Despite facing significant challenges, the Turkish textile and raw materials sector has successfully completed 2024, according to Ahmet Öksüz, Chairman of the Board of the Istanbul Textile and Raw Materials Exporters’ Association (ITHIB). He stated, “Despite global contraction and rising costs, we have shown our strength by maintaining our market share. However, the key to the future lies in branding.”
The sector closed 2024 with $11.5 billion in exports, experiencing a 1.3% decline compared to the previous year’s $11.6 billion. In a meeting with ITHIB Board members, Öksüz shared insights on the sector’s performance and expectations for 2025. He explained that 2024 was a difficult year due to the 2023 earthquake disaster, global trade contraction, high inflation, and escalating production costs. However, he stressed that the primary cause of the challenges was the global recession, which led to significant losses in major textile markets like the EU and the US. Despite these setbacks, Turkey managed to maintain its market share, and the sector has set an ambitious target of $12 billion in exports for 2025.
“We Can Achieve a Resilient Structure”
Ahmet Öksüz emphasized that Turkey would continue to perform strongly in employment, exports, and value-added production by maintaining its leadership in the textile sector. He stated, “We believe Turkey’s biggest starting point is branding. By working with relevant ministries and sectors, we can carry out necessary structural reforms and strengthen the country’s position in branded exports. A focus on branding will help us create a more resilient structure against future economic challenges.”
“We Will Reach a Production Volume of Over $80 Billion in 2025”
Öksüz shared his forecast that Turkey’s textile and ready-to-wear sectors would close 2025 with a production volume exceeding $80 billion. He noted, “The key is to keep our companies alive with valuable projects for our country and exports. Our fair, Texhibition Istanbul, has been a significant source of motivation for the sector during these challenging times.”
“We Focused on Keeping the Wheels Turning”
Öksüz acknowledged that while exports increased in quantity, there was a 1.3% decline in value. “In 2024, our priority was to keep the wheels turning rather than focusing on profit. We aim to increase our export prices by 10-15% in 2025, but global competitive conditions do not allow this. Nevertheless, Turkey remains a strong supplier. We anticipate that losses can be compensated with the effect of accumulated global demand in the second half of the year.”
He also noted the serious cost increases due to foreign currency fluctuations and the global contraction’s impact. “Despite the higher production costs domestically and currency fluctuations, our exports have not reached the desired level, and this is partly due to inflation lag.”
“We Will Make a Difference in the USA”
Öksüz also highlighted Turkey’s potential to increase its presence in the US market. “The US is a massive market, and Turkey is the 5th largest supplier globally. We hope negotiations with the US will resume under the leadership of our Ministry of Trade. The textile and ready-to-wear sectors are among the most demanded by the US. With domestic production limited, they rely heavily on imports. Our textile exports to the US have surpassed $780 million, making us the 8th largest supplier. A preferential trade agreement that includes the textile sector could help us increase this further.”
He expressed optimism for a recovery in 2025, noting slight improvements in the last quarter of 2024. “We expect global demand to improve slightly in 2025, and we are already seeing positive signs in Europe.”
