Market evolution: Knitwear (CN 6110) — 2015–2025

Introduction

This report examines the trade dynamics of EU customs code 6110, covering jerseys, pullovers, cardigans, waistcoats, and similar knitted or crocheted articles, over the period 2015–2025. The analysis draws on trade data between the European Union and non-EU countries, covering value (EUR), mass quantities (tonnes), supplementary unit counts (number of items), and unit prices.

The EU knitwear market underwent profound structural transformation during this decade. The most striking headline is the near-complete collapse of EU domestic production, which fell by 90.6% in volume (from 898 million items to 84 million items) and 68.0% in value (from €7.6 billion to €2.4 billion). This production decline drove a dramatic rise in import reliance: the net import reliance ratio surged from 8.3% in 2015 to 73.6% in 2025 — an increase of 782%. Meanwhile, EU exports grew substantially in value (+71.0%, reaching €4.5 billion) while remaining roughly flat in mass (+8.2%), indicating a decisive shift toward higher-value, premium-positioned knitwear exports. The overall trade balance remained firmly in deficit, widening from −€6.6 billion to −€7.8 billion.

A Shifting Map of Supply: The Asianisation of EU Knitwear Imports

Bangladesh and Pakistan Emerge as the Primary Growth Engines

The geographic composition of EU knitwear imports shifted decisively toward South and Southeast Asia over the decade. The following table summarises the evolution of the top seven import partners by value:

Source: Top import partners by value

Bangladesh consolidated its position as the EU's second-largest supplier and the fastest-growing major source, rising from €1.9 billion to €3.1 billion (+64.2%). Pakistan and Myanmar registered even more dramatic growth rates (+216.7% and +393.5% respectively), though from smaller bases. Cambodia also expanded robustly (+57.6%), reflecting the broader "China plus one" sourcing strategy adopted by European fashion brands seeking to diversify supply chains.

China remained the largest single supplier throughout the period, but its growth was modest (+8.5%), and its share of total imports eroded as competitors gained ground. The Chinese role increasingly shifted toward higher-value or more specialised products, as mass-market production migrated to lower-cost countries.

The UK Import Collapse and the Brexit Effect

The most dramatic decline among import partners was the United Kingdom, which saw EU imports fall by 60.8% (from €450 million to €176 million). This decline was concentrated in the period after 2020 and is most plausibly attributed to the United Kingdom's withdrawal from the EU single market and customs union. The resulting customs formalities, rules-of-origin requirements, and regulatory divergence effectively reclassified what had been intra-EU trade as extra-EU trade, while also disrupting established supply chains. The UK's import volatility was exceptionally high (coefficient of variation of 0.75 for imports), reflecting the disruption.

Import Volumes Grew Far Faster Than Import Values

A critical feature of this period is the divergence between volume and value growth in imports. Total import mass grew by 54.4% (from 472,111 tonnes to 728,756 tonnes), while total import value grew by only 33.8% (from €9.2 billion to €12.3 billion). This divergence is explained by a 13.3% decline in average import prices (from €19,492/t to €16,893/t), indicating increasing price competition among supplying countries and a shift toward lower-cost sourcing origins. The per-item supplementary price remained essentially flat (from €6.58 to €6.57 per piece), suggesting that the mass-price divergence partly reflects shifts in the product mix rather than pure price deflation.

The EU as a Premium Knitwear Exporter

Export Value Growth Decoupled from Volume

While EU knitwear exports grew by a modest 8.2% in mass (from 51,254 tonnes to 55,478 tonnes), they surged by 71.0% in value (from €2.6 billion to €4.5 billion). This divergence implies a dramatic increase in the average export price, which rose 57.9% (from €51,604/t to €81,505/t). On a per-item basis, the supplementary export price increased by 73.5% (from €17.38 to €30.16 per piece).

This pattern strongly suggests that the EU's knitwear export sector is repositioning itself upmarket. Rather than competing on volume with Asian producers, EU manufacturers increasingly focus on high-value, branded, and premium-quality knitwear — a segment where European craftsmanship, design heritage, and proximity to end consumers confer a competitive advantage.

Italy and France Lead the Export Surge

Source: Top EU exporters by value

Italy remained the undisputed leader in EU knitwear exports, nearly doubling its shipments to €1.75 billion. This is consistent with Italy's long-standing specialisation in luxury and premium fashion manufacturing. France registered the most explosive growth among major exporters (+187.1%), likely reflecting the expansion of French luxury houses' production and re-export activity. Poland's extraordinary growth (+652.3%, from €29 million to €217 million) signals its emergence as a cost-competitive knitwear manufacturing base within the EU.

The specialisation analysis confirms that Denmark (RSCA: 0.52), Portugal (0.31), Spain (0.30), Poland (0.27), and Italy (0.26) are the most specialised EU knitwear exporters, with demonstrated comparative advantage in this product category.

Switzerland, the US, and China Drive Export Growth

On the destination side, the most notable developments were:

Source: Top export partners by value

The United Kingdom remained the single largest export destination but declined by 14.8%, mirroring the Brexit disruption on the import side. Switzerland and the United States emerged as the key growth markets, absorbing significant volumes of premium EU knitwear. Exports to China more than tripled (+267.9%), reflecting growing Chinese demand for European luxury fashion goods — a trend reinforced by the export propensity rising from 2.0% to 195.8%.

Product Segment Divergence: Synthetic and Cotton Dominate, Wool Commands Premiums

Imports Are Dominated by Man-Made Fibres and Cotton

The breakdown by product sub-segment reveals that two categories overwhelmingly dominate EU knitwear imports:

Source: Product segment breakdown

Man-made fibres (611030) and cotton (611020) together accounted for the vast majority of import volume, and both categories saw their unit prices decline over the period (man-made fibres: −14.1%; cotton: −15.9%). This reflects the commoditisation of mass-market knitwear and increasing competition among low-cost Asian suppliers. In contrast, wool and cashmere — though small in volume — commanded significantly higher unit prices and showed price stability or even appreciation, underscoring the bifurcation between mass-market and premium segments.

Exports Show a Clear Premium Tilt

On the export side, the price dynamics are strikingly different:

Export prices were consistently and substantially higher than import prices across every sub-segment, and most segments saw dramatic price appreciation. Cashmere exports reached an extraordinary €644,409 per tonne in 2025 (+87.1% versus 2015), while wool exports commanded €231,415/t (+110.9%). Even cotton knitwear exports, the most commoditised category, saw a 51.3% price increase to €65,247/t. This confirms the EU's positioning as a supplier of premium, high-margin knitwear products, in stark contrast to its role as a buyer of mass-market goods.

Export Concentration Declined as Destinations Diversified

The Herfindahl-Hirschman Index (HHI) for exports fell from 1,263 to 846 (−33.1%) by value, indicating significant diversification of export destinations. Import concentration also declined, but more moderately (from 2,385 to 2,027, −15.0%). The lower and declining export HHI suggests that EU exporters are successfully penetrating new markets rather than remaining dependent on a few traditional destinations — a positive signal for resilience, though it comes alongside the growing vulnerability inherent in rising import reliance.

Conclusion

The EU knitwear market between 2015 and 2025 was defined by three converging structural trends: the collapse of domestic production, the deepening dependence on Asian imports, and the strategic repositioning of EU exports toward the premium segment.

Domestic production fell by over 90% in volume, pushing net import reliance from 8% to nearly 74%. The supply base shifted decisively toward South Asia, with Bangladesh, Pakistan, Cambodia, and Myanmar all gaining substantial ground as EU suppliers, while China's share eroded. This "Asianisation" of supply brought lower unit prices but also introduced new dependencies and volatility — as illustrated by the supply shock events detected in Bangladesh's import prices in 2022.

At the same time, EU exports demonstrated remarkable value growth, driven by Italy and France and directed increasingly toward Switzerland, the United States, and China. The divergence between flat export volumes and surging export prices confirms that the EU has become a premium knitwear supplier, competing on quality and brand rather than cost. This structural bifurcation — importing commodity knitwear while exporting luxury knitwear — may represent a sustainable long-term positioning, but it also entails significant vulnerability to supply chain disruptions, geopolitical tensions, and shifts in global sourcing patterns. The trade intensity rising to 116.7% underscores how deeply intertwined this sector has become with global trade flows.