Mexico’s textile and fabric industry plays a crucial role in the national economy and the global textile trade. Combining deep-rooted traditions with modern manufacturing capabilities, the sector is a major contributor to employment, exports, and innovation. With a strategic geographic position, competitive production costs, and strong trade agreements, Mexico serves as an important hub for textile production and distribution, especially within North America.
This article provides a comprehensive look at Mexico’s textile and fabric market, from its industrial structure and global significance to its regional hubs, key players, and business opportunities. We also explore the market's size, dominant products, and how manufacturers can connect with local importers.
The textile industry in Mexico is a well-established and diverse sector that includes the production of fibres, yarns, fabrics, and finished garments. It represents approximately 1.2% of the country’s Gross Domestic Product (GDP) and contributes about 7.1% of the total manufacturing GDP. This makes it one of the largest manufacturing sectors in Mexico, alongside automotive, aerospace, and electronics production.
One of Mexico’s strongest advantages is its strategic location. As the fourth-largest textile exporter to the United States, Mexico supplies over 70% of its textile exports to the U.S. market. The country benefits from trade agreements such as the United States-Mexico-Canada Agreement (USMCA), which allows for tariff-free trade under specific conditions, giving Mexican textiles and apparel a significant competitive edge in North America.
Beyond North America, Mexico also exports textiles to Europe, Latin America, and Asia, although in smaller volumes. The country is particularly known for its high-quality denim production, and its textiles are widely used in both fast fashion and premium apparel brands.
The global textile market was valued at approximately USD 1.84 trillion in 2023, with an expected compound annual growth rate (CAGR) of 7.4% from 2024 to 2030. Within this vast market, Mexico’s textile industry is poised for steady growth, driven by factors such as urbanisation, an expanding middle class, and increasing demand for garments.
The Mexican textile manufacturing market is expected to grow by USD 3.98 billion between 2021 and 2026, reflecting a CAGR of 4.13% during this period. This expansion is primarily fuelled by strong domestic demand and the country's role as a key supplier to the North American apparel industry.
Despite its strong position, the industry faces challenges, including competition from low-cost producers in Asia, rising raw material costs, and evolving consumer preferences that demand more sustainable textile solutions.
Mexico’s textile production is highly diversified, catering to a range of industries, including fashion, automotive, aerospace, home textiles, and medical textiles. Some of the most significant products in the local market include:
Several major firms dominate the industry, contributing to both domestic sales and international trade:
Mexico’s textile industry is concentrated in several key regions, each specialising in different types of textile production. These areas also serve as important marketplaces for manufacturers, wholesalers, and retailers looking to source fabrics and finished textiles.
For textile buyers, traders, and industry professionals, Mexico has several major textile markets where a wide range of fabrics and products can be sourced:
For foreign manufacturers looking to enter the Mexican textile market, connecting with local importers and distributors is essential. The following strategies can help businesses establish valuable partnerships:
Given Mexico's growing market, is this a good business opportunity? The answer is largely yes. The demand for textiles continues to rise, especially with Mexico’s strong presence in the North American market. The lower production costs, skilled labour force, and favourable trade agreements make Mexico an attractive location for textile businesses.
However, competition is fierce, particularly from Asian manufacturers that offer lower prices. To succeed, businesses must focus on quality, innovation, and sustainable practices, which are increasingly valued by buyers worldwide.
Mexico's textile and fabric industry is a dynamic and integral part of both the national and global economy. With strong industrial capabilities, diverse product offerings, and strategic trade relationships, the sector presents substantial opportunities for local and international businesses alike.
While challenges such as global competition and shifting trade policies exist, Mexico’s textile industry is well-positioned for future growth. Companies that embrace innovation, sustainability, and market trends will find significant opportunities in this evolving market.
For businesses looking to enter the Mexican textile industry, understanding the regional textile hubs, dominant products, key firms, and available trade resources is crucial. By leveraging Mexico’s advantages, manufacturers and traders can successfully navigate this promising market.