Report

The Chile textile market attained a value of USD 5393.03 Million in 2024. The market is estimated to grow at a CAGR of 4.31% during 2025-2034 to reach a value of USD 8224.17 Million by 2034.

Chile Textile Market Growth

The Chile textile market is registering a tremendous pace of development due to the increased demand. The demand for premium household textiles has been consistent over the years which has been met by local industry. Several foreign players are also looking to tap into the market. In 2021, Rosen launched the copper health bedding line in Chile that features innovative textile technology with embedded copper particles.

The rise in sports retail is expected to prompt a 65.9% increase in new stores between 2018-2024, indicating a strong potential for the textile sector. Simultaneously, in September 2023, 25,765 new vehicles were sold, thus boosting demand for automotive textiles for seat covers, upholstery, and interior materials applications.

Chile's per capita spending rose to USD 9,833 in 2022, from USD 8,035 in 2020, encouraging consumers to invest more in fashion and clothing products, thereby supporting the Chile textile market expansion.

Further, in August 2024, retail sales in Chile saw a 6.8% y-o-y rise, with significant growth in the clothing, footwear, and accessories sectors.

The idea of a circular economy is gaining popularity in the textile market at a rapid rate. Circular economy highlights the importance of reducing waste, reusing materials, and recycling at the end lifecycle of the product. In August 2023, Procitex inaugurated a textile recycling plant in Chile and plans to recycle up to 500 tons per month. Consumers and industries are prioritising eco-friendly textiles that are encouraging sustainable and circular economy practices. Aligning with this, the Sustainable Design Chamber launched the Clean Production Agreement to manage textile waste over a 24-month initiative starting November 13, 2023.

In order to tap into the growing demand, key players are investing in order to improve their market position. For instance, Falabella - a specialist retailer for clothing and household goods recently unveiled a USD 508 million investment strategy for 2024, to bolster its omnichannel offerings and customer service.

In February 2023, Chile joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which already included 11 countries: Japan, Malaysia, Canada, New Zealand, Mexico, Singapore, Peru, Vietnam, Brunei, and Australia. This is likely to boost the Chile textile market growth by reducing tariffs and trade restrictions on textiles, further boosting trade opportunities for market players. Furthermore, Chilean textile firms can partner with CPTPP countries for technology, innovation, and sustainability to increase competitiveness.

In 2021, Chile experienced a rebound in clothing and footwear imports, reaching approx. 3 billion dollars, nearly returning to pre-pandemic levels seen in 2019.

According to the Santiago Chamber of Commerce (CCS), clothing has remained the most purchased item in Chile since 2020, accounting for 28% of total online sales that year. Additionally, during the first half of 2023, CCS estimated that 46% of Chilean consumers purchased clothing online each month, with footwear ranking second at 30%. According to the National Institute of Statistics, Chile's retail sales rose by 6.8% year-on-year in August 2024, following a 2.8% increase in July, driven by growth in clothing, footwear and accessories (15.5%), food (5%), and consumer goods (8.8%).

Between 2018 and 2022, the share of Chile's textile-clothing industry in the country's total economic value steadily declined, falling from 0.19% in 2018 to 0.11% in 2022. This decrease can be attributed to the rising competitive pressure from Asian nations, whose import dominance has significantly impacted Latin American industries, including Chile's textile sector, reducing its overall contribution to the economy. Chile exemplifies the productive disintegration of the textile-apparel industry, which began in the 1970s when the country shifted toward importing lower-cost manufactured goods. This led to a surge in Asian garment imports and a significant decline in domestic production and employment in the sector. According to the World Bank, Chile's manufacturing industry fluctuated slightly between 2013 and 2019, peaking in 2014 at 2.20% and reaching its lowest point in 2016 at 1.71%.

Figure: Chile's Textile-Clothing Industry: Share in Total Economic Value (2018-2022)

Economic growth enhances the purchasing power of consumers. Over the past 20 years, Chile has become Latin America's top clothing consumer per capita, with purchases rising by 233%. The average number of clothing items bought per person increased from 13 in 2015 to 50 in 2020, contributing to 572,118.9 tons of textile waste annually.

According to the World Bank, in 2019, textiles and clothing contributed 2.06% to the value added in Chile's manufacturing sector, underscoring the industry's modest yet significant role in the country's manufacturing economy.

Trade Agreements

Favourable government policies are expected to support the growth of the Chile textile market

The U.S.-Chile Free Trade Agreement (USCFTA) enhances the price competitiveness of U.S. textile and apparel exporters in the Chilean market by eliminating duties, enabling them to better compete with both domestic suppliers and suppliers from other countries without duty benefits. Additionally, by removing various non-tariff barriers, the FTA further expands market access in Chile for U.S. products.

India Chile PTA (Preferential Trade Agreement) is a framework agreement to promote economic cooperation between India and Chile. India has offered to provide fixed tariff preferences ranging from 10% to 50% on 178 tariff lines at the 8-digit level to Chile, the latter has offered tariff preferences on 296 tariff lines at the 8-digit level with a margin of preference ranging from 10% to 100%.

In 2024, European Free Trade Association (EFTA) and Chile convened to sign a Protocol of Amendment, modernizing their Free Trade Agreement (FTA), further strengthening economic ties between the two sides.

Key Trends and Developments

Growing trend of online shopping; increasing inclination towards sustainable products; favourable government policies; and rising disposable incomes are the key trends impacting the Chile textile market demand

Aug 16, 2023

Procitex inaugurated a unique textile recycling plant in Chile, with plans to recycle up to 500 tonnes per month. In its initial phase, the facility has the capacity to process 100 tonnes of textiles monthly.

Jul 20, 2022

Garware Technical Fibres, a global leader in technical textile solutions for aquaculture, introduced a high-density polyethylene net to the market, which can be painted with traditional water-based antifouling paints-an innovative feature unique in its category. This launch highlights the company's contribution to R&D in the industry.

Expanding online shopping to aid the Chile textile market growth

The rise of online shopping, driven by fast fashion and social media, presents significant opportunities for Chilean textile companies to expand their market presence. With 64.8% of Chileans making online purchases in 2022, and eCommerce users expected to grow from 12.7 million in 2022 to 13.7 million by 2027, local retailers can capitalise on this trend by investing in digital platforms, which is further supported by a high internet penetration rate of 91%.

Rising demand for sustainable clothing shaping the Chile textile market dynamics

The growing demand for sustainable and eco-friendly products in Chile offers a significant opportunity for the textile market. As consumers become environmentally conscious, businesses adopting circular economy practices and reducing textile waste are well-positioned to succeed. Ecocitex, a Chilean enterprise selling 100% recycled textiles, exemplifies this potential by reducing environmental impact. This model highlights the opportunity for Chilean companies to lead in sustainable textiles and support national environmental goals.

Favorable government policy including free trade agreements and incentives to aid the Chile textile market

Chile is Latin America's fifth-largest economy. The country has an extensive network of Free Trade Agreements (FTAs) with various countries. The Chile and U.S. Free Trade Agreement (USCFTA) was signed on June 6, 2003 that allows U.S. textile and apparel exporters to be more price-competitive in the Chilean market when competing with domestic suppliers and with third country suppliers that do not have duty benefits. Through the elimination of a variety of non-tariff barriers, the FTA further opens the Chilean market to U.S. products.

Chile is witnessing a significant increase in disposable income and rapid urbanization

Chile has a predominantly urban population (88%). With a thriving middle class, it has the highest disposable income in the region at approximately USD 10,300 per capita. Chile's per capita income is projected to grow steadily in the coming years, fueled by increased productivity and foreign investment.

Chile Textile Market Trends

The fast fashion sector in Chile has experienced significant growth, fueled by rising consumer demand for affordable and trendy clothing. Major international brands like Zara and H&M, along with local companies, have expanded their presence in the market, catering to a younger demographic seeking stylish options at accessible prices.

Meanwhile, the continuous growth of agriculture and related GDP from USD 20 billion in 2019 to USD 28.9 billion in 2023, with further contribution projected moving forward is likely to provide opportunities for agricultural textile products. The growing demand for such technical textile products is expected to increase the Chile textile market value.

In Chile, the most popular e-commerce categories are apparel and footwear, accounting for 48% of online purchases. These categories dominate the digital retail space, reflecting strong consumer demand in the fashion sector. Chile has a remarkable internet penetration rate, with 90.8% of its population connected in 2023. Most Chileans are highly engaged with social media, and there are approximately 1.4 mobile phones per person. Internet access reaches 92% of the population, highlighting the country's strong digital connectivity. This is supporting the Chile textile market development by driving online sales of apparel and other textile products.

By 2026, 4G and 5G services are expected to cover 96% of the population, further enhancing the nation's digital infrastructure. This robust IT environment is attracting foreign investment, positioning Chile as a growing hub for technology development in Latin America.

The growing need for pest and disease control drives the demand for agriculture textiles like nets and covers. The IDB's USD 50 million loan to Chile's agricultural sector will further boost this demand. Simultaneously, the growing focus on the transportation sector is expected to drive the demand for seat cover fabric, tufted carpet, seat belts, cabin filters, and others. In August 2022, the DTPM launched the Technical Transformation of the RED Network, a USD 500 million, ten-year plan to integrate Santiago's public transportation network, improve its accessibility, and lower carbon emissions.

Chile Textile Industry Segmentation

�Chile Textile Market Report and Forecast 2025-2034� offers a detailed analysis of the market based on the following segments:

Market Breakup by Application:

� Household_x000D_ _x000D_ Bedding _x000D_ Kitchen _x000D_ Upholstery _x000D_ Towel _x000D_ Others _x000D_ _x000D_
� Household_x000D_ _x000D_ Bedding _x000D_ Kitchen _x000D_ Upholstery _x000D_ Towel _x000D_ Others _x000D_ _x000D_
� Technical_x000D_ _x000D_ Construction _x000D_ Medical _x000D_ Transport _x000D_ Protective _x000D_ Industrial _x000D_ Agriculture _x000D_ Others _x000D_ _x000D_
� Fashion and Clothing_x000D_ _x000D_ Apparel _x000D_ Ties and Clothing Accessories _x000D_ Handbags _x000D_ Others _x000D_ _x000D_
� Others

� Technical_x000D_ _x000D_ Construction _x000D_ Medical _x000D_ Transport _x000D_ Protective _x000D_ Industrial _x000D_ Agriculture _x000D_ Others _x000D_ _x000D_
� Household_x000D_ _x000D_ Bedding _x000D_ Kitchen _x000D_ Upholstery _x000D_ Towel _x000D_ Others _x000D_ _x000D_
� Technical_x000D_ _x000D_ Construction _x000D_ Medical _x000D_ Transport _x000D_ Protective _x000D_ Industrial _x000D_ Agriculture _x000D_ Others _x000D_ _x000D_
� Fashion and Clothing_x000D_ _x000D_ Apparel _x000D_ Ties and Clothing Accessories _x000D_ Handbags _x000D_ Others _x000D_ _x000D_
� Others

� Fashion and Clothing_x000D_ _x000D_ Apparel _x000D_ Ties and Clothing Accessories _x000D_ Handbags _x000D_ Others _x000D_ _x000D_
� Household_x000D_ _x000D_ Bedding _x000D_ Kitchen _x000D_ Upholstery _x000D_ Towel _x000D_ Others _x000D_ _x000D_
� Technical_x000D_ _x000D_ Construction _x000D_ Medical _x000D_ Transport _x000D_ Protective _x000D_ Industrial _x000D_ Agriculture _x000D_ Others _x000D_ _x000D_
� Fashion and Clothing_x000D_ _x000D_ Apparel _x000D_ Ties and Clothing Accessories _x000D_ Handbags _x000D_ Others _x000D_ _x000D_
� Others

� Others

Market Breakup by Material:

� Cotton
� Chemical Fibres
� Wool
� Silk
� Others

Market Breakup by Product:

� Natural Fibres
� Polyester
� Nylon
� Others

Chile Textile Market Share

Based on material, chemical fibres account for a significant share of the Chile textile market

Chemical fibres, among other materials, are witnessing a great demand. The growing demand for synthetic fibres like polyester has prompted brands like Tiendas Paris to introduce the "Be Active" sportswear collection featuring Repreve recycled polyester for eco-friendly, high-quality garments at accessible prices.

Meanwhile, the growth of cotton-based products is attributed to the growing demand for men's apparel in Chile. In fact, between 2012-2021, approximately a third of the apparels imported in Chile was based of cotton.

Further, in 2022, Chile produced 4,000 tons of wool while constituting 2% of the global market share of wool programs. Notably, this was the first year that RWS (Responsible Wool Standard) wool was produced in Chile.

Based on product, natural fibre is a major contributor to the Chile textile market revenue

Cotton is a key natural fibre used in the textile industry in Chile. In 2022, Chile imported USD 453 thousand of raw cotton. In August 2024, The Chilean Ministry of Environment introduced a Draft Circular Economy Strategy for Textiles, aiming to promote sustainable practices by 2040. This strategy focuses on increasing the use of natural and sustainable materials. Additionally, wool is also used in Chile's textile sector and there has been growing popularity among wool producers to meet Responsible Wool Standard (RWS), thus further accelerating the demand for natural fibre.

On the other hand, the growth of synthetic fibres, especially polyester, has significantly impacted the textile industry's economy, driving growth in the fast fashion sector. The growth of the fast fashion industry is positively impacting the Chile textile market development.

In Chile, the demand for affordable clothing and the low production costs of polyester have solidified its position as a leading fabric. Further, polyesters are commonly used in home decor items like curtains. In 2023, Chile's import of curtains and valances made from synthetic fibres were valued at USD 2.24 million. Furthermore, the use of recycled polyester is gaining momentum in Chile, driven by growing awareness of environmental sustainability.

In recent years, Chile has seen a significant rise in demand for sportswear, which has contributed to the growing use of nylon in the country's sportswear industry. Moreover, Chile's automotive industry is poised for growth in 2024, with forecasts predicting 340,000 new vehicle sales in 2024. This upward trend is expected to drive greater demand for nylon tire yarn, as the need for durable, high-performance tires increases in tandem with vehicle sales.

Leading Players in the Chile Textile Market

The market players are focusing on providing products at competitive prices and high quality, with improved customer service and performance features.

Crossville Fabric Chile S.A.

Crossville Fabric Mill is a fully integrated textile producer specialising in fabrics for apparel and interior applications. Founded in 2022, the company produces and delivers high-quality fabric to various clothing producers with their offices in Chile, and the United States.

ECOCITEX

Ecocitex is a pioneering recycling and reuse company dedicated to eliminating textile waste in Chile. As the only company in the country to produce 100% recycled yarn, Ecocitex utilises damaged clothing collected and recycled locally, through a process that requires no water or dyes.

HITEGA SA

Textil HITEGA SA has developed deep expertise in producing high-quality flat fabrics for men's and women's clothing. Founded in 1944, the company follows a fully vertical production process, encompassing spinning, weaving, and dyeing of flat fabrics.

Reginella

Founded in 1941, Reginella is a well-established textile company specialising in the manufacture of yarns for hand-woven garments, as well as for use in rectilinear, circular, and hosiery machines.

Other notable players operating in the Chile textile market are Successori Reda S.p.A, Zahr Textiles, SINGOLARE, Arja Textil LTDA, and Garware Technical Fibres Ltd, among others.