Market Overview

The Latin America textiles market reached a size of USD 66.4 Billion in 2025 and is projected to grow to USD 90.6 Billion by 2034. With a compound annual growth rate (CAGR) of 3.52% from 2026 to 2034, this market's expansion is driven by rising demand for sustainable textiles, increased apparel production, and technological advancements. Companies are focusing on eco-friendly materials, automation, and regional trade agreements to improve supply chain resilience and competitiveness.

Study Assumption Years

  • Base Year: 2025
  • Historical Years: 2020-2025
  • Forecast Period: 2026-2034

Latin America Textiles Market Key Takeaways

  • The market size was USD 66.4 Billion in 2025.
  • The market is expected to grow at a CAGR of 3.52% during 2026-2034.
  • The forecast period for the market is 2026-2034.
  • Growing consumer awareness and regulatory pressure are driving demand for sustainable and eco-friendly textiles, including organic cotton, recycled polyester, and vegetal fibers.
  • Government initiatives like Brazil's National Circular Economy Strategy promote sustainable and low-carbon textile operations.
  • Investments in manufacturing facilities with advanced technologies are expanding regional textile production and exports, especially in Brazil, Mexico, and Peru.
  • Adoption of automation, digital printing, and high-speed weaving technologies is helping firms improve efficiency and compete with Asian manufacturers.

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Market Growth Factors

Textile manufacturing in Latin America has been growing rapidly, driven by the rising demand for sustainable and eco-friendly textiles from consumers and government regulations like Brazil's National Circular Economy Strategy, which went into effect in June 2024. Brands that use organic cotton, recycled polyester and vegetal fibers, Brazilian, Mexican and Colombian textile companies invest in closed loop production, dyeing without water, biodigester packaging. Retailers committed to selling sustainability because their practices were in line with consumer sustainability ethics. International brands embraced OEKO-TEX and GOTS certifications for credibility in sustainable fashion.

Major investments have been made to expand regional textile production and exports. In Belo Horizonte, Brazil, a new filter fabric production plant was opened by Valmet in early 2025, improving energy economy and reducing emissions. Brazil, Mexico, Peru, and other countries are attempting to improve domestic production to reduce imports, especially for the export market. They are modernizing equipment to be more competitive with Asian sources, including automation, digital printing and high speed weaving. Regional trade agreements and government incentives are helping the growth of Argentina and Colombia's textile industries.

Latin America is gaining favor with the international supply chain as a low-cost competitor for textile production targeting the US and Europe with high-quality textiles. The industry's focus on automation and sustainable materials, new technologies, and regional cooperation support its continued success and ability to compete in the global market. These factors are expected to lead to a growth in the market at a compound annual growth rate (CAGR) of 3.52% from 2026 to 2034 considering regional and global demand.

Market Segmentation

Raw Material Insights

  • Cotton
  • Chemical
  • Wool
  • Silk
  • Others

This segmentation includes all major raw materials such as cotton, chemical fibers, wool, silk, and other materials used in textile manufacturing.

Product Insights

  • Natural Fibers
  • Polyesters
  • Nylon
  • Others

The market segments covered by product encompass natural fibers, synthetic fibers like polyesters and nylon, and other textile products.

Application Insights

  • Household
  • Technical
  • Fashion and Clothing
  • Others

The applications considered relate to household textiles, technical textiles, fashion and clothing, and other uses.

Regional Insights

Brazil, Mexico, and Peru lead as dominant regions investing to increase production capacity and export potential. Brazil especially has a robust domestic market and established textile base attracting significant investments. Regional agglomerations in Argentina and Colombia are also growing, supported by government incentives and trade alliances. These countries aim to compete globally by leveraging automation, production technology, and sustainable practices to meet expected demand growth and export opportunities.

Recent Developments & News

In June 2024, Magazine Luiza, a Brazil-based textile company, announced a partnership with AliExpress to expand e-commerce in Brazil. This alliance represents Alibaba's first partnership with a retailer outside China, expected to transform the Brazilian online retail textile market.

Competitive Landscape

The market research report has also provided a comprehensive analysis of the competitive landscape, including market structure, key player positioning, winning strategies, and company evaluation quadrants along with detailed profiles.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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