Ramazan Kaya, Joint Chairman of the Turkish Clothing Manufacturers’ Association (TGSD), shared his insights on the future of the Turkish apparel industry, forecasting a major shift in the global positioning of Turkish brands beyond 2030. Kaya’s statements come amidst ongoing global economic challenges but also point to a period of growth for the industry.
A New Era for Turkish Apparel Brands
Kaya, speaking to Anadolu Agency (AA), expressed his optimism for the future, stating that while Turkish apparel brands have traditionally remained local, he expects to see them gaining significant traction in Europe and America in the years following 2030. “Currently, we have brands, but mostly they are confined to local markets. However, after 2030, Turkish brands will emerge as serious players in global markets like Europe and the USA,” Kaya predicted.
This optimistic outlook is rooted in the Turkish apparel industry’s strong economic contribution and its role as a key employer in the country. Kaya emphasized that the apparel sector is among the leading industries in Turkey due to its economic impact, as well as its employment opportunities. According to Kaya, the industry’s production capabilities, from raw materials like cotton to finished products, place Turkey as the fifth largest apparel producer globally.
Challenges in 2024 and Recovery in the Third Quarter
Despite the optimistic long-term outlook, the industry has faced challenges in 2024. Kaya pointed out that the first half of the year saw a slowdown due to economic difficulties in Europe and geopolitical tensions, such as ongoing wars. However, by the third quarter, a slight normalization in the global market led to a resurgence in demand. “As inflation in Europe eased and access to capital improved, there was a sudden surge in demand, fueled by increased household spending,” Kaya remarked.
By November 2024, the sales volume of the Turkish apparel industry reached approximately $82 billion, a significant figure despite the challenges. Kaya noted that the industry’s annual production stood at $33.6 billion, reinforcing the sector’s vital role in the country’s economy.
Industry’s Current Performance and Future Outlook
The Turkish apparel industry closed 2023 with a total sales volume of $85.2 billion, which included exports, domestic sales, and suitcase trade (apparel exports carried by passengers). However, Kaya indicated that the industry is likely to close 2024 with a slight turnover-based loss of 4-5%. Despite this downturn, he highlighted the importance of profitability and employment figures. Kaya stressed the need for the industry to reevaluate its strategies, particularly focusing on customer demands and market conditions, as it enters 2025.
The sector remains a major source of employment, with approximately 600,000 people working directly in apparel and over 1 million in textiles. The industry also continues to be a significant exporter, with Turkish apparel exports reaching $16.7 billion by November 2024, expected to finish the year at $18 billion.
Employment and Strategic Shifts for 2025
While Kaya acknowledged employment losses in the industry, he emphasized that this is a normal phase in the evolution of the sector. He does not foresee a rise in employment in the near future, stating, “We will continue with the current employment figures and turnover levels, and we may even face a 5% decrease in 2025.” Kaya believes that the focus for 2025 should not be on increasing employment or turnover but on enhancing the average unit price of products. This strategic shift will allow Turkish manufacturers to remain competitive globally and provide value-added products.
The EU Market Remains Key
Kaya highlighted that the European Union market remains a critical area for Turkish apparel exports, with approximately 60% of exports directed to EU countries. The United States and markets in Russia and the Middle East make up smaller shares. In the coming years, Kaya emphasized that the EU will continue to be a major focus as Turkey works to diversify its product range with sustainable and high-quality items.
In conclusion, while the Turkish apparel industry faces challenges, Kaya’s forecast for the long term points to a promising global expansion for Turkish brands. With strategic investments in quality, sustainability, and innovation, Turkish apparel companies are poised to make a significant impact on the global stage post-2030.
