Textile Pricing Dynamics in Türkiye: Outlook for 2024-2025

Türkiye’s textile sector, traditionally one of the country’s strongest industries, has been undergoing a dramatic transformation since 2022. Rising costs, shifting global competitiveness, and changes in export performance have all reshaped the way prices are formed. For international entrepreneurs, understanding these dynamics is critical to evaluating business opportunities in Türkiye’s textile market.

Key Cost Drivers

Labor Costs

One of the most significant pricing factors is the rapid rise in labor costs. Between 2022 and 2023, Türkiye increased its minimum wage by 100–200%, pushing the average cost of employing a textile worker to around 1,100 USD. In comparison, competing countries such as India, Pakistan, Bangladesh, and Egypt maintain labor costs in the range of 100–150 USD. This sharp difference has eroded Türkiye’s competitiveness in price-driven markets.

Raw Materials and Exchange Rates

Türkiye’s strong dependence on imported raw materials makes the exchange rate a critical component of pricing. While foreign exchange rates rose by 28% in 2024, overall costs in the sector increased by more than 100%. Increased prices of cotton, polyester, and other raw materials significantly raised production expenses, adding further stress on manufacturers.

Financing Costs

High interest rates introduced by the Central Bank of the Republic of Türkiye as part of its tight monetary policy have added to the financial pressure. Loan rates climbing up to 50% in 2024 created severe financing challenges for textile firms, with many struggling to sustain working capital under these conditions.

Price Competition and Market Position

Global Competitiveness

Due to rising production costs, Turkish textile products became over 30% more expensive than those of regional competitors. This led many global brands to shift production away from Türkiye, favoring Asian suppliers and even some European countries such as Portugal, which offer more cost-efficient alternatives.

Sector Performance

Türkiye’s total textile exports reached 9.50 billion USD in 2024, reflecting a 0.7% decline compared to the previous year. The knitwear industry faced even sharper challenges: exports dropped from 924 million USD in the first half of 2022 to only 699 million USD in the same period of 2024. This decline signals shrinking international demand for Turkish textile products in traditional price-sensitive segments.

Capacity Utilization

In 2024, the capacity utilization rate was recorded at 71.8%. However, many manufacturers actually operated closer to 60–65% capacity, an indication of idle production capacity caused by both weak demand and rising costs.

Value Creation and Pricing Strategies

Unit Price Analysis

A critical metric for sectoral competitiveness is the unit value of exports. Türkiye’s apparel exports generated about 16.80 USD per kilogram, which is significantly lower than Portugal’s 42.00 USD per kilogram. This disparity highlights the challenge Türkiye faces in moving toward higher value-added segments of the market.

Competitive Advantages

Despite losing cost competitiveness, Türkiye still retains important strengths that appeal to international buyers. These include:

• speed: Türkiye offers short lead times compared to Asian suppliers
• sustainability: the industry increasingly aligns with global environmental standards
• geographical proximity: especially valuable for European markets
• technological adaptation: investments in digital and automated production improve productivity

Outlook for 2025

Market Expectations

As of 2025, trends suggest signs of recovery. Structural challenges in competitor countries such as production bottlenecks in Portugal and political instabilities in Bangladesh are causing some buyers to return orders to Türkiye. In January 2025 alone, textile exports reached 827.1 million USD, a positive start to the year.

Strategic Directions

The survival and growth of the sector now depend on its ability to focus on high-value, innovative, and sustainable products. However, continued pressure on exchange rates and domestic costs could limit the pace of recovery. Adaptation toward design-driven, niche, and premium market products appears to be the most viable path forward for Turkish manufacturers.

Conclusion for International Entrepreneurs

While the cost-based competitive advantage of Türkiye’s textile sector has eroded, opportunities remain. Buyers and investors can still benefit from Türkiye’s speed, quality, and proximity advantages. However, business strategies should account for the rising costs of labor, financing, and materials, and should focus on value-added, design-oriented product categories. For entrepreneurs looking to enter or expand within Türkiye’s textile market, careful planning and an emphasis on premium positioning are essential for long-term success.