Rising polyester and cotton costs from West Asia war squeeze garment makers, may lift prices
The war in West Asia is driving up polyester, cotton, energy and freight expenses, tightening margins for apparel producers and prompting possible price hikes for consumers.
A manufacturing plant near Dhaka shows idle sewing lines after a buyer suspended polyester orders, illustrating how the West Asia conflict is inflating costs across the apparel supply chain. Prices for polyester, derived from fossil fuels, have surged, and cotton has climbed to a two-year peak due to supply worries and fertilizer shortages. Companies such as Plummy, which supplies Inditex brands, see raw-material expenses accounting for about 60% of a basic T-shirt, while factory margins remain at just 2%-3%.
Some brands, like the Swedish label ASKET, have chosen to raise retail prices rather than compromise quality. Experts predict that the cumulative effect of higher fiber, dye, chemical, oil and gas costs could push basic apparel prices up by 10%-20% over the next year, with consumers likely noticing the impact from autumn onward.
Why it matters
Higher fabric costs threaten tighter garment margins and could raise clothing prices for shoppers worldwide.
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