Turkey’s apparel and ready-to-wear sector hit an all-time high in exports in 2022, reaching $21.2 billion. Discover how the industry overcame global challenges and maintained its growth.
Turkey’s Apparel and Ready-to-Wear Sector Achieves Record Export in 2022
Istanbul – Turkey’s apparel and ready-to-wear sector has set a new milestone by achieving an export value of $21.2 billion in 2022, marking the highest annual export figure in the industry’s history. According to the Turkish Exporters Assembly (TİM), Turkey’s overall exports in December 2022 increased by 3.1% year-on-year, reaching $23 billion, the highest figure ever recorded for the month.
Over the period from January to December 2022, Turkey’s total exports rose by 12.9% compared to the same period in 2021, amounting to $254.2 billion. Despite a 5.5% decrease in December 2022 exports, with $1.7 billion compared to $1.8 billion in December 2021, the apparel and ready-to-wear sector managed to sustain its upward trajectory with a 4.8% year-on-year increase, reaching the record-breaking $21.2 billion in annual exports.
A significant portion of the sector’s December 2022 exports, valued at $1.2 billion, originated from Istanbul, followed by $120 million from Izmir and $111 million from Bursa. Over the entire year, Istanbul led with $14.7 billion of the total $21.2 billion exports, while Bursa and Izmir contributed $1.7 billion and $1.4 billion, respectively.
Germany: The Top Export Destination
Germany stood out as the largest market for Turkey’s apparel and ready-to-wear sector in December 2022, with exports totaling $315 million. The Netherlands and the United Kingdom followed with $150 million and $131 million, respectively. For the whole year, Germany remained the top destination with $3.6 billion in exports, followed by Spain with $2.6 billion and the United Kingdom with $2 billion.
The European Union (EU) countries were the leading export group in December 2022, with a total of $1 billion, followed by the Commonwealth of Independent States (CIS) with $222 million, and other European countries with $184 million. Throughout 2022, the sector exported $12.8 billion to EU countries, $2.6 billion to other European countries, and $1.7 billion to Middle Eastern countries.
The TİM data revealed that Turkey’s apparel and ready-to-wear sector exported to 180 countries and regions in December 2022, accounting for 7.5% of the country’s total exports. Over the year, the sector expanded its reach to 215 countries and regions, capturing an 8.3% share of the national export total.
Looking Ahead: Optimism for 2023
Mustafa Gültepe, Chairman of the Turkish Exporters Assembly (TİM) and the Istanbul Apparel Exporters’ Association (İHKİB), emphasized the strategic importance of the apparel and ready-to-wear sector for Turkey. With its value-added production, nearly 750,000 employees, and over $21 billion in exports, the sector plays a critical role in the Turkish economy, contributing $18-19 billion in net foreign exchange annually.
Gültepe noted that the sector had set an ambitious export target of $22-23 billion for 2022. However, challenges such as rising costs, the loss of orders to countries like India, Pakistan, and Bangladesh, and a $1.5 billion loss due to the Euro-Dollar exchange rate fluctuation, coupled with a global recession in the second half of the year, impacted these goals. Despite these hurdles, the sector managed to achieve a 4.8% increase in exports, reaching a record annual high.
As global economies enter 2023 with concerns over energy crises and recession, Gültepe remains optimistic. He highlighted that the apparel and ready-to-wear sector is one of the most responsive industries to global changes. While it is among the first to feel the impact of market contractions, Gültepe believes that the sector will recover quickly in the second half of the year and close 2023 with higher export figures than in 2022.
