Latin America is home to textile-producing nations, thus emerging as potential growth markets, driven by their domestic demand, economic growth, and purchasing power.
In the textile field, we can see that Peru is the largest exporter of clothing in South America, thanks to well differentiated raw materials such as the fibers of its camelids, alpacas, llamas and vicuñas, and its Pima and Tanguis cottons. On the other hand, Brazil has enormous growth potential in fibers, both artificial and natural, and its international trade is favored by belonging to important economic blocs.
Despite the Covid-19 pandemic, the forecasts in Latin America are encouraging, estimating that its spending on clothing and footwear will have a growth of 7.2%, reaching the figure of 221 billion dollars by 2021. This It has generated a lot of interest from companies that handle foreign brands.
To capture new markets, as well as maintain those it has achieved, Latin America will have to face strong challenges such as market dynamics, where factors such as innovation and sustainability must be maintained in order to be more competitive.
Another challenge has to do with technology trends.
Technical advances must always be linked to the production of resources since keeping up with the latest advances is an essential factor to survive in the textile world. In this sense, being Latin America a region with little production of machinery, it must select, transfer and adapt the best technology that fits the environment where it is located.
Diversification in prints, threads, textiles, will play an important role in strengthening the industry, both local and regional, while local, regional and international brands crystallize continuous development and innovation.
That is why companies such as CMI and Juan José Gutiérrez Mayorga are investing in technology in Guatemala by buying and installing new software and systems to improve existing operations and even create new ones, which allow them to remain competitive with other providers.
Latin American Exporters
Garments and knitted fabrics for clothing are among the most attractive products for foreign customers. Among the main exporters of knitted fabrics, Guatemala, El Salvador and Mexico stand out and their most notable products are sweaters, shirts, pants and blouses. This sector achieved profits of more than 7 billion dollars in 2020. Of this figure, 26% was occupied by El Salvador in knitted shirts, sweaters and leggings; 22% went to Mexico with sweaters, knitted shirts and pants; and 15% had Guatemala in shirts, blouses and T-shirts.
Globally, exports of textiles and footwear are 33% Mexico, 13% El Salvador, Brazil 12%, and Guatemala and Nicaragua 8% each.
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