The numbers warn: exports decline as the cost gap widens How did 2025 unfold for the textile and apparel sector? What were the most common issues and expectations raised by your members?
“When sector-based export figures are examined, textile and raw materials exports in the January–November 2025 period declined by 1% compared to the same period of 2024, reaching USD 8.6 billion. Exports from our region totaled USD 417 million, representing a 3% increase year on year. Our year-end target for 2025 was to maintain the textile export figures achieved by our region in 2024, and on a regional basis, we anticipate reaching this target by the end of the year.
In the apparel sector, exports that peaked at around USD 21 billion in 2022 have been losing ground every year since; in 2025, we are again facing a picture in which an additional loss of approximately USD 1 billion compared to the previous year has persisted. While industrial exports overall have shown growth, the declining share of apparel within total industrial exports reveals a weakening of the sector’s traditional net exporter strength. Our net foreign exchange contribution has fallen by nearly 20% compared to 2022, declining from USD 19.6 billion to USD 15.7 billion—one of the most concrete indicators of this pressure.
Our exporters tell us that they are struggling to compete due to a combination of weakening global demand and buyer price pressure on the one hand, and rising domestic production costs and difficulties in accessing finance on the other, which have put both the value and volume of exports under strain. Increases in energy, labor, and logistics costs have made Türkiye a more expensive production base compared to its competitors. Our sector is around 60% more expensive than Far Eastern countries and 40–45% more costly than Egypt, Morocco, and Tunisia.
Rising personnel costs and the imbalance between exchange rate movements and inflation have pushed the sector into a financially difficult period, and unfortunately, 2025 has been a year marked by significant employment losses and business closures. Difficulties in accessing finance, high interest rates, and fluctuations in global demand have created serious obstacles for our exporters. Our companies need very systematic and structural support; otherwise, it will be very difficult for them to remain standing in 2026. Our companies have begun to shift toward value-added exports and differentiating areas such as sustainability and digitalization, but it should not be forgotten that these also create additional costs.”
Employment losses and closures carry pressure into 2026 What structural reforms are needed to enhance the sector’s global competitiveness? What kind of arrangements should be made regarding export incentives, Eximbank loans, and Credit Guarantee Fund (KGF) support?
“Because the textile sector is among the most labor-intensive industries, it was unfortunately one of the sectors where employment losses were felt most strongly in 2025. By the end of 2025, the number of employees, capacity levels, and the number of companies in the sector had weakened significantly compared to previous years. Layoffs, company closures, and the relocation of some production facilities abroad in the textile and apparel sectors during the year represent serious transformation pressures heading into 2026. The announcement by our President that employment support per employee will be increased to TRY 3,500 in 2026 to encourage employment and support SMEs is welcome news; however, the sector needs much stronger support. In particular, strategic transformation, technology and value-added growth, improved macroeconomic conditions, incentives, and public–private cooperation can help achieve some degree of stabilization in 2026.
This transformation can be accelerated through access to low-interest financing, tax, incentive, and employment policies, as well as credit support mechanisms. As an investment policy for 2026, multi-dimensional investment plans focusing on technical textiles, value-added R&D, e-exporting, market diversification, and financing support should be adopted.”
Transformation for competitiveness can no longer be postponed How do cost structures, exchange rate policy, and access to finance affect the sector?
“Unfortunately, the sector is rapidly losing ground. If high inflation, high interest rates, and exchange rate pressure continue, the sector will remain at serious risk due to rising minimum wages and increasing production costs, particularly energy costs. Low labor and production costs in Asia are also among the significant risks the sector is facing. For the sector to recover, policies such as ensuring alignment between exchange rates and inflation, increasing state support for exporters, and expanding credit and financing opportunities must be implemented.”
A strong infrastructure remains the most important advantage Where do you see the Turkish textile and apparel sector in the coming years?
“Our primary target for the textile sector in 2026 will be to maintain 2025 export levels. Unfortunately, textile exports remained very limited in 2025, and exports from our region consisted largely of raw materials, particularly cotton. In 2026, there is a high probability of a sharp decline in textiles. For the apparel sector, we have positioned our year-end 2025 target not around ‘absolute growth’ but around limiting losses without losing markets and strengthening value-based exports.
For both sectors, our goal for 2026 is to initiate a recovery trend in exports by accelerating investments in value-added production, design and branding, compliance with sustainable transformation, and digitalization, on a basis that restores competitiveness. However, despite many challenges, our sector has very strong advantages: a long-standing export experience, a skilled and experienced workforce, one of the largest vertically integrated supply chains, proximity to main markets, strong design and innovation capabilities, as well as flexibility and speed. If we add sector trends such as sustainability, digitalization and artificial intelligence, and branding to these strengths, they will represent important steps toward the sector’s recovery, even though they create additional cost pressures.”
Message for 2026: the production muscle must be preserved What is the most important message you would like to convey to your members and sector stakeholders for 2026?
“We view 2026 as the year in which the outcomes of the Medium-Term Stability Program should be seen most clearly. We hope that the bottleneck we experienced in 2023, 2024, and 2025 will ease somewhat and that interest rates will reach levels that allow access to finance. 2026 will be a year in which a low dollar exchange rate is expected to continue. As in 2025, this will make only a limited contribution to the competitiveness of our sectors in 2026 as well. In 2026, taking steps to comply with the European Union Green Deal should be among our priorities.”
“Türkiye has reached a gross domestic product exceeding USD 1.5 trillion thanks to the performance of labor-intensive sectors since the 1980s. If Türkiye is to rank among the world’s top 10 economies, these sectors must be supported. Public opinion and the Government should stand behind our sectors with this awareness. Türkiye must not lose its production muscle.”
