As the global apparel sector navigates a complex recovery in early 2026, Türkiye is intensifying its transition from a volume-based manufacturer to a high-value ‘organizer country.’ The upcoming Texhibition Istanbul exhibition, from March 4–6, 2026, serves as a commercial litmus test for a sector grappling with a 60 per cent – 65per cent production cost gap compared to Asian competitors. Despite these fiscal headwinds, Türkiye’s combined textile and apparel exports generated $26 billion in 2025, sustained by a record-breaking valuation of $4.3 per kg—nearly triple the national export average. This premium positioning is designed to neutralize domestic inflation and the competitive threat posed by the new India-EU Free Trade Agreement, which has narrowed Türkiye’s historical duty-free advantage.
Agile sourcing and the Mediterranean shift
The industry is currently executing a ‘Near-Shoring 2.0’ strategy, focusing on high-responsiveness logistics for the European market, which absorbed 40 per cent of textile exports last year. While EU demand remains conservative, Turkish manufacturers are finding significant growth in Africa and the Middle East, with exports to Egypt rising by 23 per cent in 2025. By utilizing its strategic location, the sector offers lead times measured in days rather than weeks, a critical asset as global brands prioritize inventory liquidity. We are seeing a strategic necessity for market diversification and a move toward an 'organiser country' model, states Ahmet Öksüz, Chairman, ITHIB, highlighting the intent to acquire struggling international brands to secure direct retail access.
Sustainability as a prerequisite for EU market access
With the EU’s Digital Product Passport (DPP) requirements looming, Turkish mills are integrating advanced traceability into their denim and technical textile divisions. The ‘Blue Black Denim’ showcase at Texhibition underlines this shift, emphasizing water-efficient dyeing and recycled blends. This move toward circularity is boosted by the IPA-III project, a €7 million initiative aimed at decarbonizing the supply chain. Data suggests that Turkish technical textile exports rose to $2.3 billion in 2025, a growth trend expected to continue as the industry focuses on performance fabrics that meet stringent European ESG standards.
Technology integration and future market size
To remain resilient against fluctuating energy prices and labor costs, the sector is investing heavily in Industry 4.0 technologies and smart material engineering. The focus is shifting toward technical sportswear and medical textiles, segments projected to drive a 4.3 per cent CAGR in market revenue through 2033. By aligning with the Green Deal and adopting waterless dyeing technologies, Turkish suppliers are securing their roles as indispensable partners for premium global labels like Hugo Boss and Burberry. This technological modernization is the industry’s primary defense against the ‘cost crisis,’ ensuring that Türkiye retains its status as the world’s fifth-largest textile powerhouse.
Türkiye is a top-five global exporter, serving as the EU's second-largest supplier of high-end fabrics and denim. The industry is targeting $17.2 billion in market revenue by 2033, focusing on technical textiles and African market expansion. Despite employment losses in 2025, the sector remains a primary foreign currency source, aiming for a €2.05 billion operating profit cycle.
