How is the light industry doing in the world?

 

The light industry, which includes the production of textiles, clothing, footwear and accessories, is an important sector of the world economy. The global market for light industrial goods includes millions of enterprises engaged in the production and distribution of goods. Manufacturing facilities are distributed across the globe, from large industrial complexes to small workshops. Global companies - Nike, Adidas, Inditex, H&M and others - are key players in this market, providing a wide range of products and covering various market segments.

The experts of QazIndustry's directorate for the development of light, woodworking, furniture and building materials industry analyzed the market in the countries exporting light industry products and found out how their governments help this industry.

According to Maximize Market Research report, the global textile and apparel industry was valued at $1,695.2 billion in 2023 and is projected to reach $3,047.2 billion by 2030 at a compound annual growth rate of 7.4%.

Meanwhile, the global footwear market was worth $387.7 billion in 2023 and is expected to grow to $613.8 billion by 2030 at a compound annual growth rate of 5.9%.

Many countries are major exporters or importers of light industrial goods. Major exporters include China, Bangladesh, Vietnam, India and other countries with low labor costs and developed industrial bases. At the same time, developed economies such as the US, Germany, Italy are also major exporters of textile and apparel products.

This market has been undergoing significant changes in recent years due to various factors such as technological innovations, changing consumer preferences and global economic trends. This article presents the major global development practices that are impacting the global light industrial goods market.

 

China

China is a world leader in the textile industry due to its ability to quickly adapt to changing market conditions and the introduction of new technologies.

In recent years, China has significantly increased investment in automation of production processes, including the use of industrial robots and automated production control systems. This reduces labor costs, increases productivity and improves product quality. The use of industrial robots and automated control systems has reduced labor costs by 20% and increased productivity by 15%.

China is also actively developing new textile materials and chemical technologies to improve the performance of fabrics such as strength, durability, water repellency and antibacterial properties. The country is investing in research and collaborating with leading universities and research centers to develop

 

innovative materials. In 2023, investment in new textile materials exceeded $5 billion.

China is increasingly focusing on environmental sustainability in the textile industry by implementing stricter environmental standards and regulations. Government subsidies and incentives for companies adopting wastewater treatment and waste recycling technologies amounted to about $2 billion. Therefore, adopting wastewater treatment, waste recycling and eco-friendly materials technologies is becoming a priority for many Chinese companies.

 

India

India, with a rich tradition of textile production, is actively developing its textile industry with a focus on sustainability and supporting local producers. India is one of the largest producers of organic cotton in the world and actively promotes the use of organic and sustainable materials in the textile industry. The government and private companies support programs to grow organic cotton and use natural dyes.

The Indian textile industry is highly dependent on SMEs, which constitute a significant part of production and employment in the industry. The Government of India provides financial and technical support to SMEs to help them modernize equipment, improve production processes and enter international markets. Benefits include tax reductions, access to soft loans, and subsidies for equipment modernization. In 2023, the government has allocated about $1.2 billion to support SMEs.

India is actively investing in skill development and training programs for textile workers to improve product quality and increase productivity. Collaboration with educational institutions and professional associations helps ensure high standards of education and training. More than 500,000 workers have been trained under these programs, helping to improve product quality and increase productivity by 10%.

 

Bangladesh

Bangladesh is one of the largest producers of textiles and clothing in the world, thanks to its low production costs and large manufacturing capacity. The textile industry plays a key role in Bangladesh's economy, providing employment for more than 4 million people, the majority of whom are women.

The Bangladesh government is actively supporting the textile industry by providing tax incentives and subsidies to modernize production facilities. In 2023, about $500 million has been allocated for programs to support textile mills, including grants to purchase new equipment and improve infrastructure. These measures are aimed at improving productivity and competitiveness of Bangladeshi products in the global market.

The country is also focusing on improving working conditions and safety in textile mills. After the Rana Plaza tragedy in 2013, when the collapse of the building resulted in the death of more than 1,100 people, the government and international organizations took measures to improve safety standards. Strict rules and regulations were introduced to ensure safe and healthy working conditions.

 

In recent years, Bangladesh has also emphasized sustainable production by introducing technologies to reduce water consumption and use recycled materials. The government is also supporting initiatives to utilize renewable energy sources such as solar and wind power, which helps reduce the carbon footprint of the textile industry.

 

Turkey

Turkey is an important production center for the textile industry due to its high quality fabrics and strategic location, which provides access to the European and Middle Eastern markets.

Turkish companies are actively investing in innovation and technology, developing new materials and implementing advanced production processes. In 2023, the volume of investments aimed at modernizing equipment, automating production processes and developing new textile materials in Turkey exceeded $1.2 billion. Investments contribute to improving product quality and strengthening Turkey's position in the global market.

The country is also focusing on sustainable production by adopting technologies to reduce water consumption and carbon emissions. In 2023, more than 300 textile mills in Turkey received sustainability certificates to demonstrate their commitment to green production.

The Turkish government supports the textile industry by providing tax breaks and subsidies to modernize equipment and improve working conditions in textile factories. In 2023, about $500 million was allocated for these purposes.

Turkey is also a leader in the production and export of ready-to-wear garments, especially denim and knitwear products. Turkish brands such as LC Waikiki and Koton are known not only in the domestic market but also abroad, which contributes to the increase in exports.

 

U.S.

In the US, the textile and fashion industry receives significant support from venture capital funds, business incubators and gas pedals to help develop new ideas and technologies. In 2023, investments in textile startups in the U.S. exceeded $2 billion, helping young companies to enter the market faster and ramp up production.

U.S. companies are actively developing innovative textile materials, such as smart fabrics that can change color, regulate temperature, or track health. These innovations are finding widespread use in sportswear, medical textiles, and military apparel, contributing to the country's export potential.

The U.S. is also focusing on sustainable production and waste minimization. In 2023, approximately $1 billion has been allocated for sustainable manufacturing initiatives, including the use of eco-friendly dyes, reducing water consumption and implementing textile waste recycling programs. Companies aim to minimize their environmental impact by using recycled materials and implementing closed-loop production cycles.

 

 

Germany

Germany, with its advanced technology and innovation, is a leader in textile technology and an active participant in the development of a sustainable textile industry. It is a leading center for textile research and innovation.

German companies are actively developing smart fabrics and nanomaterials that have applications in a variety of industries, from medicine to the automotive industry. Germany is also actively introducing digital technology and automation into textile production.

In 2023, investments in the digitalization of the textile industry amounted to around €2 billion. The use of artificial intelligence and automated production management systems can increase efficiency and reduce costs. Germany supports research and development in the textile industry through grants and subsidies. Cooperation between universities, research institutes and industry facilitates the rapid introduction of new technologies into production.

 

Italy

Italy is one of the world leaders in the production of high quality fabrics and designer clothing, thanks to its centuries of tradition and attention to detail. Italian manufacturers are known for their high quality fabrics and designer clothes, which are in great demand in the international market. Leading fashion houses such as Gucci, Prada and Versace set standards in the fashion world and their products are a symbol of Italian quality and style.

Italian manufacturers continue to use traditional methods of weaving and processing fabrics, which allows them to maintain the high quality and uniqueness of their products. About 15% of Italy's total textile production is created using traditional methods, emphasizing the importance of preserving cultural heritage. Italy is also actively adopting eco-friendly technologies and materials in an effort to achieve sustainable production. Leading manufacturers utilize renewable resources such as organic cotton and recycled materials, helping to reduce the negative impact on the environment.

 

France

France, with its rich heritage of fashion and design, is one of the leading countries in the textile industry. French manufacturers are renowned for their attention to detail and high quality standards. Leading fashion houses such as Chanel, Louis Vuitton and Dior are known for their exclusive collections that set global fashion trends.

France actively supports innovation and sustainability in the textile industry. In 2023, the French government has allocated around €1 billion to support sustainable production and the development of environmentally friendly technologies. French companies are implementing circular economy principles in an effort to reduce waste and extend the life cycle of textile products. Leading manufacturers use organic materials and recycled textile fibers to help reduce their environmental impact. France also supports research and development of new textile materials. French universities and research centers actively cooperate with the industry, which

 

allows to implement the latest developments in production and improve the quality of products.

 

Japan

Japan, with its advanced technology and innovative approaches, occupies an important place in the global textile industry. Japanese companies are actively developing high-tech materials such as smart fabrics and nano-textiles. In 2023, R&D investment in the textile industry totaled about $1 billion, allowing Japan to continue to be a leader in innovation and high-quality textile materials.

The Land of the Rising Sun is known for its quality synthetic fibers and technotextiles that find applications in various industries such as automotive, medical and construction. Japanese companies such as Toray Industries and Teijin are developing advanced materials including carbon fibers and functional fabrics that can regulate temperature, UV protection and other properties.

In addition to innovation, Japan is also focusing on sustainable production. Companies are actively adopting technologies to reduce water consumption and carbon dioxide emissions, as well as using recycled materials.

Japanese manufacturers actively utilize renewable resources such as organic cotton and recycled materials to help reduce environmental impact.

Export of textile products is an important part of the country's economy. The main export markets for Japanese textile products are Asia, Europe and North America.

The Japanese government supports the textile industry by providing grants and subsidies for companies developing new materials and technologies. In 2023, about

$500 million was allocated for this purpose, allowing Japanese companies to continue investing in research and development. There are also support programs for small and medium-sized enterprises to help them upgrade equipment and improve production processes.

 

Egypt

Egypt, with its historically developed textile industry, continues to play an important role in the global market. The country is renowned for its high-quality cotton, known as Egyptian cotton, which is used in the production of premium clothing and bed linen. In recent years, Egypt has been actively investing in modernizing its textile industry in an effort to improve the productivity and competitiveness of its products.

In 2023, the Egyptian government announced plans to invest $1.5 billion to modernize equipment and technology in textile mills. These investments are aimed at upgrading production facilities and introducing advanced technologies to improve the quality and efficiency of production. As part of this effort, more than 50 textile factories will be upgraded and thousands of new jobs will be created.

Egypt is also focusing on sustainable production by introducing technologies to reduce water consumption and use organic materials. These measures help to reduce the negative impact on the environment and improve the image of Egyptian textile products in international markets.

 

Textile exports are an important part of Egypt's economy. The main export markets for Egyptian textile products are Europe, North America and the Middle East.

To support the textile industry, the Egyptian government provides significant tax breaks and subsidies for companies adopting advanced technologies and sustainable practices. In 2023, about $500 million was allocated for this purpose, allowing many companies to modernize their equipment and improve their production processes. In addition, there are support programs for small and medium- sized enterprises that help them compete in international markets.

Egypt is also emphasizing the development of textile design and upgrading the skills of workers. In 2023, the government announced the launch of several educational programs aimed at training workers in new skills and technologies. These programs include courses in textile design, production management, and sustainable production, which contribute to improving the quality and competitiveness of Egyptian textile products.

 

Morocco

Morocco is becoming an important center of the textile industry in Africa due to its strategic geographical position and access to the European market. The country is actively developing its textile sector by attracting foreign investors and modernizing production facilities. Moroccan companies are adopting advanced technologies and paying attention to sustainable production.

The Moroccan government provides significant tax incentives and subsidies for companies adopting environmentally friendly technologies and recycling. In 2023, about $400 million was allocated to support the textile industry, allowing many companies to modernize equipment and improve production processes. These measures contribute to the competitiveness of Moroccan textile products in the global market.

Morocco is also actively developing advanced training and education programs for textile workers. In 2023, several educational programs were launched to teach new technologies and sustainable production. These programs include courses on textile design, production management and the use of advanced materials.

Moroccan companies are also focusing on improving working conditions and safety at work. The government and international organizations are working together to implement occupational health and safety standards, which helps to create a favorable environment for textile workers.

 

Brazil

Brazil, with its rich agricultural potential, is an important producer of textile fibers such as cotton and wool. The country is actively developing its textile industry with a focus on both domestic and foreign markets.

Brazilian companies are actively investing in sustainable production, adopting technologies to reduce water consumption and use organic materials. In 2023, more than 200 textile companies have obtained sustainability certificates, confirming their commitment to cleaner production. The Brazilian government supports small and

 

medium-sized businesses in the textile sector by providing grants and subsidies to modernize equipment and improve production processes. In 2023, about $600 million was allocated for this purpose.

Investing in research and development of new textile materials is also a priority for Brazil. New textile materials, such as biodegradable fabrics and performance- enhancing materials, are finding applications in industries ranging from fashion to medicine.

SME support programs in the textile industry also play an important role in Brazil. In 2023, the government provided about $400 million to support SMEs, including access to financing, mentorship and resources. These programs help SMEs upgrade equipment, improve production processes, and enter international markets, which helps Brazilian textile products become more competitive.

 

Kazakhstan

The light industry of Kazakhstan has significant potential for growth and development. In 2023, the volume of production of textile products amounted to about 120 billion tenge, clothing - 80 billion tenge, footwear and leather goods - 17 billion tenge. At the same time, growth reserves for textile products amount to 560 billion tenge, for clothing - 1,600 billion tenge, footwear and leather goods - 470 billion tenge (based on import data for 2023).

To achieve this, targeted efforts are needed to support SMEs and improve the skills of employees. The introduction of successful global practices will help Kazakhstan to improve the competitiveness of its products in international markets, contributing to economic growth and job creation. Government support and investment in these areas will be key success factors for Kazakhstan's light industry. To date, the government provides financial support to light industry enterprises through subsidies and grants for modernization of equipment and introduction of new technologies. In 2023, the volume of such support amounted to more than 10 billion tenge. In addition, preferential loans, tax incentives under investment

contracts and FEZs are provided to attract investors in the light industry.

As the experience of China and Turkey shows, investment in automation of production processes and introduction of industrial robots can significantly improve productivity and product quality. Kazakhstan should actively develop cooperation with leading technology companies and educational institutions to introduce advanced technologies into production.