Raw silk market in Iran

Earlier Report Observations

Iran's production of raw silk more than doubled from 110 t in 2018 to 276 t in 2023. This sustained growth was driven by the reactivation of sericulture activities after a decade of stagnation, supported by unprecedented government distribution of silkworm eggs to farmers. A significant boost came in 2020 when the guaranteed purchase price for fresh cocoons was raised by 80%, incentivizing further cultivation and leading to notable production increases in provinces like Gilan.

The total market volume for raw silk, heavily dependent on imports, peaked at 664 t in 2019 before falling to 405 t by 2023. The initial surge was linked to rising export demand for Iranian dyed raw silk fabrics to neighboring countries like Iraq and Uzbekistan, which increased processing needs and import requirements. However, ongoing international sanctions and severe currency exchange problems subsequently constrained import capabilities, causing a steep decline in imported volumes from 437 t in 2019 to 129 t in 2023.

Market dynamics were also affected by the influx of counterfeit and artificial silk mixed with cotton, which damaged domestic producers. Concurrently, efforts to prevent the sale of unprocessed cocoons and to increase domestic value addition aimed to reshape the industry structure, though they did not offset the overall market contraction driven by import restrictions.

Production raw silk in Iran

In kind, 2017-2020, t

Globally, Iran ranked as the 9th largest producer of raw silk from 2017 to 2020.

Top producers of raw silk, 2017-2020

World map of production of raw silk, 2017-2020

The market performance showed significant fluctuations during this period. In 2018, production hit its lowest point at 110.0 t, with the largest decline of 8.3% recorded that year. By 2019, production surged dramatically, posting the largest increase of 106.4%. In 2020, Iran produced 270.0 t of raw silk, marking a substantial 18.9% rise from 2019. Overall, from 2018 to 2020, production varied by a factor of 2.5 between its peak and trough.

Annual dynamics of production in Iran in kind, 2017-2020, t

Exports raw silk from Iran

Marketing research revealed that Iran did not export any raw silk between 2017 and 2020.

Imports raw silk to Iran

Imports in kind, t

After increasing for two years, Iran's raw silk imports declined. In 2019, imports reached their highest level at 436.6 t, with the largest increase of 34.4% recorded that year. By 2020, imports dropped to 268.1 t, a 38.6% decrease compared to 2019. Over the entire 2017-2020 period, imports fell by 8.3%, with a compound annual growth rate (CAGR) of -2.8%.

Annual dynamics of product's imports to Iran in kind, 2017-2020, t

From 2017 to 2020, the United Arab Emirates (29.6% of imports by volume), Uzbekistan (24.6%), and Germany (17.2%) were the top sources for Iran's raw silk imports, together accounting for 71.4% of the total volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Iran in kind, 2017-2020

Imports in value, K $ US

Following a two-year upward trend, Iran's raw silk imports in monetary terms declined. In 2019, imports peaked at 17 039 K $ US, with the largest increase of 29.5% recorded that year. By 2020, imports fell to 10 668 K $ US, down 37.4% from the previous year. Over the 2017-2020 span, imports decreased by 5.5%, with a compound annual growth rate (CAGR) of -1.9%.

Annual dynamics of product's imports to Iran in value, 2017-2020, K $ US

During 2017-2020, the United Arab Emirates (29.9% of imports by value), Uzbekistan (25.0%), and Germany (17.6%) were the leading markets for Iran's raw silk imports in value terms, collectively making up 72.5% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Iran in value, 2017-2020