Peru has long been known for its rich textile heritage, dating back to the time of the Incas, who developed sophisticated weaving techniques still admired today. Over the centuries, this tradition has evolved into a modern industry that not only serves domestic demand but has also established Peru as a notable player in the global textile market. The sector is characterised by high-quality natural fibres, strong manufacturing capabilities, and a growing presence in international trade. This article explores the market’s current state, its major contributors, economic impact, and future opportunities.
Peru’s textile industry is a crucial part of the country’s economy. It contributes significantly to national GDP and provides employment to thousands. The sector accounts for approximately 10% of the country’s total manufacturing output and employs over 46,000 people directly, with an additional 400,000 benefiting from indirect employment opportunities. In recent years, the industry has experienced steady growth, supported by strong demand for its high-quality materials, including alpaca wool and Pima cotton.
Exports play a major role in the success of Peru’s textile sector. In 2022, textile and apparel exports were valued at around US$1.88 billion, marking a nearly 20% increase from the previous year. The United States is the largest market for Peruvian textiles, followed by neighbouring Latin American countries such as Brazil, Colombia, and Argentina. Free trade agreements, particularly the U.S.-Peru Trade Promotion Agreement, have further facilitated the growth of exports by eliminating tariffs on a wide range of textile products.
Lima, the country’s capital, is at the heart of Peru’s textile industry. The city houses some of the country’s largest production facilities and trading hubs. One of the most significant marketplaces is the Gamarra Commercial Emporium, a vast textile district located in La Victoria. Gamarra is home to thousands of textile businesses, ranging from small workshops to large retailers, making it a major centre for both wholesale and retail textile trade.
The scale of activity in Gamarra is immense, with millions of garments and fabric rolls changing hands every month. Buyers from across Peru, and increasingly from international markets, visit the area to source affordable textiles. Another important commercial area is the Caquetá Market, which specialises in leather goods, footwear, and fabrics, further reinforcing Lima’s status as the country’s textile capital.
Several key players dominate Peru’s textile industry, contributing significantly to production, exports, and innovation. Michell y Cía., a leading manufacturer of alpaca fibre, has been a pioneer in exporting this premium material to markets worldwide. Textil del Valle is another significant company, known for its fully integrated production process that spans from fibre sourcing to finished garments.
Topy Top, one of Peru’s largest apparel manufacturers, has gained international recognition by supplying major global brands such as Polo Ralph Lauren and Tommy Hilfiger. Creditex, a company specialising in Pima cotton production, has also become a major exporter, particularly to Europe and the United States. These firms, among others, have been instrumental in modernising Peru’s textile industry, introducing sustainable practices, and increasing competitiveness on a global scale.
Peru’s textile industry is distinguished by its focus on natural fibres, particularly alpaca wool and Pima cotton. Alpaca fibre, known for its softness, warmth, and durability, is one of the country’s signature exports. Peru produces around 80% of the world’s alpaca fibre, making it a leading supplier to luxury fashion brands across Europe and North America.
Another key product is Peruvian Pima cotton, often regarded as one of the finest cotton varieties globally. Grown in the coastal regions of northern Peru, Pima cotton is valued for its long fibres, which result in softer, more durable fabrics. These natural advantages have positioned Peru as a premium supplier in the global textile market, with growing demand from high-end fashion brands.
Beyond natural fibres, Peru has also developed a strong capability in synthetic fabrics and performance textiles. Companies such as Sudamericana de Fibras (SDEF) have expanded the production of polyester and synthetic fibres, catering to both domestic and export markets.
Despite its strong domestic production, Peru still imports a significant amount of textile materials. Imports are mainly driven by the need for raw materials such as synthetic fibres, dyes, and machinery. The country’s textile industry relies on imported polyester and other synthetic blends to complement its natural fibre production.
Another key reason for textile imports is to meet domestic demand for affordable, mass-produced garments. Many retailers in Peru source low-cost textiles from countries like China, India, and Bangladesh, which offer competitive pricing due to large-scale manufacturing capabilities. As a result, imported garments play a crucial role in balancing the country’s textile supply chain, ensuring variety in price points and product offerings.
Peru’s textile imports and exports reflect the country’s strong ties to global markets. In 2022, textile exports reached nearly US$1.88 billion, with the United States accounting for almost half of this total. Other key export destinations include Brazil, Colombia, Argentina, and Mexico.
On the import side, China is Peru’s largest supplier, providing over 50% of the country’s textile imports. This includes raw materials such as polyester, synthetic fabrics, and sewing accessories, which are essential for Peru’s growing garment manufacturing sector. India and the United States are also important trading partners, supplying cotton and advanced textile machinery.
The growing demand for Peruvian textiles in international markets highlights the industry’s increasing competitiveness. With the rise of ethical and sustainable fashion trends, Peru’s eco-friendly textiles, particularly those made from organic Pima cotton and responsibly sourced alpaca wool, have gained traction among environmentally conscious brands.
The future of Peru’s textile industry looks promising, but it is not without challenges. One of the main areas of opportunity lies in sustainability and innovation. With increasing global demand for ethically sourced and eco-friendly textiles, Peruvian manufacturers are well-positioned to capitalise on their reputation for high-quality natural fibres. Several companies are already investing in sustainable production techniques, such as water-efficient dyeing methods and organic farming practices.
Another key factor influencing the industry’s future is technological advancement. The adoption of automation and digitalisation in textile manufacturing is expected to improve efficiency and product quality. Investments in modern machinery and smart textile technologies will be crucial in maintaining Peru’s competitiveness in the global market.
However, challenges remain, particularly in terms of competition from low-cost manufacturing countries. Peru’s textile industry must focus on differentiating itself through quality, sustainability, and craftsmanship rather than competing solely on price. Expanding trade agreements and strengthening ties with international buyers will also be essential in ensuring continued growth.
Overall, Peru’s textile industry is at a pivotal moment. With its strong foundation in high-quality natural fibres, growing export market, and increasing adoption of sustainable practices, the sector is well-positioned for long-term success. By embracing innovation and leveraging its heritage, Peru can continue to be a key player in the global textile industry while preserving the traditions that have defined its craft for centuries.
