Pakistan has become a Denim Hub

by Prof. Dr. Noor Ahmed Memon, Dadabhoy Institute of Higher Education.

Pakistan has become a Denim Hub in the region in less than a decade and is considered as one of the leading suppliers of quality denim fabric to the world's known brands for the garments. The denim industry is contributing substantially towards exports and creating job in the denim sector. At present Pakistan makes it to the top three denim manufacturers in Asia.

Pakistan’s textile exports seem to have largely recovered from the Covid-19 pandemic shocks and are still growing. Export of cotton denim fabrics from Pakistan increased from 408 million square metres worth Rs 66 billion in 2019-20 to 181 million square metres worth Rs. 73 billion in 2020-21, thus showing an increase of 12% in terms of value. Bangladesh, Turkey, Egypt, Sri Lanka, Italy and Cambodia are the major markets for denim fabrics exports from Pakistan.

The global market value of denim fabric was US$ 90 billion in 20 and was expected to increase to US$105 billion by 2023. Denim or blue jeans are by far the most valuable product in the denim industry, though there has been an increase in value for every type of denim clothing item.

Western wear, a style of clothing originating from the 19th century American old west region, uses a large amount of denim. As such, the market value of western wear was also projected to increase through 2023, to reach a value of US$ 99 billion. At present, the major manufacturers countries of denim fabric are concentrated in China, India and Pakistan.

The major driving factor of global denim jeans markets are rising disposable income of the individuals, surging ecommerce industry and increasing preference for wearing denim jeans.

Manufacturers are adopting the leading fibre technology that has enabled them to offer denim jeans products for at leisure and activewear besides the workwear and casual wear. The major restraining factor of global denim jeans markets are changes in consumer lifestyle & preference and the introduction of yoga pants and other active wear.

The denim jeans are a specific type of trousers which are made of denim or dungaree cloth. The denim jeans are one of the most significant parts of the clothing and apparel industry.

Increasing demand for denim jeans products is further expected to impact the global market growth of denim jeans positively.

Denim is now one of the key apparel sectors and the driving force behind the apparel exports of the country. The United States were the major denim producer throughout the years, but now with the emergence of the countries like China, India, Pakistan and Bangladesh, it is evident that denim is not an American product anymore.

Table 1: Export of Cotton Woven Denim Fabrics

Year Quantity (Million Sq M)

Value (Rs. Millions)

2015-16 426 47,983

2016-17 363 45,394

2017-18 434 57,473

2018-19 492 65,963

2019-20 408 66,279

2020-21 181 73,281

Source: Pakistan Bureau of Statistics

Pakistan’s Role

Pakistan has become denim hub in the region in less than a decade and is considered one of the leading suppliers of quality denim fabric to the world's known brands for the garments.

Denim fabric has been developed and over the last few years; there is rapid growth and expansion in its use and production capacity in Pakistan. There are about 40 major players in the denim industry of Pakistan. Some of them, like Artistic Fabric Mills, Pak Denim Limited, Al-Ameen Denim Mills Limited, S.M Denim Mills Ltd, Denim International, Classic Denim, Rajby Industries, Soorty, etc. are producing more than 50 million square metres of finished denim fabrics monthly.

Supply of denim fabric from Pakistan is a specialised textile product with its diversified increasing use in jeans, fancy and fashion apparel, curtain, bed sheets, canvas, uniforms, fire-resistant apparels for all seasons and all ages.

Exports

There is a constant increase in the export of denim fabrics from Pakistan. Export of cotton denim fabrics increased from 408 million square meters worth Rs

66 billion in 2019-20 to 181 million square meters worth Rs 73 billion in 2020-21, thus showing an increase of 12% in terms of value. Exports of cotton denim fabrics from Pakistan are given in

Table-1.

Bangladesh, Turkey, Egypt, Sri Lanka and Italy are the major markets for denim fabrics exports from Pakistan. With about 207 million sq. meters of cotton denim fabric being exported to Bangladesh in 2019-20, it is a major market for Pakistan. Country-wise exports of cotton denim fabrics from Pakistan are given in Table 2.

The world's top denim fabric exporting country in 2020 was China while the top denim fabric importing country was Bangladesh. Mexico was the largest supplier of denim jeans to the USA while Bangladesh was the largest supplier of denim jeans to the EU. America tops the list of denim jeans users and an average estimate puts the figure at 450 million pairs a year. The top global denim fabric exporting countries are China, Hong Kong, Turkey, Italy, Pakistan India, Spain and Brazil.

Future Prospects

Traditionally the denim fabric is made of 100% cotton indigo dyed warp and white weft yarn of coarser counts. The fabrics are woven on projectile, rapier, airjet and shuttle looms.

Initially the denim fabric was developed as work wear. Now the scenario is different. Denim fabrics has gained immense popularity and accepted by all irrespective of gender, age-groups and profession. So, there is tremendous challenge on the part of denim product manufactures to innovate and develop products to suit requirements of different consumers.

Currently, jeans are available in a variety of colors and styles to suit various consumer needs. Denim represents an evergreen fashion trend. Denim sales based on styles and fits are heavily dependent on street fashion and celebrity fashion trends. Growth in the market is influenced by economic, social and demographic trends.

The innovation remains critical to market growth and jeans have been reinvented from time to time over the last few decades. The manufacturers are focusing on newer designs, styles, and fit to suit changing consumer preferences and fashion trends.

The market situation does not allow the global players in the denim to increase consumer prices and therefore they have to absorb the price increases from denim fabric producers worldwide.

Since major denim importing countries are opting for vertical integration, export markets are shrinking and margins are under pressure. Manufacturers can either improve their production practices to enhance productivity and hence reduce costs or increase value addition at the fabric stage by producing premium quality denim.

In this scenario, Pakistan has emerged as a key supplier of this highly demanded fabric due to the competitive prices and in house innovations by the denim manufacturers in Pakistan. In conclusion, it is well accepted that denim is an evergreen fashion and liked by all irrespective of gender, age and profession. A lot of innovation and research are to be done on continuous basis to fulfill requirements of diverse consumers keeping in mind its impact on society and environment.

Table 3: Exports of Cotton Woven Denim Fabrics Quantity: 000 sq. Meters Value: Rs. Million

Country 2020-21 2019-20 2018-19

Quantity Value Quantity Value Quantity Value

Bangladesh 88,948 35,779 207,381 34,641 245,972 32,476

Turkey 46,039 16,907 68,698 10,902 8,079 11,796

Italy 2,990 1,074 6,922 1,088 11,440 1,469

Vietnam 1,786 892 7,327 1,219 10,167 1,350

Egypt 13,670 6,494 39,340 6,030 47,029 5,612

Sri Lanka 3,212 1,650 14,213 2,116 152,264 248

UAE 1,075 361 8,331 1,303 1,255 160

Peru 814 518 4,147 708 6,699 943

Tunisia 525 227 1,007 161 80,789 11,706

Spain 368 148 2,217 375 1,791 260

China 848 234 2,061 343 1,372 192

All others 20,500 8,997 46,340 7,393 75,161 249

Total 180,775 73,281 407,984 66,279 491,696 65,963

Source: Pakistan Bureau of Statistics.

References

1. Pakistan Bureau of Statistics. 2. State Bank of Pakistan-Annual

Reports. 3. Trade Development Authority of

Pakistan.