Textile & Apparel Industry in Turkey

Sector Overview

Textile and Clothing industry has a excellent contribution to the Turkish economy. The marketplace has been denominated as the locomotive of the Turkish Economic climate for decades. Turkey’s textile and attire exports continued increasing not long ago after commenced falling in January, with elimination of EU and US quotas.

The industrialisation attempts of the 60’s and 70’s gave delivery to the modern-day textile industry in Turkey. At the commencing, this sector was running as modest workshops. But the sector showed quick enhancement and throughout the 1970’s started exporting. Now, Turkey is a person of the crucial textile and apparel producers and exporters in the environment.

Turkey’s textile and apparel producers began relocating output in Jap Europe and Central Asia. In the very last 3 decades, Turkish textile and attire companies faced elevating problems, following having considerably succeeded in the eighties and the 1st element of the nineties.

Chinese textile exports right after a a long time-old quota program restrictions ends on January 1, 2005 and the Environment Trade Organization believes that within three yrs the Asian huge could be developing more than 50 % of the world s textiles, up from 17% in 2003.

The close of the quota regime has spawned fears of prevalent career losses all-around the world, like in Turkey, whose personal textiles and clothing exports stand at around $20 billion a year.

As a result, it is required to understand the Turkish textile and clothing sector, the weak spot and the power it has in the Planet market.

Present-day circumstance of Textiles and Apparels in Turkey

The textile and attire sector has been the backbone of the Turkish financial system with a very important position to engage in in the industrialisation course of action and industry orientation of the economy in the final two decades. In the 1980s, it was the major sector related to the global economy and the export revenues of this hard currency earning sector contributed substantially to the overall financial state. The textile sector continued to be one particular of the key contributors to the Turkish financial system, being 1 of the speediest escalating sectors in the 1990s with an ordinary 12.2% annual progress, whilst the Turkish economy had an typical growth of 5.2% for each year. Total investment decision in the sector exceeded US$ 150 billion, of which more than US$ 50 billion was invested in the last 5-10 decades.

Textile marketplace begun out in the 1960s in tiny workshops, have fast formulated and transformed Turkey into a world wide competitor.

The overall selection of companies in the sector, dominated (95%) by the personal sector, amount around 44,000 and 25% of them are active exporters. The attire marketplace is constituted mainly (80%) of modest and medium sized corporations whilst the engineering-intense textile production has been carried out by substantial-scale companies. Currently, all over 20% of Turkey’s 500 premier companies are associated in the textiles and clothing sector.

Small labor expenses, a qualified workforce, somewhat cheap raw elements have played an essential role in the sizeable expansion of the sector as nicely as a liberalized economic ecosystem and export-led guidelines in the final two decades.

The output price of the sector is in excess of US$ 20 billion. Employment in the sector is approximated to be about 4 million persons (2.5 million utilized directly and a even more 1.5 million indirectly by means of the sub-sectors). Official statistics also reveals that all over 500,000 personnel in the sector because of to unregistered labor force.

The apparel sector exports somewhere around 60% of its manufacturing. Ability utilization prices are around 75% specially between exporting producers.

Turkey ranks also among the top 10 world-wide producers of wool fabric, carpets, synthetic filament and fiber, polyester and polyamide filament. While Europe’s 3rd greatest polyester producer is a Turkish-US joint venture, Turkey’s synthetics creation mounts to 15% of Western Europe’s potential.

Financial Contribution

Textile and clothes field has a excellent contribution to the Turkish economic climate. For example, textile and outfits field accounts for:

. 10% in GNP

. 40 % in industrial generation

. 30% manufacturing labor power

. 35% of exports earning

The textile and attire sector contributes in excess of 20 billion USD to the Gross Nationwide Product. The sector is primarily critical for its export earnings its share in the country’s complete exports has been involving 33-39% due to the fact 1990.

The important export sector for Turkish textile and clothing items is the EU nations, which account for about 65% of overall textile and apparel exports. Turkey ranks 2nd in attire and textile imports to the EU obtaining an 8.2% and 4.8% share in the EU’s complete textile and clothing imports respectively as of 2003.

Export state of affairs

Textile and clothing exports elevated by 14.6% on typical for every 12 months all through 1980-2003. Specially right up until the next 50 percent of 1990s, the sector’s exports enhanced at a rate previously mentioned the raise in complete exports of Turkey as very well as the raise in worldwide textile and clothing exports. In 2003, the sector’s exports totaled US$ 15.1 billion, obtaining a share of 32.6% of the overall exports. Exports rose to 23% in 2003, conditions of value to 2002. The expanding share of apparels in exports considering the fact that 1986 signifies the attempts to create a lot more benefit added items.

Just after the EU, the United states is a major and impending current market. Turkey is the 19th attire provider and ninth textile supplier of Usa with a 1.9% and 2.9% share respectively. Beside the EU and the US sector, new marketplaces are North African nations namely, Tunisia, Egypt and Algeria Center East countries particularly Syria, Israel and Saudi Arabia Japanese European nations around the world namely Romania, Bulgaria, Poland and Hungary and CIS nations. The sector faces quotas only in the Usa and Canada. The Russian Federation was also a large market for the Turkish textile and clothing sector until the economic crisis of August 1998. It was the 3rd biggest industry for attire and 9th for textile merchandise in 1997. Russia is continue to a promising market place for textile and attire sectors with its large consumption likely that will occur out in the subsequent a long time specially following developments towards better integration to the earth financial system and WTO membership prospects.

Cotton current market

Turkey is a quite significant cotton country, which is an benefit in uncooked supplies, for the clothing sector. Turkey is a standard cotton producer and uses this edge in the textile and attire sector. Turkey ranks 1st in Europe and 6th in the earth cotton creation with an average production of 800,000-900,000 tons for every
year. In addition, with the completion of irrigation tasks inside Southeastern Anatolian Venture (Hole), Turkey’s most extensive advancement software, existing cotton generation is anticipated to double by the calendar year 2005.

All through 2003-04 year Turkey developed 893,000 tons of cotton. About 30% of the cotton output is significant quality long staple cotton and the rest is of medium excellent. The cotton business provides a aggressive edge to the textiles business, which makes use of cotton as its important uncooked substance.

Cotton Industry Developments
Major destinations for cotton yarn exports are Italy, Portugal, Greece and Belgium and for cotton fabric the British isles, Italy, United states of america and Belgium. While Turkey employed to be a net exporter of cotton, the trade stability reversed in 1992 and since then Turkey has been a web importer of cotton because domestic demand from customers has persistently exceeded accessible stocks. Beside cotton, Turkey has a solid standing in synthetic fiber, wool and mohair productions. Turkey ranks ninth in synthetic fiber, eighth in wool and third in mohair manufacturing in the planet.

Home Textile Industry

Aside from the Turkish textile sector Turkish home textile marketplace has also revealed a growth in phrases of production and exports. In modern yrs the output of house textiles has shown a secure raise thanks to the rise in domestic and external demand from customers for household textiles. Turkish home textile sector has recorded advancement in conditions of generation and exports in modern years. Nearly all forms of house textiles are developed in Turkey. These may possibly be detailed as follows in purchase of their export values: bed linens, bedspreads, desk linens, towels, bathrobes, voiles, curtains, lace, interior blinds, curtain or bed valances, blankets, cushions, pillows, quilts, eiderdowns.

In house textile sector, moreover large scale firms there are a lot of smaller and medium sized firms scattered all all over the country. As a division of the textile industry, the house textiles sector accounts for 3.2% share in Turkey’s complete exports and have been an essential sub-sector for the Turkish economic system. European nations are the most important marketplaces for Turkey s dwelling textile exports. At existing Germany, the Uk, France, the Usa, Netherlands and Russian Federation are the important marketplaces for Turkey s house textile exports. New markets these kinds of as Poland, Hungary, Romania and CIS nations are attaining far more and extra great importance.

Overseas Investments in the Sector

The products of the Turkish textile and apparel sector have a very good popularity in foreign markets as a outcome of the availability of significant good quality cotton in Turkey, huge use of CAD (Laptop or computer Aided Design and style) and CAM (Laptop or computer Aided Production) and the increase in the quantity of qualified staff.


The sector is conscious of the pattern in international marketplaces in direction of raising demand for healthier and extra environmentally pleasant solutions and attempts to adapt by itself to these developments by lawful and technological regulations.

Nevertheless, it is hard to maintain its competitive position in the globe market place complete of emerging players. Hence, makers have shifted their functions to worth-added goods and creation of manufacturer names. Currently, 30% of Turkish suppliers have their have layouts and brand names in worldwide marketplaces.

As present experiments expose, designed nations around the world will have a decreasing share in worldwide textile generation though the building nations around the world will raise their manufacturing capacity to fulfill the increasing requires. It is also estimated that by 2005, the creating countries will maximize their self-sufficiency in textile manufacturing. The US with an estimate of 200% raise in textile use is also approximated to have a 32% lower in self-sufficiency by the yr 2005.

Turkey, with its adaptability to European specifications and polices similar to surroundings, well being, top quality, and security is aiming to move into the manufacturing of a lot more and extra benefit added goods, into an era in which the Turkish textile market will be recognized for its good quality logos and will be pricing a product for the Built in Turkey indicator.