In its final Cotton: Review of the World Situation edition for 2025, the International Cotton Advisory Committee (ICAC) highlights, global cotton prices are increasingly decoupled from simple supply-demand economics. While the outlook for the 2025/26 season projects a rebound in global cotton trade by 2 per cent to 9.7 million tons - aided by steady mill demand in key textile hubs like Vietnam and Bangladesh - the long-term pricing stability hinges on structural factors. Lorena Ruiz, Economist, ICAC notes, environmental policies and evolving trade measures, rather than just macroeconomic cycles, are now the primary shapers of market sentiment. This means the textile and apparel sector must adjust to a new reality where raw material costs are highly sensitive to non-market interventions.
Sustainability and climate uncertainty in the fiber mix
ICAC data for the 2025/26 season projects, global production and consumption will hold steady at around 26 million tons and 25.7 million tons, respectively. However, the anticipated A Index price range (56 to 95 cents per pound, midpoint 73 cents) reflects extreme uncertainty. This volatility is driven by the producer's struggle to manage rising input costs and climate uncertainty. Furthermore, the report indirectly emphasizes the growing challenge from synthetic fibers; textile brands are increasingly sourcing sustainable alternatives, pressuring cotton producers to adopt advanced practices. ICAC's own focus on cutting-edge technologies like virtual reality training for cotton researchers underscores the industry's need for radical innovation to ensure cotton’s continued sustainability against fierce competition in the global fibre market.
Formed in 1939, the ICAC is a United Nations-recognized intergovernmental commodity body comprising cotton-producing, consuming, trading, and investing countries. It serves as a clearinghouse for technical and economic information to maintain a healthy world cotton economy. Key activities include providing statistical transparency on global supply and demand (including beginning stocks, production, and mill use data) and acting as a forum for discussing international cotton issues.
