The Portuguese textile industry is transforming through sustainable and innovative practices, including regenerative cotton cultivated to restore soils, dyeing with microorganisms, and industrial processes that consume less water. This change comes at a time when the global fashion industry is under pressure to reduce emissions, waste, and chemical consumption, with fashion representing between 2% and 8% of global greenhouse gas emissions. A study by the Francisco Manuel dos Santos Foundation, coordinated by Céline Abecassis-Moedas, Laure Leglise, and Mariana Pereira Silva, analyzed seven Portuguese cases of sustainable innovation, identifying examples ranging from regenerative cotton to recycled polyester, polylactic acid fibers, lyocell, and finishes that reduce water consumption.
The study reveals that often it is not the brands driving innovation, but the Portuguese producers themselves, who know the machines, master the processes, and assume an important part of the risk of experimenting with new solutions. Manufacturers are transitioning from simple producers to strategic partners who develop materials, ensure traceability, and participate in recycling processes. Collaboration among value chain stakeholders occurs mainly through knowledge sharing, information exchange, and integration of complementary resources, with trust-based agreements prevailing in four of the seven cases analyzed.
Portugal starts with significant competitive advantages, including skilled labor, technological capacity, strong investment in sustainability, and geographic concentration of companies in the North of the country, which allows for faster testing and transformation of ideas. Between 2010 and 2021, the number of companies in the sector that invested in research and development increased by 153%, from 64 to 162, with business investment in R&D of approximately 43 million euros. In 2024, the sector represented 1.7% of Portuguese GDP, 7.8% of exports, and 17.3% of manufacturing employment, with nearly 12,000 companies employing more than 118,000 people.
However, the industry faces considerable challenges, including high innovation costs, financing difficulties, lack of specialized professionals, and what suppliers describe as a European regulatory tsunami. Small and medium-sized enterprises may not have the necessary financial resources for upfront investments, and sustainability certification costs can be prohibitive. Nevertheless, the study's conclusion points to a rare opportunity: to stop competing solely on price and compete on knowledge, with knowledge sharing and integration of complementary resources being identified as key factors for the success of innovation processes.
