FW
Continuing the declining trend seen in recent years, US textile and apparel (T&A) exports fell by 2.7 per cent Y-o-Y in value to $11.2 billion during H1 FY25 spanning January-June 2025.
The decline wasn't uniform across all product types. While apparel exports increased in volume, fabric and yarn exports declined, suggesting a shift in the composition of US exports.
A significant factor contributing to this volatility and decline is uncertainty surrounding tariff policies. Recent tariff hikes, particularly those targeting a major export partner like India, have been cited as a cause for concern among exporters, leading to a halt in some production and orders.
In contrast to the exports decline, the US’ T&A imports rose by 4.3 per cent in value to $51.4 billion during the period. This indicates a growing trade deficit for the sector.
Despite the overall decline, T&A exports by some countries like Bangladesh, Vietnam, and India to the US saw robust growth in H1, FY25. This highlights a shift in global supply chains and sourcing patterns.
In summary, the US textile and apparel sector faced headwinds in H1, FY25, with a notable decline in exports driven by factors like trade policy uncertainty and a shift in global market dynamics. At the same time, imports into the country grew, widening the trade deficit in this sector.
UK retail sales rose by 2.5 per cent Y-o-Y in July 2025 accompanied by a strong’ consumer card spending, particularly in clothing. However, industry leaders say, the growth ‘barely touches the sides’ of the £7 billion in new costs from the latest budget.
The uptick in UK retail sales was against the 0.5 per cent growth observed last July and the 12-month average growth of 1.9 per cent, according to British Retail Consortium (BRC)-KPMG data.
Helen Dickinson, CEO, BRC, says, with sales growth at these levels, it is barely touching the sides of covering the £7 billion new costs imposed on retailers at the last Budget.
If the upcoming Autumn Budget sees more taxes levied on retailers’ shoulders, many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher.
Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth.
Separate figures from Barclays show, consumer card spending grew 1.4 per cent Y-o-Y in July 2025 up from a decline of 0.1 per cent in June 2025 - with discretionary spending up 2.4 per cent as changeable weather led shoppers to both sunny and rainy day activities and items.
Barclays found clothing performed strongly, rising by 4.2 per cent, while growth in online retail spending excluding groceries reached 4.9 per cent, up from 2.4 per cent in June, as shoppers made the most of discounted items and sales events including Prime Day.
However, confidence in the UK economy’s strength dipped once again in July, falling three points 22 per cent M-o-M to 22 per cent, the lowest level seen since January.
Karen Johnson, Head-Retail, Barclays, says, the summer sales, changeable weather and shoppers seeking the 'feel-good factor led' to a strong July for retailers, particularly among beauty, clothing and furniture stores.
While confidence in the UK economy remains subdued, prudent money management, supported by the growing popularity of AI tools to help with budgeting, is contributing to a continued resilience in personal and household finances, she adds.
Owned by the Kimberly Cotton Company, the $60 million Kimberley Cotton Gin cotton gin facility has officially opened in Kununurra, Australia, heralding a new era for the region's cotton industry.
The new facility will eliminate the need for local farmers to transport their cotton over 2,175 miles (3,500 k,) to Queensland for processing. This move is expected to significantly cut costs and streamline operations.
According to Daniel Draheim, Construction Manager, Namoi Cotton, the project is a game-changer as a big part of cotton and growing cotton is logistics. The processing facility will provide the capacity for the already successful industry to expand, he notes.
The facility is slated to initially process between 100,000 and 120,000 bales annually and is projected to create more than 1,000 jobs over the next decade. Cotton grown in the area will not only be processed locally but also exported through the nearby Wyndham Port.
Tony Chafer, CEO, Cambridge Gulf, states, the port is working to secure First Point of Entry status to handle container imports—a crucial step that will facilitate cotton exports. During a visit to Kununurra in January, Prime Minister Anthony Albanese announced the federal government's support for granting First Point of Entry status to Wyndham Port. The Western Australian government has also pledged $14 million to upgrade port infrastructure.
Madeleine King, Federal Resources Minister and state government representatives were among the hundreds who attended the official opening of the Kimberley Cotton Gin. The federal government's $34 million loan through the Northern Australia Infrastructure Facility (NAIF) will be the most impactful, notes King. Built on a 196-acre (79.4-hectare) site, the gin operates entirely on hydro-electricity, making its power supply 100% renewable.
Ohenstein India plans to host the Oeko-Tex Summit & Exhibition 2025 in Mumbai from December 9–10, 2025, at the Bombay Exhibition Centre (NESCO). This summit will bring together global Oeko-Tex standards with India's dynamic textile, leather, and footwear sectors.
The event will act as a powerful platform for stakeholders across the entire value chain - from raw material producers to final product manufacturers - to explore sustainable solutions and forge new international partnerships. It will feature eleven pavilions dedicated to various product categories, including fibers, yarns, fabrics, garments, and home textiles. The event will also feature a special International Pavilion housing global certifiers, experts, and regulators, making it a truly global affair.
The summit is particularly beneficial for professionals involved in buying, sourcing, merchandising, production, and compliance, especially those who export to major markets like Europe, the US, the UK, and Australia. It provides a unique opportunity to network with Oeko-Tex certified supply chains, source compliant and innovative materials, and showcase sustainable manufacturing capabilities. High-value knowledge sessions and panel discussions will offer the latest insights into compliance, traceability, and transparency.
Vinod Kumar, Managing Director, Hohenstein India & SL, highlights, the even aims to strengthen India's integration into the Oeko-Tex certified global supply chain from Fibre to Fashion.’ The summit will promote sustainable choices and serve as a platform for industry players to ‘source, share, and grow,’ he emphasizes.
The Oeko-Tex Summit & Exhibition 2025 promises to be a hub where innovation meets influence, offering attendees exclusive visibility and engagement with key decision-makers. It provides a prime opportunity for business growth within the certified textile market and a chance to build new global partnerships that will drive the future of sustainable textile production.
US-based footwear and apparel company Allbirds, Inc registered a 23.1 per cent Y-o-Y decline in net revenue to $39.7 million in Q2, FY25. This company attributed this decline to planned retail store closures and transitions to a distributor model in certain international markets.
The company's gross profit declined to $16.2 million from the $26.1 million reported in Q2 2024. This led to a gross margin of 40.7per cent, a decrease of 980 basis points. The decline in margin was driven by increased promotional activity, inventory adjustments related to the European market's distributor transition, a higher mix of international distributor sales, and rising freight and duty costs.
Allbirds' reported a net loss of $15.5 million in Q2, FY25. The company’s adjusted EBITDA improved to $12.6 million compared to a $13.7 million loss in Q2 2024. Inventory at the end of the quarter declined by 21.3 per cent to $42.2 million.
Joe Vernachio, CEI, states. strong execution during the first half of the year has set the company up for what’s ahead this fall. The firm is confident of returning to top-line growth in Q4, FY25 driven by a ‘continuous flow of modern lifestyle footwear’ and disciplined operational management, he adds.
In H1, FY25, the company’s net revenue declined 21 per cent Y-o-Y to $71.8 million, while gross margin contracted to 42.6 per cent. Net loss for the six-month period improved to $37.4 million from the $46.5 million loss last year. Adjusted EBITDA loss also improved to $31.2 million from $34.6 million in H1 2024.
Looking ahead, Allbirds expects net revenue to range between $165 million and $180 million for full FY25, factoring in a projected revenue impact of $20 million to $25 million from international distributor shifts and store closures. The adjusted EBITDA loss for the year is projected to be between $55 million and $65 million. In Q3, FY25 Allbirds anticipates net revenue between $33 million and $38 million, with an adjusted EBITDA loss of $16 million to $20 million.
Appreciating President Trump's latest executive order to pause tariffs, The American Apparel & Footwear Association (AAFA) says, this pause helps avert devastating consequences like product elimination and business closures. The order extends the temporary reduction of retaliatory tariffs on goods imported from China for an additional 90 days. This order maintains the baseline tariff rate at 30 per cent.
Steve Lamar, President and CEO, criticized the constant cycle of deadline delays and vague deal terms, which he argues has stifled innovation, strategic decision-making, and long-term growth for American companies.
Lamar urged the administration to negotiate a ‘non-stacking provision’ with China, similar to existing agreements with Japan and the EU. He pointed out, even at 30 per cent, the tariff on the US's largest trading partner is ‘untenably high.’ He highlighted, these tariffs are in addition to other existing levies, such as the century-old Smoot-Hawley MFN tariffs and the Section 301 tariffs. According to Lamar, this ‘double taxation’ ultimately harms ‘hardworking American families’ by increasing the cost of everyday essentials like clothing and footwear.
The AAFA's response comes after months of advocacy, during which the organization has argued that the current tariff policy does not support the growth of US manufacturing or the 3.6 million American workers in the industry. The organization also noted, key trade preference programs, including the African Growth and Opportunity Act (AGOA) and the Haiti HOPE/HELP programs, are set to expire on September 30 unless Congress renews them. For those interested in tracking the impact of these policies, the AAFA provides regular updates on its website.
The global textile industry faces an urgent imperative: sustainability. As environmental concerns escalate and consumer demand shifts towards eco-conscious products, a fierce race is underway to determine the dominant fiber of the future. While natural fibers offer inherent advantages and recycled materials promise circularity, Manmade Cellulosic Fibers (MMCs) are rapidly emerging as a frontrunner, poised to redefine the industry landscape.
The competition between various sustainable fibers is complex, with each category presenting distinct strengths and challenges.
The contenders and their strengths, weaknesses
Fibers are broadly categorized into natural, manmade (regenerated, synthetic, inorganic), with bio-based options spanning both.
Natural fibers, under environmental scrutiny: Natural fibers like cotton, hemp, flax, wool, and silk are inherently biodegradable and renewable. However, the sector faces significant challenges. Cotton's water and pesticide intensity are major concerns, despite the sustainability potential of organic and regenerative farming. The natural fiber industry often suffers from fragmented messaging and internal competition.
Regulatory frameworks like the EU’s Product Environmental Footprint (PEF) can inadvertently penalize natural fibers by prioritizing carbon emissions over critical attributes like biodegradability, renewability, and longevity, sometimes favoring synthetics. The Digital Product Passport (DPP) also complicates compliance for smaller natural fiber producers, pushing brands towards more traceable, often manmade, solutions.
While historically dominant, natural fibers' share in global fiber production has seen a decline. Cotton, for instance, now accounts for around 23-25 per cent of global fiber output, down from nearly 40 per cent decades ago, primarily due to the rise of synthetics.
Recycled fibers, seeking scale: Recycling textile waste into new fibers is crucial for a circular economy. However, scaling beyond established methods like recycled polyester (rPET) and mechanical recycling remains a hurdle. Most chemical recycling technologies are in pilot or early commercial stages, not yet cost-competitive or proven at scale. The industry struggles with complex feedstock sorting. Furthermore, recycled synthetics, while reducing reliance on virgin fossil fuels, still shed microplastics and are not biodegradable, posing end-of-life concerns.
Recycled fibers, especially rPET, have seen rapid adoption. Global rPET fiber production reached over 14 million tonnes in 2023, with a projected CAGR of 7-8 per cent through 2030. In contrast, advanced chemical textile-to-textile recycling capacities are still relatively small, estimated in the tens of thousands of tonnes annually, despite significant investments.
Manmade cellulosic (MMC) fibers, a frontrunner: MMCs, derived from wood pulp or other plant-based feedstocks (e.g., viscose, lyocell, modal, and innovative new fibers), are rapidly gaining traction. This sector benefits from a structured industry, often backed by large Nordic forest groups and leading research institutions. Modern MMC production has addressed past environmental concerns through closed-loop chemical systems and sustainable forest management (FSC/PEFC certified).
A key advantage is the innovation in feedstock, with new MMCs utilizing textile waste, cardboard, paper, and agricultural residues. Scaling is rapid, driven by strategic partnerships that meet market demand and price points. Leaders in this category include Ioncell Oy, Spinnova, Kuura, and Infinited Fiber Company. Infinited Fiber, for instance, secured over €200 million in funding for a flagship factory targeting 30,000 tonnes per year by 2026.
Global MMC production reached almost 8.5 million tonnes in 2023, with a projected CAGR of 6-8 per cent through 2030, outpacing many other fiber categories.
Table: Fiber category and growth drivers
|
Fiber type |
Global production (2023 est. tonnes) |
Projected CAGR (2024-2030) |
Sustainability challenges |
Growth drivers |
|
Natural Fibers |
35-40 million |
1-3% |
Water use, pesticides, fragmentation, regulatory bias |
Consumer demand for naturals, regenerative practices |
|
Synthetics |
75-80 million |
3-4% |
Microplastics, non-biodegradability, fossil-based |
Cost-effectiveness, performance properties |
|
Recycled Fibers |
14-15 million (mostly rPET) |
7-8% (overall) |
Scaling chemical recycling, feedstock sorting |
Circularity goals, brand commitments |
|
Manmade Cellulosic (MMC) |
8.5 million |
6-8% |
Chemical processes (improving), forestry impact (managed) |
Innovation, closed-loop, new feedstocks, scalability |
(Note: Figures are approximate and based on aggregated industry reports from sources like Textile Exchange, Lenzing, CIRFS, Grand View Research. Total fiber market is approximately 120-130 million tonnes annually.)
What the future holds
Growth Drivers and Future Outlook
The shift towards sustainable fibers is due to growing demand from consumers, ambitious brand commitments, evolving regulations (like the EU Green Deal), groundbreaking technological innovation, and investment in sustainable fiber ventures. MMCs will dominate near-term growth and investor attention due to their structured industry approach, demonstrated scalability, proactive addressing of environmental concerns, and versatility in performance.
However, a truly sustainable textile future demands diversity, collaboration, and shared purpose, not fragmentation. Natural fibers must unify messaging, embrace regenerative practices, and enhance traceability. Recycled fibers require continued investment to overcome scaling and feedstock challenges. The race is less about a single victor and more about collective innovation, transparency, and a unified commitment to a genuinely sustainable global textile industry.
A prominent Indian garment manufacturer, Gokaldas Exports is facing a major crisis due to a steep 50 per cent tariff imposed by the United States on Indian goods. In an interview with the Economic Times, Siva Ganapathi, Managing Director, outlines the potential fallout and the company's plan to cope. With India’s garment exports to the US valued at around $5 billion, the entire sector is at risk.
Ganapathi calls the 50 per cent tariff ‘catastrophic,’ arguing. it's more of an embargo than a trade barrier. He explains, a 25 per cent tariff could be managed, but a 50 per cent increase would lead to substantial business losses. The industry is already feeling the pressure, with some brands resorting to ‘shrinkflation’-reducing a product's features to keep prices the same- which could change how consumers shop.
To deal with this crisis, Gokaldas Exports is considering a strategic pivot to European markets. This would require the company to reduce its production in India and look for new opportunities overseas to counter the competitive disadvantage. Ganapathi hopes, a resolution will be found soon, ideally lowering the tariff to a more manageable 20 per cent. If not, the Indian garment industry could face severe consequences.
Ganapathi urges the Indian government to fast-track free trade agreements with the European Union and the United Kingdom, and to negotiate a deal with the US. He suggests, temporary measures, like export incentives, could help ease the financial burden on the industry and protect workers' jobs. Ganapathi points out, countries like China have used similar strategies to protect their industries, highlighting the need for India to act proactively. The future of Indian garment exports now depends on these critical negotiations and policy decisions.
A leading UK event for Home, Gift, and Fashion, Autumn Fair will return to the NEC Birmingham from September 7–10, 2025 with a dedicated Indian Pavilion to celebrate the vibrant craftsmanship and innovation of Indian design and manufacturing.
In collaboration with India’s primary trade promotion body, Federation of Indian Export Organisations (FIEO), the fair will host 20 carefully selected Indian exhibitors. These businesses will showcase a curated collection of homeware, lifestyle products, textiles, gifts, and fashion accessories. A strategic part of India’s internationalization strategy, this initiative aims to connect these companies with UK and European buyers and promote global trade.
The introduction of the Indian Pavilion is particularly timely, following the signing of a landmark UK and India Free Trade Agreement (FTA). This agreement is expected to significantly reduce trade barriers and has the potential to double bilateral trade to $120 billion by 2030. The pavilion will give buyers exclusive access to new-to-market products, ethical production methods, and innovative design from India, a country that is rapidly becoming a key sourcing hub.
Vineet Arora, Deputy Director. FIEO, highlights, participation, under the ‘Brands from India’ banner, will showcase India’s diverse export capabilities and global competitiveness. Nihat Berktas, Head - International Development for Retail & Fashion, Hyve Group, notes, this is the first official participation from India since the FTA was announced and that they anticipate even more Indian brands will join both the Spring and Autumn Fairs in the future.
The pavilion will feature a diverse array of companies, including Agnes Bags and Gloster Limited with eco-friendly products, Neela Home & Prakash Cotton Mills with home furnishings, and Arnika Fashion with luxurious handloom sarees. Other exhibitors include Priniv with sustainable wooden toys, Chopra Musicals with nautical décor, and Haida Tribal Ayurvedic and Handicrafts offering authentic Ayurvedic products. The lineup also includes fashion, jewelry, and lifestyle products from a variety of other businesses, further strengthening India’s presence at the fair.
From January-July 2025, textile and apparel (T&A) exports from Vietnam rose by 9 per cent to over $26.33 billion.
To reach its ambitious annual target of $47–48 billion, the sector now needs to average more than $4 billion in monthly exports for the rest of the year. This is a significant challenge, especially with Vietnamese goods facing tariffs of up to 20 per cent in the US market, which puts them at a disadvantage against competitors.
As the industry prepares for a potentially turbulent second half of the year, leaders are focused on several key strategies. Maintaining a stable workforce is a top priority, with companies being urged to review and upgrade their equipment to handle new orders efficiently. Le Tien Truong, Chairman, Vietnam National Textile and Garment Group (Vinatex), highlights the need for businesses to adjust production plans wisely to secure jobs and income for their employees.
Financial flexibility is also crucial. Firms must adopt smart management strategies to absorb rising costs and adjust pricing to retain orders in a tough market. To boost competitiveness, businesses should fully leverage the 17 new-generation free trade agreements already in effect and stay responsive to global economic shifts.
Additionally, a transition to more advanced production models is essential. Companies are encouraged to move beyond traditional cut-make-trim (CMT) operations to higher-value models like free on board (FOB), original design manufacturing (ODM), and original brand manufacturing (OBM). Coupled with investments in modern machinery and skilled labor, this shift will enhance product value and strengthen Vietnam's position in the global supply chain.
The industry is also calling for more support from the government, including policies on credit, tax, and infrastructure to attract investment and reduce dependence on imported raw materials. Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS), emphasized on the need for businesses to defend their traditional markets while actively seeking new partnerships and building more sustainable supply chains.
