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Clothing Manufacturing in Germany - Market Research Report (2014-2029)

Clara-Camille Schneider Clara-Camille Schneider Frankfurt, Germany Last Updated: September 2024 WZ C14.00DE

Revenue

€7.8bn

2024

€7.8bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

27,981

Businesses

208

Wages

€X.Xbn

Clothing Manufacturing in Germany industry analysis

The clothing manufacturing industry has recorded an average annual decline in sales of 1.9% over the last five years. There were strong fluctuations in sales during the coronavirus pandemic. In 2022, sales rose again significantly across all sub-segments, with international business playing an important role. However, the growth in sales was offset by cost increases, which weighed heavily on the earnings situation of companies in the sector. Raw material prices and energy costs rose massively. High logistics costs and a lack of availability of materials also had a massive financial impact in some cases. The business climate was correspondingly poor and companies in the sector were reluctant to take on new staff. The largest sub-segment, other outerwear, supported the positive sales trend in 2023 with double-digit growth. Sales also increased in the production of workwear and hosiery. This development was due to comparatively stable demand in Germany and, in particular, outside Europe.In the current year, energy costs are still at a high, albeit falling, level, which is having a massive negative impact on the competitiveness of the German location. Excessive reporting obligations, supply chain regulations and chemicals legislation are also damaging the competitiveness of the German clothing industry. The increasing bureaucratic burden is one of the reasons why more and more companies are turning their backs on Germany and relocating their production abroad. As a result, industry turnover is expected to fall by 3.6% in 2024, meaning that turnover is likely to amount to 7.8 billion euros.Despite rising export figures, the industry is likely to continue to suffer from increasing imports and the declining competitiveness of the German location in the coming years. With the population's growing demand for sustainability, clothing consumption will also decrease. For example, many consumers will buy second-hand items or reduce their clothing purchases. IBISWorld expects industry sales to shrink by an average of 0.6% per year over the next five years. In 2029, it should therefore amount to 7.6 billion euros. At the same time, increased sustainability efforts in terms of the environment, health and fairness are likely to drive innovation in the area of production materials and processes. Production quality made in Germany that fulfils environmental and social compatibility criteria could help the industry to expand its sales markets.

Trends and Insights

  • Many German companies in the sector have relocated parts of their production back to Germany. The reasons for this are the higher production quality and the added value of the production location, as well as shorter transport routes and lower logistics costs.
  • Online retail is the industry's most important sales market. In the coming years, sales are likely to be handled largely via digital channels, which is why this customer market will continue to gain in importance.
  • Most companies in the sector are located in southern Germany. Bavaria stands out as the most important location for the textile industry.
  • The strongest competition from outside the industry comes from clothing manufacturers producing abroad. For reasons of cost efficiency, production usually takes place in low-wage countries so that the goods can then be sold profitably on the German and European markets.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.9 % over the past five years, to reach an estimated €7.8bn in 2024.

Trends and Insights

The scope of the EU Supply Chain Directive extends beyond the control of the company's own production and labour facilities

  • The requirements of the German Supply Chain Act already meant that small and medium-sized companies in particular were overwhelmed by the additional burdens. The EU Supply Chain Directive, which was formally adopted by the EU Council of Ministers in May 2024, will further increase the bureaucratic burden.
  • Additional trends and insights available with purchase
Clothing Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

Biggest companies in the Clothing Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Mey GmbH & Co. KG
138.9
C&A Mode GmbH & Co. KG
22.2
PB Bade & Freizeitmode GmbH
17.3

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Clothing Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Women's outerwear, Menswear and Hosiery. Women's outerwear is the largest segment of the Clothing Manufacturing in Germany.

Trends and Insights

The womenswear business is benefiting from the high frequency of new purchases

  • Outerwear for women and girls (women's outerwear) includes outerwear made from woven, knitted or crocheted fabrics such as coats, suits, jackets, trousers and skirts.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This sector includes the domestic production of all types of clothing such as outerwear, underwear, workwear, sportswear and leisurewear made from all materials, including woven, braided, knitted and crocheted fabrics, leather and fur. However, this does not include the production of ready-made textiles such as bed linen and table linen or non-manufactured textiles. Companies that finish textiles are also not part of the industry.

What's included in this industry?

Women's outerwearMenswearHosieryWork and professional clothingLaundry

Companies

Mey GmbH & Co. KGC&A Mode GmbH & Co. KGPB Bade & Freizeitmode GmbH

Purchase this report to view all 3 major companies in this industry.

Related Terms

FAST FASHIONINFLUENCERRESHORINGMULTIPLIERS

Industry Code

WZ 2008

WZ 14 - Clothing Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Many German companies in the sector have relocated parts of their production back to Germany. The reasons for this are the higher production quality and the added value of th...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Online retail is the industry's most important sales market. In the coming years, sales are likely to be handled largely via digital channels, which is why this customer mark...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Most companies in the sector are located in southern Germany. Bavaria stands out as the most important location for the textile industry.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The strongest competition from outside the industry comes from clothing manufacturers producing abroad. For reasons of cost efficiency, production usually takes place in low-...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. The industry landscape is characterised by small companies with a small number of factories, as large fashion groups have mostly o...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Mey GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of C&A Mode GmbH & Co. KG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of PB Bade & Freizeitmode GmbH's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Mey GmbH & Co. KG, and factors influencing its performance in the industry
  • Description and key data for C&A Mode GmbH & Co. KG, and factors influencing its performance in the industry
  • Description and key data for PB Bade & Freizeitmode GmbH, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The current increase in income inequality poses a risk for the industry. While sales of mid-priced clothing are falling, demand for low-priced clothing items and luxury goods...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The cost of materials is the biggest cost factor in the industry. Due to the existing quality requirements in Germany, the materials used must meet a certain standard, which ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Clothing Manufacturing industry in Germany in 2024?

The market size of the Clothing Manufacturing industry in Germany is €7.8bn in 2024.

How many businesses are there in the Clothing Manufacturing in Germany industry in 2024?

There are 208 businesses in the Clothing Manufacturing industry in Germany, which has declined at a CAGR of 0.6 % between 2019 and 2024.

Has the Clothing Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Clothing Manufacturing industry in Germany has been declining at a CAGR of 1.9 % between 2019 and 2024.

What is the forecast growth of the Clothing Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Clothing Manufacturing industry in Germany is expected to decline.

What are the biggest companies in the Clothing Manufacturing market in Germany?

The biggest companies operating in the Clothing Manufacturing market in Germany are Mey GmbH & Co. KG, C&A Mode GmbH & Co. KG and PB Bade & Freizeitmode GmbH

What does the Clothing Manufacturing in Germany include?

Women's outerwear and Menswear are part of the Clothing Manufacturing industry.

Which companies have the highest market share in the Clothing Manufacturing in Germany?

The company holding the most market share in Germany is Mey GmbH & Co. KG.

How competitive is the Clothing Manufacturing industry in Germany?

The level of competition is high and steady in the Clothing Manufacturing industry in Germany.

Related Industries

Widen your competitive advantage with related industries

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.