Market evolution: Terry towelling fabrics (CN 5802) — 2015–2025

Introduction

This report examines the evolution of EU external trade in Terry towelling and similar woven terry fabrics, tufted textile fabrics (CN 5802) over the period 2015–2025. This heading encompasses three product subcategories: cotton terry towelling (580210), non-cotton terry towelling (580220), and tufted textile fabrics (580230). The decade under review has witnessed a profound transformation in EU trade dynamics, characterised by a dramatic collapse in exports, a shift from net exporter to net importer status, and significant realignment of trade partners driven by geopolitical events, Brexit, and structural changes in European manufacturing.

1. From Net Exporter to Net Importer: The Structural Collapse of EU Exports

EU exports declined dramatically while imports held steady

The most striking feature of the 2015–2025 period is the divergence between EU exports and imports. EU exports fell from €9.1 million to €2.9 million in value (−68.1%) and from 1,608 tonnes to 270 tonnes in volume (−83.2%). By contrast, imports declined only marginally, from €6.6 million to €6.5 million (−0.7%) in value and from 1,115 tonnes to 996 tonnes (−10.7%) in volume.

The EU's trade position reversed entirely

The EU's net import reliance shifted from −15.1% in 2015 (indicating net export status) to +3.2% in 2025 (indicating net import dependence). The trade balance swung from a surplus of €2.5 million to a deficit of €3.6 million. This reversal reflects both the collapse of export capacity and the resilience of import demand.

Export prices rose sharply, masking an even steeper volume decline

While the value decline in exports was 68.1%, the volume decline was 83.2%. Export prices rose by 89.6% (from €5,630/t to €10,674/t), suggesting that the remaining EU exports are increasingly concentrated in higher-value, specialised products rather than commodity-grade fabrics. The supplementary unit data tells an even more extreme story: export volumes in square metres collapsed by 96.9%, indicating a near-total withdrawal from mass-market production.

EU domestic production contracted in parallel

EU production of terry towelling fabrics declined from 25.9 million m² to 19.2 million m² (−26.2%) in quantity, and from €213 million to €134 million (−36.9%) in value over the period. This contraction in domestic manufacturing underpins the export decline and confirms that the EU is gradually ceding this segment to lower-cost producers.

2. Geopolitical Disruptions and Partner Realignment

Sanctions and geopolitical tensions decimated key export markets

The collapse of EU exports was driven primarily by the disappearance of key Eastern European and Eurasian markets. The most dramatic declines are linked to geopolitical events:

The Russian and Belarusian collapses are clearly linked to EU sanctions regimes following the 2022 invasion of Ukraine. Türkiye's near-total disappearance from EU export destinations likely reflects a combination of competitive displacement (Türkiye itself is the EU's largest import supplier) and possible trade policy friction. The UK decline is consistent with post-Brexit trade frictions and the reclassification of trade flows.

The United States emerged as the most resilient export market

Against this trend, exports to the United States grew by 63.9%, rising from €520,000 to €852,000. The US now represents a far larger share of remaining EU exports than it did in 2015, and a notable price shock was detected in 2022 with an abnormality score of 25.5 and a value share of 16.5%. Switzerland also remained a significant, though declining, destination (−26.5%).

Import sources remained stable, with Türkiye dominating

EU imports are heavily concentrated among a small number of suppliers:

Türkiye's near-stable position confirms its role as the EU's anchor supplier, accounting for approximately 42% of import value in 2025. China and Pakistan both gained ground significantly, with Pakistan's share nearly doubling. The UK's collapse as an import source mirrors the export-side Brexit effect.

Price shocks concentrated in the three largest import suppliers

The volatility analysis detected significant price shocks affecting the main import suppliers:

These shocks correspond to the post-COVID supply chain disruptions and the 2022 energy crisis that affected textile production costs globally.

3. Product Segments, Specialisation, and the Remaining EU Niche

Tufted textile fabrics (580230) collapsed as an EU export product

The segment breakdown reveals that the EU's export collapse was concentrated overwhelmingly in tufted textile fabrics (580230). This subcategory saw its export value plummet from €5.9 million to just €64,000 (−98.9%) and volume from 1,166 tonnes to 16 tonnes. The supplementary unit data shows an even more dramatic collapse: from 15.1 million m² to just 5,031 m² (−99.97%), confirming an almost complete withdrawal from this segment.

Note: 580210 data only available from 2022 onwards.

Cotton terry exports (580210) are a new data point from 2022

For cotton terry towelling (580210), detailed export data only becomes available from 2022, with relatively stable volumes around 200 tonnes and values around €2.3 million. This segment now constitutes the majority of remaining EU exports by value, with premium pricing (€11,111/t) consistent with specialised, high-quality cotton terry products.

Non-cotton terry (580220) is the only segment showing growth

Non-cotton terry towelling exports grew by 23.2% in value despite remaining a relatively small segment. Prices in this category are high (€11,017/t in 2025), suggesting specialised or technical fabrics. However, volumes remain modest at 46 tonnes.

On the import side, cotton terry (580210) dominates

Import data shows that cotton terry towelling (580210) is the largest import category, accounting for €4.3 million in 2025 (data from 2022 onwards). Non-cotton terry (580220) imports stood at €1.6 million, and tufted textiles (580230) at €558,000. Import prices for cotton terry are lower than export prices (€6,522/t vs. €11,111/t), reinforcing the narrative of EU specialisation in premium products while importing commodity grades.

Italy and Portugal anchor the EU's remaining competitive niche

The specialisation analysis for 2025 identifies Italy (RSCA: 0.81, RCA: 9.44) and Portugal (RSCA: 0.45, RCA: 2.62) as the only EU Member States with a revealed comparative advantage in terry towelling fabrics. Italy accounts for 75.6% of EU production in this sector and 8.0% of EU total exports. Germany, while a major trading nation, lacks specialisation in this product (RSCA: −0.17). Most other EU Member States show negligible or zero production, confirming the sector's geographic concentration in Southern Europe.

Import concentration increased while export markets diversified

The Herfindahl-Hirschman Index for imports rose from 2,520 to 2,748 (+9.1%), indicating moderately concentrated and slightly increasing supplier dependence. For exports, the HHI fell from 2,028 to 1,658 (−18.2%), reflecting the loss of major concentrated markets (Russia, Türkiye) rather than genuine diversification—what remains is a more fragmented but much smaller export base.

Conclusion

The EU trade market for terry towelling fabrics (CN 5802) underwent a fundamental transformation between 2015 and 2025. The EU shifted from a net exporter with a €2.5 million surplus to a net importer with a €3.6 million deficit, driven by an 83% collapse in export volumes and a 97% decline in the supplementary unit measure. This decline was overwhelmingly concentrated in tufted textile fabrics (580230) and was precipitated by the loss of major Eastern European and Eurasian markets—principally Russia, Türkiye, and Belarus—following sanctions and geopolitical realignment. The UK's departure from the EU single market further eroded trade flows in both directions.

The remaining EU trade profile is characterised by import dependence on Türkiye (42% of import value) for commodity-grade fabrics, and a small, high-value export niche in cotton and non-cotton terry products anchored by Italian and Portuguese manufacturers. EU production has contracted by over a third in value terms, and the sector's geographic concentration has intensified, with Italy accounting for three-quarters of output. While the EU retains competitiveness in specialised, premium-price segments, the mass-market dimension of this trade has largely shifted to third-country suppliers, and the structural balance of the market has irreversibly tilted towards import dependence.