Top 3 Challenges in the Clothing and Textile Industry

What do your peers think about Clothing and Textile Industry?

Industry professionals point out to recycling processes as the main challenge in field. They need to be improved both in terms of pace and cost effectiveness. Also, high production costs make it difficult to keep up in the market, and competition between smaller and big international companies is harsh.

Clothing and Textile Top 3 peer challenges

number-1Recycling and Sustainability

There is an insufficient sustainability in textile production and recycling. Finding a way to separate different materials so they can be recycled, both pre-purchase and post-use is key for the industry.


Costs of production in the clothing industry increase frequently due to commodity prices fluctuation. As more companies enter the business, the prices of materials needed for production continue to rise. When a company clothing lines get more(/too) expensive, customers move on to cheaper brands unless the firm manages to position its products in a niche market where higher prices might be more accepted.


More affordable international brands, such as Zara and H&M, and online sellers present a competitive challenge for smaller/local companies, and take a big part of the market share due to their impressively effective supply chains. 

Other Challenges

  • Environmental Impact
  • Finding skilled workforce
  • Lack of human and labour rights
  • Availability of raw materials

Research-­based trends and short-term forecast

Overview per country

In 2025, India’s apparel market size will be 200 billion US$ , China’s 540 billion, USA’s 285 billion, and EU 27’s 440 billion. World’s fiber consumption will be 14.3 kg per capita in 2030, and China will hold 32% of the global consumer demand across all fibres in 2020 (ITMF).

Environmental Impact

Excessive use of water resources, chemicals and sweat-shop labor have a high environmental impact. To counter criticism, manufacturers will have to adhere to responsible sourcing: monitor factories for working conditions, quality, counterfeit protection and waste generation. Governments are also encouraging natural textiles industries.

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