The Portuguese textile and clothing industry represents 1.7% of national GDP and 7.8% of exports, with 11,965 companies in 2024, of which 99.7% are small and medium-sized enterprises. The sector employs more than 118,000 people and generates a turnover exceeding 8.2 billion euros, accounting for 17.3% of employment in manufacturing and 9.9% of its gross value added, equivalent to 2.7 billion euros. These data are from the study "Sustainability in Fashion: Innovation and Competitiveness in Portugal," by the Francisco Manuel dos Santos Foundation.
The study identifies four competitive advantages of the Portuguese sector: skilled workforce, technological capacity, geographic concentration in the North of the country, and strong investment in sustainability. This last dimension gains relevance with the new European ecodesign rules, which since July 19 prevent large companies from destroying unsold clothing and footwear, potentially benefiting production models closer to markets. Between 2010 and 2021, the number of companies in the sector involved in research and development grew 153%, from 64 to 162, with an investment of 42.8 million euros in 2021 and more than nine million euros in sustainability-oriented innovations in 2020.
Greenhouse gas emissions from the sector have decreased 36.4% since 2005, and carbon intensity has fallen by almost 30%. However, 97.5% of emissions still result from burning fossil fuels, with textile-producing companies responsible for 88.1%. The proximity between companies in Northern Portugal facilitates collaboration and communication along the production chain, although high costs, financing difficulties, shortage of specialized human resources, and infrastructure limitations represent significant obstacles for many SMEs.
Sustainability is becoming central to business models of companies such as Play Up, a Portuguese children's clothing brand in Esposende that generated eight million euros in revenue in 2023, using pre-consumer textile waste to produce the circular yarn Replay and having a Take Back program with a second-hand platform. The manufacturer FORTeams Lab, from Vizela, created the LOOP project to collect unused sports articles and transform them into new yarns. The study's authors emphasize that the Portuguese label is already associated with quality and sustainability in various international markets, representing an opportunity to compete in the global market.
