During the Civil War, American cotton exports deteriorated due to the Union blockade on southern ports. It was also due to a strategic decision by the Confederate Government to cut exports, hoping to force the British to acknowledge the Confederacy. It was also to encourage them to join the war. This caused the main purchasers of cotton, the United Kingdom and France, to turn to Egyptian cotton. British and French traders made significant investments in cotton plantations in Egypt, and the Egyptian government took out substantial loans from European bankers and stock exchanges to support that investment. After the U.S. Civil War ended, British and French traders abandoned the more expensive Egyptian cotton and returned to cheap American cotton, which sent Egypt into a financial downturn that led to the country declaring bankruptcy. This was a catalyst toward Egypt's annexation by the British Empire.

Despite its annexation to Great Britain, cotton did allow Egypt to continue progressing into the modern world. Today cotton remains a major cash crop in Egypt, and its popularity is likely to keep it that way for many years to come. The reason is because Egyptian cotton is preferred around the world. It is a long fiber cotton that makes it very soft and much stronger than the cheaper cotton from the United States. For many years, it was so valuable that most of the crop was exported to European countries, while Egyptians themselves could hardly buy items made from its material.

In addition, manufacturing in Egypt has developed considerably over the last thirty years. Many textile factories have opened all over Egypt. There are many factories that specialize in producing top-quality cotton products in Egypt.

This evolution turned Egypt into a market for Egyptian cotton products. Strong and soft Egyptian cotton items can be found in many different shops in every neighborhood of Cairo and in many other cities in Egypt. Due to demand, it has been imported to the United States as well.

Egyptian cotton takes time to "relax". In fact, the more you wash it, the better it is. The way it reacts after us is similar to a fine linen tea towel that is stiff, hard and brittle when new, yet softens and drapes better with age and lasts for many, many years. Egyptian cotton improves with use, lasting much longer than conventional cotton. Egyptian cotton is used for duvets, comforters, and has a very high thread count from a 300 thread count to a 1500 thread count.