Mexican denim under threat from farm to retail

Guadalajara, Jalisco. From cotton fields to department store windows, the Mexican denim industry faces challenges that threaten its competitiveness throughout the production chain. "We have a sector with a long tradition, but it is at a disadvantage compared to markets like China," warned Mireille Acquart, founder of Ethical Fashion Space, a corporate sustainability consulting firm for the fashion industry.

In the Comarca Lagunera, which encompasses parts of Coahuila and Durango , the problem centers on the dependence on external inputs. Mexico remains the world's ninth-largest cotton producer, with 1.1 million tons in 2024. However, domestic production is insufficient to meet industrial demand, which is why imports are the key, Acquart told El Economista during Intermoda 83.

Chihuahua, which supplies 70% of the country's cotton , faces recurring droughts that compromise yields; it is followed by Baja California with 15%; and Coahuila with 7%, the latter with serious soil degradation problems. "Experiments with genetically modified cotton in Coahuila left soils desertified and salinized," and 280,000 hectares cultivated during past administrations affected long-term productivity.

Imported cotton prices are also impacted by the global effects of climate change; countries such as the United States, China, and Pakistan , which are among the largest producers, experienced droughts and floods last year.

Infrastructure deficit

In the Puebla-Tlaxcala corridor, “ Tehuacán had its golden age in the 2000s ,” but today it competes against Asian imports and counterfeit and packaged clothing. This region has reoriented itself toward the domestic market, but “the lack of modernization in processes and finishes limits its competitiveness.”

Just as in the primary sector, "when industrialists don't have stable access to water and must use tankers for their processes, costs skyrocket," while for waste management, "entire municipalities lack treatment plants, shifting the environmental and economic burden onto businesses," the expert said.

In Guanajuato, for example, where denim is combined with the production of jeans, "the challenge is to compete with energy costs that are subsidized in other countries. Mexico has the most expensive industrial electricity in the world, which directly impacts the final price of the product."

“Industrialists are willing to adopt sustainable practices, but they require real incentives and public policies that level the playing field, otherwise, we will continue to lose out to global competitors.” In 2024, denim exports fell 50% year-on-year to $33.4 million, the lowest level in seven years, according to figures from the National Chamber of the Textile Industry (Canaitex).

Lost time

At the final link in the chain, there is a lack of strong Mexican brands in the denim market. Although the country exported $7.414 billion in textile products to the United States during 2024, agreements as suppliers to large chains predominate instead of developing their own brands. “Industrialists are mentally stuck in the 70s or 80s, content with being manufacturers,” said Nissim Betesh of Vicunha Têxtil México in an interview.

Some traditional manufacturers in the Laguna region and Puebla are migrating to the automotive industry, seeking greater stability and better profit margins. "We have cases of successful jeans exporters who now prefer to manufacture car upholstery or seat belts."

“I think a lot of time has been wasted. Today, it's difficult to compete with multinational brands like Zara, H&M, or Bershka, established in shopping centers, but it's never too late to try,” he said optimistically. “The talent and capacity exist in Mexico; what's missing is long-term vision and coherent public policies.”