12 Countries That Produce the Best Fabrics/Garments

12 Countries That Produce the Best Fabrics/Garments

In this piece, we will take a look at the 12 countries that produce the best fabrics/garments. For more countries, head on over to 5 Countries That Produce the Best Fabrics/Garments.

The Textile Industry: An Analysis

The global textile industry is one of the largest sectors in the world. It consists of a host of different products, ranging from clothes, garments, yarn, fabrics, cotton, and more. According to research from Grand View Market Research, the sector was worth a whopping $993 billion in 2021 and grew to $1 trillion by 2022 end. From then until 2030, the firm believes that the industry will grow at a compounded annual growth rate (CAGR) of 4{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} to be worth an estimated $1.4 trillion by the end of the forecast period. In terms of composition by products, the cotton sector is the largest sub segment of the textile industry. The research firm believes that cotton accounted for a strong 39{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} of the total market revenue in 2021, with America, China, and India being the largest cotton producers in the world. Apart from cotton, wool was also a big part of the industry, as it accounted for 13{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} of the market and was used primarily in winter products such as jackets and blankets. Regionally, Asia Pacific is the largest sector as it accounted for close to 50{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} of the total revenue. For North America, the U.S. is the largest textile country, as it produces significant amounts of cotton and textiles as well as imports large amounts of products.

These days, sustainability is an important topic in the textile, garment, and fabrics industry. Since the bulk of global textile production takes place in developing countries, and the products are also bought by firms in the developed world, customers and firms are concerned about the conditions in which the products are produced. Developed nations are growing wary of brands that do not stick to ethical practices. For example, ‘sweatshops’ use exploitative labor practices to ensure that they can produce cheap products and deliver them faster than competitors – a crucial competitive factor when it comes to fast fashion where designers change their products within months and then brands push the products out to the market as soon as possible.

Still, these sweatshops aren’t limited only to developing countries, as numerous examples are also found in some of the most developed countries in the world, including the United States and the United Kingdom. In fact, as Forbes points out, sweatshops in Los Angeles have workers who work as much as 12 hours a day and are paid 3 cents a piece for items that can retail for as high as $75. Unsurprisingly, laborers that are employed in these shops are also undocumented immigrants, which makes it hard for the U.S. government to track them and easy for the firms to pay them low wages and no benefits without fearing any legal recourse. Taking action against the firms that use these sweatshops also becomes complicated as some people fear that boycotting the firms will lead to a loss of employment and wages for the workers as well.

Sustainability is also receiving growing interest when it comes to the textiles that are manufactured. On this front, a wide variety of both new and old sustainable fabrics are being developed. One of the more prominent examples of these is Soy Protein Fiber (SPF) which is also known as Soy Fabric. This particular fabric traces its roots back to the legendary Henry Ford, who is widely credited to having invented soy fabric. In fact, the late Mr. Ford was so enamored with the material that in his later years he would mostly wear garments that were made through this material in order to popularize soybean production in America. SPF is popular as an environmentally friendly product since it uses waste products from soybean production to make garments, while traditional garment production involves using toxic chemicals that end up harming their surroundings. Another novel sustainable textile is Algae Fiber, which – as the name suggests – converts Algae into fiber by mixing it with cellulose.

Globally speaking, the textile industry is dominated by Asia. In fact, the industry has also contributed to the meteoric rise of Bangladesh. At the time of its independence from Pakistan in 1971, Bangladesh was the world’s second poorest nation. However, in just a handful of decades, the country is now the second largest economy in South Asia – with the progress being fueled primarily by textile production. Globally, some of the largest textile and oldest firms are Sinopec Yizheng Chemical Fibre Company Ltd., Shadong Jining Ruyi Woolen Textile Co. Ltd., Paramount Textile Ltd., and Successori REDA S.p.A.

Photo by Rio Lecatompessy on Unsplash

Our Methodology

We used several different sources to compile our list of the top countries in garments and fabric manufacturing. Unlike for products such as tobacco and beef, these rankings are harder to sift out as it’s generally firms that source them instead of the ordinary consumer that purchases them. Our research allowed us to narrow down 26 countries that have been praised for their products. Each time a country appeared in a source, it was assigned a single point, those commended for ethical practices were assigned two points, and ties between them were resolved through garment exports. Sources consulted are the quality control firm ATI, New York Spaces, digital marketplace Manufy, FASHiNZA Magazine, textile sourcing company Rag Sourcing, B2B website network Just Style, and Reddit (1,2,3). For countries that export the most garments, head on over to 12 Countries that Export the Most Fabrics/Garments.

Countries That Produce the Best Fabrics/Garments

12. Portuguese Republic

Insider Monkey’s Score: 2

Garment Exports in 2021: $12.8 million

The Portuguese Republic is a European country with a GDP per capita of $42,067. While it is not a dominant player in the global textile industry, Portugal is known for its strong focus on sustainable textiles. The country has a large number of both environmentally friendly and ethical factories. For instance, the Portuguese factory consortium Friendly Factories is made up of 30 factories that ensure workers are working by choice and under conditions mandated by European Union laws. Additionally, some well known sustainable textile companies are ASBX, Create Fashion, and Tryport.

11. Kingdom of Morocco

Insider Monkey’s Score: 2

Garment Exports in 2021: $297 million

The Kingdom of Morocco is a North African country. Textile is an important portion of the Moroccan economy and has seen strong growth over the past few years. Its close proximity to Europe makes it one of the continent’s ten largest textile export partners, with exports growing by a strong 31{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} in the first quarter of 2022 alone. Some well known Moroccan textile firms are Vita Couture, Fashion Lixus, and Soft Tech.

10. Kingdom of Spain

Insider Monkey’s Score: 2

Garment Exports in 2021: $297 million

The Kingdom of Spain is another prosperous European nation with a long history dating back thousands of years. In the textile world, like Portugal, Spain is littered with sustainable textile companies. Additionally, apparel manufacturing is one of Spain’s largest industries, with thousands of factories in the country. Spanish brands such as Industria de Diseño Textil, S.A. (BME:TX.MC)’s ZARA are leaders in the global fashion scene.

9. Federal Republic of Germany

Insider Monkey’s Score: 2

Garment Exports in 2021: $578 million

Germany is one of the most developed countries in the world and Europe’s largest economy. It is also another European country that focuses on sustainable textile manufacturing, with German consumers paying attention to the ‘Green Button’ label on products which certifies them for not having relied on exploitative labor. As a whole, the textile manufacturing sector also employs hundreds of thousands of workers all over Germany.

8. People’s Republic of Bangladesh

Insider Monkey’s Score: 2

Garment Exports in 2021: $600 million

The People’s Republic of Bangladesh is a rising star in the textile world. Its textile industry holds a historic place in the country’s history and has been producing products since the 1600s when Bangladesh alone accounted for half of the Dutch Empire’s textile imports from Asia. Bangladesh has centuries old traditions of textile weaving, and brands such as Aarong and Remi Holdings are known all over the world. The country was the world’s third largest garments exporter in 2021.

7. Republic of Poland

Insider Monkey’s Score: 3

Garment Exports in 2021: $188 million

The Republic of Poland is a Central European country that benefits from its location in the textile industry as this allows it to export its products all over Europe. Poland’s total textile exports stand at more than $10 billion, and its largest trading partner is Germany, which accounts for almost half or $4.5 billion of the exports. Some of the country’s most well known textile manufacturers are Kamus, M-Corp, BFIELD, and GlocalPartner.

6. United States of America

Insider Monkey’s Score: 3

Garment Exports in 2021: $265 million

The United States of America, or the U.S., is the only superpower in the world. Its corporate and industrial sectors is one of the most developed in the world, which has also led to America having a strong history in the textile, garments, and fabrics industry. The U.S. textile and garments industry shipped $65 billion of products in 2021, with total exports standing at $28 billion. Some large American textile companies are the American Textile Company (ATC), Levi Strauss & Co. (NYSE:LEVI), and WestPoint Home, Inc.

 

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Disclosure: None. 12 Countries That Produce the Best Fabrics/Garments is originally published on Insider Monkey.

12 Countries That Produce the Best Cars in the World

12 Countries That Produce the Best Cars in the World

In this piece, we will take a look at the 12 countries that produce the best cars in the world. For more countries, head on over to 5 Countries That Produce the Best Cars in the World.

The car industry is one of the largest industries in the world. The industry is also often used as a gauge for the wider economy due to its impact on job creation and output. Car manufacturing has traditionally been a labor intensive sector, which generates employment. Generally, an economic slowdown leads to lower car sales, which in turn reduces profits for the car companies and leads to unemployment as they cut costs and reduce their production.

In terms of production statistics, the global automotive market produced 110 million units in 2021, and these will grow at a compounded annual growth rate (CAGR) of 4.5{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} from then until 2030 to sit at 305 million units by the end of the forecast period according to data from the research firm Markets Research Future. The firm outlines that the industry grew in 2022 as pent up demand from the coronavirus pandemic was unleashed. The largest growth driver for this industry was the improvement in the automotive motor, and its ability to generate more power due to improvements. Additionally, Markets Research Future also believes that Europe was the largest constituent of the global automotive industry, as it accounted for 23{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} of the market last year. While the research firm assigns a 4.5{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} growth rate to the industry for 2030 as a whole, its growth estimate for Europe is stunning, with an estimated CAGR of 39.5{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b}.

Another report, this time from McKinsey, breaks down the industry into different segments. McKinsey believes that going forward, the shared vehicle industry will grow the most, as consumers will shift to application specific uses for cars. This, in turn, will prompt manufacturers to make different kinds, such as those that are designed specifically for ridesharing applications and use. McKinsey is also quite optimistic about the future of autonomous vehicles, as it believes that up to 15{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} of vehicles sold in 2030 can be autonomous if the necessary regulatory requirements are met. On the topic of electric vehicles, it believes that adoption will depend on localization since the cost of ownership and government support will continue to play major roles in stimulating demand. Some leading car companies in the world are Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM).

Photo by carlos aranda on Unsplash

Our Methodology

In order to sift out which countries in the world make the best cars, we decided to take a look at the countries whose products are in greatest demand globally. This was carried out by determining country-wise exports by the end of 2021, under the Harmonized Tariff Schedule Item 8703 ‘Motor cars and other motor vehicles principally designed for the transport of persons, including station wagons and racing cars (excluding motor vehicles of heading 8702)’. The data for these exports has been gathered via Trademap.org.

12 Countries That Produce the Best Cars in the World

12. Czech Republic

Car Exports as of 2021: $23 billion

The Czech Republic is a landlocked European country with a gross domestic product (GDP) of $503 billion as of 2022 and a high GDP per capita of $47,527. The country has six local car manufacturers, with two that are among the oldest car companies in the world. Two of its oldest car companies are Skoda Auto a.s. and Praga. The former was set up in 1925 while the latter was in 1907. Out of these two, Praga now exclusively focuses its efforts on manufacturing sports cars and offers two models as of 2022. These are the Praga Bohema and the Praga R1. The Bohema has a top speed exceeding 300 kilometers per hour and can accelerate to 100 kilometers per hour in less than 2.3 seconds. While Praga is a sports car company, Skoda manufactures all kinds of vehicles such as sports utility vehicles and family cars.

11. People’s Republic of China

Car Exports as of 2021: $24 billion

The People’s Republic of China is the second largest economy in the world and the world’s largest country in terms of population. This lends it a strong car industry since a growing population has to cater to its mobility needs. The Chinese car industry has been one the largest in the world in terms of total vehicles produced for more than a decade now. However, the country exports fewer cars than other economic powerhouses. Its car exports were worth $24 billion in 2021, and stood at 2.4 million tons with an average value of $10,143 per unit. Yet, the People’s Republic of China is only one of two countries on our list that has grown its car exports between 2017 and 2021. It has around 50 car manufacturing companies, which are divided between private and state owned enterprises. International companies such as Tesla, Inc. (NASDAQ:TSLA) also build cars in China, to take the cost advantage and target the local population. Alongside Tesla, China is now witnessing a growth in local car companies as well, with firms such as Li Auto Inc. (NASDAQ:LI) and NIO Inc. (NYSE:NIO) making their mark on the local industry.

10. Slovak Republic

Car Exports as of 2021: $26 billion

The Slovak Republic is a Central European country that gained its independence in 1993. The country’s car industry’s strength is no surprise as it was formerly part of Czechoslovakia, and therefore, inherited the automobile industry in part as companies such as Skoda were also based in the Slovak Republic. After the dissolution of Czechoslovakia however, the car manufacturers shifted to the Czech Republic. Currently, domestic firms focus on manufacturing trucks for the military and other vehicles for urban transport. However, multinational giants such as Volkswagen, Kia, and Peugeot all have a manufacturing presence in the country, allowing the Slovak Republic to become of the largest car exporters in the world. As of 2021 end, it exported $26.8 billion worth of vehicles in the form of 1.6 million tons and a unit value of $16,345.

9. Canada

Car Exports as of 2021: $29 billion

Canada is a North American country and one of the largest in the world in terms of land mass. The country’s economy stood at $2.2 trillion in purchasing power parity terms in 2022, making it the 15th largest in the world, lending it a GDP per capita of $57,827. Like Slovakia, Canada is also home primarily to foreign car manufacturers, with local firms focusing instead on manufacturing buses. However, Canada does make its own armored cars. The Canadian firm Terradyne Armoured Vehicles builds light and stock armored cars that are capable of stopping armor piercing bullets. Canada also has a diverse automotive manufacturing ecosystem of suppliers, and one of its largest companies is Magna International, an automotive parts supplier. Canada’s car export stood at $29 billion in 2021. In Canada, American companies like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) enjoy a huge popularity of their products.

8. United Kingdom of Great Britain and Northern Ireland

Car Exports as of 2021: $30 billion

United Kingdom of Great Britain and Northern Ireland is a European country with an economy worth $3.8 trillion in 2022 and a GDP per capita of $55,862. The country is one of the first to have manufactured the modern day automobile, in the form of Rolls Royce 10 hp which was manufactured in 1904. Legend has it that the vehicle was so stable that a penny standing upright would maintain its position even when the engine was running. Since then, the U.K. has come a long way, and it is home to some of the most iconic car companies in the world such as McLaren, Lotus, Jaguar, Aston Martin, Bentley, and Land Rover. These are among some of the most valuable cars in the world, and McLaren’s McLaren F1 is still the world’s fastest naturally aspirated production car despite being introduced more than two decades back. These cars do not rely on turbochargers or other equipment to force air into the engine.

American cars made by Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM) are also extremely popular in the country.

7. Kingdom of Belgium

Car Exports as of 2021: $31 billion

The Kingdom of Belgium is a European country that gained independence in 1830 from the Dutch Empire. It has a high GDP per capita of $62,065 and a high population density as well. Belgium has been home to some of the oldest car manufacturing companies in the world, such as Miesse, which established operations in 1894, and Ateliers Vivinus S.A., which started production a year later in 1895. Right now, Belgium is home to several different car companies, such as Edran which solely manufactures the Enigma sports car with 802 bhp, and Gillet, which is a car company started by a former racecar driver.

6. Kingdom of Spain

Car Exports as of 2021: $33 billion

The Kingdom of Spain is a European country with one of the oldest civilizations in the world. The country had a $2.2 trillion GDP in 2022. The country is currently home to six different car companies. Its largest car exporter is SEAT S.A., which is a Volkswagen subsidiary and sells vehicles under the SEAT and Cupra brands to countries such as the United Kingdom. The Kingdom of Spain’s car exports stood at $33.9 billion in 2021, and it had exported a total of 2.5 million tons of vehicles with an average value of $13,308 per unit. A large chunk of population in Spain also imports cars from US automakers like Tesla, Inc. (NASDAQ:TSLA), Ford Motor Company (NYSE:F), and General Motors Company (NYSE:GM).

 

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Disclosure: None. 12 Countries That Produce the Best Cars in the World is originally published on Insider Monkey.