The Global Silk Market Anticipated to Register a Revenue of $11,353.6 Million, Growing at a CAGR of 7.1% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
Silk market size was close to $6,621.5 million at the end of 2020 and is anticipated to surpass $11,353.6 million by 2028, at a notable CAGR of 7.1%.
Covid-19 Impact on Silk Market
The year 2020 has been the most challenging year for the textile especially silk industry worldwide. Communal transmission of corona virus brought the entire world to a standstill, equitably affecting supply chains and industrial operations across the globe.
However, companies operating in this silk production are coming up with strategic partnership, amid COVID-19 crisis. For example, in August 2021, GBM fabrics textile, Gujrat, India based textile mill, announced the collaboration with a LENZING AG, Austria-based plant-based silk producing firm. GBM fabrics has signed the Memorandum of Understanding (MoU) with the LENZING AG to adopt lyocell filament yarn technology that can be the best alternative for traditional silk. Such major advancements can positively affect the global silk market, post pandemic period.
Silk Market Outlook
Silk is one of the significant contributors to the textile & apparel market worldwide which is consistently increasing and evolving in terms of demand. Silk fiber has numerous features including luxurious feel, lustrous appearance, resilient, strength, and lightweight. Silk is massively used in the multiple sorts of apparels namely gowns, wedding dresses, neckties scarves, also in various household products including wall hangings, pillows, upholstery, and draperies. In addition to this, silk has lower conductivity property which increases the adoption of silk for clothing like ties, shirts, haute couture clothes, formal dress suits, robes, kimonos, and sundresses. Above-mentioned key elements are further anticipated to propel the demand for silk, which may ultimately flourish the global market.
Price fluctuation of silk material is one of the restraining factors for the global silk market growth. Further, absence of proper market and storage facilities, lack of transport facilities, and poor information on market trend particularly in the emerging nations namely India, Brazil, and Uzbekistan are some of the reasons that are also making obstructions in the global silk industry worldwide.
Textile particularly silk industry is one of the strategic economic activities in Europe, with the yearly turnover of billions of euros. Italy and Germany have the largest European market for silk textile. The Italian and German customers favor natural fibers along with import of huge and variety of silk garments, accessories, and interior decoration fabrics. Moreover, even though the European apparel & textile industry represents a heterogeneous sector, silk is a one of the important Italian textile productions owing to its unique properties like breathability, elasticity and absorbency. Such elements can open opportunities for the investors in the coming years.
Global Silk Market, Segmentation
The global silk market is segmented based on type, application, and region.
The type segment is further classified into mulberry silk, tussar silk, eri silk, and others. Among these, the mulberry silk sub-segment is expected to have the largest share and cross $7,430.2 million by 2028, with the rise from $4,255.0 million in 2020.
The notable growth of mulberry sub-segment is mainly attributed to its key features such as it is highly breathable, eco-friendly, 100% natural, odorless, and hypo-allergenic. Also, government’s supportive policies are fueling the mulberry sub-segment’s growth. For example, in June 2020, the Tripura government, India, announced to set up mulberry nurseries in order to support silkworm growers who have lost their family members throughout the COVID-19 outbreak. Also, in June 2021, Jammu and Kashmir government also initiated rearing process of cocoons in order to accelerate mulberry silk production. Such government’s robust support may provide enormous opportunities for the mulberry sub-segment, during the forecast period.
The application segment is further classified into textile and cosmetics & medical. Among these, the textile sub-segment is expected to have the lucrative growth, and surpass $9,745.8 million by 2028, with the increase from $5,624.8 million in 2020.
Silk plays a key role in the manufacturing of various types of apparel including gowns, wedding dresses, scarves, blouses, neckties along with in multiple household products namely wall hangings, pillows, upholstery, and draperies. Hence, textile sub-segment will have noticeable growth, during the projected period. In addition to this, increasing popularity of the lotus silk, muga silk, and artificial silk, growing disposable income, and digitalization in the value chain are some of the important factors accelerating the textile sub-segment’s growth.
Asia-Pacific silk market region is notably competitive and major players in the industry have preferred various strategies to occupy highest Asia-Pacific silk market share. Silk market for Asia-Pacific region accounted $5,906.4 million in 2020 and is further anticipated to generate a revenue of $10,286.4 million by 2028.
Significant demand for silk products and raw materials particularly from the Asian countries like India, Uzbekistan, China, Thailand, and Bangladesh is one of the major factors driving the Asia- Pacific silk market. Furthermore, massive expansion of textile & apparel industry is also creating positive impact on the silk market of the Asia-Pacific region. Moreover, notable technological advancements in the sericulture industry and effective government policies are some of the factors flourishing the Asia- Pacific silk market.
Top 10 Major Key Players in the Global Silk Market are -
- Anhui Silk Co. Ltd.
- Amsilk GmbH
- EntoGenetics inc.
- Bolt Threads
- Sichuan Nanchong Liuhe(Group) Corp.
- China Silk Group Co.,Ltd.
- Zhejiang Jiaxin Silk Corp. Ltd
- Shengkun Silk Manufacturing Co.,Ltd
- Spiber Technologies AB
- Libas Textiles Ltd.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Silk Market
- Bargaining Power of Suppliers: The suppliers of global silk are high and more globalized. So, there will be less threat from the supplier. Thus, the negotiation power of raw material suppliers of silk market decreases.
Hence, the bargaining power of the supplier is low.
- Bargaining Power of Buyer: Buyers have high bargaining power, mainly because of increasing buyers’ demand for high quality silk in lower cost. Thus, multiple suppliers are providing best yet cost-efficient silk. Hence, the buyers can select the service that best fits their preferences.
The bargaining power of the buyer is high.
- Threat of New Entrants: The startups entering this market are providing advanced solutions to clients. Moreover, these organizations are mainly focusing on the implementation of multiple strategies, brand development, product innovation, and many others.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: Bamboo lyocell, cupro, and recycled satin can be the substitute for the silk.
Therefore, the threat of substitute is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global silk industry are opting for multiple business development strategies to stronghold their market position in the industry. Also, the key players like Spiber Technologies AB and Libas Textiles Ltd are investing heavily to provide integrated services to the customers.
Therefore, competitive rivalry in the market is high.