Romania continues to solidify its position as one of Europes key players in the textile and apparel manufacturing sector. According to the latest industry analysis from IBISWorld, Romanias clothing manufacturing industry reached a market size of 1.9 billion euros in 2026, while the broader textiles manufacturing segment hit 2.3 billion euros bringing the combined sector to over 4.2 billion euros.
Textile Manufacturing Leads Growth
While the clothing manufacturing segment faces headwinds with a slight revenue decline of 0.8%, the textiles manufacturing division is surging ahead with an impressive 5.7% annual revenue growth rate. This divergence reflects broader European trends where raw material production and specialized textile manufacturing are increasingly concentrated in Eastern European markets like Romania, while finished garment production faces stiff import competition.
Why Romania?
Romania has long been a hub for European fashion manufacturing. Its strategic location within the EU, competitive labor costs, and well-established supply chain infrastructure make it an attractive destination for both fast fashion brands and high-end manufacturers. Major international brands have maintained production facilities in the country for decades, and a growing ecosystem of local manufacturers continues to emerge.
The countrys clothing expenditure is projected to reach 8.5 billion euros by 2028, up from 6.9 billion euros in 2023, representing an average annual growth rate of 3.3%. This expanding domestic market, combined with strong export capabilities, positions Romanias apparel sector for long-term resilience.
The Custom Apparel Opportunity
The growth of Romanias textile industry has also fueled a boom in custom apparel and print-on-demand services. Local manufacturers are increasingly offering small-batch production runs, custom printing, and personalized garment services that cater to both domestic consumers and international e-commerce brands.
Custom t-shirts, embroidered apparel, and promotional clothing have become significant growth categories. Romanian print shops and apparel decorators are investing in direct-to-garment printing technology, screen printing automation, and sustainable dyeing processes to meet rising demand for personalized fashion.
Industry Challenges and Adaptations
Despite the positive trajectory, the industry is not without challenges. Rising input prices, labor shortages, and competition from Asian manufacturers continue to pressure margins. However, Romanian manufacturers are adapting by moving up the value chain, focusing on higher-quality production, faster turnaround times, and sustainable manufacturing practices that appeal to European buyers.
The countrys textile sector growth at 5.7% demonstrates that innovation and specialization can thrive even in a competitive global market. As consumer demand for locally produced, sustainable apparel continues to grow, Romania is well-positioned to capture an even larger share of the European market.
Looking Ahead
With a combined textile and clothing manufacturing sector exceeding 4.2 billion euros, Romania remains a powerhouse of European apparel production. For businesses in the custom apparel space, the country offers a compelling combination of manufacturing expertise, cost efficiency, and EU market access.