EU Textile & Clothing Industry Faces Continued Strain In Q1 2025
The European Union’s textile and clothing (T&C) industry remained under pressure in the first quarter of 2025, with modest signs of optimism in the textile segment overshadowed by persistent weakness in clothing. According to the latest industry data, turnover dropped by 2.4% in textiles and 2.3% in clothing year-on-year, with production declines across the board, particularly in weaving, finishing, and knitwear.
Structural challenges continue to weigh heavily on the sector. Weak demand remains the primary obstacle to growth, followed by labour shortages, while high energy and wage costs add further strain. Although inflation is softening, falling consumer prices for clothing reflect weakened purchasing appetite across the region.
Employment in the sector remains below pre-pandemic levels, hampered by cost pressures, ongoing restructuring, and a lack of skilled labour. The EU27’s trade deficit widened by 52%, driven by rising imports from Asia and declining EU exports.
Business sentiment remains fragile. The textile sector reported slight improvements in stock levels and production expectations, sparking cautious optimism. However, confidence in the clothing sector deteriorated, with worsening order books, stock levels, and export outlooks.
As global and internal pressures persist, the EU T&C industry’s path to recovery will depend on investments in resilience, innovation, and skills development to restore competitiveness and sustainability.
