Euratex: European textile and clothing industry contracts for third consecutive year

The European textile and clothing industry contracted for the third consecutive year in the 2025 financial year, according to the annual report from industry association Euratex. The report documents a continued decline in production, employment and confidence within the sector.

The report shows that production volumes fell further in 2025. Textile production decreased by 1.6 percent, while clothing production showed a sharper decline of 4.5 percent compared to the previous year. In the fourth quarter, sales stabilised somewhat compared to the third quarter. However, on a year-over-year basis, there was still a decline of 1.1 percent for textiles and 1.9 percent for clothing. The largest declines in textile production were recorded in Spain at 17 percent; Croatia at 8.3 percent; and Germany at 7 percent.

Imports decrease as trade deficit narrows

In international trade, the European Union's trade deficit decreased, meaning the gap between imports and exports narrowed. In the fourth quarter, imports from non-EU countries fell by 8.1 percent in value. This was linked to lower energy prices and weak domestic demand. Imports of textiles and clothing from outside the EU fell by 11 percent and 7.2 percent respectively, between October and December.

Employment shrinks amid national differences

The downward trend also continues in employment. In the fourth quarter of 2025, the number of jobs in the textile sector fell by 4.8 percent and in the clothing sector by 1 percent year-over-year. Compared to the pre-pandemic period, employment has decreased by 14 percent in textiles and 16 percent in clothing. According to Euratex, factories in Europe are closing weekly.

The development varies by country. In the clothing sector, employment increased in Spain by 28 percent; the Czech Republic by 11 percent; and Denmark by 6 percent. Meanwhile, countries including Croatia, Poland and Lithuania saw declines.

Confidence falls due to lack of new orders

Confidence within the sector remains low. In March 2026, the confidence indicator fell by 2.7 points in the textile sector and by 0.9 points in the clothing sector compared to the previous month. According to Euratex, companies have too few new orders and the production outlook is worsening. The organisation is calling on the European Commission and member states to take measures before the end of 2026, including lowering energy costs and reducing regulatory pressure.

This article was translated to English using an AI tool.

OR CONTINUE WITH

Data

Euratex

Textiles