The French fashion industry faces a challenging 2026, anticipating flat sales amidst persistent global uncertainty. This stagnation mirrors a wider European manufacturing crisis, where unchecked foreign competition—including a significant 12.3% surge in clothing imports during the first half of 2025, has battered domestic manufacturers. However, French authorities are leveraging stringent new environmental policy as a structural defense mechanism to foster a competitive, high-value ecosystem, which currently employs 1.3 million workers across the EU.

Investment in traceability and circularity

Effective October 2025, France's pioneering Écobalyse regulation (Environmental Cost labeling) requires brands to disclose a product’s full life-cycle impact, from raw materials to end-of-life. This transparency tool, the first of its kind, is designed to reward domestic sustainability investments. This aligns with the EU’s commitment to invest up to €60 million through the European Partnership for Textiles of the Future (2025–2030) to boost R&I.

This focus on mandatory traceability and circularity is seen as essential leverage. As one industry leader stated, "Mandatory disclosure, backed by financial support, is the only way to transform our €170 billion ecosystem into a resilient, high-value industry, countering the low-cost import threat that operates outside these environmental requirements." France is further reinforcing this approach by increasing its national textile recycling aid to €57 million in 2026, positioning itself at the forefront of the upcoming EU Circular Economy Act.