Study: Branded clothing sector contributes almost 332 billion euros to EU economy

A study released by the European Branded Clothing Association (EBCA) today presents new findings from Oxford Economics, which reveals that the European branded clothing sector contributes 331.8 billion euros to the EU’s GDP annually, which is nearly 2 percent of the total EU economy. It also highlights the sector’s role in driving jobs, trade and sustainability, with women representing 62.8 percent of the workforce.

“The figures presented today confirm what we have long known: Europe’s branded clothing sector is a vital engine for jobs, innovation and competitiveness,” commented ECBA’s director general Isabelle Maurizi in a press release. “We are committed to advancing a forward-looking trade agenda that supports sustainability, predictability and a stronger voice for European brands and consumers in the global economy.”

Key insights: majority, trade power and employment

Three key insights from the study have been highlighted: First, that the branded clothing sector makes up 80 percent of the EU clothing retail market. This is a large percentage, especially when compared with other world markets. In India, for example, the share of branded apparel is expected to reach 50 percent for the first time according to Statista data; unbranded clothes remain popular due to affordability and easy access. In the US and China, both the branded and unbranded clothing sectors have a significant share but cater to different consumer groups.

Second, the EU is the largest global importer and second-largest exporter of apparel, footwear and bags, demonstrating how highly trade-intensive the branded clothing industry is.

Third, the study also underscores the sector’s - and especially the retail sector’s - strong employment footprint, with women representing 62.8 percent of the workforce.

Growth in the last twelve years

Compared to the results of the previous study, which was conducted in 2013, the total contribution to the EU’s GDP rose from 300 billion euros to currently 331.8 billion euros; an increase of 10.6 percent. However, the share of the EU’s GDP fell from 2.6 to 1.9 percent.

It should also the noted that the total of 331.8 billion euros is comprised of 55.4 billion euros direct contribution, 190.1 billion euros indirect contribution through spending within the supply chain and 86.2 billion euros in induced contribution through consumer spending by those employed in the sector.

The employment the sector provided rose even more, from 4 million jobs in 2013 to 4.5 million jobs in 2025 or by 12.5 percent, which reflects a slight increase of the share of the EU’s overall employment from 2 percent twelve years ago to 2.1 percent today.

The figure of 4.5 million is comprised of 1.3 million jobs provided directly in the retail and trade sector, 2.2 million indirectly through related sectors (for example distribution and logistics) and 1 million jobs through an induced impact.