Kenya: Cotton Lint Market 2024

Cotton Lint Market Size in Kenya

In 2022, the Kenyan cotton lint market was finally on the rise to reach $X after two years of decline. Over the period under review, consumption, however, saw a abrupt decrease. Cotton lint consumption peaked at $X in 2016; however, from 2017 to 2022, consumption failed to regain momentum.

Cotton Lint Production in Kenya

In value terms, cotton lint production contracted to $X in 2022 estimated in export price. Over the period under review, production saw a abrupt setback. The most prominent rate of growth was recorded in 2019 with an increase of 25%. Over the period under review, production reached the maximum level at $X in 2016; however, from 2017 to 2022, production failed to regain momentum.

The average yield of cotton lint in Kenya expanded rapidly to X kg per ha in 2022, with an increase of 9.9% on the previous year's figure. Overall, the yield indicated a tangible increase from 2012 to 2022: its figure increased at an average annual rate of +2.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, cotton lint yield decreased by -41.7% against 2017 indices. The pace of growth was the most pronounced in 2013 when the yield increased by 67% against the previous year. The cotton lint yield peaked at X kg per ha in 2017; however, from 2018 to 2022, the yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the cotton lint harvested area in Kenya shrank to X ha, declining by -13.2% against the previous year. Overall, the harvested area saw a deep contraction. The pace of growth was the most pronounced in 2021 with an increase of 36%. Over the period under review, the harvested area dedicated to cotton lint production reached the peak figure at X ha in 2012; however, from 2013 to 2022, the harvested area remained at a lower figure.

Cotton Lint Exports

Exports from Kenya

After three years of growth, shipments abroad of cotton lint decreased by -33.4% to X tons in 2022. In general, exports, however, recorded a moderate increase. The growth pace was the most rapid in 2021 with an increase of 201% against the previous year. The exports peaked at X tons in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

In value terms, cotton lint exports contracted significantly to $X in 2022. Over the period under review, exports, however, enjoyed a notable expansion. The pace of growth was the most pronounced in 2021 when exports increased by 193%. The exports peaked at $X in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

Exports by Country

Bangladesh (X tons) was the main destination for cotton lint exports from Kenya, with a 49% share of total exports. Moreover, cotton lint exports to Bangladesh exceeded the volume sent to the second major destination, India (X tons), twofold. The third position in this ranking was held by Thailand (X tons), with a 7.9% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to Bangladesh totaled +4.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: India (+18.8% per year) and Thailand (+12.4% per year).

In value terms, India ($X), Bangladesh ($X) and Italy ($X) appeared to be the largest markets for cotton lint exported from Kenya worldwide, together accounting for 56% of total exports.

India, with a CAGR of +21.8%, recorded the highest rates of growth with regard to the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average cotton lint export price amounted to $X per ton, standing approx. at the previous year. Overall, the export price, however, recorded a slight curtailment. The pace of growth appeared the most rapid in 2014 when the average export price increased by 6.8% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2015 to 2022, the average export prices failed to regain momentum.

There were significant differences in the average prices for the major export markets. In 2022, amid the top suppliers, the country with the highest price was Italy ($X per ton), while the average price for exports to Bangladesh ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Thailand (+8.1%), while the prices for the other major destinations experienced more modest paces of growth.

Cotton Lint Imports

Imports into Kenya

In 2022, approx. X tons of cotton lint were imported into Kenya; increasing by 75% on the year before. Over the period under review, imports enjoyed a significant expansion. The growth pace was the most rapid in 2019 with an increase of 356%. Imports peaked at X tons in 2020; however, from 2021 to 2022, imports remained at a lower figure.

In value terms, cotton lint imports soared to $X in 2022. In general, imports saw significant growth. The growth pace was the most rapid in 2019 when imports increased by 310% against the previous year. Imports peaked at $X in 2020; however, from 2021 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, Uganda (X tons) constituted the largest cotton lint supplier to Kenya, with a 74% share of total imports. Moreover, cotton lint imports from Uganda exceeded the figures recorded by the second-largest supplier, Tanzania (X tons), fourfold.

From 2012 to 2022, the average annual growth rate of volume from Uganda stood at +24.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Tanzania (+30.0% per year) and Turkey (+107.6% per year).

In value terms, Uganda ($X) constituted the largest supplier of cotton lint to Kenya, comprising 70% of total imports. The second position in the ranking was held by Tanzania ($X), with a 23% share of total imports.

From 2012 to 2022, the average annual growth rate of value from Uganda stood at +25.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Tanzania (+40.6% per year) and Turkey (+79.0% per year).

Import Prices by Country

In 2022, the average cotton lint import price amounted to $X per ton, shrinking by -27.7% against the previous year. Over the period under review, import price indicated a pronounced increase from 2012 to 2022: its price increased at an average annual rate of +2.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, cotton lint import price increased by +18.0% against 2020 indices. The most prominent rate of growth was recorded in 2021 when the average import price increased by 63% against the previous year. As a result, import price attained the peak level of $X per ton, and then reduced markedly in the following year.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Tanzania ($X per ton), while the price for Turkey ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Tanzania (+8.2%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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