Global coat market dynamics: Analysis of key suppliers & importers

Exhibit 1: Global coats exports for CY 2023 (in $ Mn)

Source: ITC Trademap, F2F Analysis

The coats industry saw a renewal in their supply and demand post-COVID-19 and has maintained the renewed interest in the product category. In 2022, the pent-up demand helped the coat exporters achieve $48.83 million. The industry has been able to sustain this demand in calendar year (CY) 2023 too, with worldwide coats exported at a value of $46.43 million. The data provides an interesting view depicting future values in the coats category.

Major suppliers of coats

Exhibit 2: Top 10 coats exporting countries in CY 2023 (in $ Mn)

Source: ITC Trademap, F2F Analysis

Asia and Europe dominate in the coats category for CY 2023. China, Vietnam, and Bangladesh top the list due to their economies of scale and cost-effectiveness. European countries such as Italy, Germany, the Netherlands, Spain, France, and Belgium primarily supply high-quality coats, especially used during the winter season. Italy tops due to the dominance of high-fashion apparel and its prominence in selling high-fashion apparel throughout Europe and the world. Europe also happens to produce coats for domestic use and exports to other countries globally. Myanmar adds an interesting dynamic within these dominant coat-exporting countries. With coats forming almost 5.18 per cent of their total apparel exports to the world, it is one of the countries with the highest dedication to manufacturing and exporting coats.

Export trends for 2024

Exhibit 3: Coats exports of top suppliers in Jan-Aug 2024 (in $ Mn)

Source: ITC Trademap, F2F Analysis

*Please note that monthly data for Vietnam CY 2024 is not available

The monthly coat export data for 2024 from China, Italy, and Germany reveals significant trends and fluctuations, highlighting the dynamic nature of the global coat trade.

China: A leader in growth

China's coat exports demonstrate a remarkable upward trajectory throughout 2024. Starting at $692.06 million in January, exports surged to $1,692.83 million by July, peaking further in August at $1,736.51 million. This consistent growth underscores China's robust manufacturing capabilities and its ability to meet increasing global demand. Factors such as competitive pricing, efficient supply chains, and strong production capacity likely contribute to this sustained rise, positioning China as a dominant player in the global coat market.

Italy: Volatility with a recovery

Italy's coat export performance, while significantly lower than China’s, exhibits notable volatility. Exports began at $458.65 million in January, declined sharply to $233.79 million in April, but showed signs of recovery in May and June, climbing back to $507.90 million by July. By August, Italy’s exports stood at $488.05 million. This fluctuation may be attributed to seasonal variations, shifts in consumer preferences, or economic conditions. The recovery in the second half of the year suggests renewed demand or adjustments in Italy’s export strategies.

Germany: Inconsistent performance

Germany’s coat exports also reflect a pattern of fluctuation. Starting at $354.10 million in January, exports fell to a low of $122.23 million in May, before recovering to $252.35 million in August. The data highlights an inconsistent performance, with potential challenges in maintaining a steady export flow. However, the late-year recovery hints at improved demand or stabilisation in production and logistics.

August: Peak month for coat exports

August emerges as the best month for coat exports in 2024 across all three countries. China led with a record $1,736.51 million in exports, followed by Italy at $488.05 million, and Germany at $252.35 million. The combined exports in August reflect strong global demand, likely fuelled by seasonal purchasing cycles and increased orders for the upcoming colder months. China's dominant performance, coupled with Italy and Germany's contributions, makes August a pivotal month in the global coat trade.

Main observations

The 2024 coat export data highlights China's exceptional growth, driven by its competitive advantages, while Italy and Germany face more erratic trends. August’s peak performance underscores a global surge in coat demand, with China taking the lead and European exporters making notable contributions despite facing market volatility. These trends reflect the shifting dynamics of the global coat market and the importance of adapting to changing consumer and trade patterns.

Major importing countries

Exhibit 3: Top 10 coats importers in CY 2023 (in $ Bn)

Source: ITC Trademap

Concerning importing countries, the US tops the list with the maximum number of imports. Supplier countries in Europe also happen to be the demand countries, primarily due to colder weather during the winter season. Japan and South Korea also show a healthy demand for coats in CY 2023. Coats are often seen as apparel not only shielding from a colder climate but are also prominently present in corporate settings.

Current trends for CY 2024 (in $ Mn)

Exhibit 4: Top 10 importers coats import for CY 2024 (Jan-Sept) (in $ Mn)

Source: ITCTrademap

*Please note CY 2024 data is from January to September 2024

The data for the top 10 importers of coats in the world from January to September 2024, in millions, offers insightful trends in global apparel trade. The United States leads with imports totalling 4146.11 million, maintaining its top position. Germany follows in second place with 2916.98 million, consistently holding strong in the European market. Italy and France rank third and fourth, importing 1894.87 million and 1657.23 million, respectively, showing stable demand in Southern and Western Europe. Japan, Spain, and South Korea also remain in the top 10, with imports of 1235.37 million, 1355.85 million, and 1231.44 million, respectively.

China has slipped from 9th to 10th place, with imports of 1495.85 million, while the Netherlands has moved up to 9th place, with imports of 1398.42 million. These rankings highlight the continued strength of the U.S. and European markets for coats, while also indicating shifts in demand in countries like South Korea and the Netherlands.

Product analysis for exporters

Table 1: Top 5 sub-categories of coats

Source: F2F Analysis

Man-made synthetic fibres dominate for coats. Along with this, women’s overcoats in all categories fetch more value for exporters. Coats made from man-made fibres (MMF) offer several advantages over those made from cotton or wool. They are typically more durable, with better resistance to wear and tear, and they hold up well to frequent washing and rough use. MMF also tends to be more moisture-resistant than cotton or wool, which absorb moisture easily, making MMF coats more effective in wet conditions such as rain or snow. MMF coats are often lighter, more comfortable for extended wear, and easier to pack or store. Another benefit is that MMF dries much faster than cotton or wool, which is particularly useful in damp climates or during outdoor activities.

Table 2: Top Performing Countries according to increasing market share and future potential importer markets

To sum up, the global coat market has demonstrated remarkable resilience and growth, driven by robust demand and evolving fashion trends. Key suppliers like China, Italy, and Germany have capitalised on their competitive strengths, adapting to the dynamic market conditions and consumer preferences, which is evident in the significant fluctuations and growth in coat exports, particularly during peak months such as August.

Fibre2Fashion News Desk (NS)