On the surface, 2026 was a quiet year for silk. Global trade in silk products across the eight major markets — the EU, US, India, Turkey, China, Japan, the UK and Australia — grew just 1.35% to $13.59 billion in the first half. That's the kind of number that gets ignored.
But beneath that flat headline, the supply chain is moving. China's exports are rising again, US imports are shrinking, and Southeast Asian producers are quietly taking market share. For anyone sourcing silk in 2026 — or planning for 2027 — these five shifts matter more than the aggregate total.
Here are the five shifts I'm watching from Nanchong — and what each one means for your next order.
1. China's exports are rising again — but selling to different markets
After a sharp decline in 2025, China's silk product exports returned to growth in H1 2026, up 3.12%. But the recovery isn't uniform. Look at where the growth is coming from:
| Destination | H1 2026 | Change |
|---|---|---|
| European Union | $82.5M | +21.55% |
| Hong Kong | $19.3M | +39.48% |
| Australia | $16.1M | +20.02% |
| United States | $103.6M | +0.24% |
| United Kingdom | $16.8M | -8.29% |
| Japan | $11.8M | -25.04% |
The takeaway: Europe and Hong Kong are driving China's export recovery, while Japan and the UK are pulling back. The US number — a modest +0.24% — is actually a significant reversal from the double-digit declines of 2024–2025.
If you're sourcing for a European or Australian brand, Chinese mills are actively competing for your business right now — which means better pricing and more flexible MOQs. If you're sourcing for Japan, expect tighter allocation and less room to negotiate.
2. The US market is shrinking — and China's share is falling fastest
US silk product imports fell 4.28% in H1 2026, extending a decline that began in 2024. But the headline hides a sharper story: imports from China dropped 19.93%, and China's share of the US import market fell from roughly 26% to 22.44%.
Meanwhile, the US is buying more from the EU (+17.65%) and Vietnam (+19.34%). Both gained over 2 percentage points of share.
| US import source | H1 2026 value | Change | Share |
|---|---|---|---|
| China | $530.5M | -19.93% | 22.44% |
| European Union | $320.8M | +17.65% | 13.57% |
| Vietnam | $289.7M | +19.34% | 12.26% |
| India | $194.2M | -15.25% | 8.21% |
| Indonesia | $94.8M | -11.78% | 4.01% |
Why this matters: US buyers are diversifying away from China — but not away from silk. They're shifting to Vietnam and the EU. If you're selling into the US, your supply chain strategy needs to reflect that.
3. Southeast Asia is becoming a real alternative — but not a full replacement
Vietnam's silk exports to the EU grew 16.69%. Cambodia's exports to Japan jumped 41.76%, and to the UK 29.01%. Bangladesh held steady as the EU's second-largest source at 14.66% share.
But here's what the numbers don't tell you: Vietnam and Cambodia are strong in garment manufacturing, not in silk fabric production. Much of their silk input still comes from China. So while they're gaining share as finished-goods exporters, the upstream silk supply chain remains anchored in China.
For buyers, the practical question isn't "China or Vietnam?" — it's "where in the chain do I want to sit?" Finished garments: Southeast Asia is viable. Raw or woven silk: China is still the only reliable scale source.
4. Japan is the quiet bright spot — and it wants Chinese silk
Japan's silk imports rose 11.08% in H1 2026 — the highest growth rate of any major import market. And where is that growth coming from? China, up 16.70%, with China's share of Japan's imports rising above 2 percentage points to 46.48%.
This matters for anyone in the high-end silk business. Japan is a quality-driven market. It doesn't buy on price alone — it buys on consistency, hand feel, and grade reliability. The fact that Japanese buyers are increasing their Chinese silk purchases signals that Chinese 6A grade silk is meeting a very high bar.
If Japanese buyers — arguably the world's most demanding silk customers — are buying more Chinese silk, that's a quality signal you can rely on. The 6A grade you source from Nanchong is the same grade that's clearing Japanese inspection.
5. The EU is both the biggest exporter and the biggest importer
The EU exported $2.33 billion in silk products in H1 2026 (+6.92%), the highest of any market. It also imported $3.35 billion — the largest import market globally.
But look at the import sources: China's share dropped 9.84%, while Vietnam's grew 16.69%. The EU is slowly rebalancing its silk supply chain away from a single-source dependence on China. Not dramatically — China still holds 28.79% of EU silk imports — but the direction is clear.
For Chinese mills and buyers sourcing from China: The EU remains the most attractive export market for Chinese silk in 2026. Demand is growing, and Chinese silk still dominates. But the window for "China-only" supply chains is narrowing.
What this means for your sourcing strategy
From my desk in Nanchong, here's how I'd read the data for different buyer profiles:
- European or Australian buyer: You're in a buyer's market. Chinese mills are competing hard for EU and Australian orders. Use this to negotiate better MOQs, faster sampling, and tighter QC guarantees. Talk to me about QC-included sourcing.
- US buyer: Diversification is now a supply-chain requirement, not a nice-to-have. But if you're shifting to Vietnam or Cambodia for finished goods, make sure your upstream silk is still coming from a reliable source. That's where a China-based QC partner earns their fee.
- Japanese buyer or Japanese-market supplier: Quality premiums are real, and demand is growing. This is the best market to sell high-grade 6A silk into right now.
- Small brand or designer: The China export recovery means better availability and more flexible MOQs from mills that are hungry for orders. If you've been waiting to place a small-batch order, 2026 H2 is a good window.
The bottom line
Silk trade grew 1.35% in H1 2026 — a number that looks like stagnation but hides real movement. China's exports are recovering, the US is diversifying, Southeast Asia is rising as a garment hub but not as a silk source, and Japan is quietly buying more Chinese silk than ever.
If you're a buyer, the opportunity is clear: Chinese mills are competing for European and Australian orders, quality standards are being validated by the world's most demanding market, and small-batch sourcing is more viable than it was a year ago.
If you want to understand what this means for your specific order — or if you want a China-based partner to help you navigate the shift — I'm one email away.
Frequently Asked Questions
I find. I check. You relax.