Home Business sectors Apparel, textile and leather industry

Apparel, textile and leather industry

Fashionable, functional, innovative yet with a touch of traditional materials such as wool, linen etc.

Lithuania’s textile and clothing industry, maintaining its centuries-old traditions, today is actively investing in creating unique brands and contemporary design, in an effort to develop products with higher added value. In 2019 the textiles, clothing and leather industries accounted for about 1.5 % of GDP. At the beginning of 2021 this industry has employed around 24 thousand workers or 2.5 % of total employment. 933 enterprises were active in the industry at the beginning of 2021 and 98% of them were small and medium sized enterprises (SMEs) with 1-249 persons employed.

Kids wear is the category which shows fastest export growth results in the whole industry.

In 2020 domestically produced textiles, clothing and leather exports value declined by 11% and amounted to about 0.7 billion EUR. In 2020 exports of domestically produced goods consisted mainly of apparel (not knitted or crocheted) (21%), apparel (knitted or crocheted) (20%) and other made-up textile articles (14%). The decline in domestically produced exports in 2020 was mainly driven by the decrease of exports of apparel (not knitted or crocheted) – the export value decreased by 51 million EUR (or 27%) to 142 million EUR. Whereas the largest increase in exports in 2020 was recorded for other made-up textile articles – the value increased by 17 million EUR (or 22%) to 94 million EUR.

The most important export markets for the domestically produced textiles, clothing and leather industry in 2020 were Germany (15), the United Kingdom (11%) and Denmark (9.9%). Countries in the European Union accounted for 81% of exports by the textiles, clothing and leather industry in 2020. The exports of domestically produced textiles, clothing and leather industry in 2020 decreased most significantly to Germany (the exports value decreased by 20 million EUR or 16%), whereas the largest increase in exports was recorded for the Netherlands (the exports value increased by 7.6 million EUR or 33%).

Key production and services branches

Most of the sewing companies, because of convenient geographical location, flexibility, short production and delivery time switched on a sub-contracting work for the major European and US brands ranking from houte couture to popular chains like Next, Laura Ashley, Hugo Boss, H&M, Mark & Spencer, Nike, Decathlon and others. Lithuania had quickly got a name of a flexible, high quality, innovative, very specific production country. Therefore Lithuanians produce uniforms and workwear tailored for such institutions like NATO, fire departments, police etc.

Today Lithuania is more than just a production source. New companies and business models are filling in the sector and supplementing a traditional sewing and weaving industry with modern and high added value services. Lithuania now is becoming a recognized intelligent supply management and global logistic operator for the North Europe and CIS markets. Many foreign companies have already discovered the benefits of cooperation with our companies.

Industry’s key competitive advantages

Good quality and price ratio
Short production and delivery time
Ability to produce small batches
High technological and linguistic staff competencies and work culture
Business experience in Western Europe and other countries, especially CIS
Integration into global value chains
High quality and attractive design production meets European standards
Deep industry traditions

About 15 percent of companies are owned by foreign capital, mostly dominated by investors from Scandinavian countries.

Overview of Lithuanian Textiles, Apparel and Leather Industry

Booklet about Lithuanian textile and garment industry