Peru - Country Commercial Guide
Textiles and Apparel

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2022-08-17

Overview

The textile and clothing sector includes growing good quality cotton (Pima and Tangüis), the shearing of fine fibers from vicuñas and alpacas, the treatment of natural or artificial fibers for producing threads, the manufacturing and finishing of fabrics, and the production of clothing and other articles.   The production of textiles and apparel in Peru has shown significant growth in recent years, possibly due to Peruvian fibers being recognized for high quality, as well as a highly integrated production process.  As a result, Peruvian products are some of the best-priced products in their respective categories internationally.

This sector includes more than 46,000 companies, supports around 400,000 direct jobs, and generates nearly $2.1 million in imports and $1.4 million in exports annually.  The textile and clothing sector currently contributes 5.7% of the country’s manufacturing and represents 0.7% of the national GDP.  However, in recent years the industry has been undercut by imports of low-value products and counterfeit goods imported and produced locally.  As a result, 57% of textile imports come from China, with India, Bangladesh, and Colombia as second, third, and fourth, respectively.  Most of these textile imports consist of fabrics and yarns.

The textile sector has recovered from the pandemic, boosted by international clients looking for suppliers with short delivery times and sustainable policies as the basis of their structure – Peru meets this need.  As a result, the sector closed in 2021 with a growth of 65% in the export of clothing.  Much of the increase was due to demand from the United States resulting from trade sanctions applied to imported clothing from China.  The United States continues to be the leading destination for Peruvian clothing, comprising 69% of total shipments in 2021.

Opportunities

The clothing and textile trade is advantageous to the United States due to its relatively close geographical location and, through the USPTA, zero tariff rate.  Peru has a high demand for imported fabrics and yarns, supplies (dyes, buttons, closures), equipment, and machinery. 

The sector maintains a relative demand for personal protection equipment, towels, and bedding for hospitals and other medical service providers.  The textile industry of Peru is poised to offer high-quality products to replace Chinese suppliers of questionable quality.

Challenges

Despite the sector’s recovery and some good prospects for 2022, businesspeople in the industry are hesitant to develop new investments in Peru in the face of uncertainty and political instability.

Other problems facing the sector are the rise in sea freight and the high price of cotton, which tripled in the case of the Supima variety (extra-long fiber) and almost doubled in the case of long fibers (Upland/Tangüis), resulting in shortages and increased cost of materials.

The 2021 Import Market Share: China 56.6%; India 13.2%; Bangladesh 3.4%; Colombia 3.0%; Brazil 2.7%; Vietnam 2.4%.

Table: The 2021 Import Market Share

 Textile and Apparel

2018

2019

2020

2021

Total Exports

1,415.5

1,365.4

1,028.0

1,628.0

Total Imports

1,830.5

1,811.5

1,935.7

2,097.0

Imports from the U.S.

63.0

56.2

49.0

42.o

Total Market Size

415.0

677.5

907.7

469.0

Unit: USD million

Total Market Size = (Total Local Production + Imports) – Exports

Data Source: National Society of Industries (SNI)

Leading Sub-Sectors

There are two large industry sub-sectors in the Peruvian textiles and clothing market: 1) Yarn, fabrics, and garments that cover the initial stage of cotton ginning to the production of finished fabrics and, at the same time includes, spinning, weaving, and finishing dyeing activities and 2) Finished clothing.

Leading Product Imports Within Sector (2021)

HTS Code

Description

520100

Cotton, Not Carded or Combed

630790

Made-Up Textile Articles, NESOI

520512

Cotton Yarn 85% Cotton, No Retail, Ov 14Nm Not Ov 43Nm

540244

Elastomeric Yarn, Sgl, Untwist or Twist Lt=50 Turns/M

611610

Gloves Impreg Ctd or Cov W Plas/Rubber, Knit

591190

Textile Products Etc. For Technical Uses NESOI

560393

Nonwovens, Of Mmf Weighing > 150 G/M2

540490

Synthetic Strip Width Not 5Nm

590700

Textile Fabric, Coated, Etc., Theatrical Scenery, Back-Cloths

Key Industry Events

PeruModa: International Trade Show offering textiles, clothing, footwear, accessories, and jewelry.  April 10-12, 2023, Virtual B2B Matchmaking business meetings.

https://www.perumoda.com/

 

Expotextil: International Trade Show of textile and clothing industry suppliers.

November 3-6, 2022

https://www.expotextilperu.com/en/inicio-english/

 

Lima Fashion Week-LIFWEEK: Platform that allows Peruvian designers to showcase their work to the local market and the world.

http://lifweek.pe/lifweek19/