Confindustria Moda has released its annual industry assessment, revealing that Italy's textile and apparel sector generated €58.4B in revenue during 2025—a 2.4% decline that nonetheless reinforces the country's position as Europe's dominant fashion manufacturer and a critical pillar of the national economy.
Why This Matters
• Employment footprint: The sector sustains 372,200 jobs across 37,331 firms, representing nearly 10% of Italy's entire manufacturing workforce.
• Export engine: Fashion and textile goods worth €36.9B left Italy in 2025, delivering a trade surplus exceeding €10.4B despite headwinds in key markets.
• European dominance: Italy accounts for roughly 30% of EU textile production and holds second place among European exporters, fifth worldwide.
Understanding the 2.4% Contraction
The downturn in turnover—from approximately €59.8B in 2024 to €58.39B—stems from multiple converging pressures. Export volumes declined amid weakened demand in key Asian markets, where luxury consumption has slowed. Competition from low-cost imports has intensified, with ultra-fast-fashion platforms and direct-to-consumer channels increasingly bypassing traditional retail and eroding margins for domestic producers.
Industrial sell-in prices remained weak throughout 2025, particularly in the textile segment. Against this backdrop, smaller firms and artisan workshops have faced particular pressure, with many finding it difficult to maintain profitability.
Where Italy Still Leads
Despite revenue erosion, the Italian textile-apparel ecosystem retains structural advantages that competitors struggle to replicate. High-end craftsmanship and design innovation continue to drive the sector, with Italian firms consistently outperforming peers in productivity and integrated supply chain efficiency. Historic textile districts—Prato, Biella, Como, and Carpi among them—remain hubs of specialized weaving, dyeing, and finishing capabilities that underpin the luxury supply chain.
France, Germany, and the United States absorbed significant portions of Italian exports in 2025, with EU markets showing greater resilience than extra-EU destinations.
What This Means for Residents
For anyone living in Italy, the health of textile and fashion directly affects local employment stability and regional economic vitality. The sector's 372,200 workers are disproportionately concentrated in northern and central regions, where wages and ancillary services—logistics, packaging, design studios—create multiplier effects across communities. A prolonged slump could accelerate factory closures, particularly among smaller subcontractors that lack the capital reserves to weather margin compression.
On the policy front, government and EU initiatives are supporting the transition toward more sustainable practices. The sector faces new regulatory requirements around environmental compliance and circular economy principles, creating both challenges and opportunities for firms willing to invest in innovation.
Sustainability is reshaping the industry, with many brands exploring eco-friendly materials and production methods. Efforts to improve traceability and transparency in supply chains are also gaining momentum, allowing consumers to better understand the origin and production methods of garments.
Industry Outlook and Strategic Priorities
Luca Sburlati, president of Confindustria Moda, emphasized that the sector is navigating a "profound transformation" requiring a unified industrial vision to safeguard Italy's manufacturing heritage. Annalisa Areni, head of client strategies at UniCredit, described the report as a tool for translating data and friction points into growth opportunities, particularly in innovation, sustainability, and international expansion.
Alessandro Fontana, director of the Confindustria research center, underscored the macroeconomic weight: "With annual exports approaching €37B–€38B, generated by more than 37,000 firms and over 370,000 workers, textiles and apparel remain central to the Italian economy."
Industry analysts anticipate recovery prospects contingent on stabilizing production costs and rebuilding export demand. Key priorities include strengthening international trade relationships and investing in digital transformation to enhance design efficiency, inventory management, and customer engagement.
Navigating Geopolitical and Competitive Headwinds
Geopolitical friction and shifting consumer preferences have complicated market planning. The sector's heavy reliance on exports leaves it sensitive to currency swings, trade barriers, and demand shocks in major markets.
Asian competitors are expanding their capabilities and presence in European markets, directly challenging Italian firms. To counter this, Italian brands are emphasizing storytelling, heritage, and quality differentiation—controlling production from fiber sourcing through to retail to maintain competitive advantage.
The EU's regulatory framework around sustainability and product durability is evolving, creating compliance requirements that are expected to reshape the competitive landscape. Italian manufacturers, many of whom have already invested in quality and durability practices, are positioned to adapt to these changes.
Preserving a Strategic Asset
The textile and apparel sector is more than an economic contributor; it is a repository of craft knowledge, regional identity, and industrial culture. The artisan workshops and specialized producers represent centuries-old techniques in tailoring, embroidery, and textile finishing. Policymakers and industry leaders alike recognize that without targeted support—access to capital, training programs, and fair competition policies—this heritage and expertise risk erosion.
For residents, investors, and policymakers, the message is clear: Italy's fashion and textile complex retains formidable strengths but requires coordinated action to navigate demand volatility, regulatory shifts, and international competition. The €58.4B figure represents both the current state and a foundation for renewal—provided the ecosystem can harness innovation, sustainability practices, and strategic policy to safeguard its competitive edge.
