Imabari was only officially founded in 1920, although the area has been important since the feudal period, as it is a strategic point for the control of the Seto Inland Sea. The present city limits are the result of an expansion in 2005 which annexed a number of surrounding towns and villages, giving Imabari an area of 419 sq km (162 sq mi) and a population of 172,000 people (2012 estimate).
Today Imabari is renowned for its shipyard. It has the biggest ship building company in Japan and the third largest in the world. Its northern and eastern coastlines are dotted with maritime facilities including a container port and twenty maintenance and construction shipyards. The city also has an important cotton processing industry, and produces 60% of the towels made in Japan.