Mills Update: Japan, Vietnam and Indonesia Producers on How Sustainability is Evolving
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 Gamatex, Kaihara, Shinohara, TCE and XDD share what buyers are seeking, collection highlights and where they see the market headed.
GAMATEX
Eko Kurniawan, head of marketing
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Eko: Comfort, texture, contrast, sustainability.
Today’s buyers are looking for denim that not only looks authentic but also delivers exceptional comfort, distinctive surface textures and responsible material choices. These four elements have become the key drivers behind product development.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027–28 collection?
Eko: One of the strongest stories in our Fall/Winter 2027–28 collection is the growing demand for denim that maintains the authentic appearance of 100 percent cotton while offering a much softer and more comfortable wearing experience.
To answer this need, we developed fabrics using TENCEL™ Lyocell – HV100, which delivers a smooth hand feel, excellent drape and superior comfort without sacrificing the classic denim aesthetic. It offers the perfect balance between performance and authenticity.
From a design perspective, buyers are particularly attracted to fine slub textures in the 10 to 12 oz. weight range, available in both stretch and non-stretch constructions. We also see strong interest in statement fabrics featuring sashiko-inspired patchwork for denim outerwear, as well as marbling denim that brings a timeless, vintage-inspired character with a modern twist.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Eko: The denim industry is becoming increasingly competitive, and producing basic denim alone is no longer enough. Brands are looking for fabrics that combine comfort, innovation and authentic denim character.
Consumers still appreciate the timeless look of classic denim, but they also expect softer hand feel, improved wearability and added value through unique fabric constructions. As a result, we believe innovation in fiber blends, fabric engineering and finishing techniques will continue to shape the market.
At the same time, textured denim will remain a key trend. Jacquard and dobby constructions featuring patterns such as hickory, Wabash and sashiko continue to gain momentum, offering brands more opportunities to differentiate their collections while preserving the heritage and craftsmanship that make denim timeless.
KAIHARA
Akihiko Maehara, manager of market planning department
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Akihiko: Authenticity, comfort/seasonal adaptability and sustainability.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Akihiko: We believe that quality and value—which enable consumers to enjoy our products for many years—will become more important than ever.
We anticipate that materials combining a vintage look and authentic character with stretch, comfort and environmental considerations will gain attention. At Kaihara, we aim to combine traditional denim-making techniques with the latest material development to propose new value.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Akihiko: We believe the denim market is shifting from competition based on volume and price to competition based on value.
Going forward, we believe there will be greater demand for comprehensive value—one that encompasses not only environmental considerations but also the expressiveness, durability, comfort and transparency that are hallmarks of Japanese quality.
At Kaihara, we aim to work alongside brands around the world to support the creation of denim that will be cherished for years to come.
SHINOHARA
Yuuki Shinohara, president and CEO
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Yuuki: Sustainability, GOTS, traceability.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Yuuki: Japanese denim fabric with a handcrafted feel.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Yuuki: Excess orders. Because orders have been booked more than a year in advance (especially selvedge denim).
TCE
Justin Hwang, head of global sales
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Justin: Authentic heritage character, weightless everyday comfort and fiber-protective softness.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Justin: We deliver this preserved authentic character with effortless comfort and sensory softness by combining premium soft fibers—such as TENCEL™ Lyocell, wool or extra-long staple cotton—with an open, loose weaving structure and sustainable washing processes that minimize mechanical and chemical fabric damage.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Justin: Looking ahead to the second half of 2026, we anticipate a gradual yet steady movement toward what we might describe as “Responsible Agility.” There is a growing sense that the market is shifting away from sustainability as a mere marketing checklist, while showing a subtle impatience with sluggish supply chains. Increasingly, brands seem to be prioritizing three core elements: immediate physical comfort, more responsive production cycles and resource-saving technologies.
XDD
Wilson Li, marketing director
Carved in Blue: Could you sum up what buyers are currently looking for in three words or phrases?
Wilson: Refined vintage authenticity: Buyers want that timeless, rugged character of traditional denim, but updated with a polished, modern drape.
Circular traceability: Demand has moved beyond basic sustainability. Buyers now require fully verifiable, circular raw materials like TENCEL™ Lyocell.
Tailored Comfort: A shift from baggy silhouettes to cleaner, sophisticated lines that still offer effortless everyday wearability.
Carved in Blue: What is the most outstanding story from your Fall/Winter 2027-28 collection?
Wilson: Our standout narrative for FW 27-28 centers on “The Heritage Synthesis.” We are redefining vintage workwear by fusing heritage aesthetics with high performance eco innovation.
The highlight of this collection is our premium denim line crafted with an optimized blend of TENCEL™ Lyocell and recycled fibers. We have captured the authentic, rich indigo character and slub texture of classic denim, but achieved a remarkably soft hand feel and structural longevity. It proves that we do not have to compromise on rugged vintage appeal to achieve next-generation circularity.
Carved in Blue: What is your outlook on the denim industry for the second half of the year?
Wilson: We hold a cautiously optimistic yet highly strategic outlook for the second half of the year.
The market is moving away from low-cost volume toward intentional value. While brand cost pressures and global supply chain compliance remain challenging, we see this as a massive opportunity for innovative mills. Brands are looking to derisk by investing in fabrics that have strong merchandising stories, multi-season versatility and premium aesthetic appeal. By focusing on smart blends (like TENCEL™) and low-impact finishing capabilities, mills that offer true value and legislative readiness will lead the market recovery.