GLOBAL MARKET REPORT

The report examines the global cotton market, highlighting the growth of VSS-compliant cotton, which reached 25%–26% of total production by 2019. It details the vulnerabilities of cotton farmers to climate change and market volatility, noting that farmers often receive less than 10% of a garment's retail price. The document argues for better price transparency, long-term contracts, and the internalization of external costs to ensure living incomes for smallholders.

• Cotton cultivation supports 100 million households across 75 countries, with 90% located in lower-income countries. An additional 350 million people provide supporting services such as labor, transportation, and ginning.
• Climate change poses significant risks to cotton production; under a business-as-usual scenario (RCP 8.5), at least half of all cotton-growing areas could be drastically affected by climate hazards by 2040.
• Cotton has a lower carbon footprint than synthetic fibers, emitting at least one-third fewer greenhouse gases per kilogram of fiber produced, and it biodegrades within 12 weeks.
• VSS-compliant cotton production grew at a CAGR of 39% to 40% from 2008 to 2019, representing 25%–26% of total global production by 2019, though growth slowed to 28%–29% between 2014 and 2019.
• There is a significant gap between the retail price of garments and the income of farmers; cotton farmers receive no more than 10% of the retail price, with some estimates as low as 2%–3%.
• Market distortions are caused by heavy government subsidies in high-cost countries; in 2019/20, 84% of the USD 8 billion in global cotton subsidies came from China and the United States.
• VSS-compliant cotton can be more profitable for farmers due to lower input costs and price premiums; for example, organic producers in India obtained 32% higher gross margins than conventional producers in 2010.
• The report predicts that VSS-compliant cotton production will continue to rise, ranging from 9 Mt to 13 Mt by 2025, driven by corporate sustainability commitments and consumer demand.

APA

Voora, V., Bermudez, S., Farrell, J. J., Larrea, C., & Luna, E. (2023). GLOBAL MARKET REPORT. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-01/2023-global-market-report-cotton.pdf

Chicago

Voora, Vivek, Steffany Bermudez, Johanna Joy Farrell, Cristina Larrea, and Erika Luna. GLOBAL MARKET REPORT. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-01/2023-global-market-report-cotton.pdf.

Wikipedia

{{cite report |last1=Voora |first1=Vivek |last2=Bermudez |first2=Steffany |last3=Farrell |first3=Johanna Joy |last4=Larrea |first4=Cristina |last5=Luna |first5=Erika |title=GLOBAL MARKET REPORT |publisher=International Institute for Sustainable Development |date=January 2023 |url=https://www.iisd.org/system/files/2023-01/2023-global-market-report-cotton.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{voora2023global, author = {Voora, Vivek and Bermudez, Steffany and Farrell, Johanna Joy and Larrea, Cristina and Luna, Erika}, title = {{GLOBAL MARKET REPORT}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = jan, url = {https://www.iisd.org/system/files/2023-01/2023-global-market-report-cotton.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }