Socks Manufacturing Business of Sri Lanka

Production, Trends, Market Value & International Business.

Dhanushka Jayalath (B.Sc. in Textile & Apparel Manufacturing – OULS) , M.Sc. Textile Management ( UOM )

Chamal Jayasinghe ( B.Sc. Textiles Engineering ( UOM )

Business Analysis Report: Socks Manufacturing Industry in Sri Lanka

Date: 2023/12/05
Prepared by: Dhanushka Jayalath (B.Sc. M.Sc.) & Chamal Jayasinghe (B.Sc. Eng.)

Executive Summary:

The socks manufacturing industry in Sri Lanka has been experiencing steady growth, driven by factors such as
rising consumer demand, increasing disposable income, and a growing fashion-conscious population. Though
there had been a decline in both consumption and production in the period from 2020 Start – 2022 End due to
Covid 19 related issues.

This report aims to provide a comprehensive analysis of the current state of the socks manufacturing industry
in Sri Lanka, identifying key trends, challenges, and opportunities for potential investors and industry
stakeholders.

• In 2023, the revenue in the Socks market in Sri Lanka amounts to US$21.63m.
• It is projected that this market will experience an annual growth rate of 3.06% (CAGR 2023-2027).
• When compared globally, in China generates the highest revenue in this segment, with US$3,030m in
2023.
• Taking into account the total population figures, the per person revenue in Sri Lanka is US$0.99 in
2023.
• Looking ahead to 2027, the volume in the Socks market is expected to reach 7.2m pieces.
• Additionally, there is an estimated volume growth of 0.1% for 2024.
• Lastly, the average volume per person in the Socks market in Sri Lanka is expected to be 0.3pieces in
2023.
• Sri Lanka's sock market is flourishing, with a strong emphasis on traditional craftsmanship and
sustainable materials.

Ref : https://www.statista.com/

1. Industry Overview:

1.1 Market Size and Growth:

The socks manufacturing industry in Sri Lanka has witnessed consistent growth over the past few years (except
in the Covid 19 era from 2020 – 2022). The market size is currently estimated at US$21.63m and is expected to
grow at a CAGR of 3.06% over the next five years.

Ref : https://www.statista.com/

1.2 Market Segmentation:

The industry can be segmented into various categories based on factors such as material, design, and end-
user. Common segments include athletic socks, casual socks, dress socks, and specialty socks.
2. Market Trends:

2.1 Sustainable Manufacturing:

There is a growing trend towards sustainable and eco-friendly manufacturing practices in the socks industry.
Companies adopting recycled materials and environmentally friendly processes are gaining consumer
preference.

Bamboo related fiber blends and recycled natural cellulose-based products are getting popular. Since Sri Lanka
is a tropical country, high levels of moisture absorption is a must for socks.

2.2 Technological Advancements:

Innovation in manufacturing processes and materials, such as smart fabrics and 3D knitting technologies, is
influencing the industry. Companies embracing these advancements are positioned for a competitive edge.

Yet we could not find any facts related to a manufacturer doing 3D socks knitting in Sri Lanka in commercial
scale.

2.3 E-Commerce Dominance:

The rise of e-commerce platforms has significantly impacted the distribution channels for socks. Online sales
are experiencing substantial growth, necessitating a strong online presence for manufacturers.

Since socks are popular at every small town in Sri Lanka, currently people would rarely buy a pair of socks from
an online shop. Yet with the growth on never generations, this market also would boom in the coming years.

Sticking into perfect fits and clear size charts would be helpful to build trust with customers. Some of the
popular webservices for these types of goods can be mentioned as www.daraz.com.

3. Challenges:

3.1 Raw Material Price Volatility:

Fluctuations in the prices of raw materials, such as cotton and synthetic fibers, pose a challenge for
manufacturers in maintaining consistent profit margins.

Not having natural fiber based yarn manufacturers in Sri Lanka is a major challenge, Synthetic recycled yarns
manufacturers can be found locally.

Synthetic Recycled Yarn Manufacturer: Econ Spindles – Horana.

3.2 Global Economic Uncertainty:

The industry is susceptible to global economic trends and trade dynamics, and uncertainties in international
markets can impact exports and imports of raw materials.

3.3 Labor Costs and Skilled Workforce:

The industry faces challenges related to labor costs and the availability of a skilled workforce. Training
programs and workforce development initiatives may be necessary to address this issue. As per the current
statistics a trained mechanic in the capacity of maintaining a socks knitting machine can be hired in LKR: 60,000
– 100,000 per months (Dec 2023 ).

4. Opportunities:

4.1 Export Potential:

The socks manufacturing industry in Sri Lanka has significant export potential. Leveraging international trade
agreements and exploring new markets can be a strategic growth opportunity for industry players.

Followings are the top few brands which is being catered by Sri Lanka.

Based on year 2022 Data

Image 1.1. Percentage on international exports of socks from Sri Lanka in year 2022
 Image 1.2. Price per pair in export market

4.2 Diversification of Product Range:

Diversifying product offerings to include specialized socks, such as diabetic socks or performance-enhancing
socks, can open new market segments and enhance competitiveness.

4.3 Branding and Marketing:

Investing in effective branding and marketing strategies can help manufacturers differentiate their products in
a crowded market and build a strong brand image.

Most western brands (Nike , Adidas , etc. ) are popular in the sports and Athleisure market area yet in the day
to day usage market they look only for comfort of the product.

5. Regulatory Environment:

An overview of the regulatory landscape, including compliance requirements related to manufacturing

standards, environmental regulations, and labor laws.

The compliance standards are set by the labor law of Sri Lanka and related foreign buyers. Sri Lanka labor law
related documents can be followed in below link.

https://labourdept.gov.lk/index.php?option=com_content&id=65&Itemid=59&lang=en

6. Recommendations:
6.1 Investment in Technology:

Manufacturers are advised to invest in modern technology and automation to improve efficiency, reduce
costs, and stay competitive in the market.

The cost of energy in Sri Lanka is relatively high, ( LKR: 55.00 / KWh – Dec 2023 ) , any investor rely on
renewable sources would have a competitive advantage. Most manufacturers have their own rooftop solar
systems.

6.2 Sustainability Initiatives:

Given the increasing consumer demand for sustainable products, manufacturers should consider adopting eco-
friendly practices in manufacturing processes and sourcing materials.

Though there are not any serious concerns about carbon neutral manufacturing in Sri Lanka it would be an
added advantage if a new company comes under this flag.

6.3 International Expansion:

Companies looking to expand internationally should identify target markets, understand consumer
preferences, and comply with international regulations.

7.0 Current local manufacturer’s capacities.

Annual Variety of
Manufacturer Production Products Suppliers Buyers
Sarasavi Exports , Naturub, Coats, Nike, Puma, USA Based
Homagama 8 Million Pcs. 100 Filotex, Fulgur & UK Based
Naturub, Coats, Local Market / Export
Isabella (Pvt) Ltd 60 Million Pcs 200 Filotex, Fulgur Market
WS Jayalath , ~10,000 ( No
Ambalangoda clear figures ) Local Market
Wijitha Knittin Industries ~10,000 ( No
Kadawath clear figures ) Local Market
Plus 100s of small scale ~50,000 ( No
manufacturers clear figures ) Local Market

Conclusion:

The socks manufacturing industry in Sri Lanka presents a promising landscape with opportunities for growth
and development. Strategic investments in technology, sustainability, and market expansion can position
industry players for long-term success.

End of Report

Contact Details : Eng. Chamal Jayasinghe

chamalj@gmail.com
Dhanushka Anuradha (NDT , B.Sc. (OUSL) , M.Sc. ( UOM))

dhanushkaslita@gmail.com