Over the five years through 2025, textile retailing revenue is expected to fall at a compound annual rate of 1.1%. Once a favourite pastime, knitting and sewing have fallen out of favour thanks to the internet boom and alternative entertainment like Netflix and scrolling on social media. As media consumption has shot up, traditional hobbies like knitting and making clothing have plummeted, as have fabric and haberdashery sales. The explosion of fast fashion has decimated the textile and fashion sector. Before, stitching up holes and repairing garments were ways to extend the life of clothing items, but this isn’t the case anymore. The popularity of fast fashion means it’s not worth the time or effort to replace a garment when something new can be bought for less than €20. Gen-Z shoppers have a keen interest in individuality and expressing personality through clothing – including making their own – but this market isn’t big enough to offset falls in other areas. People are paring back expenditure on non-essential items like blankets and table linen while household finances remain tight. Inflation has reshaped consumer priorities. Although price growth has moderated since 2022, real incomes remain constrained, prompting households to save more and spend less on non-essentials and consumers increasingly favour budget retailers like IKEA over heritage brands. Demographic trends add further complexity. Delayed independence and overcrowding in many European markets dampen demand for large-format or decorative fabrics, but growth potential lies in compact, modular and affordable product lines tailored to renters and shared households, while markets with earlier household formation still support fuller assortments. At the same time, sustainability has moved centre stage. The EU’s Extended Producer Responsibility scheme, effective from 2025, compels retailers to manage textile waste and redesign products for circularity. Social media accelerates trend cycles and intensifies competition from agile digital players. To thrive, retailers must combine value, sustainability and speed, leveraging digital influence while adapting product strategies to shifting economic and demographic realities. In 2025, revenue is expected to drop 0.8% to €17.4 billion, while profit inches down to 4.8% as competitive and cost pressures grow.Over the five years through 2030, textile retailing revenue is expected to inch up at a compound annual rate of 2.6% to €19.7 billion. Europe’s home textile retailers are reshaping supply chains to boost resilience and meet new sustainability rules. Energy shocks, supply disruptions and regulatory pressure are accelerating nearshoring to Portugal, Romania, Turkey and Bulgaria, cutting lead times, transport emissions and inventory waste while improving traceability. From 2030, Digital Product Passports will make supply chain transparency mandatory, pushing retailers to invest in data systems and traceability infrastructure. At the same time, bio-based fibres and regenerative agriculture are transforming material sourcing. Hemp, lyocell and waste-derived fibres offer lower emissions and compliance advantages, while upcoming EU Green Claims rules demand verifiable sustainability. Early adopters of nearshoring, traceability and sustainable materials will gain speed, trust and competitiveness; laggards face higher costs and regulatory risks.

Europe's Knitted and Crocheted Fabric Manufacturing industry is seeing dynamic changes in the face of new consumer trends and disruptive technologies, with sustainability becoming the industry norm. Dynamic economies like France, Italy and Spain are leading this transformation and making impressive strides in what's becoming a more earth-conscious, fashion-forward industry. However, volatile consumer sentiment has caused many downstream producers to spend more cautiously, exacerbating the uptake of cheap imports. Industry revenue is expected to hike at a compound annual rate of 3.1% over the five years through 2025 to €8.4 billion – including an estimated slump of 2.2% in the current year. Over the last half-decade, companies have made substantial strides toward sustainable and ethical production. Particularly in France and Italy, where the use of organic and eco-friendly materials is high and minimising waste is a priority. Advanced technologies like 3D knitting and automated looms have played critical roles in reshaping the manufacturing industry process, allowing for greater efficiency, precision and design customisation. Also, the trend towards high-end, designer fabrics is increasing as customers in these fashion-conscious countries demand luxury knitted and crocheted products. In response to global uncertainties, Spain has seen a shift towards local sourcing of materials to support local economies and lower environmental impact. Investments in digital transformation technologies like AI and IoT are expected to expand, particularly in fashion-centric Italy. These technologies will lead to more streamlined operations and personalised, on-demand production. Local sourcing, an increasingly attractive solution amid global supply chain disruptions, will continue to gain prominence. Meanwhile, the interest in high-quality, artisanal fabrics in Italy and France will cater to a niche yet highly profitable customer segment, emphasising the continued importance of quality and craftsmanship. Nonetheless, consumers often associate European-manufactured products with higher price tags. As a result, manufacturers must strategically adjust their marketing budgets to target new customer demographics. Also, rising competition from abroad will continue to pressure manufacturers. Industry revenue is expected to hike at a compound annual rate of 2% over the five years through 2030 to €9.2 billion.