The European textile industry is often perceived as a shrinking or outdated sector, struggling under the pressure of production shifts to Asia. In the eyes of many, it appears old-fashioned and lagging modern advancements.
However, this perception is one-sided: the industry remains a significant economic sector with a long-standing tradition and currently undergoing transformation that plays a crucial role in Europe’s economy.
In 2023, the textile and clothing sector in Europe included over 197,000 companies, employing approximately 1.3 million people and generating a revenue of €170 billion (Euratex, 2024). Beyond securing employment, it is a key player in international trade.
This article provides insights into the textile industry, its versatility, as well as current developments, challenges, and opportunities within the sector.
Diversity and Specialisation in the European Textile Industry
The term “textile industry” is often associated with fashion and home textiles. In fact, the industry is far broader and deeply embedded in various value chains. The key segments include:
- Fibres and Yarns: The textile value chain begins with the production of fibres and yarns, including natural fibres (e.g., cotton, wool, linen), synthetic fibres (e.g., polyester, nylon), and blends. Leading production countries are Italy, Spain, and Germany.
- Home and Household Textiles: Familiar products such as bedding, curtains, carpets, tablecloths, upholstery fabrics, and bath textiles fall into this category. Major production hubs include Portugal, Italy, Spain, Turkey, and Germany.
- Clothing and Fashion: This sector covers the design and production of everyday, professional, and sportswear, as well as haute couture and prêt-à-porter. Europe is globally renowned for its fashion brands and designers, with key locations in Italy, France, Spain, and Germany, although the manufacturing is mostly outsourced to southeastern Europe or Asia.
- Workwear and Protective Clothing: Due to specific professional requirements, specialised textiles exist for work and protective clothing (e.g., for firefighters, police, construction workers) as well as medical protective wear.
- Technical Textiles: These highly specialised textiles offer functional properties and are used in industries such as construction, automotive, medical, aerospace, and environmental protection. Germany is a leader in technical textile innovation.
- Carrier Materials (woven, knitted and warped fabrics): These materials serve as base layers for coatings, composite materials, or technical applications, widely used e.g. in construction, automotive, and filtration systems.
- Nonwovens: Nonwoven fabrics are created by bonding fibres. They are widely used in hygiene products (e.g., diapers, masks), automotive, geotextiles, construction textiles, filtration systems, and furniture, among others.
Challenges and Future Prospects
Despite its versatility, the European textile industry faces significant challenges regarding cost and workforce structures, international competition, and environmental and social standards. Addressing these challenges requires innovative strategies to make the industry more sustainable and promote circular economy models. Key challenges include:
Global Competitive Pressure: Lower production costs and sometimes more lenient environmental regulations (e.g., in Asia) put European manufacturers under pressure.
Rising Production Costs: Increased energy prices, higher material costs, and rising wages affect profitability.
Skills Shortage: Like many industries, the textile sector faces difficulties in attracting young professionals to ensure generational transition. While the number of employees over 50 has increased from 30% to over 40% in the past decade, the number of textile engineers and technicians continues to decline.
Sustainability and Environmental Regulations: The industry faces growing demands to reduce its environmental footprint, for example through stricter environmental standards, the Supply Chain Due Diligence Act, and other local guidelines.
At the same time, numerous opportunities and prospects arise as demand for innovative solutions grows. Companies can strengthen their global position through specialisation and quality:
Technical Textiles: The rising demand for innovative, high-performance materials presents new growth prospects. Sustainable materials, modern production techniques, and stringent quality standards set European manufacturers apart in the international market.
Sustainability and Circular Economy: Advances in eco-friendly production methods and recycling technologies enhance competitiveness.
Specialisation and Premium Quality: Niche markets and specialised segments present opportunities for high-quality European products to thrive internationally.
Conclusion
Contrary to the perception of being “outdated”, the European textile industry is undergoing a profound transformation. A closer look reveals a variety of innovative and modern companies with an excellent reputation in their respective fields. Particularly, the segments of technical textiles and nonwovens, with their numerous applications, as well as high-quality home textiles, continue to offer growth potential.
Innovation, specialisation, and a focus on sustainable production processes are crucial factors for ensuring the industry’s future. This also necessitates the strategic alignment of (workforce) organisations with future industry demands.
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Article by Mientje Krüger, CFR Global Executive Search Germany