Decline in UK Textile and Apparel Exports in October

In October 2025, UK apparel exports faced significant pressure, with a year-on-year decline of approximately 8-12%. Core contributing factors include weakened terminal demand: persistent high inflation and energy prices continued to suppress consumer purchasing power in the EU and North America, leading to reduced export orders from the UK to major markets (Germany, the United States); inventory cycle effects: unsold retail inventories from the autumn/winter 2024 season resulted in a contraction of procurement plans for autumn 2025; and intensified regional competition: countries like Turkey and Bangladesh diverted some low- to mid-range orders due to tariff advantages (e.g., duty-free access to the EU).

In the area of UK textiles and fiber exports, technical product categories demonstrated resilience, but bulk commodities remained under pressure. Exports of textiles and fibers showed a structural divergence: high-tech materials (such as industrial non-woven fabrics, high-performance fibers) benefited from demand in areas like automotive lightweighting and medical applications, recording a slight year-on-year increase of 2-4%; bulk commodity categories (cotton yarn, standard polyester) were impacted by global overcapacity and price competition, experiencing a year-on-year decline of 10-15%. It is noteworthy that UK yarn exports to North Africa (e.g., Morocco, Tunisia) maintained modest growth due to the industrial chain transfer associated with "nearshoring."

In October 2025, EU textile and apparel trade exhibited three major trends: strengthened internal circulation: EU exports of raw materials to Mediterranean countries (Turkey, North Africa) increased by 5% year-on-year, reflecting an acceleration in the regionalization of the "Europe + periphery" supply chain; the effect of green barriers: the implementation of detailed rules for the transition phase of the EU's Carbon Border Adjustment Mechanism (CBAM) boosted trade volumes of environmentally friendly categories like recycled polyester and organic cotton by 8-10%; and the outflow of cost-sensitive orders: fast-fashion brands further shifted basic orders to low-cost regions in Asia (Vietnam, Bangladesh), leading to an increase in the proportion of EU fabric imports sourced from Asia to 68% (compared to 65% during the same period in 2024).

In the short term, high energy costs and geopolitical uncertainties will continue to restrain the recovery of the European market. In the medium to long term, attention should focus on: policy-driven transformation: the EU's Ecodesign for Sustainable Products Regulation (ESPR) will compel exporting enterprises to increase investment in low-carbon technologies; adjustments in production capacity layout: UK textile enterprises may accelerate the relocation of production lines to Central and Eastern Europe (e.g., Poland, Romania) to balance EU market access with cost control; and the penetration of digital tools: the application of technologies such as blockchain traceability and AI order forecasting is becoming a crucial tool for enterprises to address supply chain fragmentation.

The traditional cost-competition model is giving way to a new triangular paradigm of "regionalization, greening, and digitalization." For UK and European enterprises, the ability to transform compliance pressures into technological barriers will be key to determining their future global positioning.