Brazil's fast-growing economy and the population's buoyant spending have resulted in a large increase in textile and clothing consumption per capita in the country, and this has provided a big boost to production, according to a report in Textile Intelligence's Textile Outlook International.
During 2005 to 2010, textile and clothing production in Brazil rose by 25.2%, and this trend is expected to continue. The industry is prominent in world terms and fulfills a central role in the country's manufacturing sector. In 2010, it produced 2.25 million tons of textiles and 1.96 million tons of made-up articles, making Brazil the world's fifth largest textile producer and fourth largest clothing producer.
Moreover, there has been a sharp increase in domestic demand as personal disposable incomes have risen, and this has manifested itself in an impressive 50% rise in fiber consumption per head during the five years to 2010, notes the UK-based business information company. The increase in domestic demand has been met partly by a surge in imports, but domestic production has increased at an even faster rate.
Such fast growth has spurred a surge in acquisitions of new and more modern machinery by Brazilian manufacturers in a bid to increase productivity. As a result, the industry is becoming more capital intensive and has seen a reduction in its labor costs.
The industry also benefits from local sources of raw materials, especially cotton; yields have risen to the point where they are among the highest in the world, and Brazil has become a major cotton exporter.
Not surprisingly, cotton continues to dominate fiber consumption by Brazil's spinning mills, and the country has become the world's second largest producer of denim fabric, says Textile Intelligence.
However, the scope for expanding synthetic fiber output and consumption is expected to increase considerably in the future as a result of developments in the country's oil industry. At the same time, costs are likely to be markedly lower and this should provide users of synthetic fibers in the textile and clothing industry with substantial benefits in terms of availability and costs, according to Textile Intelligence.
Despite increases in production and consumption, Brazil still has enormous potential for further growth - economic progress in the past has tended to be erratic and be devilled by rampant inflation. But today, the country appears to be on a steady and sustainable upward path and this should lead to an even better outcome for the Brazilian textile and clothing industry, Textile Intelligence says.
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