The EU Textile & Clothing Outlook 2024-2025 presents an economic overview of the European textile and clothing (T&C) industry amid current macroeconomic pressures and competitive challenges. Prepared by EURATEX, the report highlights sector performance trends throughout 2024 and the first half of 2025, assessing production, turnover, trade balances, and external competitive dynamics that shape the industry’s prospects.  

Key Takeaways

• Economic context: EU manufacturing faced a challenging environment in 2024, with weak industrial activity and capacity utilisation below 80%, influenced by high energy costs, geopolitical uncertainty, and a difficult investment landscape.
• Performance declines: Across 2024, the textile and clothing sectors recorded negative growth in production, turnover and employment, reflecting subdued global and domestic demand.
• Trade imbalances: Rising imports from non-EU countries, including low-cost producers, contributed to a deterioration in the EU’s trade balance, while exports fell due to weakening global demand and heightened competition.  
• ‘Perfect storm’ pressures: The outlook notes a combination of factors, weaker consumer purchasing, strong import competition, regulatory uncertainty, and digital transition costs, creating a ‘perfect storm’ that undermines competitiveness.
• Areas of resilience and innovation: The report identifies pockets of growth and innovation in specialised segments such as defence and medical textiles, bio-based fibres, water-efficiency improvements, reduced CO₂ emissions, and textile recycling initiatives. 

The EU Textile & Clothing Outlook 2024-2025 underscores the persistent difficulties faced by the European textile and apparel industry, driven by structural and external pressures that have affected production, trade performance and employment. Nevertheless, the report highlights ongoing innovation and specialised growth areas that offer pathways for resilience and competitiveness as the industry navigates a complex economic landscape.

For more information, visit  EURATEX.