Nepal’s Knitting Potential

As rising production costs challenge the fast fashion industry, knitting and crochet are emerging as sustainable alternatives. This growing market offers a promising future by combining creativity, eco-friendly practices and lasting value, perfectly positioned for today’s conscious consumers. This article explores the expanding knitting and crochet market, and explains why this sustainable trend is here to stay, if its challenges are addressed.

The Global Landscape

The global knitting and crochet market is experiencing steady growth. Valued at approximately $200 million in 2023, it is projected to reach nearly $290 million by 2032, growing at a compound annual growth rate (CAGR) of 4%.

But facts alone do not tell the full story. The global knitting and crochet market goes beyond numbers – it is about creativity, sustainability and a rising passion for handmade artistry. Driven by the growing popularity of hobby crafts, eco-friendly styles and unique handmade accessories, this market continues to expand worldwide. Younger generations, in particular, are embracing knitting and crochet, inspired by countless online tutorials and a growing preference for organic, natural fibers that align with sustainable values.

E-commerce platforms have accelerated this trend by making knitting supplies, patterns and finished products more accessible than driving pattern diversification and creative experimentation, with North America and Europe leading the way in sustainable crafting movements.

The knitting and crochet market is experiencing rapid growth in Asia, driven by a renewed interest in textile crafts among the youth. Young creators are rediscovering traditional skills while adding their modern twist, boosting the emergence of local manufacturers, especially in fast-developing countries like China and India. Coupled with Asia’s booming e-commerce ecosystem, the availability of diverse materials and tools has empowered more people to embrace knitting and crochet as hobbies, business opportunities and creative expressions.

Robotics and artificial intelligence (AI) are also transforming the knitted textile industry by automating production processes. The integration of AI enables faster retooling and operational improvements that were once impossible, as autonomous machines continue to expand their capabilities in textile manufacturing. Tiruppur, India’s key knitwear export hub, is rapidly adopting AI across its micro, small and medium enterprises (MSMEs) for pattern design, computer-aided manufacturing (CAD/CAM), quality control and supply chain management, leading to productivity gains of over 10% for many businesses. In Bangladesh, AI integration has increased productivity in the textile sector by up to 30% and reduced defect rates by 25%. This highlights how AI can drive future growth in the knitting and crochet market.

Understanding Nepal’s Landscape

Nepal is also aligning with the global growth in this sector. According to the Observatory of Economic Complexity (OEC), Nepal ranked as the 30th largest exporter of knitted or crocheted table linen in 2023, with exports valued at $87,500. The country’s fastest growing markets between 2022 and 2023 included UAE ($3,550), Chinese Taipei ($1,280) and Norway ($868), reflecting promising opportunities for expansion in these regions. Nepal’s main competitors in this sector are China, India and Pakistan, with export values of $20.6 million, $10.4 million and $3.92 million, respectively. While Nepal’s exports are on the rise, its imports in this category remain minimal at just $1,640, ranking it 164th globally.

Knitting is more than just a craft in Nepal; it is woven into daily life and cultural identity. From a young age, thousands of women learn to knit, passing down skills through generations as part of cherished family traditions. Beyond its cultural significance, knitting serves as a crucial source of income, especially in rural areas where employment opportunities are limited. Women create hats, scarves and socks for local cooperatives and international markets. This way, they are supporting their families while preserving Nepal’s rich artisanal heritage. It is also a powerful force for community bonding, bringing women together to share stories and skills, while their practical benefits shine during Nepal’s harsh winters, offering warmth and comfort to loved ones.

Reflecting its growing relevance, in January 2024, the Dhairya Cancer Foundation launched Nepal’s first-ever Therapeutic Knitting and Crochet Program under its ‘Thread of Hope’ initiative at Trichandra Multiple Campus. This innovative program combines the calming, meditative art of crafting to support mental health, boosting focus, happiness and a sense of accomplishment among participants. Founder Terisa Tamang said the initiative aligns with global research, which highlights knitting’s benefits for cognitive functioning, stress relief and social connection.

Talking about big players in the sector, Nepal Knitting Wear is a wholesaler-manufacturer and exporter for all kinds of woolen products like handmade woolen jackets, handmade woolen sweaters, handmade woolen mufflers and many other products. Likewise, Tricot claims to have the largest knitting unit in Nepal and an extensive international client base. Many knitwear and crochet producers in Nepal operate informally, showcasing and selling their creations through Facebook and Instagram pages without registering as official businesses. This growing online presence not only reflects the rising popularity of handmade crafts in the digital marketplace but also underscores the need for better tracking and documentation of the overall market to support its growth and potential.

What is driving growth in Nepal

One of the biggest catalysts for growth is the rise of social media and mobile platforms. These platforms have transformed the knitting and crochet market, making these crafts more accessible and engaging than ever. Platforms like YouTube, Facebook and Instagram offer countless tutorials, reels and step-by-step guides, inspiring both beginners and experienced crafters. In Nepal, Facebook groups such as ‘Crochet Community Nepal’ and ‘Crochets Knitting Nepal’ connect enthusiasts to share their creations and support each other’s craft journeys. These digital spaces not only spark creativity and interest among younger generations but also foster strong online communities, helping brands build loyalty and stand out in a crowded market. Embracing digital innovation is proving essential for long-term success in the knitting and crochet industry.

Adding to this momentum is the booming trend of Do-It-Yourself (DIY) crafts. As more people seek creative outlets that offer both relaxation and tangible results, knitting and crochet have become go-to activities. They not only allow individuals to express their creativity but also provide the satisfaction of turning yarn into beautiful handmade pieces.

Likewise, the government is supporting the knitted fabric market through export incentives, subsidies and quality regulations to enhance global competitiveness. Policies also promote sustainable production practices, aiming to drive growth, innovation and environmental responsibility in the industry.

Alongside, Council for Technical Education and Vocational Training (CTEVT) offers short-term vocational training programs, with knitting and crocheting included under its handicrafts and miscellaneous sectors. These courses range from 22 to 1,500 hours for handicrafts and 390 to 1,000 hours for crocheting, equipping learners with practical skills for employment and entrepreneurship.

The sector is also attracting attention from impact investors who are increasingly focused on sectors that drive inclusive growth, job creation and social empowerment, with strong interest in crafts, women-led enterprises and sustainable livelihoods. Initiatives like livelihood recovery projects and platforms such as Invest for Impact Nepal help build market infrastructure and provide business training, investment readiness and funding support to boost the handicrafts sector’s social and economic impact.

Similarly, trade associations like Fair Trade Group (FTG) Nepal, Association for Craft Producers and Garment Association Nepal are supporting knitting, crocheting and handicraft sectors. FTG Nepal alone connects over 35,000 producers, mostly women, while these groups provide training, market access and advocacy for fair trade policies, helping craft entrepreneurs grow and thrive. Additionally, The Farmers Market at Le Sherpa, the Saturday Bazaar at Labim Mall and Friday markets at Chhaya Center promote handcrafted items, including knitting and crocheting products.

While Nepal has yet to adopt AI in its knitting and crochet sector, early adoption could offer significant value and competitive advantage. Technology is already making an impact globally, with companies like Tricot using stock service systems and advanced KnitOne production control software to enhance customer experiences. However, unlike knitting, crocheting remains impossible to automate due to its intricate hand movements, real-time tension adjustments and creative spontaneity that only human crafters can provide, at least for now.

Yet another major force driving the knitting and crochet market today is the growing demand for green, sustainable materials. As consumers become increasingly eco-conscious, they are seeking out natural fibers such as organic cotton, bamboo and recycled yarns for their projects. Sustainability is no longer just a trend, it has become a core value that influences purchasing decisions, with crafters paying close attention to the environmental impact of the materials they choose.

Roadblocks for Nepal

Even though the demand is rising, sourcing high-quality, eco-friendly yarns for hand knitting and crocheting in Kathmandu is still a challenge. With sheep farming dying with every passing year, Nepal imports most of its wool from countries like India, New Zealand, Australia and China. While local factories process and spin the yarn, choices are still limited. The majority of available yarns are single ply, ranging from coarser “Ordinary” wool at around 32 microns to softer Merino blends at 21 microns. Yarns with lower micron are considered finer and softer.

Wholesale suppliers are few and far between, primarily located in areas like Chhetrapati and Paknajol. Nepal Wool House is one of the long-established retailers, although it mainly offers acrylic blends compared to other alternatives. As sustainability continues to shape consumer choices globally, there is a clear opportunity for Nepal’s knitting and crochet market to expand its range of eco-friendly yarns, meeting the needs of conscious crafters both at home and abroad.

The other challenge facing the knitting and crochet market today is the competition brought about by its rapid growth. With countless brands and individual makers entering the scene, it has become increasingly difficult for any single company to stand out. Consumers have so many choices that it becomes confusing for them. This often results in fierce rivalry, putting downward pressure on prices and profit margins; a struggle that can be particularly tough for smaller businesses, especially those relying solely on social media, trying to compete with well-established brands.

Bottom Line

Despite the challenges, the knitting and crochet market has a strong growth potential. The key to navigating this competitive landscape lies in innovation and the smart use of digital technology. The rise of e-commerce, social media and digital marketing has opened up new avenues for brands to reach larger audiences globally. From selling products online to showcasing creations on various social media platforms, including Pinterest, businesses can now connect with customers far beyond their local markets.

With emerging opportunities and rising global demand, the knitting and crochet market is poised for long-term growth. Yet, its true potential will only be realized if stakeholders tackle existing challenges and establish strong regulations to guide its evolution, ensuring this timeless craft continues to thrive for generations to come.

(This opinion article was originally publihsed in August 2025 issue of New Business Age Magazine.)