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: 2021-10-07

Overview

The textile and clothing sector includes growing quality cotton (Pima and Tangüis), the shearing of fine fibers from vicuñas and alpacas, the treatment of natural or artificial fibers for the production of threads, the manufacturing and finishing of fabrics, and the production of clothing and other articles. The production of textiles and clothing in Peru has shown great growth in recent years, which may be attributed to the high quality and prestige of Peruvian fibers and the highly integrated production process. Peruvian products are some of the best-priced products in their respective categories internationally. Peru is known for its ability and adaptability of labor to support various changing scenarios.

This sector includes more than 46,000 companies, supports around 400,000 direct jobs, and generates close to $2 million in imports and $1 million in exports. Currently the textile and clothing sector contributes 6% of the country’s manufacturing and represents 0.8% of the national GDP. However, in recent years the sector has been undercut by imports of low-value products, including contraband from the informal sector which have worsened considerably due to the state of emergency by COVID-19. 65% of textile imports come from China, with India, Bangladesh and the United States as second, third and fourth respectively. Most of these textile imports consist of fabrics and yarns.

Opportunities

Clothing and textile trade is advantageous with the United States due to its relatively close geographical location and, through the USPTA, zero tariff rate. Recently there has been an increased demand in Peru for imported fabrics and yarns, supplies (dyes, buttons, closures and others), and equipment and machinery in order to supply the clothing industry nationwide – much of which is servicing export demand, mainly to the United States.

The sector also anticipates an increased demand of PPE, towels, and bedding for hospitals and other medical service providers in the wake of the COVID-19 pandemic. This has generated growth in the clothing industry nationwide. The textile industry of Peru has been addressing this with the purpose of replacing Chinese supplies of questionable quality.

Challenges

The textile sector has been significantly affected by the COVID-19 pandemic. The import of clothing doubled while national production fell to nearly zero during the height of the pandemic. The textile subsector has been gradually recovering and, by the end of 2020, the subsector recorded growth after being in negative territory for 30 consecutive months (since April 2018). Unlike textiles, the clothing subsector has shown a slower recovery, closing December 2020 with a negative rate of 25%. Due to market demands under the pandemic, many companies chose to reinvent themselves with the production of masks, medical clothing, and anti-covid garments.

The sector expects a better year in 2021, however, this will depend in part on the recovery rate of the main trading partners such as the United States and countries in the region. There is also a need to work on new sustainability trends such as reducing the sector’s carbon footprint and increasing its waste recycling.

The 2020 Import Market Share: China 64.6; India 10.3; Bangladesh 3.6; United States 2.5; Colombia 2.1; Vietnam 1.7.

 Textile and Apparel

2018

2019

2020

2021 (est.)

Total Exports

1,415.5

1,365.4

1,028.0

N/A

Total Imports

1,830.5

1,811.5

1,935.7

N/A

Imports from the U.S.

63.0

56.2

49.0

N/A

Total Market Size

415.0

677.5

907.7

N/A

Unit: USD million

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

Data Source: National Society of Industries (SNI), Census, USITC DataWeb

Leading Sub-Sectors

The Peruvian industry of textiles and clothing sector is made up of two large sub-sectors: 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) Clothing that includes all activities related to clothing manufacturing.

Leading Product Imports Within Sector (2020)

HTS Code

Description

520100

Cotton, Not Carded or Combed

520512

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

630790

Made-Up Textile Articles, NESOI

591190

Textile Products Etc. For Technical Uses NESOI

540244

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

590700

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

540490

Synthetic Strip Width Not 5Mm

560393

Nonwovens, of Mmf Weighing > 150 G/M2

611610

Gloves Impreg Ctd or Cov W Plas/Rubber, Knit

570320

Carpets, ETC, Nylon/& Other Polyamides, Tufted, W/N Made-Up

560314

Nonwovens Not of Mmf > 70 G/M2 & < 150 G/M2

560312

Nonwovens, of Mmf Weighing > 25 G/M2 but < 70 G/M2

Key Industry Events

PeruModa: International Trade Show offering textiles, clothing, footwear, accessories, and jewelry.  October 25-November 12, 2021 Virtual B2B Matchmaking business meetings

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

October 25-30, 2021

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