Textile industry in Russia

Textile industry in the world

Main article: Textile industry in the world

Russian flax market

Main article: Russian flax market

2024

Sales of textile equipment dwindled by 22%

In 2024, 9.52 thousand machines and machine tools for the textile industry were sold in Russia. This is 22% less compared to 2023, when a record result of 12.23 thousand units was recorded. Such data are given in the BusinesStat study, the results of which were published in early February 2025.

The review takes into account the supply of equipment for extrusion, drawing, texturing or cutting of artificial textile materials, machines for the preparation of textile fibers, looms, as well as spinning, torsional winding and winding machines, devices for obtaining a cement thread, tulle, lace, embroidery, braiding or nets, knitted and knitted-piercing machines. Significant market players in the Russian Federation are Stantronix LLC, Ivanovo Textile Engineering Plant LLC, G.K. Koroleva Plant OJSC, Kardmash LLC and Orox-Group Rus LLC.

According to estimates, in 2020, sales of equipment for the textile industry in Russia amounted to 6.74 thousand units. In 2021, an increase of 50.4% was recorded with a final result of 10.14 thousand units. However, in 2022, a decline of 12.2% followed - to 8.9 thousand units. This reduction was associated with the normalization of indicators after a sharp increase in 2021, the rise in price of products, a decrease in consumer investment activity and difficulties with the import of foreign machines and machines from European countries.

In 2023, sales jumped 37.4% amid the restoration of the solvency of textile enterprises and the establishment of supplies of imported products through alternative channels. But in 2024 there was a decrease due to the "high base effect" of the previous year.

Analysts note that the main problems of the industry in the Russian Federation are an outdated fleet and limited demand. According to Rosstat, the degree of wear of machinery and equipment in the textile industry exceeds 50%, and more than 20% of production funds are completely worn out.^[1]

Production of light industry products in Russia increased by 20% over the year

Ksenia Bobyleva, Deputy Director Ministries of Industry and Trade Russia of the Department of Light Industry and Timber Industry, said at the end of January 2025 that the production of light industry products in 2024 increased by 20%.

According to TASS, over the past five years, the average growth in the industry was 17%. The main driver of growth in 2024 was the active development of the sewing direction, in contrast to previous years, when growth was provided by the expansion of the workwear market and the regulation of access to government orders.

In Russia, the output of light industry products increased by 20% over the year

In 2024, the Federal Industrial Development Fund received 34 applications from light industry enterprises, of which 14 projects received funding totaling more than ₽5 billion.

Ksenia Bobyleva emphasized the need to develop a system of preferential working capital on the basis of regional industrial development funds, as well as the importance of holding events to promote domestic products, including regional fairs.

Governor of the Ulyanovsk Region Alexei Russkikh, who headed the working group "Entrepreneurship in the Production Sector," noted the need to develop solutions to strengthen the position of industrial entrepreneurship in Russia.

The working group included representatives of the Ministry of Industry and Trade, Opora Rossii, Delovaya Rossii, the Chamber of Commerce and Industry, the State Duma, the Agency for Strategic Initiatives and Regions of Russia.

The main goal of the group is to implement the tasks of the national project "Effective and Competitive Economy" through the support of small and medium-sized businesses in the production sector.

Special attention is paid to the development of measures to support regional producers and create favorable conditions for the development of domestic light industry.^[2]

Yarn imports to Russia decreased amid increased production

In 2024, the volume of imported yarn supplies to Russia decreased by 5% compared to the previous 2023 and amounted to 246 thousand tons. According to BusinesStat data released in January 2025, the decline in imports came amid increased domestic production of raw materials, as well as changes in the strategies of the largest suppliers. Read more here

Tissue market growth by 38% to 3.33 billion m ²

Sales of fabrics in Russia for the period from 2020 to 2024 increased by 38%, increasing from 2.42 billion m ² in 2020 to 3.33 billion m ² in 2024. According to the report "Analysis of the tissue market in Russia," prepared in January 2024 by BusinesStat, the largest increase was recorded in 2021, when sales increased by 23.4%.

According to BusinesStat, the main reason for the sharp growth in 2021 was the recovery of the industry after the decline caused by global crisis events. In subsequent years, the growth rate slowed significantly. In 2022, sales grew by only 1.7% and reached 3.03 billion m ², and in 2023 increased by 9.5%, amounting to 3.32 billion m ².

In 2024, the increase was only 0.4%, which indicates the stabilization of the market. BusinesStat experts attribute the slowdown to high competition from fabrics and clothing manufacturers from Asian countries. Additional factors were the deterioration of equipment, a high share of imported equipment and a lack of qualified personnel, in particular seamstresses.

Light industry enterprises in Russia face an uneven distribution of state support. According to the report, priority in state assistance is given to companies operating in the field of state defense orders, while enterprises producing products for the consumer segment are often left without sufficient support.

Despite these challenges, the tissue market is showing a steady recovery from a downturn in 2020. The largest activity in the industry was observed in 2021, when sales amounted to 2.98 billion m ², which made it possible to restore sales volumes after a decrease of 8.5% in 2020.

In the coming years, these problems - high competition, shortage of personnel and outdated equipment - are expected to have a slowing effect on the fabric market in Russia. However, experts believe that the achieved sales level of 3.33 billion m ² in 2024 will be the base indicator for further growth if the listed problems can be partially eliminated^[3]².

The profit of light industry enterprises in Russia for 3 years increased by 90% due to digital labeling

Artem Kontserev, Deputy Director of the Center for Economic Expertise of the Institute of State and Municipal Management of the Higher School of Economics, announced on January 23, 2025, an increase in the total profit of light industry manufacturers by 90% in real terms over three years after the introduction of the product labeling system.

According to TASS, during the labeling period, illegal turnover in the industry decreased from 36% to 23%. At the same time, the impact of new requirements on the price of goods amounted to only 0.17%.

Thanks to the introduction of digital labeling, the profit of light industry enterprises in Russia over three years increased by 90%

Associate Professor of Moscow State University named after M.V. Lomonosov, Deputy Director of the Center for Competence in the Field of Digital Economy of Moscow State University Alexei Andreev noted an increase in the profitability of textile production from 5% in 2019 to 14% in 2023.

Vladislav Zaslavsky, director of the department for the system of digital labeling of goods and legalization of product turnover of the Ministry of Industry and Trade of Russia, stressed that the volume of the legal market in some industries increased by 30-50%.

According to the Ministry of Industry and Trade of the Russian Federation, almost 266 thousand participants in light industry are registered in the Fair Sign labeling system, of which 82% are individual entrepreneurs.

The head of the public council under Rospotrebnadzor Oleg Pavlov pointed out that individual entrepreneurs account for more than 85% of all violations of labeling requirements.

Deputy General Director of CRPTRevaz Yusupov announced the holding of more than 500 training measures on labeling for participants in the light industry market, as well as the solution of more than 3 thousand issues of entrepreneurs through the support line, and 99.5% of issues were resolved remotely.

Tamaz Kupatadze, Chairman of the Light Industry Consortium of the Kursk Region, cited data on the costs of enterprises for labeling equipment that do not exceed ₽50 thousand.^[4]

Yarn factory launched in Karachay-Cherkessia for ₽2 billion

In December 2024, the new kvol-spinning factory "Caritex" launched the first production line for the manufacture of acrylic yarn in Cherkessk. The total cost of the project exceeds ₽2 billion. Read more here.

2023

Growth in carpet production by 27.9% to 42,625 thousand square meters

In 2023, the production of carpets and carpets in Russia reached 42,625 thousand square meters. This is 27.9% more compared to 2022, when the indicator was estimated at 33,326 thousand square meters. Such data are given in a study by TK Solutions, the results of which were released at the end of November 2024.

It is noted that in general, the average annual growth rate in complex percentages (CAGR) in the market under consideration from 2017 to 2023 amounted to 11.2%. In regional terms, the Northwest Federal District occupies a leading position, which accounted for 38.4% of production during the specified period. In second place is the Central Federal District with a result of 32.6%.

Carpet production in Russia soared by 27.9% over the year

The report said that the production of carpets and carpets in September 2024 rose by 18.5% on an annualized basis and reached about 4560.1 thousand square meters. The average prices of manufacturers according to the code of the OKPD2 "Carpets and Carpet Products" amounted to 394 rubles per square meter as of October 2024.

Analysts note that until 2020, the Russian market for carpets and carpets was largely dependent on imports. Foreign manufacturers offered a wide range of high quality products. The dynamics of changes in carpet consumption is undulating, however, there is a tendency to increase both due to the growth of consumption in physical terms and due to inflation. At the same time, a fairly high price of foreign products in ruble equivalent can contribute to a decrease in the volume of imported supplies, as experts point out. This provokes a decrease in demand for imported carpet products, especially in the face of falling disposable incomes of the population.^[5]

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.^[6]

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.^[7]

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.^[8]

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.^[9]

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.

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.^[10]

Notes