South American textile industry faces Argentine job cuts and Peru's sustainable alpaca fiber breakthrough

The Argentine textile sector is experiencing a severe downturn, with the Federación de Industrias Textiles Argentinas (FITA) reporting a loss of 15,468 jobs between April 2025 and April 2026, the largest annual decline on record. Production fell 25.6% year‑on‑year in May, and factory utilization dropped to 42.2%, leaving many machines idle and prompting the closure of dozens of establishments.

Meanwhile, Peru's alpaca fiber industry is exploring a sustainable upgrade by using natural biopigments derived from spirulina. The blue pigment phycocyanin offers an eco‑friendly alternative to conventional dyes, promising greater traceability, reduced chemical use, and added value for premium markets in Europe, North America and Asia. This innovation aims to strengthen the competitiveness of Peruvian alpaca textiles amid growing consumer demand for environmentally responsible products.