Guide for International Entrepreneurs: Selecting Textile Suppliers in Türkiye in 2025

The textile sector in Türkiye in 2025 is undergoing significant transformation. For international entrepreneurs, this market offers strong opportunities but also presents critical risks that require careful evaluation. Choosing the right supplier demands a clear understanding of the sector’s current situation, key risks, and advantages.

Current State of Türkiye’s Textile Sector

In the first quarter of 2025, the Turkish textile sector exported goods worth 2.423 billion USD, with the year-end target set at 2.5 billion USD. Despite these achievements, the industry has been affected by several structural challenges. In 2024, the sector lost 65,000 jobs, including 52,000 in ready-to-wear and 12,000 in textile production.

Between the end of 2024 and March 2025, more than 2,147 companies closed operations, including 244 textile businesses and 1,903 ready-to-wear companies. These closures highlight that companies failing to invest in digitalization, efficiency, and sustainability remain highly vulnerable in the market.

Main Risks When Selecting Suppliers

Financial Stability Risk

The large wave of company closures and bankruptcy filings in recent months emphasizes a major risk: supplier insolvency. A thorough financial review of potential partners is essential.

Cost Pressures and Global Competition

Rising energy and labor costs have weakened the competitiveness of Turkish textile firms. Competing regions, such as Egypt, are expanding their low-cost production capacity. For example, over 60 new textile factories opened in Egypt in the past year, increasing global competition.

Global Demand Slowdown

Economic stagnation and high inflation in the European Union, the sector’s largest market, have weakened consumer purchasing power and reduced demand. This has led to shrinking order volumes for Turkish suppliers.

Opportunities and Advantages

Growth in Technical Textiles

In January 2025, technical textile exports increased by 8.1%. Products used in medical industries, automotive, defense, and construction have gained momentum. This niche offers strong growth potential for international buyers seeking innovative materials.

Technological Transformation

Companies investing in Industry 4.0 solutions, energy efficiency, and environmentally friendly production technologies have gained competitive advantages. These suppliers are generally more reliable for long-term partnerships.

Geographical Advantage

Türkiye continues to benefit from its proximity to the European Union. Shorter delivery times, lower transportation costs, and established trade relations give the country a continued edge in near-shoring strategies.

Practical Supplier Selection Criteria

Financial Resilience

• examine financial statements from at least the last three years
• check for any history of bankruptcy or restructuring
• request and verify references from existing clients

Production Capacity and Technology

• conduct on-site factory visits to assess production lines
• evaluate the level of automation and digitalization
• verify quality certifications such as ISO or OEKO-TEX

Product Quality and Sustainability

• test product quality through sample orders
• inquire about supply chain traceability
• assess compliance with environmental and sustainability standards

Risk and Supply Chain Management

Over-reliance on a single supplier is risky, especially given global disruptions. In 2024, for example, container traffic through the Suez Canal dropped by 75% due to Red Sea conflicts. To minimize risks, entrepreneurs should secure multiple suppliers and diversify logistics routes.

Key Recommendations for Entrepreneurs

The macroeconomic adjustments introduced in 2024 have had visible effects across 2025. Stronger, financially stable, and technologically advanced companies now stand out as safer long-term partners. To minimize risk, international businesses should avoid rushed decisions and instead conduct thorough due diligence.

Practical approaches include running pilot projects with new suppliers, monitoring their operational resilience, and establishing contingency arrangements. These steps help entrepreneurs build sustainable partnerships and secure reliable sourcing in Türkiye’s dynamic textile market.