapt to new economic conditions and look for ways to optimize production processes, which made it possible to increase the volume of production.^[2]

The volume of the Russian curtains market for 4 years increased by 5.7% to 2.8 billion rubles

In 2023, the volume of the Russian curtains market reached 8.5 billion rubles, which is 5.7% more in relation to 2022. Compared to 2019, when the size of the industry was estimated at 5.7 billion rubles, an increase of 2.8 billion rubles was recorded. Such data are given in the study of the analytical agency "GuideMarket," the results of which were published on August 5, 2024.

It is noted that the curtains market in the Russian Federation demonstrates significant changes related to economic conditions, consumer demand and the adaptation of manufacturers to new realities. In 2020, the volume of the curtains market increased by 9.3% to 6.3 billion rubles, but taking into account inflation, there was a decrease of 0.1% on an annualized basis. This is due to economic instability, a decrease in buyer interest and supply chain problems amid the COVID-19 pandemic.

After the lifting of strict quarantine measures in 2021, there was a surge in deferred demand. The volume of the industry increased by a record 57.7%, reaching 9.9 billion rubles. Economic recovery and improved economic expectations contributed to an increase in the number of repair and construction projects. People, spending more time at home, invested in interior improvements. In addition, during this period, there was a strengthening of online sales of curtains due to the development of online stores and marketplaces, which have become more popular due to the pandemic.

However, in 2022 there was a drop of 18.9% due to the deterioration of the geopolitical situation. An increase in the cost of imported materials and products due to weakening ruble and problems in supply chains led to higher prices for curtains, which reduced purchasing power. In 2023, the situation stabilized due to the adaptation of companies to new economic conditions, including the diversification of supply sources and the localization of production.^[3]

2022

Decrease in carpet sales by 15.7% to 67.56 million square meters. m.

In 2022, 67.56 million square meters of carpets were sold in Russia, which is 15.7% less than a year earlier. Such data at the end of July 2023 were presented by analysts at GuideMarket.

According to them, the carpet market in Russia is at the stage of maturity of the life cycle, and is characterized by inexpensive goods that quickly find demand from consumers. Experts estimate the potential capacity of the carpet market at no more than 10-15% of the volume of 2021, which is approximately 88-92 million square meters. m. In general, the carpet market in Russia continues to be active and offers prospects for development and growth, according to a study published in July 2023.

If GuideMarket indicates a drop in demand for carpets, then market participants, on the contrary, are talking about a rise in production. So, according to Forbes, the volume of production of these products in the Russian Federation at the end of 2022 increased by 21.8%. The average annual increase in production over the past five years amounted to 8.6%. According to Alexander Vasiliev, co-founder of the Culture of Carpets company, in 2023 the demand for carpets and carpets in our country will grow even more.

According to TK Solutions analysts, in 2022, Russian enterprises produced 33,335 thousand m2 of carpets and carpet products, which is 27.1% higher compared to the results of 2021. The average annual increase in production (CAGR) of carpets and carpets for the period 2017-2022 amounted to 8.6%.

The leading federal district of the Russian Federation for the production of carpets and carpet products is the North-West Federal District (40.2% of production for the period from 2017 to 2022), in second place is the Central Federal District (29% of production). The average price of manufacturers for carpets and carpets by mid-2023 amounted to 339.4 rubles per square meter.^[4]

The Russian yarn market sharply accelerated growth (+ 7.9% to 27.8 thousand tons )

At the end of 2022, sales of synthetic and artificial yarn in Russia amounted to 27.8 thousand tons, which is 7.9% more than a year earlier. The market volume has grown sharply, given that in 2021 the dynamics was at the level of 0.9%, and in 2020 - completely negative (-14.7%). Such data analysts BusinesStat presented in May 2023.

According to the study, foreign products dominated the synthetic and artificial yarn market in Russia in 2022. Its share in sales in 2018-2022. on average was 82%. At the same time, the sanctions imposed against Russia had practically no impact on the market: more than 70% of the supplies of synthetic and artificial yarn to Russia come from Belarus, Turkey and China, which did not join the sanctions.

Russian yarn market dramatically accelerated growth

Russia has a raw material base for the development of synthetic and artificial yarn production - hydrocarbon reserves (for the production of synthetic fibers) and forest resources (for the production of wood pulp and further - viscose). However, the high capital intensity of new projects in this area is becoming an obstacle to their implementation. Therefore, large-scale import substitution processes on the market are not expected in the near future, according to a report published in May 2023.

In 2018-2022 export revenue from the supply of synthetic and artificial yarn from Russia decreased annually, with the exception of 2020, when exports increased by 37% as a result of an increase in supply prices by 37.7%. In 2022, export turnover decreased by 42.7%, to $1.14 million.

In 2018-2022 exports of synthetic and artificial yarn from Russia decreased by 78.2%: from 0.66 to 0.14 thousand tons. The largest decline was noted in 2022 (-59.7% by 2021). The largest contribution to the reduction in exports in 2022 was made by a decrease in supplies to Uzbekistan and Armenia, as well as the cessation of supplies to Kyrgyzstan.^[5]

Notes