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 2018 the textiles, clothing and leather industries accounted for about 1.6 % of GDP. At the beginning of 2020 this industry has employed around 25.8 thousand workers or 2.7 % of total employment. 947 companies were active in the industry at the beginning of 2020 and 97.7% of them were small and medium-sized enterprises (SMEs) with 1-249 persons employed.

In 2018 production of the textiles, clothing and leather industries amounted to 940.5 million EUR, which was 7.1% more than in 2017.

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

In 2019 domestically produced textiles, clothing and leather export value declined by 4.7% and was about 758.5 million EUR. In 2019 exports of domestically produced goods consisted mainly of apparel (not knitted or crocheted) (25.5%), apparel (knitted or crocheted) (20.8%), wool and woven fabric (10,4%) and other made-up textile articles (10.1%). The decline in domestically produced exports in 2019 was mainly driven by the decline of apparel (not knitted or crocheted) exports – the value decreased by 12.1 million euros (or 5.9%) to 193.1 million euros. Whereas the largest increase in exports in 2019 was recorded for other vegetable textile fibres – the value increased by 8.1 million euros (or 23.2%) to 42.9 million euros.

The most important export markets for the domestically produced textiles, clothing and leather industry in 2019 were Germany (16.0%), the United Kingdom (12.2%), Sweden (10.4%) and Denmark (9.1%). The export of domestically produced furniture industry in 2019 has grown most significantly to Germany (the export value increased by 3.1 million euros or 2.6%), whereas the largest decline in exports in 2019 was recorded for Sweden (the value declined by 14.1 million euros or 15.2%) and Denmark (the value declined by 8.7 million euros or 11.2%). Countries in the European Union accounted for 81.6% of exports by the textiles, clothing and leather industry in 2019.

Key production and services branches

• Wearing apparel
• Textile
• Home textile
• Knitwear
• Yarns
• Linen
• CM/CMT services

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.

Booklet about Lithuanian textile and garment industry

Overview of Lithuanian Textiles, Apparel and Leather Sector