Weak EU Consumption Slows Production, Freezes Imports in Apparel Sector

Europe's clothing and textile industry continues to grapple with the same structural issues that have hampered its progress since 2023, with first-quarter 2026 data indicating that a recovery remains distant. According to a statement from the Hellenic Association of Apparel and Knitwear Companies (SEPEE), based on European Federation of Clothing and Textile Industries (EURATEX) data, weak consumer demand within the EU, escalating competition from low-cost countries, and declining exports are collectively pressuring businesses in the sector. Consequently, the European industry is experiencing a contraction.

While the last quarter of 2025 saw a stabilization of turnover and a slight increase in exports, sparking hopes for a recovery, the figures for the first quarter of 2026 have dampened this optimism. All key economic indicators have returned to negative territory. Production in the clothing sector fell by 5.1% and in textiles by 4.2% during the first quarter of 2026, reflecting a continued slowdown in manufacturing activity. Turnover also decreased, by 3% in textiles and 4.2% in clothing.

Exports also presented a bleak picture, with a 3.2% reduction in clothing and a 2.1% decrease in textiles. SEPEE attributes this decline to both lower international demand and the intensified competitive pressures faced by European companies. The sluggish consumption within the EU has also impacted imports, which experienced a double-digit decline. Clothing imports dropped by 11.6%, while textile imports fell by 10.6%.

Within the clothing sector, imports from Bangladesh saw the largest decrease at -19.3%, followed by Turkey (-18.9%) and China (-7.9%). For textiles, the most significant reductions were in imports from Pakistan (-17.3%) and Turkey (-13%). SEPEE's analysis of the first-quarter 2026 data confirms that the European clothing and textile industry is operating in an environment of heightened uncertainty, with conditions not yet ripe for stable growth. Weak consumption, a slowdown in international trade, and intense competition from third countries remain the primary challenges for one of the European economy's most significant manufacturing sectors.