The major economic factor resulting from the demand for cotton in the U.S. was the expansion of the plantation system, particularly in the Southern states. Cotton became a highly lucrative cash crop, leading to the proliferation of large-scale plantations that relied heavily on enslaved labor for production. This demand spurred economic growth in the South and became integral to its economy, shaping trade and commerce. The reliance on cotton also entrenched the institution of slavery, contributing to social and political tensions between the North and South. Ultimately, this economic foundation played a significant role in the onset of the Civil War.