The International Cotton Advisory Committee (ICAC) has released its July 2025 report, indicating that global cotton production and consumption are expected to remain stable for the 2025–26 season. The figures suggest that worldwide cotton production will reach around 26 million tonnes (MT), while consumption is estimated at approximately 25.7 million tonnes. Additionally, cotton trade is projected to make a recovery, reaching 9.7 million tonnes.
In the previous season, 2024–25, global cotton production amounted to 25.687 million tonnes, with consumption slightly lower at 25.526 million tonnes. The ICAC has revised its production estimates upwards for key regions, including Brazil, the United States, and West Africa. However, these regional gains could be offset by a minor decrease in China’s cotton output, which is projected to be around 6.3 million tonnes for 2025–26, following record yields of 2,257 kg/ha—the highest on record.
World cotton consumption is likely to face challenges from impending tariff increases, regulatory hurdles, and competition from alternative fibers. The anticipated rise in cotton trade, expected to increase by 2% to 9.65 million tonnes, will be driven by higher stock levels and growing demand from mills. However, factors such as trade agreements and tariffs may have a significant impact on the trade landscape for the upcoming season.
Price forecasts for cotton indicate a complex market environment. The ICAC anticipates an average A Index price of 81 cents per pound for the 2024–25 season. For 2025–26, the preliminary price forecast fluctuates between 56 and 95 cents per pound, with an expected midpoint of 73 cents. This uncertainty in pricing reflects the ongoing volatility in global markets and the interplay between supply, demand, and external economic factors.
As cotton continues to navigate these challenges, analysts emphasize the importance of strategic planning among producers and stakeholders to adapt to shifting market dynamics. The evolution of sustainability practices and the integration of technology within the industry are also vital to enhancing productivity and competitiveness in an increasingly complex global economy.
