As Europe’s Textile Industry Shrinks, Türkiye Emerges as a ‘Critical Partner’

Europe’s textile and apparel industry continues to contract in terms of production, turnover, and employment. According to the EURATEX Facts & Key Figures 2026 report, the sector’s turnover declined by 5.2%, production fell by 6.7%, and employment decreased by 5.8%.

The European Apparel and Textile Confederation (EURATEX) has published its Facts & Key Figures 2026 report, revealing that the European textile and apparel industry is facing a challenging period. According to the report, the sector’s turnover in the European Union fell by 5.2% in 2024 to €170 billion, while production declined by 6.7%. Employment in the industry also dropped by 5.8%, falling to approximately 1.3 million workers.

The report states that high energy costs, weak consumer demand, geopolitical uncertainties, intense import pressure, and an increasing regulatory burden continue to place significant pressure on the industry. It emphasizes that a dedicated industrial strategy is essential if the European textile and apparel sector is to maintain its global competitiveness. The report also highlights that the industry’s transformation should focus on digitalization, the circular economy, sustainability, and relocating production closer to Europe.

More Than 143,000 Companies Operate in the Sector

According to the report, the European textile and apparel industry consists of approximately 143,000 companies. The ongoing downturn has particularly affected energy-intensive manufacturers, while weakening consumer demand and competition from low-cost imports continue to undermine the sector’s competitiveness.

EURATEX warns that if current trends continue, Europe could lose an even larger share of the global textile and apparel market.

Türkiye Described as a “Critical Industrial Partner”

The section of the report focusing on Türkiye contains particularly noteworthy assessments. EURATEX describes Türkiye as a “critical industrial partner” for the European textile and apparel industry and notes that, as of 2025, Türkiye has become the European Union’s fourth-largest trading partner.

According to the report, Türkiye’s textile and apparel industry comprises 59,100 companies, employs 959,400 people, and generates an annual turnover of €72.2 billion. These figures make Türkiye the largest textile and apparel manufacturing hub outside the European Union.

The report underlines that Türkiye’s strategic importance continues to grow thanks to its geographical proximity to Europe, fast delivery capability, vertically integrated manufacturing structure, and strong industrial infrastructure. It also stresses that the nearshoring model is expected to gain even greater importance in the coming years. At a time of increasing geopolitical tensions, Europe’s efforts to diversify its supply chains are further strengthening Türkiye’s strategic position.

China Remains the Leading Supplier

According to the report, China continues to dominate the European Union’s textile and apparel imports. Despite global shifts in trade patterns and ongoing efforts to diversify supply chains, China remains Europe’s largest supplier, while Türkiye maintains its position as the third-largest supplier.

The report notes that the EU is increasingly seeking to diversify its sourcing network in order to reduce dependence on a single country, making production hubs located closer to Europe increasingly important. According to EURATEX data, China accounts for approximately 28% of the EU’s textile and apparel imports, followed by Bangladesh and Türkiye.

The report also points out that countries such as Morocco, Tunisia, and Egypt have gradually increased their market shares in recent years, reflecting Europe’s broader strategy of diversifying its supply base. Nevertheless, China continues to maintain its leading position thanks to its economies of scale, robust manufacturing infrastructure, and strong price competitiveness.

EU Textile and Apparel Industry at a Glance

• Turnover: €170 billion (-5.2%)
• Production: €204 billion (-6.7%)
• Employment: 1.3 million people (-5.8%)
• Number of Companies: Approximately 143,000
• Key Challenges: High energy costs, weak consumer demand, import pressure, and geopolitical uncertainty.