The German textile and fashion industry continues to pass through a challenging economic situation. An anticipated recovery remains elusive amidst falling turnover and strained operations as per recent data from the German Federal Statistical Office (Destatis) and statements from the Gesamtverband der deutschen Textil- und Modeindustrie e.V. (Association of the German Textile and Fashion Industry, textil+mode). Falling turnover, fluctuating exports, a weak retail sector, and a strained order and production situation are painting a picture of an industry under considerable pressure.

Table: Germany; economic indicators

Note: Data for the textile and fashion industry specifically are often embedded within broader manufacturing and retail statistics from Destatis. Direct industry-specific turnover and export figures for the latest periods were not detailed in publicly summarized reports.

A tense situation persists

The German Federal Statistical Office's provisional data reveals a dip in overall industrial production, with the consumer goods segment, which includes textiles and fashion showing a decline. While there was a monthly growth in manufacturing orders in March, the quarter-on-quarter comparison for the first three months of 2025 indicates a persistent downward trend in new orders. This suggests underlying demand challenges despite some short-term fluctuations.

Similarly, national export figures show a recent monthly dip, although a slight year-on-year increase was observed in May. This volatility adds to the precarious situation for a highly export-oriented sector.

Leading industry voices underscore the severity of the situation. Uwe Mazura, Chief Executive of the Gesamtverband textil+mode, has frequently commented on the strained economic conditions. In a recent statement from June 27, 2025, Mazura voiced concerns that policy decisions, such as the minimum wage commission's resolution, "will further drive companies out of collective bargaining," highlighting the increasing cost pressures and the difficult operating environment for businesses.

Earlier in April, Mazura warned of the repercussions of escalating trade disputes, stating that an "escalation of the trade conflict would have enormous consequences for the medium-sized textile and fashion industry." This sentiment underscores the industry's vulnerability to global economic and political dynamics.

The challenging economic climate was further emphasized during wage negotiations for the West German textile and clothing industry on April 11, 2025, which concluded with what was described as a "just still acceptable conclusion in an economically highly tense situation."

Immediate and short-to-mid-term outlook

Based on the data and industry statements the immediate and short-to-mid-term outlook for the German textile and fashion industry remains guarded. The "anticipated economic recovery is still out of reach," as the industry grapples with declining production in key areas, inconsistent export performance, and a subdued retail environment.

High cost pressures, partly due to policy decisions and global trade tension, continue to strain profitability. While there's a long-term projection for the overall German textile market to reach $48.1 million by 2033 (a 3 per cent CAGR from 2025), the current indicators suggest a challenging period ahead as companies strive to maintain competitiveness and adapt to ongoing economic headwinds. The industry is actively advocating for measures that support competitiveness and reduce bureaucratic burdens to navigate these difficult times.