Ready-to-Wear and Garment Sector, which Stagnated in 2024, Expects a Rise in 2025

The ready-to-wear and garment industry, one of the most important dynamics of the Turkish economy, went through a challenging period in the first 9 months of 2024. The growth rate of the sector slowed down due to factors such as global economic uncertainties, increase in labour and production costs, fluctuations in exchange rates. Manufacturers, who experienced a decline in exports in 9 months of 2024, think that the sector will regain momentum in 2025 thanks to improvements in global economies and investments.

In 2024 January-September period, Turkiye’s overall exports increased by 3.2% compared to the same period of 2023 and reached 192.8 billion dollars. The textile industry and the ready-to-wear and garment sector had a share of 10.7% in general exports with a total export value of 20.6 billion dollars.

While evaluating the export performance of the ready-to-wear and garment industry in the January-September period of 2024, the developments in the capacity utilisation rate should also be taken into consideration. According to the latest ‘Manufacturing Industry Capacity Utilisation Rate’ table announced by the Central Bank of the Republic of Turkiye (CBRT), the capacity utilisation rate in the ready-to-wear and garmentl industry, which was 76.9% in December 2023, decreased to 76.5% at the end of September 2024. The capacity utilisation rate of the textile industry, which meets the raw material needs of the ready-to-wear and garment industry, increased from 71.5% at the end of 2023 to 71.6% in the first nine months of this year.

According to the data announced by the Turkish Exporters Assembly; Turkiye’s ready-to-wear and garment exports in the January-September period of 2024 decreased by 8.5% compared to the same period of 2023 and reached 13.6 billion USD. With a share of 7.1% in general exports, ready-to-wear and garment ranked third after the automotive sector and the chemicals sector. In September 2024, ready-to-wear and garment exports decreased by 5% compared to the same period of the previous year and totalled approximately 1.6 billion dollars.

68.6% of Ready-to-Wear and Garment Exports from Istanbul

The registration figures of the Exporters’ Associations are indicative of the distribution of ready-to-wear and garment exports on the basis of regions. On the basis of regions and unions, 68.6% of the total 13.6 billion USD ready-to-wear and garment exports made from Turkiye in the January-September period of 2024 was made from Istanbul. Considering the 3.5% share of exports from Bursa, exports from the Marmara Region with a share of 72.1% correspond to approximately three quarters of Turkiye’s total ready-to-wear and garment exports.

62% of Exports to European Union Countries

As of January-September 2024, 62% of sectoral exports were made to European Union countries and exports to this country group decreased by 5.7% compared to 2023. In the first three quarters of 2024, the countries with the highest ready-to-wear and garment exports from Turkiye are Germany, the Netherlands, Spain, the UK and France. Exports worth 2.2 billion dollars were made to Germany, 1.6 billion dollars to the Netherlands and 1.4 billion dollars to Spain.

37.7% Increase in Exports to Poland

In the first three quarters of 2024, Poland, whose exports increased at a high rate compared to the same period of the previous year and whose dollar value is also high, is the leading country in the increase in exports with an increase of 37.7%. Exports to this country increased from 374.9 million dollars to 516.4 million dollars. It is noteworthy that exports to Uzbekistan increased by 275.3% and exports to Palestine increased by 2524.6%.

Maximum Export by Product Groups; Knitted Garment Products

Knitted garment products, woven garment products and other ready-made goods constitute the three main product groups of the ready-to-wear and garmnet industry. The predominant product group in Turkiye’s ready-to-wear and garment exports has been knitted garment products for years. In 2024 January-September period, the share of knitted garment products in total ready-to-wear and garment exports was 52.1%, the share of woven garment products was 36.8% and the share of ready-made goods was 11%.

In the 2024 January-September period, exports of knitted garment products decreased by 5.9% compared to the same period of 2023 and were recorded as approximately 7 billion dollars. The top three countries with the highest exports of knitted garments from Turkiye were Germany, which exported 1.3 billion dollars, Spain, which increased by 2.4% to 842.4 million dollars, and England, which exported 779.8 million dollars. With these export values, 19.1% of Turkiye’s knitted garment exports were made to Germany, 12.1% to Spain and 11.2% to the UK.

The country with the highest increase in exports was Poland, where exports increased by 51.8% to 17.290 million dollars. Germany, the UK, the Netherlands, France, Italy and the USA saw a decline in exports, and knitted garment exports to these markets decreased at rates ranging from 0.7% to 15.5%.

In the first nine months of 2024, when the exports of knitted garment products are analysed by product groups, it is seen that t-shirts, undershirts and similar garments are the most exported products. In the 2024 January-September period, exports of this product group increased by 0.9% compared to the same period of the previous year and reached 2.1 billion USD.

The hosiery industry is recognised as one of the leading sub-sectors of the Turkish ready-to-wear and garment industry. In the first nine months of 2024, 864.4 million dollars worth of socks were exported from Turkiye, exports decreased by 2.5% compared to the same period of 2023. In the 2024 January-September period, the countries with the highest number of hosiery exported from Turkiye are Germany, England, France, the Netherlands and Sweden.

12.5% Decline in Woven Garment Exports

In 2024 January-September period, 4.9 billion dollars worth of woven garment products were exported from Turkiye. Exports of these products decreased by 12.5% compared to 2023 January-September period. The share of woven garment exports in total ready-to-wear and garment exports was 36.2%.

In the first three quarters of 2024, the Netherlands, Germany, Spain, the USA and France were the top five markets, respectively. Among the countries with the highest exports, exports of woven garment products to the Netherlands increased by 48.8% in dollar terms compared to the previous year and reached 908.3 million dollars.

In 2024 January-September period, the most exported woven garment products from Turkiye were women’s woven suits, jackets, dresses, skirts, trousers, overalls, shorts and similar garments. Exports of these products decreased by 9.3% to 2.4 billion dollars.

Denim Clothing Exports of 1.1 Billion Dollars in January-September Period

Denim clothing are one of the important production branches of the woven ready-to-wear industry in Turkiye and this product group accounts for about a quarter of Turkiye’s woven ready-to-wear exports. In the January-September period of 2024, Turkiye exported $1.1 billion worth of denim garments, down 4.4% compared to the same period in 2023. In this period, the share of denim garments in woven garment exports was 23.1%.

In the 2024 January-September period, the country with the highest exports of denim garments from Turkiye was the Netherlands, which exported 239.5 million USD, followed by Spain and Germany.

Underwear and bed clothes are positioned as one of the highly developed sub-sectors of the ready-to-wear and garment industry. In the 2024 January-September period, 515.4 million dollars worth of woven and knitted, men’s and women’s underwear and bedwear such as underpants, slips, bras, pajamas, nightgowns, dressing gowns, bathrobes, robes were exported from Turkiye. The countries that exported the most underwear and bedwear from Turkiye are Germany, Iraq and the USA.

Most Ready-Made Goods Exports to Germany

Exports of other ready-made goods, which mainly include home textile products, decreased by 7% in the January-September period of 2024 compared to the same period of 2023 and reached 1.5 billion USD. In the 2024 January-September period, the countries to which the most ready-made goods were exported were Germany, USA, France, Italy and the Netherlands.

The Impact of Digitalisation and Innovative Production Technologies will Become Significant

As can be seen from the figures, 2024 was a stagnant year for the ready-to-wear and garment industry. Experts predict that Turkiye’s main export market, Europe, will see an improvement in the ready-to-wear and garment industry with the economic recovery that started in the first months of 2025.

The future of the ready-to-wear and garment industry is shaped in parallel with technological developments. Digital transformation moves in Turkiye’s textile and fashion industry have gained momentum. The digitalisation of production processes increases the capacity for faster and more flexible production, while at the same time reducing costs. In this context, the impact of digitalisation and innovative production technologies will become even more evident in the sector in 2025.

The rise of e-commerce and the changing shopping habits of young consumers in particular are facilitating Turkish garment brands’ access to global markets. This situation enables small-scale producers as well as big brands in the sector to reach wider markets. In 2025, strengthening digital marketing strategies and increasing e-exports will reinforce growth expectations in the sector.

Investing in New Markets and Increasing Competitiveness

The Turkish ready-to-wear and garment sector aims to gain a larger share especially in the Middle East, Africa and Far East markets. The rapidly increasing demand in these markets creates a strategic advantage for manufacturers to utilise new opportunities. In 2025, Turkiye is expected to be more present in alternative markets by utilising its geographical advantage and production capacity.

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