The region’s textile growth is increasingly tied to synthetic fibers, woven-fabric strength, circularity policy and technical textiles rather than apparel volume alone.
South America’s textile market is forecast to grow from $38.5 billion in 2025 to $72.3 billion by 2035, expanding at a 6.5% CAGR over 2026–2035, according to a May 2026 Market.us report. The sector spans raw fiber processing, yarn, woven and knitted fabrics, nonwovens, apparel, home textiles and technical textile applications, with Brazil anchoring regional production alongside Argentina, Colombia and Peru.
Synthetics reshape the raw-material base
Synthetic fibers hold the largest raw-material share at 56.3%, reflecting the region’s move toward scalable and cost-stable inputs such as polyester, nylon, acrylic, polypropylene, rayon/viscose and recycled fibers. Natural fibers remain important—particularly cotton and wool—but the market is no longer defined only by agricultural fiber supply. For manufacturers, synthetics offer better volume consistency, faster response to fashion cycles and stronger alignment with technical textile applications.
Woven fabrics remain the industrial backbone
Woven textiles dominate by process with a 51.6% share, supported by denim, workwear, home textiles and industrial fabrics. Knitted fabrics are gaining from activewear, casualwear and compression products, while nonwovens are expanding in hygiene, filtration, medical, packaging and infrastructure uses. Market.us identifies fashion and apparel as the largest application, accounting for 62.9% of market output in 2025.
Technical textiles offer the margin opportunity
The more strategic growth lies outside commodity apparel. Mining, pulp and paper, chemicals, fertilizers, healthcare and transport are creating demand for filtration media, geotextiles, protective textiles, medical materials and automotive fabrics. Valmet’s investment in filter-fabric manufacturing in Brazil is one signal of this shift, aimed at serving mining and pulp-and-paper customers across South America with closer delivery and upgraded capacity.
Circularity becomes a policy driver
Brazil’s National Circular Economy Strategy, established by Decree No. 12,082 of June 27, 2024, aims to support a transition from linear production toward circular production and consumption models. For textile companies, this strengthens the case for recycled inputs, waste reduction, traceability and more efficient resource use.
The next test is execution. South American producers can benefit from regional proximity, domestic demand and technical textile growth, but competitiveness will depend on investment in machinery, energy efficiency, recycled materials, quality systems and export-grade compliance.
