Sales of organic cotton are set to triple to $2.6 billion at the end of 2008 from its current $900 million level as retailers and brands make significant new commitments to sustainable textile and apparel production.
Nike, Marks and Spencer, CO-OP, Patagonia, Timberland and Wal-Mart, which already sell organic lines; were joined by newcomers Reebok, C&A, Hennes & Mauritz, Target and Next at last week's Organic Exchange conference in The Netherlands, which attracted around 300 delegates.
"The organic cotton market is set to become a $1 billion industry. This is very important as it suddenly attracts the attention of global investors," said Rebecca Calahan Klein, a board member of Organic Exchange, which is a California-based not-for-profit organisation. "In 2005, we had more than 30 apparel retailers committing to organic cotton programmes, and around 1200 companies work through the supply chain on these projects," she said.
One of the big issues raised at the conference was if there would be enough fibre to satisfy the growing demand for organic cotton. "We are looking at a minimum of 30% growth with existing brands and retailers," said Calahan Klein, "and we have indications that conventional cotton farmers are likely to convert to organic, with brands now actively looking at supporting new yarn development."
Continued sector growth depends on brands and retailers making firm commitments to cotton growers. At the moment, cotton farmers are forced to speculate on the demand for organics and some are unwilling to take the risk to convert to organic unless there are firm pre-plant commitments or long-term contracts in place.
However, sportswear brand Nike is blazing a trail on the organic front, and supporting the industry, by planning long-term growth in its organic cotton programme. "Initially, we targeted a 10% use of organic cotton in our sports culture apparel category by the end of 2007, but we now expect 15% of our cotton activewear garments to be made from organic cotton by then," revealed Nike's Monique Leewenburg. "By the end of 2009, 50% of the cotton we use in this category will be organic, and by 2011 this will be 100% organic cotton."
Addressing the general issue of sustainability, Graham Burden from Marks & Spencer, said that a recently commissioned YouGov survey by the UK retailer showed that 78% of its customers would like to know more about how its goods are made and said that "the demand for its organic clothing is being driven by the wider issues of ethical sourcing." The company works closely with organic cotton growers such as Agrocel in India and with other growers in West Africa.
Another important theme that ran through the conference was the proliferation of inspection and certification organisations for the organic textile industry. These include Oeko Tex 1000, Skal, run by the Control Union Group, COOP Naturaline, Eco-label, the Italian-based ICEA organisation, and Swiss company Blue Sign Technologies.
It was widely acknowledged that there are too many standards resulting in "label flood" and consumer confusion. In addition, the supply chain becomes unsure about which standard to apply for, and the whole cost of the process can spiral out of control.
To counter this potential confusion, the Organic Trade Association (OTA), USA, together with Soil Association (UK) and Japanese Organic Cotton Association (Japan), IVN (Germany) and IMO (CH) will adopt a "Global Organic Textiles Standard (GOTS)". The standard works on a strict minimal criteria for fabric standards and social criteria. Critics say that this approach is too rigid for brands who need a more flexible, "advice-based" approach to compliance. However, Marcus Bruegel of GOTS believes a single globally recognised standard would provide "credible assurance to the end consumer".
One potential pit-fall is that in Europe, unlike organic food, there is no legal requirement for organic textiles to be certified. And despite lobbying from the industry, "this is unlikely to change in the near future", according to Francis Blake from the Soil Association.
Purchasing an organic item of clothing is more of an emotional or philosophical decision, unlike the purchase of organic food which has obvious health benefits. But the indications are that consumers in the USA, western Europe and parts of Asia are taking these decisions in larger numbers than ever before.
The next big challenge for the organic cotton industry is how to scale up to meet this growing demand without commoditising the product and without lowering price points.
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