Reimagining Cotton: How We Can Build a More Sustainable Cotton Value Chain

Cotton is one of the most familiar and widely used materials in the world. From our clothes to our homes, it surrounds us with comfort and utility. Yet behind the softness of your favorite T-shirt lies a deeply complex global system—one that involves extensive energy use, chemical processing, and labor, often with considerable environmental and social consequences. As consumer awareness grows and demand for sustainable textiles increases, we’re facing a critical moment to rethink the cotton value chain.

A Natural Fiber with a Heavy Footprint

Cotton has been cultivated for thousands of years and remains the second most-used fiber worldwide (only surpassed by polyester). Its versatility, breathability, and affordability have helped maintain its dominance, with cotton comprising 24% of the global fiber market as of 2020.

But cotton’s natural origins don’t make it sustainable by default.

Conventional cotton farming is water- and pesticide-intensive, contributing to pollution, biodiversity loss, and human health impacts. The path from seed to shirt often includes 6 to 7 supply chain actors, crossing state and international borders multiple times. The result is a convoluted, opaque system that obscures accountability—and limits opportunities for sustainable change.

Mapping the Cotton Value Chain

The cotton textile value chain begins with cultivation, followed by ginning, spinning, weaving or knitting, dyeing, finishing, and eventually manufacturing into final products. Along the way, the cotton may change hands and cross borders repeatedly. This globalized system makes it difficult to trace cotton back to its origin, a key barrier to transparency and sustainability.

In the U.S., cotton production is overseen by the USDA and the Cotton Board, which funds research and marketing through Cotton Incorporated. Trade groups like the National Cotton Council advocate for U.S. cotton growers, while NGOs and activist groups push for improvements in environmental and social practices. Meanwhile, multinational brands play a significant role by sourcing cotton, setting procurement standards, and funding innovation.

The production system also creates several byproducts—like cottonseed oil, cottonseed meal, and gin trash—many of which are repurposed as cattle feed or industrial inputs. Maximizing the use of these byproducts can reduce waste and enhance circularity.

Environmental Impacts: Water, Chemicals, and Ecosystems

Conventional cotton is the third most chemically-intensive crop in the U.S., using over 68 million pounds of pesticides annually. These include persistent chemicals like organophosphates and neonicotinoids, which can degrade soil health, pollute waterways, and harm local wildlife. The problems don’t stop at the farm: water-intensive processing and toxic dyes used in textile manufacturing further compound the environmental toll.

Key areas for intervention include:

• Reducing or replacing harmful pesticide use

• Conserving water and reusing wastewater

• Shifting to clean energy sources across the supply chain

• Developing ecosystem-based management practices

Social Impacts: Labor and Justice

The cotton industry also depends on a vast labor force—from field workers to factory operators. While U.S. labor standards are relatively strong, risks persist, especially when it comes to chemical exposure. Globally, labor violations, including unsafe conditions and unfair wages, remain widespread.

Sustainable cotton efforts must account for:

• Fair wages and safe working environments

• Worker health protections from chemical exposure

• Support for smallholder farmers and independent producers

Encouragingly, consumer attitudes are shifting. A 2019 report from Fashion for Good found that 65% of Americans are willing to pay more for apparel made from natural fibers. However, many still assume cotton is “inherently sustainable”—a misconception that must be addressed through clearer labeling and education.

What’s Being Done: Organic & Recycled Cotton

Organic Cotton Certification

Organic cotton represents a small—but growing—slice of the cotton market. U.S. standards like USDA Organic, OCS, and GOTS establish strict rules for environmental and (sometimes) social criteria. Research shows that organic cotton significantly reduces water and energy use, eliminates harmful pesticides, and improves soil and ecosystem health.

Yet adoption is still limited—only 0.2% of U.S. cotton is certified organic. Barriers include:

• High certification costs

• Lengthy transition periods (2–3 years)

• Lack of support for small-scale producers

• Confusing and overlapping certification schemes

Farmers often struggle to maintain operations during the transition to organic, when they’re required to follow new practices but can’t yet sell at a premium. Certification systems that separate environmental and social concerns may also force farmers to pursue multiple (costly) accreditations to meet ethical standards.

Recycled Cotton

Recycled cotton is another promising path. By reclaiming textile waste—either from production offcuts or used garments—manufacturers can reduce the need for virgin cotton and avoid the associated resource use.

However, recycled cotton presents challenges:

• Lower fiber quality and strength

• Need to blend with virgin or synthetic fibers

• Higher costs than virgin cotton

• Inconsistent availability of feedstock

Despite these issues, major brands are investing in recycled cotton initiatives. When implemented strategically, they offer a way to reduce environmental impact and contribute to circular production systems.

Policy Recommendations & Strategic Opportunities

Sustainability in cotton production can’t be achieved by farmers or brands alone. It will require a coalition of stakeholders—including governments, NGOs, retailers, and scientists—working together to tackle key barriers. We propose several key recommendations:

1. Increase Organic Cotton Supply

Support farmers in transitioning to organic through:

• Incentive funding from government agencies or brands

• Guaranteed purchase agreements during the transition

• Education and technical assistance for organic practices

Successful brands could underwrite the first few years of organic harvests, giving farmers a stable income while building long-term supplier relationships. Governments could also introduce modest taxes on companies using conventional cotton, channeling the funds into transition grants for growers.

2. Normalize In-Conversion Cotton

Cotton grown during the organic transition period is known as in-conversion cotton. Though not yet fully certified, it follows many organic practices. Marketing campaigns—backed by industry and government—could raise consumer awareness and acceptance of in-conversion products, offering farmers a profitable path during the transition.

3. Simplify and Align Certifications

Today’s landscape of overlapping ecolabels confuses consumers and burdens producers. By harmonizing standards or promoting unified labels that combine environmental and social criteria, policymakers and advocacy groups can streamline certification and boost consumer trust.

4. Scale Recycled Cotton Infrastructure

To expand recycled cotton use:

• Invest in better sorting and processing technologies

• Create standards for recycled content quality

• Support R&D in fiber recycling and blending techniques

• Encourage brands to adopt take-back and recycling programs

Conclusion: Stitching Together a More Sustainable Future

Cotton has been woven into the fabric of human history for centuries. But as we face the twin crises of climate change and social inequity, we must reimagine how cotton is grown, processed, and brought to market. Through cross-sector collaboration, transparent supply chains, and bold investments in sustainability, we can build a future where cotton truly lives up to its natural promise.