site.btaTextile Industry Enters 2026 with Growing Pessimism, Calls for Urgent State Support Measures

Bulgaria’s textile industry is entering 2026 with growing pessimism about the sector’s development and is calling for urgent state support measures, Bulgarian Association for Textile, Apparel and Leather (BATOK) CEO Yordan Belovodski told BTA. He was approached for comment following the European Union’s recently announced intention to ban certain companies from destroying unsold clothes, accessories and footwear in an effort to reduce textile waste.

“Between 6,000 and 7,000 people were laid off last year alone. As of September 2025, the total number of employees in the textile sector stood at 57,252, with an average gross salary of EUR 766.94,” he said.

Belovodski stressed that the industry has a strong social dimension, as in many small settlements across the country sewing workshops are the only source of employment. A significant share of employees have low levels of education and qualifications, making it difficult for them to find work in other sectors. Many companies in the industry ceased operations in 2025 due to a loss of orders and the low prices offered by contractors, which remain at 2018–2019 levels, he said. He also reported cases of foreign investors relocating to lower-cost locations, mainly in North Africa and Asia.

Data for 2025 (as of September) show that exports in Bulgaria’s textile, apparel and leather sector declined by around 8–10% compared with 2024. Clothing and leather goods manufacturers were the hardest hit, while technical textiles saw a more moderate impact. During the period under review, employment in the sector fell by 10–11%, mainly in small and medium-sized garment enterprises.

Industry representatives also point to another issue stemming from contractors’ increasing demands for lower prices for products and services due to high competition and economic uncertainty. This has led to a reduction in net profit per unit of output in the textile, apparel and leather sector. At the same time, productivity in the sector is insufficient to fully offset the price decline. As a result, some companies have sacrificed part of their margins (revenues) in order to retain clients or market share.

According to Belovodski, the main reasons for the negative trends and obstacles in the business environment are weak consumer demand in key markets such as Germany, Italy and France. Problems also arise from contractors’ reorientation toward manufacturers offering significantly lower price levels for small and medium-sized batches, and toward Asia for mass production. The sector is further affected by labour shortages and an ageing workforce, as well as the overall low attractiveness of professions in the textile, apparel and leather industry. At the same time, companies are facing rising energy and labour costs, which are outpacing productivity growth in the sector.