Turkey Textile Market 2026: Exports, Regions and Outlook

In short: the Turkish textile market is still contracting in 2026, but more slowly. Apparel exports fell 2.2% in January–August 2026, after a 6.7% fall in the same period of 2025. Textiles and raw materials are flat, held up by technical textiles, yarn and woven fabrics. Turkey sells to the EU at a much higher unit price than China or Bangladesh, so it competes on quality, speed and small runs rather than on price. Figures and sources below.

Summary: the Turkish textile market in 2026 (five points)

1. Exports are falling, but slowly. Apparel and ready-to-wear exports were $10.97 billion in January–August 2026, 2.2% below the same period of 2025; over the last 12 months (September 2025–August 2026) they reached $16.5 billion (−3.5%). Textiles and raw materials closed 2025 at $11.4 billion. (İHKİB, İTHİB)
2. The EU is still the main market, with a shrinking share. Apparel exports to the EU were $6.54 billion in eight months (−5.8%). Germany ($1.61 billion, −12.8%) is still first; Iraq (+36%), the Middle East (+10%), Africa (+12%) and the former Eastern Bloc (+27%) are growing.
3. Quality, not price. The EU paid an average of €20.8/kg for apparel from Turkey, against €12.9/kg for China and €13.4/kg for Bangladesh. Turkey is the EU's 3rd largest apparel supplier. (Eurostat, January–May 2026)
4. Employment and capacity under pressure. Textile and apparel employment was 858,774 in June 2026, 44,781 lower than a year earlier. Capacity utilisation in August 2026: 70.4% in textiles, 77.0% in apparel. (SGK, CBRT)
5. Outlook: nearshoring demand, technical textiles and Middle East/Africa markets are carrying the recovery; high inflation (annual CPI 31.5%) and currency pressure keep limiting cost competitiveness. The sector is not shrinking away; it is moving to higher value-added, fast-delivery segments.

Turkey's Position in the Global Textile Market

Turkey is still among the ten largest textile and apparel suppliers in the world, but it has lost ground over the past three years. TradeMap data for 2025 puts Turkey's apparel exports at $18.6 billion (2024: $19.7 billion, −5.6%), or 3.0% of the world total. Counting the EU-27 as one bloc, Turkey is 6th; counting countries one by one, it slipped from 6th (until 2023) to 8th. Fast growth in Bangladesh (+10%) and Vietnam (+30%) in 2025 explains most of the change.

The strength of the sector lies in its structure more than its volume: a fully integrated chain from yarn and fabric to dyeing and garment making, duty-free access to the EU through the Customs Union, and lead times of 2–4 weeks. That is why Turkey can sell to the EU at a unit price close to 60% higher than China and Bangladesh (€20.8/kg against €12.9 and €13.4/kg).

The Turkish Textile Market in Numbers (2026)

Apparel (HS chapters 61–63) and textiles and raw materials (yarn, fabric, home textiles, technical textiles) are reported by different exporters' associations, and sources that add the two together use different scopes. Each figure here is given in the scope of its own source.

Textile Exports in 2026

Apparel and Ready-to-Wear (January–August 2026)

Apparel exports have been falling gradually for three years: the January–August total was $13.20 billion in 2023, $12.01 billion in 2024, $11.21 billion in 2025 and $10.97 billion in 2026. The fall has slowed (2025: −6.7%, 2026: −2.2%). Month by month, April 2026 ($1.45 billion; 2025: $1.23 billion) and June 2026 ($1.38 billion; 2025: $1.20 billion) were clearly above last year, July 2026 ($1.58 billion) was level and August 2026 ($1.41 billion; 2025: $1.52 billion) was below. There is a recovery, but not yet a steady one.

By product group (January–August 2026):

• Knitted apparel (chapter 61): $5.70 billion — 53%
• Woven apparel (chapter 62): $3.83 billion — 35%
• Made-up textile articles, including home textiles (chapter 63): $1.27 billion — 12%

Women's wear ($3.34 billion) and T-shirts ($1.76 billion) held steady, while knitwear fell from $1.73 billion to $1.56 billion; socks, underwear and sportswear were flat.

Textiles and Raw Materials

According to İTHİB, textile and raw material exports closed 2025 at $11.4 billion, almost the same as 2024. The largest markets in 2025 were Italy ($838 million), the US ($792 million) and Germany ($715 million); the EU as a whole took $4.5 billion, 40% of the total. Exports to Egypt rose 23% to $567 million, because Turkish fabric and yarn feed garment production in Egypt.

Sub-groups in 2026 (January–July, year on year):

• Technical textiles: $1.39 billion (+1.8%) — the largest sub-group
• Woven fabrics: $1.37 billion (+2.8%)
• Yarn: $1.32 billion (+2.2%)
• Home textiles: $853 million (−10.1%)
• Knitted fabrics: $721 million (+2.3%)

In July 2026, monthly textile exports were $1.04 billion, 8.9% more than in June. The top five markets in January–July 2026 were Egypt ($500 million), the US ($491 million), Italy ($398 million), Germany ($367 million) and Spain ($354 million).

Production Capacity

Capacity Utilisation

CBRT data puts capacity utilisation in August 2026 at 70.4% in textiles and 77.0% in apparel, against a manufacturing average of 73.5%. The textile rate is still below the 79.7% of the first half of 2022. In practice there is idle capacity: new orders can be taken without new investment, which means shorter lead times and room to negotiate for buyers.

An Integrated Production Chain

What sets Turkey apart is that spinning, weaving and knitting, dyeing and finishing, printing and garment making all happen in one country. Ring, open-end, compact and vortex spinning; denim, jersey, woven, technical and home textile fabrics; and 2–4 week design-to-delivery cycles for fast fashion all come out of this chain. Flexibility on small and mid-sized runs (500–2,000 pieces) is the clearest difference from the Far East.

Employment

SGK records 507,669 people working in apparel in June 2026 and 858,774 in textiles and apparel combined, 21.8% of manufacturing employment. Year on year, apparel lost 33,291 jobs and textiles 11,490. In June itself, employment rose by 21,151 as summer-season orders came in.

Where Textiles Are Made in Turkey

Istanbul is the centre of design, trade and export management more than of production. The wholesale markets of Laleli and Merter are the first stop for buyers from Russia, the Middle East and Africa, and mid-sized private label workshops are concentrated in Osmanbey and Güngören. Fairs such as Texhibition, Fashion Prime and IFCO are held in Istanbul.

Bursa leads in woven, automotive and technical fabrics, and the Çorlu–Çerkezköy belt in Tekirdağ hosts the largest integrated denim and finishing plants. Denizli is the export base for towels, bathrobes and bed linen; Gaziantep for machine-made carpets and nonwovens. The Southeastern Anatolia Exporters' Associations (GAİB), based in Gaziantep, exported $1.18 billion of textiles in the first seven months of 2026 (+4.7%).

For the types of manufacturers in each segment and how to approach them, see our guide to textile manufacturers in Turkey.

Trends Shaping the Market in 2026

1. Nearshoring

European brands are moving part of their orders from the Far East to Turkey to cut lead times and stock risk. In the 2026 data this shows up as growth to fast-fashion hubs while total apparel exports fall: Spain (+4.8%) and Sweden (+13.8%). Turkey kept its place as the EU's 3rd supplier after China and Bangladesh.

2. New Markets: Middle East, Africa and the Former Eastern Bloc

The fastest-growing market groups for Turkish apparel in January–August 2026:

• Former Eastern Bloc: $791 million (+26.6%)
• Africa: $398 million (+11.7%)
• Middle East: $924 million (+10.1%) — Iraq alone $466 million (+36.2%)
• Americas: $702 million (+6.7%) — US $595 million (+6.5%)

Exports to the EU (−5.8%), other European countries (−6.2%) and the Turkic Republics (−19.8%) fell. The sector is reducing its dependence on the EU.

3. Technical Textiles Became the Largest Sub-Group

With $1.39 billion in January–July 2026, technical textiles overtook woven fabrics and yarn as the largest sub-group of textile and raw material exports. Medical and automotive textiles, protective clothing, geotextiles and filtration products are less exposed to price competition and carry more value added, which makes them the sector's main investment area.

4. Sustainability and EU Rules

EU Green Deal rules on product passports, ecodesign and extended producer responsibility became a precondition for orders from Turkish suppliers in 2026. GOTS, OEKO-TEX, GRS and BCI certificates are now routinely required, especially by German, Dutch and Scandinavian buyers. Our textile certifications guide explains what each one covers.

5. Digital Sampling and Small Runs

3D virtual samples, digital printing and ERP integration shorten lead times on small orders (500–2,000 pieces) and widen Turkey's main advantage over the Far East: speed and flexibility.

Main Export Markets

Top 10 Apparel Markets (January–August 2026)

Source: İHKİB, Exporters' Associations registration system.

TradeMap 2025 data gives Turkey a market share of 8.8% in Germany, 8.5% in Spain, 6.7% in the UK and 4.5% in the Netherlands, and 31.1% in Iraq, where it is the market leader. The largest gap is the US: the world's biggest apparel importer buys only 1.2% of its apparel from Turkey (17th place).

Challenges

• Costs and inflation: annual CPI was 31.51% and domestic PPI 27.95% in August 2026 (TÜİK). As long as the lira loses value more slowly than prices rise, dollar-based production costs go up. Energy and minimum wage increases make price competition harder against Egypt, Bangladesh and Vietnam, above all in labour-intensive garment making.
• Competition: Bangladesh and Vietnam grew 10% and 30% in 2025 and moved ahead of Turkey in the global ranking. Egypt combines proximity to the EU, low labour costs and capacity moved there by Turkish investors. China, despite a 4.5% fall in 2025, still holds 28.6% of the world market.
• Structural issues: a shortage of skilled labour and about 45,000 jobs lost in a year; restructuring cases (konkordato) and closures concentrated among small subcontracting workshops; low brand and design value added; informal production distorting prices.

When Will the Turkish Textile Market Recover?

The data point to the sector repositioning, not disappearing:

1. The fall has slowed: the annual drop in apparel exports went from −6.7% in 2025 to −2.2% in 2026, and monthly exports in April, June and July 2026 matched or beat last year.
2. Textiles and raw materials are holding up: flat at $11.4 billion in 2025; technical textiles, yarn and woven fabrics are up in 2026.
3. The market mix is changing: the EU share is falling while the Middle East, Africa, the US and the former Eastern Bloc grow, which leaves the sector less exposed to weak EU demand.
4. The unit-price advantage holds: €20.8/kg in the EU shows Turkey competes on quality and speed, where demand is steadier than in the volume segment.
5. Conditions for a broad recovery: lower inflation, less real exchange-rate pressure and a pick-up in European consumer demand. Without these, clear volume growth is unlikely; growth in higher value-added segments (technical textiles, sustainable production, near-sourcing for fast fashion) already started in 2026.

What It Means for International Buyers

• Idle capacity and short lead times: 70–77% capacity use means new orders can be placed quickly.
• Room to negotiate: weak EU demand gives price flexibility, especially at mid-sized manufacturers.
• Supplier checks matter more: with more restructuring cases, a manufacturer's financial standing and references should be checked before ordering. Through our product sourcing service in Turkey we handle manufacturer verification, sampling and quality control for buyers.
• Certification: GOTS, OEKO-TEX or GRS for EU buyers, and CPSIA and the related labelling rules for the US, should be agreed before the order is placed.

Frequently Asked Questions

How big is the Turkish textile market? Apparel exports were $18.6 billion in 2025 (TradeMap) and textile and raw material exports $11.4 billion (İTHİB). In January–August 2026, apparel exports were $10.97 billion, 5.9% of Turkey's total exports.

Where is textile production concentrated in Turkey? Istanbul for apparel and trade; Bursa and Tekirdağ for fabrics and technical textiles; Denizli for home textiles; Gaziantep for carpets and nonwovens; Kahramanmaraş for yarn.

Where does Turkey rank in world apparel exports? With a 3.0% share in 2025, Turkey is 6th when the EU-27 is counted as one bloc and 8th when countries are counted separately. It is the EU's 3rd largest apparel supplier after China and Bangladesh.

Is apparel from Turkey cheaper than from China or Bangladesh? No. The EU's average import price for apparel from Turkey is €20.8/kg, against €12.9/kg for China and €13.4/kg for Bangladesh. Buyers choose Turkey for 2–4 week lead times, small runs and duty-free access to the EU.

Conclusion

In 2026 the Turkish textile sector has slowed its loss of volume, spread its sales across more markets and started to grow in higher value-added areas such as technical textiles. Weak EU demand and high inflation put pressure on it in the short term, but the integrated production chain, Customs Union access, 2–4 week lead times and a unit price 55–60% above the Far East keep Turkey a strategic textile sourcing hub for European and Middle Eastern buyers.

This article was updated with İHKİB's January–August 2026 report of 3 September 2026, İTHİB's 2025 year-end figures and TİM sector data. TİM and İHKİB publish monthly figures in the first week of each month.