Apparel industry pins hopes on 2026 for export rebound

ISTANBUL

Türkiye’s ready‑to‑wear and apparel industry is cautiously optimistic about export prospects in the coming year, with sector representatives expecting a meaningful recovery beginning in 2026.

Istanbul Apparel Exporters’ Association (İHKİB) Vice Chairman Mustafa Paşahan said the industry has long been one of the country’s leading export engines and a pioneer in many areas, adding that they anticipate “a new upward momentum in exports starting in 2026.”

Paşahan emphasized that ready‑to‑wear and apparel remain among Türkiye’s strategic sectors thanks to their high value‑added production, employment capacity and export performance. However, he noted that the past three years have been challenging. Exports have been declining since early 2023 due to shrinking global demand, and in the last two years, Türkiye has become relatively expensive compared to its competitors because of the high‑interest, low‑exchange‑rate policy, weakening the sector’s competitiveness.

He explained that production costs are 60–65 percent higher in dollar terms compared with Asian competitors and 15–20 percent higher than in many European countries, making it difficult for Turkish firms to match prices and retain customers.

The sector exported $15.5 billion in the first 11 months of this year, a 6.9 percent drop from the same period last year. Paşahan said they expect to close the year with around $17 billion dollars in exports. The contraction has also affected employment: As of September 2025, employment in apparel manufacturing fell to 520,973, he noted.

Paşahan stressed that reversing the current trend requires restoring competitiveness. This, he said, depends on reestablishing balance between the exchange rate and inflation, reducing additional customs duties on textile raw material imports and extending employment support to all firms.

Despite the difficulties, Paşahan underlined that the industry continues to pursue new markets and maintain strong engagement with buyers. Last year, İHKİB participated in 21 trade fairs with 770 companies. In 2025, the association plans to take part in 19 fairs with 623 companies.

Turkish firms also joined 486 trade delegation programs last year, holding 5,548 business meetings with 4,093 companies. The number of delegation programs is expected to reach 24 in 2025, with participation from 614 firms.

Paşahan also highlighted the sector’s growing focus on sustainability. In November, İHKİB launched the IPA‑III project, funded with a 7‑million‑euro budget under the European Union’s Instrument for Pre‑Accession Assistance (IPA).

Through the 36‑month program, the industry aims to strengthen companies’ capacity to measure and reduce their carbon and water footprints. Paşahan said the initiative is Türkiye’s most comprehensive effort in this field and will enhance the sector’s competitiveness while helping implement key components of the Ready‑to‑Wear Industry Sustainability Strategy Action Plan.