The United States textile and apparel sector is showing definitive signs of a rebound. After a challenging period of contraction, new data reveals that domestic demand is gradually recovering, driven by stabilizing supply chains and a strategic shift in consumer spending habits.

According to the latest figures from the Office of Textiles and Apparel (OTEXA), the U.S. recorded a 2.54 percent increase in the volume of textile and apparel imports across all fiber types during the first nine months of 2025. Total imports reached 78,770.941 million square meter equivalents (SME) between January and September, up from 76,818.244 million SME in the same period last year.

This growth marks a significant turnaround from 2023, when the industry faced a sharp 12.28 percent decline due to inflationary pressures and excess inventory. Current data suggests that retailers have moved past the "destocking" phase and are now actively replenishing inventories to meet rising consumer interest in value-oriented products and basic essentials.

Non-Apparel Textiles Lead the Surge

The recovery is being spearheaded by the non-apparel textile segment rather than fashion. Imports of textiles reached 59,406.840 million SME, representing a robust 3.32 percent increase. This surge is attributed to higher demand for home textiles, industrial fabrics, and intermediate materials used in downstream domestic manufacturing.

In contrast, apparel imports saw a more modest growth of 0.23 percent, totaling 19,364.100 million SME. This marginal increase suggests that while consumers are returning to stores, they remain cautious and selective regarding discretionary clothing purchases.

The Rise of Synthetic Fibers and Cotton Stability

In terms of material composition, Man-Made Fiber (MMF) products continue to dominate the market. Imports of MMF products climbed to 63,809.348 million SME as manufacturers and consumers increasingly favor these materials for their cost-competitiveness and versatile performance characteristics in both fashion and technical textiles.

Cotton products also enjoyed a healthy boost, with import volumes rising by 3.48 percent. This growth was supported by stable global cotton prices and a steady consumer preference for cotton-rich apparel and home goods.

Export Challenges and Growing Trade Gap

While the import side of the ledger shows growth, U.S. exports of textiles and apparel faced headwinds, easing by 0.90 percent to 1,615.839 million kilograms. While apparel exports managed to grow by 5.91 percent—driven by niche, high-value segments—exports of yarn and fabric both declined.

Experts point to rising manufacturing and labor costs within the U.S. as primary factors reducing export competitiveness. Furthermore, many regional markets are increasingly sourcing lower-cost supplies from emerging exporters in Asia.

This widening trade gap underscores the United States' continued reliance on international suppliers. With a consumption-driven economy and limited domestic capacity for labor-intensive manufacturing, the U.S. remains one of the world's most significant import markets. As 2025 progresses, the industry remains hopeful that this gradual recovery will solidify into long-term stability.