In 2024, despite the complexity and change of the external environment and the overall lack of market expectations, the industry achieved revenue and efficiency growth through technological innovation, digital empowerment, and optimization of operations and management. Knitted product exports grew even in the high base, reaching over US$100 billion for four consecutive years. The overall operating situation performed well. From a full-year perspective, the industry operation showed a recovered trend. Especially since the fourth quarter, with the implementation of the national policy of promoting a new round of large-scale equipment replacement and trade-in of consumer goods, market confidence and development expectations have improved; the industry’s main operating indicators of the growth rate increased significantly, showing the industry’s development resilience and innovation vitality.

A. Production Revenue

From the perspective of the annual trend, with the series of national policies to boost the economy and promote consumption taking effect, domestic sales and exports rebounded strongly. The manufacturing industry returned to the expansion zone, and the business income grew the most in the fourth quarter, reaching 5.37%. With the resumption of operating income growth, the knitting industry’s industrial scale expanded. The total assets of knitting enterprises above designated size in 2024 grew by 5.28% compared with 2023. According to the National Bureau of Statistics, the main business income of enterprises above designated size in the knitting industry rose 2.98% year-on-year in 2024, 7.15 percentage points higher than the previous year.

Figure 1: Operating Income and Growth Rate of Enterprises Above Designated Size in the Knitting Industry in 2024

Source: National Bureau of Statistics

From the perspective of the sub-industry, the operating income of knitted fabrics enterprises rose 2.24% year over year in 2024, 4.02 percentage points higher than that of 2023. The operating income of knitted apparel enterprises above designated size rose 3.41% yearly, 8.94 percentage points higher than in 2023.

With the transformation of consumption habits, continuous innovation in consumption scenarios, and the continuous development of materials and production processes, the application of knitted products has been broadened, further promoting the development and application level of knitted apparel.

In terms of output, China’s apparel production increased by 4.22% year-on-year in 2024. Among them, the output of knitted garments surged by 7.38% year-on-year. The knitted clothes proportioned 68.35% of the total garment production, 13.91 percentage points higher than that of 2019.

Figure 2: China’s Knitwear Output and Share from 2019 to 2024

Source: National Bureau of Statistics

B. Profitability

In 2024, the total profit of enterprises in the knitting industry achieved a relatively significant increase. Total asset turnover and finished goods turnover rate remained unchanged compared with 2023, but a sustained improvement in operational efficiency. In 2024, the total profits of knitting enterprises above designated size grew by 8.94% year-on-year. Among them, the total earnings of knitted fabrics and apparel enterprises grew by 8.25% and 9.33%, respectively. The profit margin reached 4.61%, slightly higher than the level in the same period of the previous year. 18.24% of knitting enterprises operated in deficit, which narrowed by 14.44 percentage points from the highest level in 2024.

Table 1: The Main Economic Indicators of Knitted Enterprises Above Designated Size in 2024

Source: National Bureau of Statistics

C. Foreign Trade

From the cumulative growth rate, knitted fabrics and apparel exports have grown yearly, performing better than the whole industry.

According to customs data, China’s knitted products exports again exceeded the US$100 billion benchmark in 2024, amounting to US$109.04 billion, up by 5.04% year-on-year. Driven by the increased demand for knitted fabrics from Southeast Asia and other countries, the export growth rate of knitted fabrics is significantly higher than that of knitted garments. In 2024, knitted fabrics exports were US$23.77 billion, a year-on-year increase of 10.5%; knitted apparel and accessories exports amounted to US$85.27 billion, a rise of 3.6% year-on-year.

Figure 3: Y-o-Y Growth Rate of China’s Knitted Products in 2024 by Value 

Source: China Customs 

From the perspective of monthly exports, knitted fabrics exports in March fell more year-on-year due to the impact of the Spring Festival holiday; other months’ exports saw year-on-year growth. Knitted garments and accessories saw a slight decrease in April and September; the remaining months saw a year-on-year growth. Especially since October, with the accelerated depreciation of the CNY and future tariffs, the industry’s exports have seen rapid growth. From the perspective of enterprise performance, benefiting from the management, technology, quality, scale and other systematic advantages, the export growth of leading enterprises is significantly higher than the industry average, presenting a concentrated trend.

However, it is also worthwhile noticing that knitted product exports saw a volume increase and price drop. In 2024, the unit price of knitted fabric fell by 5.65% compared with the same period a year earlier, and that of knitted garments and accessories declined by 6.7% year-on-year. In the context of the global economic slowdown and full of uncertainty, the demand structure of textile products has changed. Consumers are more inclined to buy lower-priced products, meanwhile, affected by the export growth of emerging market countries, competition in the international market is becoming increasingly intensified.

Figure 4: Export Value and Y-o-Y Growth Rate of China’s Knitted Products in 2024

Source: China Customs

(I) Growth led by the three major markets, i.e., the United States, Europe and ASEAN

China’s knitted products exports to the top three export destinations, the United States, ASEAN, and the European Union, are all higher than the average growth level, continuing a better growth trend. At the same time, the share of China’s knitted products in the imports in the United States and the European Union has also rebounded.

In addition, the export growth of China’s knitted products to Bangladesh and the five Central Asian countries in 2024 remained high, with year-on-year growth rates of 30.48% and 12.98%, respectively. Bangladesh's growth is driven by the growth of knitted fabrics, and the five Central Asian countries’ growth is mainly due to T-shirt exports to Kazakhstan.

Figure 5: Export Value and Y-o-Y Growth Rate of China’s Knitted Products to Major Markets in 2024

Source: China Customs 

(II) Major products such as T-shirts witnessed good momentum

In terms of major sub-categories, except for declining sportswear exports, all other major categories saw year-on-year growth.

Among them, exports of T-shirts, warp-knitted fabrics, and shirts maintained double-digit growth.

Table 2: Exports of Knitted Products by Category in 2024

Source: China Customs

(III) The Eastern seaboard region maintains good growth

From the point of view of local customs data, Zhejiang Province, Jiangsu Province and other key areas of the eastern seaboard maintained growth momentum. Besides that, Xinjiang Uygur Autonomous Region also performed well. On the one hand, the Xinjiang textile industry chain is becoming ever more comprehensive, laying a solid foundation for industrial development. On the other hand, the establishment of the Xinjiang Pilot Free Trade Zone, as well as the rapid growth of trade in Central Asia and the increase in re-exports, further boosted the exports and year-on-year growth rate of Xinjiang.

Table 3: Knitted Products Exports of China’s Major Exporters in 2024

Source: China Customs

D. Domestic sales

In 2024, domestic demand for China’s textiles and apparel achieved moderate growth, but the growth rate of various domestic sales indicators slowed down compared with the previous year. National Bureau of Statistics data show that the retail sales of apparel, foot and head wear, and knitted goods above designated size totaled 1.47 trillion yuan in 2024, seeing a year-on-year increase of 0.3%, 12.6 percentage points lower than the previous year. The retail sales of online wearing goods saw a year-on-year growth of 1.5%, 9.3 percentage points lower than the previous year.

E-commerce dividends began to fade and gradually returned to normalization. Future enterprise development needs to focus on online and offline integration, product quality, terminal channels, and dynamic changes in consumer trends. Currently, Chinese chic products, entertainment, tourism, sports events, health, and wellness have become new consumer growth points; the industry should actively tap the potential of the segmented fields, innovate consumption scenes and create a consumption atmosphere, focus on effective demand, and release consumption potential.

To summarize, in 2024, the operational quality of China’s knitting industry improved steadily. Looking ahead to 2025, despite the many challenges at home and abroad, China’s long-term economic development fundamentals have not changed, and the large-scale domestic market is solid backing. The knitting industry needs to deepen supply-side reform and promote high-quality development, seize the development opportunities of the new round of scientific and technological revolution, and accelerate the application of new-generation information technology, such as artificial intelligence, in design, research and development, production, operation, and other aspects. Increase the investment in research and development of new materials and green recycling technology, strengthen product innovation, and improve the product’s added value. The industry should actively explore emerging markets such as the “Belt and Road” initiative countries, integrate international resources at a high level, and accelerate international market diversification to prevent and resist external risks effectively. 

Source: CHINA TEXTILE LEADER Express