Cotton Towel Market Size, Share & COVID-19 Impact Analysis, By Type (Pima, Egyptian, Turkish, and Blended), By Application (Household and Commercial), By Distribution Channel (Online and Offline), and Regional Forecast, 2022-2029

The global cotton towel market size was valued at USD 3.86 billion in 2021. The market is projected to grow from USD 4.05 billion in 2022 to USD 5.98 billion by 2029, exhibiting a CAGR of 5.72% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with cotton towel sales experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 10.61% in 2020 as compared to 2019.

The growing necessity of towels from various end users such as hotels, fitness clubs, and hospitals is driving the demand of the towel products. Nowadays, consumers are also looking for soft and comfortable towels that are specifically designed for different uses. Increasing demand for customized home textile products fuels the growth of the market. Moreover, rising construction of hotels and resorts in developing countries such as India, China, and Brazil among others is also augmenting the market’s demand. Furthermore, shifting preferences of the consumers towards stylish and fashionable accessories along with the availability of a wide range of attractive towels has the potential to accelerate consumers’ spending on towels. The textile industry is currently experiencing a spike in its demand as consumers have become more aware about the appearance of their home. In addition, the rising demand of towel from schools and colleges is also projected to boost the growth of the market during the forecast period.

COVID-19 IMPACT

Supply Chain Disruptions Caused by Pandemic to Impede Growth Momentum

The COVID-19 pandemic had a major impact on the growth of the market for cotton towel products. Due to various blockades around the world, manufacturers are forced to close their production facilities due to labor shortages, which reduces the demand for home textiles. In addition, several lockdowns around the world have negatively affected the sales of cotton towels due to the closure of specialty stores, supermarkets, and hypermarkets. Moreover, the decline in the tourism activities during the pandemic in all the regions also reduced the demand for sheets and cotton towels. Furthermore, at the international level, trade friction and trade protectionist measures between China and Australia, the U.S. or other trading partners are expected to impede the sale of consumer goods in the short term. In recent years, several market participants have implemented various strategies to minimize the operational impact of COVID-19 on the product market. Brand recovery strategies include product offerings and price diversification, investment in new technologies, and personalized marketing campaigns.

On the other side, the pandemic has also created significant business opportunities for domestic and international brands to exploit severe supply chain disruptions. However, while the offline sales have been largely affected, online sales remained resilient amid the COVID-19 crisis. The pandemic has also driven the demand for antiviral and antibacterial products around the world as consumers are increasingly make health-centric purchases and approaches. As the offline channels were totally closed, the online shopping outlets gained a competitive cotton towel market share during 2020.

LATEST TRENDS

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Shifting Consumer Preference towards Luxurious Products to Influence Consumption Trends

The preference of the consumers has been always changing according to their shifting demand pattern for various goods. Significant changes have occurred in the competitive scenario of the textile industry due to the deep transformation in the lifestyles of consumers towards branded and luxurious textile products. Recent trends are changing consumer purchasing behavior, with more emphasis on comfortable and premium products. This factor has in turn provided a great potential for different brands owners to manufacture towels of different designs.

Recently, people have been forced to live differently, which has changed the pattern of their consumption over time. The young generation and high-income consumers are now paying more attention towards online shopping for both essentials and non-essentials products as it saves time along with offering a wide product variety. Hence, the inclination towards online channels is expected to drive the cotton towel market growth.

DRIVING FACTORS

Growing Demand from the Hospitality Sector to Boost Market Expansion

Increasing number of international visitors is projected to drive growth of cotton bath towel market. In addition, rising government’s spending on the infrastructural development including roads, airports and hotels accelerates the market growth. In addition, growing prevalence of the e-commerce industry combined with their easy return and exchange policy is likely to boost the market’s growth. For instance, according to the U.S. Census Bureau News, e-commerce sales in the U.S. reached to USD 870 billion in 2021, an increase of 14.2% over 2020 and an increase of 50.5% over 2019.

Increasing Awareness about Health and Hygiene to Expand Product Demand

In recent times, consumers are increasingly focusing on their health and hygiene through the consumption of quality products which is driving the market growth of cotton towel household and commercial settings such as hotels, restaurants, and fitness centers are continuously concentrating on the hygiene of the consumers by using unique and high quality products. Therefore, the growing demand of cotton towels from residential and commercial sectors is set to drive the growth of the entire market. For instance, according to the U.S. Census Bureau statistics, new residential housing sales in the U.S. increased from nearly 770,000 housing units in January 2020 to 1000,000 units in January 2021.

RESTRAINING FACTORS

Fluctuation in the Price of Raw Materials to Hamper Sales of the Product

fluctuation in the cost of raw materials affects the production of the product and hence limiting the product revenues globally. Additionally, the higher cost of technology and production process also restricts the product demand worldwide. Higher raw material costs increase the production costs at company level. This raises the price of the final product and consequently hindering the growth of the market. Moreover, labors are involved throughout the supply chain, from sourcing raw materials to transporting and delivering the final products. If there is a change in the labor force along the way, there may be a change in the commodity price and hence restraining the market growth. For instance, in the event of labor shifts such as labor strike, there will be fewer workers to procure or ship materials, resulting in reducing the supply and impacting the price of the raw materials.

SEGMENTATION

By Type Analysis

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Durability of the Egyptian Cotton Towel to Trigger Demand for the Product

Based on type, the global market is segmented into Pima, Egyptian, Turkish, and blended.

The Egyptian type towel segment is estimated to grow at a significant rate in the coming years.  The bath towels and robes made with Egyptian cotton are heavy, ultra-soft, and plush, due to its highly absorbent action. It does not dry quickly enough to stay fresh and clean as compared to its contrast types such as pima and Turkish.

Furthermore, Egyptian cotton with its longer and finer fiber makes an extravagant and lavish cotton textile. Its cotton fiber weaves together to generate a soft yet durable towel that remains fluffy for longer period than a traditional cotton towel. Egyptian cotton is more porous, imparting to its high water absorption efficiency and thus, making it highly adopted product type amongst consumers. The product segment contributed a market share of 43.32% in 2021 in the global market and is poised to grow continuously over the forecast period.

By Application Analysis

Wide Range of Uses in Household Segment to Demand for More Cotton Towels than Commercial

Based on the application, the global market is segmented into household and commercial.

Household segment is expected to dominate the market due to its various uses in houses which increases its demand in the market. Cotton is one of the most popular fabrics used for making cotton towels. Moreover, choice of colors and patterns is wide as cotton fabric is receptive to different dyes, making it a versatile choice in fabrics. The fabric can sustain anything on the color wheel. The 100% cotton bath towels are intricately woven taking a lot of care and also step up an individual’s home décor game making them prevalently used among household applications.

The household segment garnered a largest chunk of revenue by contributing a major share in the global market accounting for 62.47% in the FY 2021. The segment is forecasted to grow continuously at a CAGR of 5.6% on account of the increasing housing sector across worldwide. According to Cotton Incorporated, a research and marketing company representing upland cotton, mentions that bath towels are an integral part of the home textile market and account for 1 in 5 home textile products imported into the U.S. on a fiber weight basis.

By Distribution Channel Analysis

Offline Segment to Dominate the Market Due to Growing Demand for Quality Textile Products

On the basis of distribution channel, the market is segmented into offline and online.

The offline channel is anticipated to hold a significant market share in 2021, accounting for more than 60% of global sales. The offline stores provide a wide variety of specialized products and consumers have the freedom to validate the authenticity of the products. In addition, major retailers dealing in textile business is promoting its penetration into retail stores to meet the growing demand for home textile products.

Though the specialty stores category held the biggest market share in 2021, however, during the projection period, the online retail segment is anticipated to grow at the fastest rate. With the increasing internet penetration among consumers, they are getting the latest updates from social media sites such as Facebook, Instagram, Pinterest, and other online platforms. In addition, continuous promotions from e-commerce websites such as Flipkart, Amazon, and Alibaba, as well as the significant discounts they offer, are increasing the acceptance of online shopping amongst individuals around the world.

REGIONAL INSIGHTS

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Based on geography, the global market is categorized into North America, Europe, Asia Pacific, South America, and Middle East & Africa.

Asia Pacific region to hold a major share of the global market owing to the rapid construction of hotels and restaurants in the countries such as China and India that give rise to the demand for the soft and comfortable cotton towels. Led by China, the market is characterized by a significant consumer preference for luxury and premium quality textile products. Additionally, continuous emergence small-scaleale textile manufacturers to offer products at reasonable rates is largely driving the consumption of the cotton towel in the Asian countries such as China, India, Japan, Indonesia, and others. Additionally, continuous emergence of small scale textile manufacturers to offer products at reasonable rates is largely driving the consumption of the cotton towel in the Asian countries such as China, India, Japan, Indonesia, and others.

Asia Pacific region is projected to grow at the fastest CAGR of 6.25% over the forecast period. Asia-Pacific market is projected to grow significantly, with several improvements in the industry to manufacture cotton towels with improved quality and efficiency. In addition, the need for towels in hotel and spa industry is driven by the rising demand health awareness among the consumers, which as a result fuels the overall demand of the product in the region.

North America is a developed region with major countries being U.S., Canada, and Mexico. These countries contribute majorly to the growth of the North America region’s economic growth. Cotton towels are high in demand as part of luxury home textiles due to high standards of living and purchasing power. Moreover, growing number of manufacturers and sellers in the region has resulted into increased variety and easy availability of high-end luxury home textiles.

People in Europe gives huge importance to bathing habits. Increased standard of living of consumers and growing preference towards quality products for personal care has triggered demand for superior grade towel. Rising expenditure of consumers on hygiene related products supplements to the growth of the market

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The development of the market in the Middle East, Africa, and South America regions is expected to be supported by the production of sophisticated and luxury cotton towels and the inclination of the manufacturers towards the growing urban population in those countries. The demand for cotton towels among beauty professionals is expected to propel, owing to the increasing young population in the region.

KEY INDUSTRY PLAYERS

Product innovation to Drive Gradual Enhancement in the Existing Product Portfolio of Market Players

The market key players have focused on launching new and technologically advanced products, appropriate for all purposes. Furthermore, the growing tourism activities post pandemic situation in all the regions have surged the demand for cotton towels suitable for hotels and restaurants. In recent years, the demand for smart and technologically advanced products has increased. In these terms, the Egyptian towel type segment has been experiencing a widespread attention, given its convenience in providing comfort and luxury benefits to the individuals.  

Egyptian cotton towel type is expected to gain a competitive market share over the forecast period. This cotton type provides utmost comfort to the consumers as they are mainly produced with pure cotton. From the production point of view, new business opportunities and evolving product categories will gradually and continuously improve the design of traditional products over the next few years.

LIST OF KEY COMPANIES PROFILED:

• Utopia Deals (U.S.)


• Grund America (U.S.)


• Dunroven House (U.S.)


• Orahome (U.S)


• Iris Hantverk (Sweden)


• The DMC Corporation (France)


• MATTEO (U.S.)


• ELSATEX Ltd.  (U.K.)


• Red Land Cotton (U.S.)


• Danica Studio (Canada)

KEY INDUSTRY DEVELOPMENTS:

• October 2021: Welspun India Limited announced the partnership with DuPont Biomaterials to launch home textile product range including bath towels and bedsheets, made with bio-based materials.


• September 2021: Welspun India Limited announced an investment plan of USD 108-110 million in home textile and flooring business products for production capacity expansion. As an expansion plan, the company approved the towel manufacturing capacity in its Gujarat (India) plant from current 102 thousand MTPA to 85.40 thousand MTPA.


• June 2021: OURA, known for infusing high-tech solutions into everyday products, announced its latest wellness-promoting antimicrobial lifestyle product, the Alta towel. The Alta towel is engineered with CottonX, a proprietary fiber and textile technology, that help eliminates bacteria, mold, and musty aromas by self-sterilizing and killing bacteria on contact with the compliments of copper-infused fibers.

REPORT COVERAGE

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The global market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and market dynamics. Besides this, the research report provides insights into the key market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth.

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