Mills Update: Pakistan Manufacturers Provide a Market Outlook
In the first months of 2026, supply chains had to contend with cost pressures and geopolitical turmoil.
As we head into the second half of the year, Carved in Blue is checking in with denim mills around the globe to get their take on the outlook for the rest of 2026. Here, executives from Artistic Fabric Mills, Artistic Milliners, Naveena Denim Ltd., Soorty and US Denim share what buyers are seeking, collection highlights and where they see the market headed.
Artistic Fabric Mills (AFM)
Murat Dogan, general manager, research and development
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Murat: Price-performance balance, value-driven innovation and novelty with consistency.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Murat: One of the strongest stories is our Mirage Indigo concept. This development focuses on a special indigo dyeing technique where the true character of the fabric is gradually revealed. In scraped or locally bleached areas, hidden layers of indigo become more visible, creating a beautiful contrast and depth within the fabric in a distinctive way. This gives a premium visual effect that feels both modern and authentic to denim.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Murat: Denim is gaining traction, but buyers are being much more selective. Retailers are managing inventory carefully, placing orders closer to demand and asking suppliers to deliver stronger value at sharper price points. At the same time, the cost base remains unpredictable. Cotton, energy, chemicals and transportation continue to affect fabric and garment pricing, while customers still expect innovation, responsible chemistry, consistent quality and reliable delivery. For AFM, the focus is to follow the direction of each brand while helping them achieve the right balance between price, performance and responsibility. We see the market pushing the industry away from innovation for innovation’s sake, and toward practical developments that improve sell-through, reduce risk and create real value for the customer.
Artistic Milliners
Katie Tague, senior vice president global marketing, client relations and sales
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Katie: Buyers are currently driving demand across three main pillars.
Quality and Durability: There is a strong return to investment pieces that are built to withstand the test of time.
Dynamic Comfort: Consumers want the rugged, authentic look of traditional denim, but they expect luxurious softness and comfort.
Reliable Fit: Fit inconsistency is a massive pain point in the market right now. We are actively solving this at the mill level by engineering fabrics that strictly minimize shrinkage and growth.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Katie: The standout story for AW 27/28 is the evolution of Stealth+. As the market heavily shifts toward wider, more voluminous silhouettes—like the boyfriend, barrel and baggy cuts—the fabric’s drape and physical feel become hyper-critical. Stealth+ leverages proprietary advancements at the spinning and weaving stages to deliver extreme durability paired with an incredibly soft, luxurious hand-feel that holds up wash after wash. It’s the secret ingredient for mastering today’s relaxed, vintage-inspired fits.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Katie: Our outlook is incredibly positive. We are experiencing a strong influx of order growth, which signals renewed confidence from our partners. Despite the unpredictable macroeconomic situation, denim is consistently growing as a core category across the board for major retail brands. Consumers are viewing denim as their ultimate foundational wardrobe staple, and our investments in scalable innovations position us perfectly to meet this surging demand head-on.
Naveena Denim Ltd. (NDL)
Umair Tata, director
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Umair: Sustainable innovation, authentic versatility (modern vintage), and value-driven performance.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027–28 collection?
Umair: Our Fall/Winter 2027–28 collection is centered around “Responsible Denim with Purpose,” combining premium aesthetics with lower-impact manufacturing through innovative fabrics, resource-efficient processes and versatile designs. A key highlight is Velwarm, an innovation that blends authentic denim structure with exceptional softness by integrating advanced fiber technology into a classic twill construction. The result is a naturally velour-like hand feel without surface treatments, reflecting NDL’s commitment to responsible innovation, elevated comfort and timeless denim design.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Umair: We remain cautiously optimistic about the denim industry in the second half of the year. While market conditions continue to present challenges, we are seeing encouraging demand for products that offer sustainability, innovation, and commercial relevance. Brands and retailers are increasingly prioritizing responsible sourcing and supply chain transparency, creating opportunities for mills that can deliver both performance and environmental value. We expect a gradual improvement in market confidence as buyers focus on long-term partnerships and differentiated product offerings.
Soorty
Nauman Ahmad, head of product development and business development
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Nauman: New casts, softness and function.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Nauman: The standout story of our AW 27/28 collection is how we’ve bridged the gap between heritage and performance. With a focus on “invisible performance,” we anchored the collection in our three core concepts, focusing on an authentic, vintage aesthetics that don’t compromise comfort. The market response has been incredible, specifically for our star product, Tessarion Clario Blue. It’s an authentic comfort stretch featuring a TENCEL™ Lyocell – HV100 blend, which delivers that sought-after vintage look with a surprisingly soft hand feel. We also debuted Clario Blue alongside it, a new pure indigo that offers a fresher, slightly greener cast for cleaner washdowns.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Nauman: Despite the turbulent first half of the year due to the geopolitical situation in the world, I am quite optimistic about the rest of the year and the times to come. I feel that denim is going through a metamorphosis from rather being a very seasonal or bottom-specific fabric to more versatility. There is a lot more appetite for denim tops and dressing, new and novel weaves, new colors, printed and embroidered jeans are making a comeback. Plus, runways show us that high-end designer brands can’t seem to have enough of denim. So a lot of interesting things are happening right now in terms of consumer demand and preferences, which I believe would be quite good for the denim industry in the days to come.
US Denim
Intizar Ali, general manager research and business development
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Intizar: Modern authenticity: Consumers are seeking genuine, contemporary denim looks that balance heritage appeal with modern styling.
Breathable, flowy and drapey fabrics: Strong demand for comfortable silhouettes featuring both blended and non-blended fabrics that offer softness, movement and ease of wear.
Cleaner aesthetics: Preference for refined, minimalist finishes with clean washes, subtle details and versatile styling.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Intizar: The standout story of our Fall/Winter 2027-28 collection is Cloud Nine. Cloud Nine redefines softness in denim without the need for fiber blends. Through specially designed yarns, unique fabric constructions and finishing techniques, it delivers an exceptionally soft hand feel while maintaining the authenticity and purity of traditional denim. The story aligns with the growing demand for natural comfort with cleaner compositions.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Intizar: The outlook for the second half remains cautiously optimistic as major global retailers enter the season with healthier inventories and improving consumer demand, while easing geopolitical tensions and stabilizing energy and freight costs are expected to support consumer spending and retail confidence.
For Pakistan, the overall demand outlook remains positive; however, cost pressures are likely to persist as post-war market corrections take effect. Cotton fundamentals are expected to remain firm due to a potentially lower crop yield, tightening the supply-demand balance, while imported cotton continues to trade at higher levels than pre-war rates. As a result, average cotton prices are expected to remain elevated, with energy costs and raw material availability continuing to be key challenges for the industry.