Market evolution: Knitted fabric (CN 60) — 2015–2025

Introduction

This report analyses the evolution of the European Union's external trade in knitted or crocheted fabrics (Customs code 60) over the period 2015-2025. The data reveals a market undergoing significant structural shifts. While the overall value of trade has softened, the EU has navigated this period by rebalancing its trade relationships and reinforcing its position as a specialized exporter of higher-value knitted goods, even as its domestic production base contracts. The period was marked by distinct shocks, including geopolitical events that redirected trade flows.

The Erosion of the Import-Driven Deficit

A primary trend over the decade is the significant reduction in the EU's trade deficit for this product category. The EU moved from a position of moderate trade surplus at the start of the period (€29.2 million in 2015) to a larger surplus in 2025 (€49.4 million), despite some volatility in between. This shift was not driven by export growth but rather by a more pronounced decline in the value of imports.

Import value fell more sharply than export value. Between the first and last observed periods, the value of imports contracted by -4.8%, from €1.49 billion to €1.42 billion. Over the same span, export value declined by -3.3%, from €1.52 billion to €1.47 billion. The steeper drop in imports relative to exports allowed the trade balance to improve by +68.8%.

This dynamic is further illustrated by the Net Import Reliance metric. It moved from -14.5% in 2015 to -2.9% in 2025, indicating the EU is now almost self-sufficient in trade terms for this sector. This structural change was supported by a notable divergence in unit prices. Import prices fell by -6.0% (to €4,996/t), while export prices increased by +4.1% (to €11,976/t), suggesting the EU is importing lower-priced goods while exporting higher-value ones.

Shifting Geographies of Supply and Demand

The period witnessed a pronounced realignment in the EU's key trading partners for knitted fabrics, characterized by a consolidation of supply from China and a decline from traditional partners like Türkiye and the UK.

On the import side, China consolidated its position as the EU's top supplier, with its export value to the EU growing by +31.0% to €629 million. In contrast, the second-largest supplier, Türkiye, saw its sales to the EU fall by -25.4% to €438 million. Imports from South Korea collapsed by -65.9%. The Herfindahl-Hirschman Index (HHI) for import value increased from 2,769 to 2,983, indicating a modest rise in concentration and greater reliance on fewer suppliers.

On the export side, the EU's top destination, Morocco, saw purchases grow by +19.2% to €266 million. Exports to the United States remained relatively stable. The most dramatic change was the decline in exports to the United Kingdom, which fell by -42.2% following Brexit. Meanwhile, exports to Ukraine grew by +31.5%, a trend that accelerated sharply in 2022.

The volatility analysis highlights specific shocks. A major price shock was detected for exports to Ukraine in 2022, coinciding with the conflict, and for exports to Russia in 2023. These events underscore the geopolitical sensitivity of textile trade flows.

Specialization in a Shrinking Production Landscape

The EU's improving trade balance occurred against a backdrop of significant domestic production decline. EU production volume (in kg) fell by -31.4% from 470.5 million kg in 2015 to 322.6 million kg in 2025. Production value dropped by -34.2%. This indicates that while the EU remains a major trader of knitted fabrics, its role as a producer is diminishing, leading to increased import penetration for certain segments.

Within this context, the EU has maintained a strong export propensity (export value as a share of production value), which rose from 35.3% in 2015 to 67.9% in 2025. This suggests the remaining EU production is increasingly oriented towards the export market.

The product mix analysis reveals which sub-segments drive trade. For both imports and exports, "Other" knitted fabrics (CN 6006) and fabrics with elastomeric yarn (CN 6004) dominate. Their trade volumes evolved differently:

The data shows a strong increase in imports of pile fabrics (CN 6001), while imports of elastomeric yarn fabrics (CN 6004) fell significantly. Meanwhile, the EU's specialization remains highest in countries like Italy, Portugal, and Greece, though even these specialized economies face the headwinds of declining overall production.

Conclusion

Over the 2015-2025 decade, the EU's market for knitted or crocheted fabrics has undergone a fundamental transformation. The most notable outcome is a reduced trade deficit, achieved not through export surges but via a sharper contraction in import values. This shift is coupled with a strategic reorientation of trade partners, marked by growing reliance on China and reduced ties with the UK and other traditional suppliers.

Concurrently, EU domestic production has contracted substantially. Yet, the industry demonstrates resilience through a rising export propensity and a focus on higher-value-added segments, as evidenced by the price differential between imports and exports. The period was also punctuated by geopolitical shocks that caused sharp but sometimes temporary realignments in trade flows, particularly in Eastern Europe. Overall, the EU knitted fabric sector appears to be specializing in its export niche while accepting greater import dependence in specific product lines.