EU Textiles Embrace Digital Innovation For Greener Future

The European Union is taking significant steps toward sustainable textiles future, as recent data reveal both promising efficiency gains and persistent environmental challenges amid rising consumption. In 2022, each EU citizen consumed an average of 19 kilogrammes of textiles—up from 17 kilogrammes in 2019—an amount equated by some experts to filling a large suitcase per person every year. Although the industry has seen a 15% increase in consumption from 2010 to 2022, improvements in production efficiency have led to a notable 22% drop in raw material use and a 32% reduction in greenhouse gas emissions per unit of consumption.
The textile sector, with a reported turnover of EUR 170 billion in 2023 and employing roughly 1.3 million people, is a critical pillar of the European economy. Recent figures indicate that despite temporary setbacks during the Covid-19 pandemic, production volumes have rebounded to pre-pandemic levels, bolstering a market that now exports 4.0 million tonnes of finished textiles valued at EUR 73 billion. Imports have similarly surged, largely driven by demand for clothing from leading trade partners like China, Bangladesh and Turkey. However, these trade dynamics also highlight the environmental costs associated with extensive global supply chains, where a significant portion of raw materials and production emissions occur outside Europe.

Digital technologies emerging in the textiles industry
Digitalisation is emerging as a key transformative force in the textiles industry. Innovations such as the Internet of Things (IoT), Artificial Intelligence (AI) and big data analytics are being deployed to optimise production processes, improve supply chain transparency and facilitate the development of circular business models. These technologies are also driving a rapid expansion in online sales—the share of textile sales via digital channels more than doubled from 5% in 2009 to 11% in 2022—although this shift brings its own challenges. The increased reliance on online platforms has contributed to higher logistical emissions and a surge in product returns, which can lead to waste if the returned items fail to reach a new customer.

The use of primary raw materials per person in the upstream supply chain of EU-27 household consumption domains, 2022
Amid these technological advances, EU policymakers are intensifying efforts to enhance circularity within the textiles value chain. Regulatory measures such as the revisions to the Waste Framework Directive and the introduction of digital product passports under the Ecodesign for Sustainable Products Regulation are designed to improve the management and recycling of textile waste. Currently, only about 15% of textile waste is collected separately for recycling, with the remainder often ending up in mixed household waste destined for landfill or incineration. New policies set to take effect in 2025 are expected to bolster waste collection systems, ensuring that a higher share of discarded textiles is recycled rather than lost to incineration or uncontrolled disposal abroad.
Environmental concerns extend beyond material consumption and waste management. The production and use of textiles contribute substantially to other environmental pressures, including water and land use, chemical pollution and microplastics generation. In 2022, producing textiles required approximately 5,300 million cubic metres of blue water—equivalent to 12 cubic metres per person—and land use averaged 323 square metres per person. Hazardous chemicals, such as PFAS used to enhance fabric durability, continue to pose risks to both human health and the environment, complicating recycling efforts and circular design.

EU exports to receiving countries of ‘worn textiles and clothing’ and ‘textile rags and scraps’, 2023
Despite the efficiency gains and policy advances, experts warn that the sustainability of the EU’s textile sector hinges on addressing the broader challenges of fast fashion and overconsumption. The current trends underscore the need for a systemic overhaul that not only leverages technological innovations, but also rethinks consumption patterns and strengthens regulatory frameworks. As the EU moves forward with its ambitious strategy for sustainable and circular textiles, the coming years will be critical in determining whether these initiatives can truly decouple economic growth from environmental degradation, setting a precedent for other sectors seeking to embrace a circular economy.