Textile Raw Material Market in Canada was valued at US$99.5 million in 2016 and the market declined to US$87.6 million in 2020. Textile raw materials are unique components that are found in an unprocessed state and are used as a primary input in textile production. The selection of these materials depend upon the type of textile being manufactured and based on that these materials are divided into fabrics, yarns, chemical dyes, and fibers which are both natural and man-made. The textile industry in a developed country like Canada is heavily capital intensive, uses natural, artificial, man-made filaments and fibers, and supplies a wide range and varieties of textile items. The distinctive fashion cultures in Canada center around its largest fashion hubs in Toronto, Montreal, and Vancouver and the country is home to much successful apparel design and manufacturing companies. Over the past couple of years, the textile manufacturers in Canada have shifted towards manufacturing niche premium items consisting of qualitative apparel and clothing items. Hence, the demand for such textiles in Canada has steadily increased on account of evolving fashion trends and the increase in purchasing power of consumers, which has resulted in an increase in domestic sales as well as exports of Canadian clothing, textile, and footwear. Another report by Statistics Canada stated, that in 2019, the apparels domestic market in Canada increased by 16.37% compared to 2016. The growing consumption rate of Canadian clothing apparel, footwear, etc. in the domestic and international market will increase the demand for such items, thereby leading to more usage of textile raw material in their manufacturing. Hence, this will have a positive impact on the growth of the textile raw material market in Canada

Canada is the second-largest trading partner with the US for the import and export of textiles and apparel. The implementation of the United States-Mexico-Canada Agreement has revamped the investments and production capacity of the textile sector in Canada leading to healthy exports of Canadian-made apparel, clothing items in North American countries. For instance, Canada exported 40 million cotton or man-made fiber apparel to the US from July 1 to December 30 2020 and the agreement is expected to increase the production capacity of domestic textile manufacturers. Moreover, other free trade agreement like EU-Canada Free Trade Agreement has increased Canada’s imports of qualitative apparel from countries like Italy. Like, In 2019, EU members together accounted for 6% of Canada’s apparel imports showing an increase from 4% in 2010, with major high-end luxury apparel made in Italy. The dressing style of Americans is elective and lavish and European Unions are one of the major importers of clothing and apparels items from Canada. Hence the signing of such an agreement will lead to an increase in textile trade and economic integration of Canada with major textile markets in the US and EU. This will create more demand for qualitative apparel and clothing items of Canada in the US and EU textile market, resulting in an increase in textile raw material usage by Canadian apparel manufacturing companies, thereby having a positive impact on the growth of the textile raw material market in Canada.

The textile and apparel sector in Canada has well established itself in niches such as performance outerwear, women’s fashion apparel, and accessories, men tailored fine suits, uniforms, and protective apparel. Hence shift towards such growing trends, has increased consumers' demand towards high-end luxury apparel which has made some of the popular apparels brands expand their market in Canada. For instance, popular apparel brands like Winners, Marshalls, The Rack accounted for up to 34.1% of 2018 apparel sales in Canada with Winners having 271 stores showing an increase in its share from 6.6% in 2015 to 7.7% in 2018. Moreover, the increasing fashion trends have led to an increase in shipments and exports of hand customized and innovative designed Canadian apparel and clothing items. For instance, as per data issued by the Government of Canada, the shipment of Canadian apparel increased by 26.5% in 2019 compared to 2017. Hence such an increase in demand and consumption of high-end luxury Canadian apparel both in the domestic apparel market and in international markets will create more demand for such high brand items. This will provide more growth opportunities to the textile raw material market in Canada.

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Textile Raw Material Market in Canada Growth Drivers

The growing consumption rate for women fashion wear

The Canadian apparel market is large, mature and with rapid development in the sector, there has been an increase in consumer appetite for fashionable apparel especially for women. Canada represents one of the largest women’s clothing markets with apparels items like active jeans, suits, tops, having high demand. Moreover, womenswear is the most significant contributor to the growth of apparels sales in Canada. For instance, as per Statistics Canada in 2019, the retail sales of womenswear and clothing items was US$33.87 billion which held the maximum share in the total retail sales including menswear and children's swear. The high disposable income has also played a major in high expenditure on clothing and accessories. For instance, as per the 2019 report of Statistics Canada, the average annual household expenditure on clothing for women and girls aged four years and over in Canada in 2019 amounted to US$ 1000. Hence with growing consumption and expenditure for womenswear apparel and clothing items in Canada, the demand for such items will also increase. This will lead to more usage of textile raw materials in the manufacturing of women's apparel and textile items in Canada, thereby having a positive impact on the growth of the textile raw material market in Canada. 

The Major Players in this Market Include

The Major companies in the textile raw material market in Canada include Herrschners Inc., Numi, Custom Wool Mills Ltd, Hue Loco, Holt Renfrew and Co., Ltd., Invista, Garmatex Holdings Ltd., Duvaltex Inc., Morbern Inc., Ennis Fabrics

In 2020, Duvaltex Inc. a global leader in contract textiles launched its new ocean waste clean impact textile technology in partnership with STEELCASE a global leader in contract office furniture

In 2020, Holt Renfrew and Co., Ltd merged its Montreal operations with Ogilvy and formed Holt Renfrew Ogilvy, which will be one of the largest fashion, footwear, and apparels retail stores in Canada

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