Eastern Europe emerges as rising market for Turkish apparel sector

ISTANBUL

Eastern European countries have emerged as rising markets for Türkiye’s ready-to-wear sector as apparel exporters step up efforts to diversify their export destinations amid signs of slowing demand in Europe, according to a report prepared by the Turkish Clothing Manufacturers’ Association (TGSD).
The report, titled “Axis Shift in Global Ready-to-Wear and Textile Trade,” showed that the Turkish apparel industry’s search for new markets has gained pace as producers seek to strengthen their position in alternative regions outside their traditional export destinations.
Turkish ready-to-wear exporters recorded $4.28 billion in exports in the first quarter of 2026. Although European Union countries remained the sector’s largest sales market, weaker signals from the European economy have encouraged exporters to increase market diversification.
The TGSD report said strategic growth in the sector depends on urgently placing “new markets” outside the traditional EU region on the industry’s radar.
According to the report, Europe maintained its position as the main export market for Turkish ready-to-wear products, with exports to the region reaching $2.31 billion in the first quarter. However, the report also pointed to contractions in major markets including the United Kingdom, Italy and Germany.
Exports to the EU fell 9.2 percent in the first quarter of the year, while the decline in exports to Germany and Italy reached 16 percent. During the same period, Iraq stood out among growing markets with a 22.8 percent increase, while exports to former Eastern Bloc countries rose 25 percent.
The report also showed that Türkiye’s domestic ready-to-wear market has become increasingly open to imports. Türkiye’s share in global ready-to-wear exports declined from 4 percent to 3 percent over the past 19 years, while its share in global ready-to-wear imports rose from 0.3 percent to 0.8 percent.
The textile sector displayed a more positive performance than ready-to-wear, according to the report. Türkiye’s share in global textile exports increased from 2.6 percent in 2006 to 3.5 percent in 2025. Its share in global textile imports, meanwhile, declined from 3.3 percent in 2006 to 3 percent in 2025.
The report also found that China has been losing market share in ready-to-wear exports. The share lost by China directly contributed to gains by Bangladesh and Vietnam. According to the report, other major producer countries, excluding Türkiye, increased their exports at a high rate, while Türkiye was unable to secure a sufficient share of the shift in global ready-to-wear trade.
The findings indicated that Turkish ready-to-wear exporters continue to face pressure in traditional European markets, while Eastern Europe, Iraq and other alternative destinations are becoming more prominent in the sector’s export outlook.