Market evolution: Knitted clothing (CN 61) — 2015–2025

Introduction

This report examines the trade performance of the European Union in knitted and crocheted apparel (Combined Nomenclature heading 61) over the period 2015–2025. CN 61 is one of the EU's largest consumer-goods trade categories, encompassing T-shirts, jerseys, pullovers, trousers, hosiery, underwear, and a wide range of other knitted garments. The analysis draws on annual trade data covering EU extra-EU flows (imports and exports), production figures, partner-country breakdowns, and product-level detail. Three key dynamics emerge: a rapidly widening structural trade deficit driven by the collapse of domestic production; a significant geographic reorientation of supply chains, notably toward South Asia and away from the United Kingdom; and diverging price trends that suggest the EU is moving upmarket in its exports while importing growing volumes at declining unit prices.

1. A Widening Structural Deficit: EU Production Retreats as Import Dependence Grows

The EU's trade deficit in knitted clothing deepened by over a third

Over the period 2015–2025, the EU's trade deficit in CN 61 widened from €24.6 billion to €33.5 billion, a deterioration of 36.2% (General Overview). Total imports grew by 38.0% in value (from €35.0 billion to €48.3 billion) and by 46.7% in volume (from 2.09 million tonnes to 3.06 million tonnes), while the average import price per tonne actually declined by 5.9%. Exports, meanwhile, grew by 42.4% in value (from €10.4 billion to €14.8 billion) but fell marginally in volume (−2.9%), implying a steep 46.6% rise in unit export values.

EU domestic production has collapsed, both in volume and value

The decline in EU manufacturing capacity is stark. Production of knitted garments fell from 7.7 billion items to 2.3 billion items over the period, a drop of 69.6% (Production volumes). In value terms, production contracted from €20.1 billion to €12.7 billion (−36.9%), reaching a trough of €11.6 billion around 2022 before a partial recovery.

Import reliance has more than tripled

As domestic production shrank, the EU's net import reliance surged from 19.8% to 70.3% (+254.7%). Trade intensity — the combined share of imports and exports relative to production — more than doubled, rising from 42.8% to 105.7% (Trade intensity). Export propensity jumped from 18.2% to 126.6% (+593.9%), indicating that EU exports now exceed domestic production value — a sign that the EU has become a re-export and high-value niche platform rather than a volume producer.

2. Reorienting Global Supply Chains: The Rise of South Asia and Brexit's Disruption

Bangladesh and Pakistan surged as import suppliers; the United Kingdom collapsed

The geographic composition of EU imports shifted markedly. Bangladesh emerged as the fastest-growing major supplier, with imports rising from €6.9 billion to €11.7 billion (+69.5%), making it the second-largest source after China (Partners). Pakistan registered the most dramatic growth of any top supplier: +187.2% (from €0.7 billion to €1.9 billion). Cambodia also expanded strongly (+65.7%, from €1.6 billion to €2.7 billion). China, while still the largest single supplier (€11.7 billion → €15.1 billion, +29.2%), grew more slowly than its South and Southeast Asian competitors.

The United Kingdom stands out as a dramatic outlier. Pre-Brexit, it was a major import source (€1.9 billion) and the EU's largest export market (€3.1 billion). By 2025, UK imports had fallen to €0.7 billion (−64.6%) and exports to the UK to €2.1 billion (−30.9%). The volatility of UK trade flows was by far the highest of any partner, with a coefficient of variation of 0.91 on the import side — consistent with the structural disruption of leaving the EU single market.

EU exports diversified toward the United States, Switzerland, and Türkiye

On the export side, the most notable growth came from the United States (+96.1%, from €0.8 billion to €1.5 billion), Switzerland (+90.3%, from €1.3 billion to €2.5 billion), and Türkiye (+191.3%, from €0.3 billion to €0.8 billion). The Herfindahl–Hirschman Index for export concentration fell from 1,244 to 795 (−36.1%), confirming a meaningful diversification of export destinations. Import concentration remained broadly stable (HHI of 1,782 → 1,802), reflecting the continued dominance of a handful of Asian suppliers.

Within the EU, Poland and Spain grew rapidly; Italy consolidated its export lead

Among EU Member States, Germany remained the largest importer (€9.5 billion → €11.0 billion) and the second-largest exporter (€1.7 billion → €2.6 billion) (Reporters). Poland showed exceptional dynamism: its imports grew by 315.5% and its exports by 445.8%, reflecting its role as a growing nearshoring and manufacturing hub within the EU. Spain saw imports nearly double (+99.9%) while its exports declined by 14.2%. Italy remained the EU's largest exporter of knitted clothing (€3.0 billion → €4.5 billion, +48.7%) and grew its share despite overall production decline, consistent with its strong position in the high-value segment. Among the most specialised EU producers, Croatia, Portugal, and Denmark showed the highest revealed comparative advantage scores.

3. Price Dynamics and the Quality Shift: Volume Growth on the Import Side, Price Growth on the Export Side

Import prices fell while volumes surged, especially in menswear and knitwear

The period 2015–2025 saw a clear divergence between import and export price trends. Import prices per tonne declined by 5.9% overall, even as volumes grew by 46.7%. The pattern was most pronounced in certain product segments (Product segment breakdown):

CN 6103 (men's suits, trousers, and related articles) stands out: import volumes nearly tripled (+184.2%) while unit prices dropped by a quarter, indicating that the EU increasingly sourced these products from low-cost origins at scale. T-shirts (CN 6109) and jerseys (CN 6110) continued to dominate in absolute terms, together accounting for over €21.7 billion in import value by 2025.

EU export prices rose steeply, signalling a shift to higher-value positioning

In contrast, EU export unit values increased sharply. For jerseys and pullovers (CN 6110), export prices per tonne rose from €51,604 to €81,505 (+57.9%). For T-shirts (CN 6109), they rose from €37,039 to €56,799 (+53.4%). For special garments (CN 6114), export prices climbed from €40,292 to €53,896 (+33.8%). These increases far outstripped the growth in export volumes — which were generally flat or declining — indicating that EU-based brands and exporters are increasingly competing on quality, design, and brand value rather than on price.

The 2022 import price shock reflected upstream cost pressures

The data reveals notable price spikes in 2022, particularly for imports from Bangladesh (price shift of +27.0%, with an abnormality score of 60.5) and India (price shift of +18.9%, abnormality of 95.0) (Supply shocks). These shocks correspond to the global energy and raw-material cost surge following the Russia–Ukraine conflict and broader post-pandemic supply-chain disruptions. Bangladesh — accounting for nearly 30% of EU import value by that point — had an outsized impact on overall import costs. Prices subsequently moderated in 2023–2025, with several segments (notably CN 6103 and CN 6110) falling below their 2015 levels by 2025. Among export partners, Türkiye (CV of 0.39), the United Kingdom (0.37), and Ukraine (0.45) showed the highest volatility, reflecting geopolitical and structural disruptions in those markets.

Conclusion

The EU's trade in knitted clothing over 2015–2025 tells a story of structural transformation. Domestic production has contracted by nearly 70% in volume, replaced by rapidly growing imports that have pushed net import reliance above 70%. The supply base has shifted decisively toward South Asia, with Bangladesh and Pakistan gaining ground at the expense of both China and — most dramatically — the United Kingdom, whose exit from the single market caused severe and persistent trade disruption. On the export side, the EU has diversified its customer base and moved toward higher-value products, with unit export prices rising steeply even as volumes stagnate. This dual movement — importing more at lower prices while exporting less but at higher prices — reflects the EU's evolution from a volume producer to a high-value, brand-driven platform in global knitted-apparel trade. The vulnerability inherent in this model was underscored by the 2022 price shocks from key Asian suppliers, a reminder that the EU's deepening dependence on external production carries meaningful supply-chain risk.