Türkiye’s Textile and Ready-to-Wear Exports in 2026: European and Global Market Analysis

Overall Export Performance

In the first quarter of 2026, Türkiye’s ready-to-wear export volume reached around 3.8 to 3.9 billion USD, marking a 7.2% contraction compared to the same period of the previous year. January 2026 exports stood at approximately 1.34 billion USD, representing a 4.9% year-on-year decline. This performance reflects the mounting competitive pressure faced by Türkiye’s apparel sector in global markets.

The textile industry, covering intermediate goods, recorded exports exceeding 2.2 billion USD in the first quarter of 2026, reaching 181 countries and free zones worldwide.

Istanbul’s Pivotal Role in the Industry

The Istanbul Apparel Exporters’ Association (İHKİB) maintained a leading position with a 64.8% share in Türkiye’s ready-to-wear exports. In the first quarter of 2026, İHKİB members achieved exports totaling approximately 2.46 billion USD, representing nearly two-thirds of national performance. This concentration underlines İstanbul’s dominance as a production and export hub in Türkiye’s apparel ecosystem.

Product Category Breakdown

Export distribution by product group in Q1 2026 was as follows:

• Knitwear: 52%
• Woven fabrics and apparel: 37%
• Ready-made goods and household textiles: 11%

The dominance of knitwear illustrates Türkiye’s competitive advantage in flexible production technologies, quality materials, and shorter lead times.

European Market: Strategic Significance and Decline in Demand

Market Overview

The European Union remains the most significant and stable export destination for Türkiye’s textile and apparel sector. In 2024, EU imports from Türkiye in this category exceeded 10 billion euros.

Top European Destinations

By January 2026, leading European markets included:

• Germany: 17% share (224.4 million USD, down 13.6% year-on-year)
• Netherlands: 11% share (145.3 million USD, down 4.8%)
• Spain: 9% share
• France and Italy: continued importance as core export markets
• Poland: emerging growth destination

Declining EU Performance

In the nine months of 2025, exports to the EU declined by 6.3%, falling to 4.8 billion euros. The contraction reflects weaker demand across Europe and intensifying competition. Countries such as Pakistan, Vietnam, and Cambodia recorded robust growth in apparel exports to the EU during the same period, directly challenging Türkiye’s position.

Türkiye’s Position in Global Competition

Türkiye ranked 6th globally in garment exports in 2023 but slipped to 7th place by 2024. Major competitors include:

• China: massive production scale and integrated supply network
• Bangladesh: low-cost labor and volume-based growth
• Vietnam: rapidly expanding export base and strategic trade agreements

The Turkish industry continues to face cost pressures stemming from exchange rate fluctuations, high energy prices, and elevated interest rates.

Alternative Market Strategies: GCC, Africa, and Beyond

Growing Opportunities in Africa

Exports to African countries grew at double-digit rates, making the continent Türkiye’s second-strongest regional export market. This growth partially offset declining volumes in Europe and demonstrated the importance of emerging markets.

Middle East and Iraq

The Iraqi market registered significant growth, rising by nearly 30% in January 2026 to become Türkiye’s tenth-largest export destination. The strong rebound in the region showcases Türkiye’s strategic proximity advantage.

Focus on the US Market

In 2026, the sector strategically oriented itself toward the US. While total national apparel exports fell from 13.5 to 12.7 billion USD between January and September 2025, shipments to the US remained stable. This reflects a deliberate effort to diversify geographically and reduce dependency on European demand cycles.

Operational Challenges and Structural Issues

Key challenges faced by the industry during early 2026 included:

• Exchange rate and interest rate pressure: low currency value and high credit costs constrained manufacturers
• Reduced employment: declining capacity utilization affected the workforce
• Regulatory compliance: alignment required with new EU sustainability directives, including the Extended Producer Responsibility (EPR) framework

Strategic Takeaways for International Entrepreneurs

1. Market Diversification: The slowdown in Europe underscores the need to expand into alternative regions such as Africa, the GCC, and North America.
2. Value-Added Positioning: Firms competing on price should instead focus on design, quality, sustainability, and speed-to-market strategies.
3. Supply Chain Optimization: The 52% share of knitwear highlights the potential for productivity enhancement in this segment.
4. Collaborative Ecosystem: İHKİB’s 64.8% export share demonstrates the importance of cooperation networks and clustered production structures in reinforcing competitiveness.

Conclusion

Despite facing a softer European market and mounting external competition, Türkiye’s textile and ready-to-wear sector in 2026 remains resilient and globally connected. Its diversification into emerging markets, focus on knitwear excellence, and adaptive export strategies provide a solid foundation for renewed growth beyond the continent. International investors and entrepreneurs can capitalize on Türkiye’s strong manufacturing base and strategic location bridging Europe, the Middle East, and Africa.