The U.S. market for cotton sacks and bags is poised for moderate growth in the coming years, despite a projected decline in overall market value. According to a report by IndexBox, consumption is expected to reach 8.6K tons by 2035. However, market value is anticipated to drop to $53 million by that same year.

Current Consumption and Market Size

In 2024, the United States consumed approximately 7.7K tons of cotton bags and sacks, marking a 5.3% increase from the previous year. This rise in consumption reflects a steady annual growth rate of 1.3% from 2013 to 2024, indicating a stable yet slow upward trend. The market size increased significantly, hitting $61 million in 2024, which represents a 7.2% growth compared to 2023. This figure reflects the total revenues from producers and importers but excludes logistics, marketing, and retail margins.

The growth in market value over this period suggests that the demand for cotton bags is robust, with fluctuations observed in previous years. The sustained consumption peaks in 2024 underscore a continuation of this upward trend moving forward.

Production Insights

In terms of production, the U.S. manufactured 6.5K tons of cotton bags in 2024, a slight increase of 3.5% from the prior year. Production levels have seen modest growth over the years, with the most significant rise occurring in 2023 when output surged by 12%. The peak production figure of 6.6K tons was recorded in 2017, after which production levels stabilized and have generally remained below this benchmark.

The production value also saw a notable increase, climbing to $54 million in 2024. Over the past eleven years, the average annual value growth rate was 1.8%, although significant volatility was present during that time, with production values in 2024 showing a remarkable 78.8% increase compared to 2021.

Import Dynamics

Imports of cotton bags dropped by 6.4% to 1.5K tons in 2024, marking a second consecutive year of decline after previously showing growth. This slowdown came despite the records set in 2019 for the fastest import growth rate—68%. The U.S. import market saw its high water mark in 2022 with 2.1K tons.

In financial terms, the value of imports decreased to $13 million in 2024. Historically, imports have demonstrated a general upward trend, highlighted by a 32% increase in 2021 alone. However, recent trends have indicated a downturn from those record highs.

Major Import Sources

India, China, and Indonesia are the main suppliers for the U.S. cotton bag market, combining for 64% of total imports. In terms of tonnage, India contributed 451 tons, China 288 tons, and Indonesia 194 tons. Other countries, including Pakistan, Turkey, Vietnam, and Italy, made up an additional 24%.

From 2013 through 2024, Turkey exhibited the most substantial growth rate at 80.1% annually among primary suppliers. In value terms, the largest suppliers to the U.S. were India ($3.9 million), China ($2.8 million), and Pakistan ($1.3 million), providing approximately 62% of all imports.

Import Price Trends

The average import price for cotton bags in 2024 was $8,817 per ton, which reflects a 5.4% decline from the previous year. Despite this drop, overall trends indicate a relatively stable pricing pattern since 2015, with earlier peaks hitting $10,366 per ton in 2014. Price variations among countries are significant, with Italy recording the highest average import price at $20,399 per ton, while Vietnam had one of the lowest at $5,803 per ton.

Export Challenges

After three consecutive years of growth, U.S. cotton bag exports saw a significant decrease of 45% in 2024, falling to 320 tons. Despite a growth trend averaging 1.7% per year since 2013, the market demonstrated fluctuating patterns throughout the years, with previous highs of 582 tons in 2023.

In terms of value, cotton bag exports plummeted to $3 million in 2024. The previous year’s peak had reached $5.3 million, demonstrating a sharp disconnect between quantity and value.

Export Destinations

Canada, Mexico, and Japan accounted for 83% of U.S. cotton bag exports in 2024. Specifically, Canada imported 127 tons, Mexico took 95 tons, and Japan received 45 tons. Other countries such as the UK, Germany, Vietnam, the Cayman Islands, the Dominican Republic, and China accounted for the remaining 18% of exports.

Among the main export markets, Germany achieved the highest growth rate for U.S. shipments, expanding at a CAGR of 38.2% from 2013 to 2024.

Export Price Fluctuations

The average export price for U.S. cotton bags increased to $9,509 per ton in 2024, reflecting a 3.5% rise from 2023 figures. Overall, the export price has shown mild gains since recording a peak of $9,637 per ton in 2015. The most notable price disparities were evident among major export destinations, with China showing the highest price point at $14,159 per ton and Japan near the bottom at $2,396 per ton.

In summary, while the U.S. cotton bags market faces challenges with declining export volumes and values, the overall consumption is projected to grow, indicating a resilient demand for cotton products in the near future.