Industry snapshot
Key public data points
Historical & forecast
Base year 2024. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2029.
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What does the Apparel Knitting Mills in European Union industry cover?
The industry encompasses the commercial manufacture of completed garments utilizing knitting or crocheting techniques, as well as the fabrication of knitted panels that are subsequently assembled into clothing. It distinguishes between the production of independent knitted fabrics and the direct creation of finished apparel items like hosiery, pullovers, and outerwear. Operations range from traditional flat-bed and circular knitting methods to highly automated seamless garment manufacturing.
- •Covers specific downstream garment production separate from upstream fabric-only mills.
- •Includes the specialized production of socks, tights, sweaters, cardigans, and waistcoats.
- •Excludes the preparation of raw synthetic or natural textile fibers, which fall under chemical and agricultural classifications respectively.
Market Structure and Operators
Who operates in the industry and how is it structured?
The European Union's apparel knitting sector is highly fragmented, consisting predominantly of small and medium-sized enterprises (SMEs) concentrated in traditional manufacturing hubs. According to EURATEX data published in 2024, the combined textile and clothing sector spans approximately 197,000 companies across the EU. Western European operators have increasingly transitioned into capital-intensive, technology-driven structures to offset high domestic labor expenses.
- •SMEs with fewer than 50 employees represent the vast majority of operating establishments.
- •Geographic concentration remains high in Southern and Eastern European member states like Italy, Portugal, Romania, and Poland.
- •Labor costs as a share of total apparel production expenses in Western Europe fell from 30.1% in 2006 to 20.3% by 2019 due to automated machinery investments.
Demand Drivers
What drives demand in the industry?
Demand for EU-manufactured knitted apparel is influenced by domestic household expenditure patterns, regional trade preferences, and the growth of e-commerce channels. According to the Centre for the Promotion of Imports (CBI), intra-EU trade remains a major pillar, with internal imports expanding at an average rate of 6.5% between 2019 and 2024. However, macro-economic headwinds and a prolonged cost-of-living squeeze have constrained overall consumer retail spending within the Eurozone.
- •European consumer spending on clothing and footwear averaged 4.3% of total household expenditure in 2022.
- •Intra-EU apparel exports reached EUR 141.6 billion in 2024, showing strong reliance on the single market.
- •Consumer demand is increasingly bifurcated between low-cost fast fashion from international online retailers and domestic premium products.
Competitive Landscape and Notable Public Companies
Who are the notable companies in the industry?
EU knitting mills face intensive price competition from developing countries, forcing domestic operators to focus on agility, quick-response logistics, and premium material quality. Major multinational fashion groups control significant local production networks or rely on specialized European contractors for high-end seasonal collections. Key corporate entities actively operating production, supply chains, or localized knitting infrastructure within Europe include Calzedonia Holding S.p.A., Benetton Group S.r.l., Inditex (Industria de Diseño Textil, S.A.), and LVMH Moët Hennessy Louis Vuitton SE.
- •Calzedonia Holding S.p.A. maintains vertically integrated production mills specialized in legwear and hosiery.
- •Benetton Group S.r.l. operates historic industrial knitting facilities focused on woolens and sweaters.
- •Inditex utilizes a localized network of proximal suppliers in Spain and Portugal to execute rapid turnaround times.
- •LVMH Moët Hennessy Louis Vuitton SE invests in high-end knitwear ateliers across Italy and France to supply luxury apparel brands.
Recent Trends and Outlook
What are the recent trends and outlook?
The industry entered a challenging cyclical downturn during 2024 and 2025, marked by declining capacity utilization and negative growth across downstream apparel segments. According to EURATEX's 2025 reporting, industrial capacity utilization across European manufacturing fell below 80% by the end of 2024. Despite a broader downturn, select niches such as medical compression knitwear, performance sportswear, and bio-based circular recycling partnerships show notable resilience.
- •Production, turnover, and sector employment recorded consecutive negative growth through the first half of 2025.
- •The United Nations COMTRADE database recorded EU imports of knitted or crocheted apparel at US$ 53.13 billion during 2025.
- •Growth vectors are shifting toward automated industrial processes, digital product passports, and closed-loop material recycling.
Regulation and Compliance
How is the industry regulated?
The EU apparel manufacturing landscape is subject to some of the world's most stringent environmental and circular economy regulations, shifting compliance costs upstream to producers. Manufacturers must adhere to rigorous chemicals management guidelines while preparing for sweeping changes regarding textile disposal and lifecycle tracking. These legislative frameworks aim to eliminate systemic market failures that historically favored unsustainable externalized production.
- •The Ecodesign for Sustainable Products Regulation (ESPR), enacted in 2024, mandates the phased introduction of Digital Product Passports for garments.
- •The 2025 targeted revision of the Waste Framework Directive introduces strict new mandates on managing and recycling waste textiles.
- •Imports of garments from outside the EU face an average tariff rate of 11.8%, protecting localized compliance investments.
Sources
Government, statistical and trade sources used for this Claight analysis.
- European Apparel and Textile Federation (EURATEX) 2024-2025 Reports ·
- Eurostat Industrial Production and Trade Statistics 2024 ·
- Centre for the Promotion of Imports (CBI) Ministry of Foreign Affairs 2024 Market Information ·
- United Nations COMTRADE Database 2025/2026 ·
- European Environment Agency (EEA) Circularity Reports 2025
Claight analysis of public industry data.