FW
Signaling a significant recovery in demand from key international markets, Sri Lanka's apparel industry recorded a 15.14 per cent Y-o-Y growth in April 2025.
Data from the Joint Apparel Association Forum (JAAF) shows, the nation’s exports to the EU (excluding the UK) increased by 27.04 per cent, while shipments to the US and UK grew by 6.83 per cent and 7.45 per cent, respectively. Exports to other regions rose by 21.18 per cent, highlighting the industry's expanding global presence.
In the first four months of 2025, Sri Lanka’s cumulative apparel exports increased by 12.4 per cent to $1.66 billion, compared to the same period last year. This growth was mainly led by the EU with an 18.13 per cent rise, followed by the US with 10.06 per cent, other markets 13.56 per cent, and the UK 6.26 per cent.
This growth occurred despite ongoing volatility in the global trade environment and changing consumer preferences, JAAF points out. The industry's strong performance underscores the flexibility of Sri Lankan manufacturers in adapting to evolving market trends while upholding high standards in quality, compliance, and sustainability.
This momentum reflects the tireless efforts of the country’s manufacturers, workers, and exporters in remaining globally competitive, states JAAF. These figures not only demonstrate resilience but also indicate the increasing recognition of Sri Lanka as a dependable source for ethical, high-value apparel.
As the industry continues to navigate complex macroeconomic and geopolitical challenges, JAAF reiterated its appeal for consistent policy support and stronger international trade connections to maintain growth and uncover new opportunities for value addition and innovation throughout the sector.
With textile mills increasingly favoring man-made fibers, India's cotton consumption for the current 2024-25 season is expected to decline by 2 per cent to 30.7 million bales (170 kg each), as per estimates by the Cotton Association of India (CAI).
From its earlier projection of 31.5 million, CAI recently reduced consumption estimates for the current year by 800,000 bales to 30.7 million.
Atul S Ganatra, President, CAI, attributes this to the rising use of man-made fibers such as viscose and polyester by spinning mills, particularly in South India. Also, a severe shortage of laborers is causing spinning mills to operate at slower capacities, further contributing to the decline in cotton use, he notes.
Textile mills are registering better profit margins with viscose, at around 98 per cent, compared to cotton, which yields about 73-75 per cent, explains Ganatra. This is another key reason mills are shifting away from cotton to other fibers, hurting overall consumption.
CAI estimates, cotton crop size during the 2024-25 season to be around 29.135 million bales (170 kg each). By April-end, the total cotton supply was estimated at 32.589 million bales. This includes 26.82 million bales from presses, 2.75 million bales of imports, and opening stocks of 3.019 million bales.
Consumption through April was estimated at 18.5 million bales, with exports at 1 million bales (170 kg). Cotton stocks at the end of April were estimated at 13.089 million bales, comprising 3.5 million bales held by textile mills and the remaining 9.589 million bales with the Cotton Corporation of India, Maharashtra Federation, and other entities (multinational corporations, traders, ginners, exporters), including cotton already sold but not yet delivered.
For the 2024-25 season, the CAI projects India’s cotton imports to increase by 1.78 million bales to 3.3 million bales. Exports for the season are estimated to decline by 2.836 million bales to 1.5 million bales.
Finally, the carryover stocks are estimated to increase from 3.019 million bales last year to 3.254 million bales in the 2025-26 season.
Denim Premiere Vision returned to Milan for its fourth consecutive edition, delivering two days of inspiring insights, innovative products, and valuable networking for the denim industry. Organized by GL events fashion division, the event attracted nearly 2,100 international professionals representing over 1,000 companies, alongside more than 80 exhibitors and 16 brands. Attendees eagerly explored the Fall-Winter 26-27 trends, discovering the latest advancements in denim manufacturing and sustainability.
Global industry leaders gather to showcase excellence
Fabio Adami Dalla Val, Show Manager of Denim Premiere Vision, highlighted the event’s growing prestige: “This edition brought together major players from the denim industry and offered an exceptionally high-quality selection, showcasing the best manufacturers from Italy, Japan, Turkey, and Morocco. The show’s success confirms our ambition to make it a premium and demanding event, centered around business development opportunities for the community.”
Exhibitors came from across the globe, including Italy, Turkey, Japan, Morocco, the United States, China, and France, displaying the newest denim innovations. Sixteen brands presented finished products within Milan’s Fashion District, offering a direct glimpse into upcoming seasonal trends. A dedicated Trend Forum focused on ‘Hybrid Denim,’ reflecting evolving consumer preferences and fabric technology.
The event also featured a rich program of eight expert-led conferences and a pitch stage with 12 presentations from exhibitors. Over 450 participants attended these sessions, gaining valuable knowledge on market dynamics, sustainability, and cutting-edge textile technologies.
Innovation and sustainability at the forefront
Denim Première Vision placed strong emphasis on innovation with a dedicated pitch stage spotlighting future-focused technologies. Among the highlights were DyeMate’s new responsible dyeing methods, which aim to reduce environmental impact, and RUDOLF’s breakthrough in dry denim washing using a fully biodegradable bio-abrasive made from food waste, setting new standards for eco-friendly processes in denim production.
For the first time, the Moroccan Association of Textile and Apparel Industries (AMITH) showcased Morocco’s textile modernization efforts. With a skilled and integrated workforce, proximity to Europe, and a strong commitment to sustainability, Morocco is positioning itself as a strategic and cost-effective sourcing destination for international brands.
Additionally, the Leonardo da Vinci Museum of Science and Technology hosted a fashion show featuring Bangladeshi Pioneer Denim, returning for the third consecutive year and recognized as a key player in the global denim market. A networking cocktail event with industry veteran Adriano Goldschmied fostered meaningful business exchanges among participants.
Strengthening Italian industry connections and sustainability initiatives
Around 60 percent of visitors hailed from Italy, underscoring Denim Première Vision’s strong roots and partnerships within the country. Beyond the main venue at Superstudio Più, the event extended its influence by collaborating closely with Italian stakeholders to promote excellence across the denim supply chain.
In partnership with Officina39, a leader in sustainable textile innovation, Denim Premiere Vision offered an exclusive media experience featuring a guided tour of Officina39’s showroom and lab in Biella. This was followed by a lunch and a private visit to Cittadellarte - Fondazione Pistoletto, fostering a deep appreciation for Italy’s sustainable fashion efforts.
In April, the Rudolf Hub 1922 hosted the F U T U R E dinner, a special event co-created with Premiere Vision. This gathering brought together top industry leaders, innovative brands, and academic experts for an evening of inspiring dialogue, blending industrial innovation with artistic vision and sustainable development challenges.
Denim Premiere Vision’s 2025 edition reinforced the importance of collaboration, innovation, and sustainability in shaping the future of denim, confirming its status as a must-attend event for professionals committed to advancing the global denim industry.
A major window of opportunity has opened for India's small and medium-sized enterprises (SMEs) in the sustainable fashion sector, thanks to the recently implemented India-UK Free Trade Agreement (FTA). This landmark agreement promises to reshape the export landscape, particularly for garment manufacturers, artisan clusters, and power loom & handloom units focused on environmentally conscious practices.
The FTA aims to reduce or eliminate tariffs on a vast majority of goods traded between the two nations, thereby leveling the playing field and making Indian sustainable fashion products more competitive in the lucrative UK market. For SMEs, this could translate into higher demand, better pricing for their unique creations, and a stronger foothold in an global market known for its growing appetite for ethical and sustainable fashion.
UK’s import dynamics
The UK is a substantial import market for textiles and apparel. In 2024, the UK's total clothing imports was almost £14.61 bn. Textile fabric import was around £5.34 bn, while fibre imports were around £378 million. Key sectors and sub-sectors within this include woven and knitted apparel, home textiles, specialty fabrics and yarns, and fashion accessories.
Importing countries and their strengths
The UK sources its textile and apparel from a numerous countries, each bringing unique strengths to the market.
China: It is the largest exporter of apparel and home textiles to the UK, with an estimated share of around 25 per cent of the import value in 2024. China possesses a large-scale manufacturing capacity, offering competitive pricing and a wide range of products. Their strength lies in mass production and established supply chains. However, concerns around labor practices and environmental sustainability are growing.
Bangladesh: Known for its large garment manufacturing industry, particularly in basic and fast fashion categories. Their competitiveness stems from lower labor costs. However, they are increasingly focusing on improving sustainability standards. Bangladesh is the second-largest exporter, with around 22 per cent of the UK's apparel and home textile import market in 2024.
Turkey: An important player with an estimated 8 per cent import share in 2024 Turkey offers a strong combination of quality, design capabilities, and geographical proximity to Europe, allowing for shorter lead times. They are competitive in mid-to-high-end apparel and home textiles.
Italy: Renowned for its high-end fashion, design expertise, and quality craftsmanship, particularly in luxury apparel, footwear, and leather goods. Their strength lies in branding, innovation, and premium materials.
India: Holds a significant position in the global textile and apparel market, with strengths in diverse raw materials (cotton, silk, wool), traditional crafts (handloom, embroidery), and a growing focus on sustainable and ethical production.
Pakistan: Held approximately 6.8 per cent of the market share in 2024.
Table: UK’s apparel & home textile imports
|
Country |
Estimated 2024 import value (apparel & home textiles in billions) |
Strengths |
Reasons for presence/exports |
|
China |
£3.65 |
Large-scale manufacturing, competitive pricing, wide product range |
Established supply chains, economies of scale |
|
Bangladesh |
£3.21 |
Large garment manufacturing capacity, competitive labor costs |
Focus on basic and fast fashion categories |
|
Turkey |
£1.17 |
Quality, design capabilities, geographical proximity to Europe |
Mid-to-high-end apparel, home textiles, shorter lead times |
|
Pakistan |
£1.00 |
Significant textile manufacturing base |
Price competitiveness in certain categories |
|
India |
£1.25 |
Diverse raw materials, traditional crafts, growing focus on sustainability |
Unique sustainable offerings, artisanal skills, increasing emphasis on ethical production |
India's growing strength
The India-UK FTA, coupled with India's inherent strengths, can lead to good growth in the country’s sustainable fashion exports to the UK. India’s exports will get a boost because of the tariff elimination post FTA. It ma y be noted that earlier the tariffs was almost 12 per cent on garments and 16 per cent on some other textile products Reduced or zero tariffs will make Indian products more price-competitive compared to those from countries without such agreements. This is a direct boost to the profits of Indian SMEs.
Also, the UK market is increasingly conscious of environmental and social issues in fashion. Sustainable practices, ethical sourcing, and fair trade are gaining traction among consumers, aligning perfectly with the offerings of many Indian SMEs. Add to it, India's traditional textile crafts like handloom and natural dyeing inherently embody sustainable principles. Promoting these unique offerings can resonate strongly with UK consumers seeking authentic and eco-friendly products. The vast network of skilled artisans and craftspeople can produce high-quality, unique, and sustainable fashion items that cater to niche markets in the UK. The FTA provides a platform to showcase and value these skills internationally.
The Indian government too is increasingly focused on promoting sustainable manufacturing and exports. Schemes supporting textile clusters, skill development, and sustainable practices will further empower SMEs to capitalize on the FTA. India's market share in the UK is also projected to increase from the current 6-7 per cent to potentially 11-12 per cent by 2027. Meanwhile, UK businesses are actively looking to diversify their supply chains, reducing reliance on single sources. India offers a viable and ethical alternative for sourcing sustainable fashion products.
In fact, for Indian fashion SMEs, particularly those in the garment manufacturing, artisan, and power loom/handloom sectors with a focus on sustainability, the India-UK FTA is more than just a trade agreement – it's a launchpad into a significant and receptive international market. By leveraging their unique strengths in sustainable practices and traditional crafts, these businesses are poised for substantial growth and can contribute significantly to India's export economy while championing ethical fashion on a global stage.
An Italian company specializing in sewing, embroidery, and knitting yarns, MIC has endorsed the Gelseta project to revitalize Vernona’s historic silk industry.
Being implemented in collaboration with the University of Verona, the project strives to reconnect agriculture with crafts, and industry. It involves restarting the mulberry cultivation to create a complete production cycle, including silkworm breeding and cocoon spinning into yarn. This will help MIC ensure a local, traceable, and sustainable supply chain.
The initial phase of the project, which includes planting mulberries and raising silkworms, is already underway. MIC is involved as both an industrial partner and an advocate for a circular, low-impact production model. In conjunction with the project's scientific partners, The company will manage the final stage: transforming the fibers into yarn.
Through this endeavor, MIC is committed to enhancing local expertise and contributing to the revival of a historically significant industry in the area, known for its high-quality products.
Facing significant challenges, Bangladesh's RMG exports are projected to decline to $2 billion in 2025, according to a forecast by Bloomberg Economics. The report highlights increased tariffs in the United States, a potential decrease in exports to India, and ongoing domestic energy shortages as key contributing factors.
Accounting for 80 per cent of its total export earnings, RMG exports are a critical component of Bangladesh's economy. In 2024, the country generated $38.48 billion from RMG exports, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Bloomberg Economics warns, any substantial decline in these earnings could severely impact Bangladesh's foreign exchange reserves.
Forecasts suggests, the ‘damage could get even worse’ if competitors like India secure more favorable trade deals with the US, potentially allowing them to capture market share.
Furthermore, overseas retailers might cancel contracts with Bangladeshi suppliers if delivery delays occur. These delays could stem from longer travel routes due to India's recent withdrawal of transshipment facilities for Bangladeshi export cargo. On April 8, India revoked the ability for Bangladesh's exports to third countries to transit through its land borders to Indian airports and ports, a move exporters believe will increase shipment costs.
Additionally, domestic fuel shortages could force producers to halt manufacturing, further exacerbating delivery issues.
Amid pressure from local textile millers, India's National Board of Revenue (NBR) blocked yarn imports through several land ports on April 13. This was followed by broader restrictions on May 17, with India imposing limitations on imports of garments, agro-processed foods, furniture, and other goods from Bangladesh through land ports, raising concerns about significant export losses.
Bloomberg Economics estimates, India imports approximately $700 million worth of apparel from Bangladesh annually. The report suggests, if these import bans remain in place, Indian importers could replace all of these supplies with domestic products by 2027.
Complicating matters further, Bangladesh's status as a Least Developed Country (LDC) provided zero-duty access for its garments. However, with its graduation from LDC status set for November 2026, Bangladesh could face increased duties on its goods. Bloomberg Economics warns, a combination of higher duties, increased logistics costs, and longer transit times would erode the competitiveness of Bangladeshi exporters.
Finally, the report notes that higher tariffs globally this year could reduce global growth by 0.4 percentage points, which would also negatively impact Bangladesh's shipments.
As a part of the Italian fashion brand’s ongoing management restructuring, Massimo Vian is set to step down from his position as Director-Industrial and Supply Chain, Gucci. Vian was appointed by the Kering-owned brand in 2023.
The 52-year-old Italian executive was responsible for managing the product development and production operations for Gucci’s leather goods, footwear, ready-to-wear, and jewelry divisions. He also managed the brand’s product distribution across its global retail network.
Having extensive experience in operations within the luxury sector, Vian plans to soon move to another company. He was earlier engaged as the Deputy General Manager-Product and Operations at the Italian eyewear giant Luxottica. Having joined the company in 2005 as director of industrial engineering, he spent 13 years at the company leaving it in 2017. Vian then led Italian cashmere brand Falconeri, a part of the Oniverse Group for a year before joining Prada in 2020 as chief operating officer.
Recently, Vian made headlines as he was investigated by the Italian financial markets regulator, Consob on allegations of being involved in insider trading 2020. He denies the allegations and has announced plans to contest the case in court.
His departure comes at a time when Gucci is set to enter a new growth phase under the anticipated creative direction of Demna. Last week, the brand announced two additional executive appointments. It named Maria Cristina as President-EMEA region and Marcello Costa as Director-Merchandizing.
Tangshan Sanyou has launched a new pilot facility to advance circular textile innovation in Man-Made Cellulosic Fibre (MMCF) production. The new line, with a ten-tonne capacity, will test an innovative solvent-based process that converts waste cotton textiles directly into high-quality viscose fibres. These fibres will feed into the company’s recycled MMCF line, ReVisco.
This development follows years of investment in circular fibre solutions. Since 2018, Tangshan Sanyou has integrated recycled textile feedstocks into its MMCF operations, supporting the transition to more sustainable and lower-impact fibre production.
Among its key achievements, the company became the first conventional MMCF producer to incorporate Circulose recycled cotton pulp at a 30 per cent blend into ReVisco viscose staple fibre, including black viscose and additional colourway trials. Tangshan Sanyou recently renewed its collaboration with the new owners of Circulose as the Swedish mill prepares to restart operations.
The company also blends Sodra’s OnceMore recycled cotton pulp at 20 per cent into ReVisco viscose and modal fibres. It has announced readiness to scale ReVisco production up to 200,000 tonnes annually based on market demand and is also developing a lyocell version of ReVisco using recycled inputs.
Tangshan Sanyou has successfully trialled viscose fibre production using non-traditional feedstocks like hemp and Juncao. With a total MMCF production capacity of 808,000 tonnes, the company is among the world’s largest producers.
A Canopy partner since 2016, Tangshan Sanyou earned a Dark Green Shirt rating in the 2024 Hot Button Report and is assessed as having no known risk of sourcing from Ancient and Endangered Forests.
As per latest data released by the Bureau of Labor Statistics (BLS), in a deviation from broader inflationary pressures gripping the US economy, apparel prices have continued to move south,. The Consumer Price Index (CPI) for apparel saw a decrease of 0.2 per cent from March to April 2025, and a significant 0.7 per cent decline over the past 12 months ending in April.
This is a contrast to the overall CPI, which rose by 0.2 per cent in April and 2.3 per cent year-over-year. While prices for many goods and services, such as household furnishings (+1.0 per cent in April) and medical care (+0.4 per cent in April), continued to rise, the apparel sector is experiencing deflation.
The BLS data corroborates the trend illustrated in the provided bar graph, which shows month-to-month percentage changes in the U.S. Consumer Price Index for Apparel. The graph indicates volatility in apparel prices throughout the latter half of 2024 and early 2025, culminating in the recent declines.
Tariffs impact
Analysts attribute this unusual dip in apparel prices to the initial impact of the reciprocal tariffs imposed under President Trump's ‘America First’ trade policy. These tariffs, which came into effect earlier this year, have increased the cost of imported apparel from key trading partners.
"The fashion industry is feeling the pinch," explains Anya Sharma, a senior trade analyst at Global Trade Insights. "With tariffs on apparel imports from countries like China, Vietnam, and Bangladesh soaring, retailers are facing a difficult choice: absorb the higher costs or pass them on to consumers. It appears that, at least initially, many are opting to lower prices to maintain sales volume in a potentially softening consumer market."
Table: US Consumer Price Index for apparels
|
Month |
% Change |
|
September 2024 |
1.00% |
|
October 2024 |
-0.90% |
|
November 2024 |
0.10% |
|
December 2024 |
0.10% |
|
January 2025 |
-1.40% |
|
February 2025 |
0.60% |
|
March 2025 |
0.40% |
|
April 2025 |
-0.20% |
Source: Bureau of Labor Statistics
Despite the drop in apparel prices, inflation remains a concern across much of the US economy. The energy index, while showing a 0.7 per cent increase in April, is still down 3.7 per cent over the year, largely due to falling gasoline prices (-11.8 per cent year-over-year). Food prices, however, continue to rise, with a 2.8 per cent increase over the last 12 months.
Retailers say, they are in a tricky situation as the tariffs have increased sourcing costs, but they are hesitant to raise prices when consumers are already feeling the inflationary pressures from other areas. That is why retailers have had to make some tough decisions about inventory and margins.
Looking ahead
The difference in apparel prices raises questions about the sustainability of this trend. Some analysts believe retailers may eventually be forced to pass on the higher tariff costs to consumers, potentially reversing the recent price declines. Others suggest increased domestic production, while facing its own challenges regarding raw material costs and labor, could become a more viable long-term strategy.
The May CPI report, due in June, will be closely watched for further indications of how the tariffs are impacting consumer prices across various sectors, including apparel. The puzzle of market trends in the face of these new trade policies is far from solved.
Recycling used clothing, household linens (TLC), and shoes continues to be a major hurdle, primarily due to the intricate mix of materials and decorative elements prevalent in their design. However, a groundbreaking study update by Refashion in 2024, drawing upon research from ENSAIT (École Nationale Supérieure des Arts et Industries Textiles) and insights from industry stakeholders, pinpoints specific design choices as either major disruptors or crucial enablers in the recycling process.
The report, titled ‘Disruptors and facilitators of the recycling of Clothing Textiles, Household Linens and Footwear (TLC): State of play’, emphasizes the critical role of eco-design in integrating recyclability right from the initial stages of product creation. "Our updated study underscores a fundamental truth: the decisions made at the design table have a profound impact on whether a textile or shoe can be effectively recycled at its end-of-life," explains a Refashion spokesperson. "By understanding and minimizing disruptors while maximizing facilitators, we can significantly advance the circularity of the textile and footwear industries."
Decoding disruptors, the recycling saboteurs
The research identifies several ‘disruptors’ that complicate or even prevent efficient recycling. These can be external additions like buttons, zippers, and intricate embroidery, or internal elements inherent to the material composition. For example, a seemingly fashionable jacket made from a blend of cotton, polyester, and rayon with over 8 per cent elastane and adorned with numerous metal studs exemplifies a product riddled with disruptors. Separating the fibers is technically challenging, the high elastane content compromises mechanical recycling, and the metal studs necessitate manual removal, adding significant cost and time to the process.
Disruptors identified
• Complex material mixtures: Fabrics composed of three or more different fiber types pose a significant challenge for separation and subsequent recycling processes.
• High elastane content: The presence of elastane exceeding 5 per cent in textiles hinders mechanical recycling processes and can contaminate other material streams.
• All-over decorative elements: Features such as sequins, coatings, prints, and rigid embellishments not only complicate sorting but can also damage recycling machinery.
• Metalloplastic threads: These threads, often used for decorative purposes, are difficult to separate and can interfere with various recycling technologies.
• Electronic and electrical components: Increasingly found in smart textiles and footwear, these components require specialized removal and processing to avoid damaging equipment and contaminating material streams.
Facilitators, paving the way for circularity
Conversely, the study highlights design choices that significantly ease and improve recycling processes. These facilitators offer pathways towards a more circular system.
Facilitators identified
• Monomaterial composition: Textiles made from a single fiber type (e.g., 100 per cent cotton or 100 per cent polyester) are the most straightforward to recycle, allowing for efficient sorting and processing.
• Single-layer construction: Garments and linens made with a single layer of fabric, without bonded or laminated layers, simplify the recycling process.
• Monochrome fabrics without superfluous additions: Plain, single-colored textiles without purely aesthetic embellishments streamline sorting and processing.
• Hot-melt wires for dismantling: The use of heat-sensitive wires in shoe construction can facilitate easier separation of the upper and sole components.
"Imagine a simple T-shirt made from 100 per cent organic cotton, dyed with a single, eco-friendly color, and free of any unnecessary embellishments. This seemingly basic design is a recycling champion," states Anya Sharma, a textile sustainability expert consulted for the study. "It allows for efficient mechanical recycling, preserving the valuable cotton fibers for future use."
Shoe recycling, sector ripe for innovation
The study sheds light on the particularly complex landscape of shoe recycling, which is still in its nascent stages. The vast array of materials used, intricate assembly methods (welding, sewing, injection molding), and the frequent inclusion of metal and electronic components present significant hurdles. Currently, shoe recycling primarily relies on either crushing the entire shoe or manually/automatically separating the upper and sole.
The research emphasizes the urgent need for design innovation in the footwear sector to incorporate more facilitating elements and reduce the use of disruptive materials and complex constructions.
Eco-design for a circular future
Refashion's study serves as a crucial resource for designers, manufacturers, and policymakers. By clearly identifying disruptors and facilitators, it provides actionable insights for integrating recyclability into the very fabric of product design. This shift towards eco-design is paramount in achieving a truly circular economy for textiles and footwear, reducing waste, conserving resources, and minimizing the environmental impact of these industries. The report underscores that the future of textile and shoe recycling hinges on the choices made today at the drawing board.
