What is the demand for apparel on the European market?

Europe is a strong apparel market and has some of the world’s biggest and most famous apparel companies. Europe’s apparel import market was valued at €144.5 billion in 2021, up from 127.7 billion in 2020. This big increase of 13.1% was the result of the recovery from the COVID-19 pandemic. From 2016 to 2020, the market grew on average by 3.3%. We expect the market to recover in 2022, back to the sales values of 2020. The biggest European markets include Germany, France, Spain, the Netherlands, Italy and Poland. Together these countries make up nearly 73% of all EU apparel imports worldwide and 67% of all Intra-EU imports. Poland is a market to watch due to its high import growth and an already sizeable market.

1. What makes Europe an interesting market for apparel?

Europe is home to some of the world’s biggest and most renowned apparel companies and has a large and well-performing apparel sector. The World Trade statistical Review 2021 of the World Trade Organisation describes  the EU as the world’s largest importer of apparel and textiles. It accounted for 24.3% of the world’s apparel and textile imports value in 2020. Based on the Eurostat statistics, the overall European apparel import market was valued at €144.5 billion in 2021 (up from €134.2 billion in 2017). This corresponds to roughly 19.5 billion units of clothing in 2021 (down from 19.7 billion in 2017). The average growth rate since 2017 is still slightly positive with 1.5% per year. Before 2021, the market fell by an average annual rate of 1.2% from 2017 to 2020. McKinsey predicts that the global apparel industry will keep growing but will perform differently in different locations. In Europe, non-luxury fashion sales  will be 15% or 10% less than in 2019 and will recover fully by 2022, while the luxury segment will stay below 2019 levels until after 2022.

All apparel statistics have been analysed using the textile HS codes starting with 61 and 62 and involving the product segments Pants, Baby’s Garments, Shirts and Blouses, Nightwear Intimates, Knitwear, Dresses and Skirts, Suits and Ensembles, Swimwear and Active Sportswear, Denim and Coats, Jackets and Blazers.

The CBI definition of ‘developing countries’ are all countries listed on the OECD DAC list of ODA recipients.

The EU is also a large re-exporter of apparel. A large share of apparel imports from inside the EU countries are re-exports of apparel made in the developing countries. In 2021, the EU exported €112.9 billion worth of apparel (up from €96.6 billion in 2017). 50.8% of this value was exported to other countries in the EU and 49.2% to the rest of the world. The EU apparel exports grew at an average yearly rate of 3.2% between 2017 and 2021. The biggest EU exporters in 2021 were Germany (€18.2 billion), Poland (€9.5 billion), Spain (€8.3 billion), Italy (€8.2 billion), the Netherlands (€7.9 billion), France (€4.9 billion) and Belgium (€4.5 billion). Together, these 6 countries represented 39.4% of the EU’s apparel exports. Poland, the Netherlands and Germany have seen the strongest export growth within this group, with an average yearly increase in export value higher than 4%. Poland, which has been the eighth largest apparel exporter in the EU in 2019, has become the second-largest exporter in 2021, and has grown on average by 17.4% each year.

Private consumption expenditure is an important indicator for the European apparel market, a sector closely linked to the economic conditions. When money is tight, consumers postpone buying nonessential items until they have more disposable income. European private consumption expenditure decreased significantly in 2020, reaching a historic low in May 2020, because of the peak of the Covid-19 pandemic. It increased again from May 2020 until September 2020 and re-stabilised at its 2019 value. In 2021, private consumption expenditure increased further, before dropping slightly at the beginning of 2022. This 2020-2021 growth has shown the market’s tendency towards post COVID-19 recovery. However, we can expect 2022 to be more difficult for the European market because of inflation and possible recessions connected to the war in Ukraine. Industry experts expect the apparel market to grow within the next 3-5 years. According to Eurostat, Europeans have spent an average of 4.1% of their spending on clothing and footwear in 2020, 17.3% less than in 2019.

Currently, the value of the EU imports is evenly split between apparel originating from inside the EU and apparel originating from outside the EU, respectively at 52.3% and 47.7%. In 2021, developing country suppliers contributed 45.4% to all clothing imports into the EU in terms of value (down from 49% in 2017) and suppliers from the rest of the world accounted for 2.3% of the value (down from 4.6% in 2017). The value of EU apparel imports originating in the developing countries corresponded to €65.5 billion in 2021 and has decreased at an average yearly rate of 0.1% since 2017. However, the imports have grown at an annual growth rate of 1.5% from 2017 to 2021. This demonstrates that there is a general growing demand for apparel from the developing countries which had been slightly negatively influenced by the Covid-19 pandemic but can recover as fast.

Europe’s Extra-EU apparel imports are dominated by Asian countries with China, Bangladesh and Turkey being the top 3 exporters together accounting for 29.7% of all apparel imports into the EU. China is the single largest apparel exporter to the EU with 12.8% of the EU imports value in 2021, although its share strongly declined from €20.8 billion in 2016 to €18.4 billion in 2021. It is followed by Bangladesh with 10.4% and Turkey with 6.5% in 2021. Other top 10 exporters from outside the EU have import shares between 1-2% of the overall value. Turkey, Pakistan, Vietnam and Myanmar have each slightly increased their shares in the EU apparel imports between 2016 and 2021. Myanmar has been the fastest grower, with a yearly apparel imports value increase of 21.7% taking its exports from €575 million in 2016 to €1.5 billion in 2021. This example highlights the potential of other, before unnoticed, developing countries to import to the EU, while we expect China to further decrease in market shares.

Table 1: Top 10 Extra-EU and Intra-EU exporters to EU, 2021

Top Extra-EU Exporters	Value (EURO)	Share (%)	5-yr average annual growth rate (%)
China	€18.4 billion	12.8%	-2.4%
Bangladesh	€15.1 billion	10.4%	+2.1%
Turkey	€9.3 billion	6.5%	+2.3%
India	€3.3 billion	2.3%	-2.9%
Pakistan	€3.0 billion	2.1%	+4.7%
Vietnam	€2.6 billion	1.8%	+2.5%
Morocco	€2.5 billion	1.7%	+0.3%
Cambodia	€2.4 billion	1.6%	-3.4%
Tunisia	€2.0 billion	1.4%	-0.7%
Myanmar	€1.5 billion	1.1%	+21.7%
Top Intra-EU Exporters
Germany	€18.2 billion	12.6%	+7.5%
Poland	€9.5 billion	6.6%	+17.9%
Spain	€8.3 billion	5.8%	+5.8%
Italy	€8.2 billion	5.6%	+4.0%
The Netherlands	€7.9 billion	5.5%	+6.9%
France	€4.9 billion	3.4%	+2.2%
Belgium	€4.5 billion	3.1%	-1.1%
Denmark	€3.0 billion	2.1%	+3.3%
Czech Republic	€1.6 billion	1.1%	+3.5%
Portugal	€1.5 billion	1.1%	-5.0%

Source: Eurostat

The production in China is becoming increasingly more expensive due to labour force shortages, and following the trade war with the United States. In addition, the Chinese government has also introduced new environmental legislation following their signature of the Paris Agreement on climate change in 2020. In 2021, China’s president Xi Jinping also participated in a virtual climate summit that was hosted by the US. The country’s higher environmental standards are predicted to force over 80,000 Chinese factories to shut down. The decline in Chinese exports is affecting the global supply chains for many companies. Additionally, the Chinese apparel market strongly suffered from the Covid-19 pandemic, productions were partly stopped and imports were shortcut.

Apparel manufacturers are increasingly shifting their business to countries such as Myanmar, Pakistan, Vietnam, Turkey, Bangladesh and Morocco. Although China will for the moment remain one of the largest suppliers of fabrics, accessories, trims and high-value apparel, its fast fashion volume business is expected to be moved to other developing country suppliers.

Europe’s Intra-EU apparel imports are dominated by Germany, Poland and Spain, with these 3 countries accounting for 24.9% of all apparel imports value into the EU in 2021. They are followed by Italy, the Netherlands and France. Together, these top 6 countries account for 39.4% of all Intra-EU exports. Poland is expanding its influence in the market; the country now has the second-largest value of Intra-EU exports, it has experienced an average annual growth of 17.9% during the past 5 years, and we expect that the country will expand its positioning as the second-largest exporter. Germany is expected to remain the leading country because of its size.

While the Intra-EU exports grew by an average of 5.1% annually, Extra-EU sales are down 0.4% because of the import restrictions established during the Covid-19 pandemic. Although the market grew by an average growth rate of 2.8% between 2015 and 2019, the results of 2020 have negatively influenced the development with a market growth of only 0.8 between 2015 and 2020. However, these figures seem to have recovered as the economy has successfully adapted to the situation. The market grew by 2.2% between 2016 and 2021. Intra-EU imports are still growing at the same time.

Europe is an interesting market for sustainable apparel and wearable technology

Sustainability and fair trade

There is no specific trade data available for sustainable textiles. The Business Research Company estimates that the global ethical fashion market was worth $6.31 billion in 2021, and it was expected to grow to $7.57 billion in 2022 at an annual growth rate of 9.1%. The ethical fashion market is further expected to grow at a CAGR of 8% to reach $10.28 billion in 2026.

Europe is one of the most interesting markets for sustainable apparel, because of existing sustainability awareness and initiatives. We see a continued increase in awareness and initiatives at many levels: consumers, retailers, brands, governments and non-governmental organisations (NGOs). There are regulatory initiatives at both the national and European levels to promote sustainability, such as the EC Strategy for Sustainable and Circular Textiles, Germany’s Partnership for Sustainable Textiles and the Dutch Agreement on Sustainable Garments and Textiles. Pressure from governments is leading to an increase in corporate sustainability initiatives.

On the supply side, the number of sustainable brands is growing, and all the big labels and retailers have sustainability strategies and measures. Brands are also expanding their range to include clothing that is made with sustainable materials. For example, Inditex's JoinLife, Mango’s Committed and H&M’s Conscious collections aim to offer their customers ethically produced clothing with more sustainable fabrics. More and more brands are completely sustainable. They use sustainable materials or sustainable business models, which include subscriptions, renting, recycling and upcycling. A good example is Asket, which offers a permanent collection of seasonless designs. They source the finest natural materials and only work with skilled, responsible mills and manufacturers. Also, in 2022, Irish retailer Primark announced a big expansion to its sustainable cotton sourcing programme and made a commitment that by 2027 all the cotton in their clothing will be organic, recycled or sourced from its programme, which can be traced from the grower’s village to the shop.

Consumers are also more interested in supporting sustainable and ethical fashion. A recent analysis of monthly online searches that used sustainable and ethical fashion keywords found that Europe had the highest number of monthly searches for these keywords. Consumer interest in sustainability increased during the COVID-19 crisis, as European consumers wanted fashion companies to act responsibly and consider the social and environmental impacts of their business. According to a McKinsey survey, conducted in 2020 among British and German consumers, 67% thought that the use of sustainable materials was an important purchasing factor, and 65% plan to buy more durable fashion items. However, despite this, consumers are not always willing to pay much more for sustainable apparel. They expect brands to improve sustainability without a strong negative effect on price, quality or design. 

For more information on Sustainable Apparel, visit CBI’s Trends analysis, CBI Buyer Requirements, CBI study on Sustainable Transition in Apparel and Home Textiles and CBI’s study on Sustainable Apparel.

High-tech apparel

Another product category emerging in the EU are wearable technologies and smart clothing. These categories comprise apparel products that can be worn on the body, either as an accessory or as part of the material used in clothing. Examples of wearable technology include fitness tracking bands (for example Fitbit, Runtastic, Mio, Misfit), smart sports bras, smart watches (for example Apple Watch), smart glasses (for example Google Glass and Sony’s SmartEyeGlass), wearables for pets and outerwear such as jackets with built-in LEDs.

According to the IDC, Europe’s wearable technology market is estimated to reach €168.4 million in 2025 and will grow at an annual average growth rate of 12.9% between 2021 and 2025. On global terms, the market is expected to grow to a value of €366 billion by 2026. While the smart clothing segment is not growing very fast in Europe yet due to low public awareness. Some analysts think that smart clothing is the future of the market and will play a major role as the world becomes more digital.

Key driver of the market is the growing share of elderly people as well as the growing trend of fitness and sports wear in Europe. Additionally, disabilities can be better treated, and insurances or funds support the purchase of items and apparel which is supporting the daily life of disabled or chronically sick persons in the region.

Covid-19 and Brexit are re-shaping the European apparel market

In 2021, several market developments and companies’ strategic moves have influenced the industry. These developments are expected to shape the market of the future.

The Covid-19 pandemic is still affecting apparel trade flows

The COVID-19 pandemic strongly influenced the sales and processes within all segments of the fashion industry in 2020. In most European countries, many local shops had to close during lockdowns. Some survived thanks to support from their governments, a mix of heavy discounts and a shift to digital sales..

According to industry experts, the pandemic may change all market dynamics in the long term. Experts expect Asian countries to lose stakes due to local lockdowns and delivery problems. Companies in Africa and other regions could increase their market share by being a reliable and present partner. The pandemic also created new trends and demands among consumers. For example, some Chinese manufacturers have provided buyers with antibacterial and antiviral fabrics.

For more information about the impact of the coronavirus and how to respond, please check the CBI’s market information about the impact of the Coronavirus.

The Brexit creates great uncertainty

The United Kingdom left the European Union in 2020. This meant that new trade agreements for all product categories, including apparel, were needed to keep business partnerships with countries in the European Union and with other partners worldwide.

The value of the UK’s apparel imports is right behind Germany’s, which would make it the second-largest market in the European Union if it was still a member of the Union. Now that the UK has withdrawn from the European Union, the country does not share its official trade figures with Eurostat anymore. This makes it impossible to make an exact and official comparison of product segments and product quantities, but the ITC Trademap still provides the overall approximate import market values. 

ITC Trademap figures show that the United Kingdom has been seriously affected by both Brexit and the COVID-19 pandemic. The value of overall apparel imports decreased from €22.2 billion in 2019 to €17.6 billion in 2021, which is an average annual decrease of 11.1% over 2 years.

At this point, we cannot yet predict the long-term consequences of Brexit. However, in 2021, the country experienced dramatic labour shortages. This made it harder for the country to recover from the pandemic and could be a long-term effect of Brexit.

The European Union has initiated an EU-UK Trade and Cooperation Agreement. This is intended to make it easier to trade between the countries of the Union and the United Kingdom, but it cannot fully replace the trade relationship between the UK and the EU before Brexit. In 2021, the United Kingdom signed trade agreements with non-EU countries.

Online fashion retailers will become industry leading

Online fashion retailers have won major market shares since the beginning of the pandemic. Key reasons are the sanitary regulations and lockdowns in many (European) countries and the interconnected increasing consumption of products online. According to the European Commission,  clothes, shoes and accessories were the most popular online purchases in the European Union in 2021. An average of 64% of the European population is estimated to have purchased equal products on the internet during this time.

Amazon has become one of the leading fashion retailers since the beginning of the pandemic and the interrelated shift to online web shops due to lockdown and store restrictions. This has been seen especially in selected European countries with no great leading digital retailers like Spain and Italy. In correspondence with this ongoing success, Amazon has also decided to extend its own fashion roadshow to several countries in Europe. For the future, the company is expected to further extend its involvement in the European region. According to Amazon’s new Head of Amazon Fashion Europe, the United Kingdom, Germany, France, Italy and Spain belong to the current key target markets of the company.

2. Which European markets offer most opportunities for apparel exporters?

Western European apparel markets are much larger than the Central and Eastern European markets. The top6 apparel import markets in the EU are Germany, France, Spain, the Netherlands, Italy and Poland. While some Eastern European countries are growing at much higher rates than Western Europe, they are still relatively small in market size. Poland is a market to watch due to its fast growth of imports from the developing countries and an already sizeable market. The country belongs to the top importers to many countries in the European market. 

Table 2: Top 10 EU importers of apparel, 2021

Country	Value (EURO)	5-yr average annual growth rate (%)
Germany	€33.3 billion	+2.2%
France	€19.2 billion	+0.5%
Spain	€15.8 billion	+0.5%
The Netherlands	€13.6 billion	+0.4%
Italy	€12.9 billion	+0.4%
Poland	€10.4 billion	+15.0%
Belgium	€6.9 billion	-0.1%
Austria	€5.6 billion	+2.3%
Denmark	€4.4 billion	+3.9%
Sweden	€4.1 billion	+3.4%

Source: Eurostat

At €33.3 billion value, Germany is the largest apparel importer in the EU in 2021. It is followed by France, Spain, the Netherlands, Italy and Poland. Together, these top 6 countries account for nearly 72.8% of the entire EU apparel import market. In the last 5 years, Poland has been the fastest grower within this group. The value of its apparel imports has grown each year on average by 15%. It was followed by Germany with an average growth of 2.2%.

The fastest-growing EU markets include Poland, Slovenia, Romania and Latvia with each country growing on average between 7.2% and 15%. Despite the fast growth, these 4 countries together account for only 9.2% of the EU apparel market. The most interesting country from this group is Poland, which by itself accounts for 7.2% of all EU imports, making it the 6th largest importer of apparel in the EU.

The primary apparel exporter to the top 6 EU apparel markets is still China. Its import market share within the top 6 import market ranges from 18.1% for the Netherlands to 9.8% for Poland. Its share has decreased over the last 5 years in the top 6 European import markets. Other significant exporters include Bangladesh, Turkey, Italy, France and Germany.

Germany

Germany is Europe’s largest importer of apparel products with a total import value of €33.3 billion, of which €16.9 billion is Intra-EU imports and €16.4 billion is Extra-EU imports. In the past 5 years, Intra-EU imports grew by 7.4%, while Extra-EU imports decreased by -1.9% at the same time. However, the large increase of Intra-EU imports from 2016 (39.6%) to 2021 highlights the growing trend of importing apparel from other European countries like Poland and the Netherlands.

We can compare the imports  to Germany in 2020 and 2021 to show how strongly the industry recovered from the pandemic: the import value of apparel increased by 9.6%, from €30.3 billion in 2020 to €33.3 billion in 2021. The volume increased from 4 billion units to 4.3 billion between 2020 and 2021. This increase suggests a post-pandemic economic recovery.

In total, Germany gets 48% of its imports from developing countries. Bangladesh is the largest developing country exporting to Germany. However, China’s share decreased from 16.8% to 11.6% in the last 5 years. However, Poland has increased its shares of imports significantly from 8.3% in 2017 to 16.6% in 2021 and is now the biggest exporter of apparel to Germany.

Table 3: Germany apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in Germany include Hugo Boss, Adidas, Escada, Tom Tailor, Jil Sander, Joop! and PUMA.

The leading apparel retailers in the country include Zalando, C&A, H&M, Peek & Cloppenburg, KiK, New Yorker, Takko, S.Oliver and many others.

France

France is Europe’s second-largest importer of apparel products with a total import value of €19.2 billion, of which €9.7 billion is Intra-EU imports and €9.5 billion is Extra-EU imports. While Extra-EU imports decreased from 2016 to 2021, Intra-EU imports increased by 1.2%. Extra-EU imports show now a slightly smaller share in the market (49.5% compared to 51.4% in 2017).

We can compare the imports to France in 2020 and 2021 to show how strongly the industry recovered from the pandemic: the import value of apparel increased by 12.1%, from €17.2 billion in 2020 to €19.2 billion in 2021. The volume increased from 2.2 billion units to 2.5 billion.

In total, France gets 45.2% of its imports from developing countries. China is not only the largest developing country exporting to France but remains also the country’s biggest exporter of apparel in total. However, China’s share decreased by -0.1% in the last 5 years, while the share of Germany, Italy, Spain and Bangladesh increased significantly.

Table 4: France apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in France include Louis Vuitton, Chanel, Dior, Givenchy, Yves Saint Laurent, Balenciaga, Hermès, Balmain, and Lacoste.

The leading apparel retailers in the country Amazon, Decathlon, Galeries Lafayette, Kiabi, La Halle, Camaieu, C&A, H&M and many more.

Spain

Spain is Europe’s third-largest importer of apparel products with a total import value of €15.8 billion, of which €4.2 billion is Intra-EU imports and €11.6 billion is Extra-EU imports. In the last 5 years, while the value of Intra-EU imports fell by -1.5%, Extra-EU imports grew by 1.1%. 

From 2020 to 2021, the Spanish market largely recovered from the pandemic: the import value of apparel increased from €14 billion in 2020 to €15.8 billion in 2021, an increase of 13%. The volume increased from 2.1 billion units to 2.3 billion. Statista expects that Spain’s apparel market will grow by 6.8% each year between 2022 and 2026.

In total, Spain gets 72.4% of its imports from developing countries. Bangladesh is the largest developing country that exports to Spain, and the largest exporter to Spain in total. However, Bangladesh’s share increased by 3.2% and Turkey’s share by 4.4% in the last 5 years, while the share of China further decreased by -3.8% during the same time.

Table 5: Spain apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in Spain include LOEWE, DELPOZO, Adolfo Dominguez, Desigual, Bimba y Lola and Uterqüe.  

The leading apparel retailers in the country El Corte Ingles Group, Mango, Tendam, Stradivarius, Bershka, Massimo Dutti, Pull and Bear, Oysho, and many more.

The Netherlands

The Netherlands is Europe’s fourth-largest importer of apparel products with a total import value of €13.6 billion, of which €6.1 billion is Intra-EU imports and €7.5 billion is Extra-EU imports. In the last 5 years, while the value of Intra-EU imports increased by 7.5%, Extra-EU imports decreased by -3.8%. 

We can compare the imports to the Netherlands in 2020 and 2021 to show that the industry recovered from the pandemic: the import value of apparel increased from €11.4 billion in 2020 to €13.6 billion in 2021, an increase of 19.2%. The volume increased from 1.4 billion units to 1.6 billion between 2020 and 2021, but it is still well below 2016 levels. Overall, in the last 5-year period, Dutch import volumes fell by 7.3% each year. When we combine this with the overall growth in import value, we see a significant fall in average import prices.  

In total, the Netherlands gets 51.7% of its imports from developing countries. China is the largest developing country that exports to the Netherlands. However, China’s share decreased by -4.1%. The second-largest developing exporter, Bangladesh, also decreased by -6.8% between 2016 and 2021, while the shares of Turkey, Spain and Germany further increased by 0.3-5.9% during the same time.

Table 6: Italy apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in Italy include Prada, Zegna, Dolce & Gabbana, Valentino, Salvatore Ferragamo, Versace and Gucci.

The leading apparel retailers in the country are Yoox, Benetton, Calzedonia, H&M, Max Mara, Teddy, Rinascente, and many more.

Italy

Italy is Europe’s fifth largest importer of apparel products with a total import value of €12.9 billion, of which €6.2 billion is Intra-EU imports and €6.7 billion is Extra-EU imports. While the Intra-EU imports grew by 3.1%, the value of Extra-EU imports fell by -1.8%. This reflects the strong dynamics in the market in the last couple of years.

We can compare the imports to Italy in 2020 and 2021 to show that the industry recovered from the pandemic. The import value of apparel slightly increased by 12.2%, from €11.5 billion in 2020 to €12.9 billion in 2021. The volume increased from 1.5 billion units to 1.6 billion.

In total, Italy gets 48.4% of its imports from developing countries. China is the largest developing country that exports to Italy, and the largest exporter of apparel to Italy in total. However, China’s share decreased by 4.9%, while the shares of France, Spain and the Netherlands increased by 0.9%, 2.8% and 2.9% respectively during the same time.

Table 7: The Netherlands apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in the Netherlands are Scotch & Soda, Laundry Industry, Mexx, and Viktor & Rolf.

The leading apparel retailers in the country are G Star, WE, C&A, H&M, Zalando, and many more.

Poland

Poland has become Europe’s sixth-largest importer of apparel products with a total import value of €10.4 billion, of which €7.2 billion is Intra-EU imports and €3.2 billion is Extra-EU imports. The largest exporter of apparel to Poland is Germany. The share of intra-EU import is decreasing while the share of Extra-EU imports grew from 28.2% (2017)to 30.5% (2021).

When we compare the imports to Poland in 2020 and 2021, we can see that Poland is the only country in the top 6 that grew during the pandemic and kept on growing afterwards: the import value of apparel increased from €8.7 billion in 2020 to €10.4 billion in 2021, an increase of 19% in 1 year. The volume increased from 1.3 billion units to 1.6 billion.

In total, Poland gets 30.3% of its imports from developing countries. Germany is the largest country that exports to Poland. However, Germany’s share is decreasing. The shares of Spain and China are also falling, while the share of the Netherlands increased from 2.1% in 2017 to 4.6% in 2021, and the share of Bangladesh increased from 7.6% in 2017 to 11.2% in 2021.

Table 8: Poland apparel import details 2021: Import value, volume and growth

Source: Eurostat

Leading apparel brands in Poland are Reserved, House, Cropp, Mohito, and Promostar.

The leading apparel retailers in the country are H&M, Next, Zara, Nike, and many more.

Trade of the EU countries with developing countries

The CBI definition of ‘developing countries’ are all countries listed on the OECD DAC list of ODA recipients

Table 9: Top 10 EU importers from Developing Countries, 2021

Country	Value of Developing country imports	5-yr average annual growth rate (%)	Developing country share of imports
Germany	€16.0 billion	-0.7%	48.0%
Spain	€11.4 billion	+1.4%	72.2%
France	€8.8 billion	+0.7%	45.6%
Netherlands	€7.0 billion	-4.1%	51.7%
Italy	€6.3 billion	-1.9%	48.4%
Poland	€3.1 billion	+19.6%	30.3%
Belgium	€3.1 billion	-4.8%	45.0%
Denmark	€2.8 billion	+3.0%	62.3%
Sweden	€2.1 billion	+2.5%	50.1%
Ireland	€1.0 billion	+13.1%	45.3%

Source: Eurostat

Developing countries contributed significant shares to the import values of all top 6 apparel markets, ranging from 30.3% in Poland to 72.2% in Spain. Germany, France, Spain, Italy, the Netherlands and Poland account for 91.8% of all apparel imports from the developing countries. Germany remains the single largest importer by value of apparel from the developing countries. Poland has shown the strongest growth of 19.6% within the last 5 years.

The overall trends for the top 6 markets show that the export opportunities for the developing countries are generally growing again, despite previous losses experienced due to the Covid-19 pandemic and related trade restrictions. The strongest growth in imports from the developing countries was observed in Poland (19.6% average yearly growth) and Ireland (13.1%). Poland is slowly becoming one of Europe’s apparel hubs, with both its total imports and imports from the developing countries growing the fastest in the top 10 EU apparel markets. Poland’s largest clothing manufacturer is LPP with its umbrella of brands including Reserved, Cropp, House, Mohito and Sinsay.

Although the developing country apparel imports to other Eastern European markets like Slovenia (31.85%) and Hungary (15.5%) are growing at very high yearly growth rates, the sizes of these markets are still very small in comparison to the top EU markets. Slovenia has imported apparel with a value of €348 million, and Hungary’s import value was €177 million in 2021. The fact that they depart from a relatively low base explains the strong rates of growth, which would be unrealistic for larger importers. Some emerging brands from Eastern Europe include Dzhus, RCR Khomenko, Anna K, The Knotty Ones, Nehera.

Price levels of apparel imports originating inside and outside the EU

Table 10: Average unit prices of Intra and Extra-EU imports of top 6 EU importers; 2021 EUR value; 5-year change

Country	Average Unit Price of Intra-EU imports	Total 5-yr change	Average Unit Price of DC imports	Total 5-yr change
Germany	€11.36	+€1.73	€5.19	-€0.19
France	€9.82	+€1.73	€5.44	+€0.14
Spain	€8.83	+€0.90	€5.60	+€0.42
The Netherlands	€15.36	+€3.33	€8.83	+€3.64
Italy	€10.78	+€0.40	€5.42	-€0.03
Poland	€9.59	+€2.01	€3.34	-€0.01

Source: Eurostat

The price levels of clothing and footwear vary considerably across the EU member states, with the highest prices observed in Scandinavia and the lowest prices observed in parts of South-eastern Europe. According to Eurostat, in 2021, the highest prices for apparel were recorded in Latvia (34% higher than the EU average), followed by Austria (29%) and Estonia (27%). Malta was the least expensive country for clothing (180% lower than the EU average), followed by Hungary (67%) and Greece (63%).

The average unit prices of imported apparel vary between the top markets and are based on the import origin. Apparel imported from the EU countries is usually 2-3 times more expensive per unit than apparel imported from the developing countries. In the top 6 markets, the Netherlands has the highest import unit prices for imports originating from the developing countries, and Poland has the lowest prices.

3. Which products from the developing countries have the most potential on the European apparel market?

Trousers, Shirts and Blouses, Knitwear and Coats, Jackets and Blazers are the largest product categories that developing countries export to the EU. Together, these 4 segments have a value of €46 billion, which is 70% of all developing country apparel exports to the EU. The fastest-growing product category exports from developing countries include Dresses and Skirts and Swimwear and Active Sportswear. These 6 product segments are some of the most interesting for producers in developing countries.

Table 11: EU apparel imports from developing countries and from CBI focus countries, by product category, 2021

	Developing countries		CBI focus countries
Product Category	Value (€ billion)	5-yr average annual growth rate (%)	Value (€ billion)	5-yr average annual growth rate (%)
Trousers	€15.7	+1.4%	€7.3	+1.4%
Shirts and Blouses	€11.7	-4.2%	€5.5	-2.8%
Knitwear	€9.7	+2.2%	€3.7	+2.8%
Coats, Jackets and Blazers	€8.9	+0.4%	€2.6	+8.8%
Nightwear and intimates	€5.4	+2.6%	€2.1	+5.9%
Dresses and Skirts	€4.8	+3.9%	€1.4	+6.9%
Denim	€3.6	-2.6%	€1.6	-3.0%
Suits and ensembles	€2.1	+2.5%	€0.6	+3.3%
Baby garments	€2.0	+0.9%	€0.8	+4.0%
Swimwear and active sportswear	€1.7	+4.6%	€0.6	+8.8%
TOTAL:	€65.5	+0.3%	€26.2	+1.7%

Source: Eurostat

Trousers

Trousers make up 24% of all apparel imports from developing countries (up from 23% in 2016) and have grown on average by 1.4% each year between 2016 and 2021. This is also the largest export segment from the CBI focus countries. The average import unit price of trousers from developing countries is €5.72, and €4.97 from CBI focus countries. The unit price for this product has fallen by €0.19 in the last 5 years, but in the overall developing country exporter group, the CBI focus country group has seen an increase of €0.38. 

Figure 5: Examples of Trousers and Men’s Shirts

Source: Unsplash

Shirts and blouses

Shirts and blouses are the second-largest apparel export segment for both developing countries and CBI focus country groups. In 2021, they made up €11.7 billion and €5.5 billion in exports, respectively. Both groups experienced a 5-year decrease in value, which indicates that this segment is losing its popularity. Average import prices of shirts and blouses from developing countries have been quite stable for the last 5 years. They are estimated at €3.22 for exporters from developing countries and €2.42 for the CBI focus countries.  

Knitwear

Knitwear is the third-largest export category for the developing country group, and it makes up almost 15% of overall exports and 21% of the CBI focus country exports. Both country groups experienced a moderate 2.2-2.8% average growth per year in the value of their exports. Average knitwear import prices are €6.60 for the overall developing country exporter group and €5.20 for the CBI focus country group. The overall group experienced a positive price development in the last 5 years, with the prices going up in total by €0.41. However, the CBI focus country group prices decreased by €0.20.

Coats, Jackets and Blazers

Coats, Jackets and Blazers are the fourth-largest apparel export category for developing countries. In 2021, the segment made up €8.9 billion in developing country exports (13.6% of all apparel exports that originated in developing countries). In the last 5 years, the value of coats, jackets and blazers exports from developing countries has grown by the modest average of 0.4% per year. The CBI focus country group has experienced a much stronger average growth of 8.8% per year in the last 5 years. This indicates that this apparel segment is becoming more attractive to these countries. Coats, Jackets and Blazers have a higher value and have average unit import prices of €13.05 (all developing countries) and €11.56 (CBI focus countries). The first group experienced a downward price trend in the last 5 years, and the second group experienced a positive price trend.

Dresses and Skirts

Dresses and Skirts are the sixth-largest apparel export segment that originates in developing countries. In 2021, the value of exports of dresses and skirts was estimated at €4.8 billion. More importantly, this segment shows one of the fastest growth rates: an estimated average growth of 3.9% per year for the last 5 years for the entire developing country group, and 6.9% for the CBI focus country group. The average export prices of dresses and skirts are estimated at €7.14 for developing countries and €5.37 for CBI focus countries. Although the first group experienced price growth in the last 5 years, the second group saw a decrease during the same time.     

Swimwear and active sportswear

In the last 5 years, Swimwear and Active Sportswear exports from developing countries have grown by an average of 4.6% each year, which means that this is the fastest-growing apparel export category. This growth has been caused by a growing demand for this category in the EU. In the CBI focus country group, Active Sportswear and Swimwear grew by an average of 8.8% each year. At the same time, the average export prices for this apparel segment increased by €3.71 over the last 5 years to reach an average price of €12.53.

Table 12: Average unit prices of imports originating from the developing countries and from CBI focus countries, by product category, 2021

	Developing countries		CBI focus countries
Product Category	Average price	Total 5-yr Change	Average price	Total 5-yr Change
Trousers	€5.72	-€0.19	€4.97	€0.38
Shirts and Blouses	€3.22	-€0.03	€2.42	€0.09
Knitwear	€6.60	€0.41	€5.20	-€0.20
Coats, Jackets and Blazers	€13.05	-€0.81	€11.56	€0.46
Nightwear and intimates	€2.00	€0.04	€2.00	-€0.04
Dresses and Skirts	€7.14	€0.61	€5.37	-€0.36
Denim	€8.36	-€0.04	€7.42	-€0.12
Suits and ensembles	€17.94	-€2.48	€19.43	€1.41
Babies and garments	N/A	N/A	N/A	N/A
Swimwear and active sportswear	€12.53	€3.71	€13.38	-€1.50
TOTAL:	€5.39	€0.13	€4.32	-€0.06

Source: Eurostat

M-Brain GmbH conducted this study for CBI.

Please review our market information disclaimer.