Europe's fashion market will need to overcome three key obstacles to guarantee its ongoing success in 2025 and beyond, according to a new report.

After a strong performance in 2022, Europe’s fashion market saw its growth slow to just 2.2% in 2023, with the market reaching €483.0bn ($506.80bn), explains GlobalData’s ‘The Apparel Market in Europe to 2028′ report.

It points out this deceleration was due to consumers becoming more cautious of spending on non-essentials due to rising inflation, with volumes falling 0.9%.

What are Europe’s main fashion market obstacles? 

GlobalData predicts the market will grow in 2025 to 2.4%, as consumers’ finances recover, however it warns there are three main inhibitors that could hold Europe’s fashion industry back over the next three years. 

These are: Consumer’s cautious approach to spending, sustainability concerns and ongoing political stability. 

1. Cautious approach to spending 

Though inflation in Europe has continued to soften in 2024, GlobalData says consumers will maintain a cautious spending approach, especially regarding apparel purchases, due to the sector’s non-essential nature. 

This is supported by recent figures published by the British Retail Consortium and KPMG retail sales monitor that showed the Christmas period failed to revive sluggish UK retail growth in 2024. 

As well as generally spending less, European consumers will be focusing on the value for money of their purchases over the next few years. This means many consumers will want to create capsule wardrobes due to their versatility and longevity. 

This is a real shift from fast fashion and could reduce volumes and purchase frequencies.

In a survey published by GlobalData in May last year titled ‘Global Shopping Trends: Factors of Influence for Purchases,’ fashion shoppers said they prioritise value for money over choice. It also revealed that value for money is particularly important to older fashion consumers. 

2. Sustainability concerns

As environmental awareness grows, consumers are reassessing their shopping habits, diverting spend away from fast fashion and buying less apparel overall.

Furthermore, they are turning to resale and rental platforms like Vinted and Hurr, which is taking spend out of the total apparel market. 

GlobalData’s report advises fashion brands to integrate secondhand offerings into their proposition to capture this evolving consumer spend. 

An increasing number of apparel brands have already set up their own fashion resale platforms or are offering a rental service for their garments. For instance, Swedish fashion brand H&M launched H&M Pre-Loved with ThredUp in 2023, the Boohoo Group’s Pretty Little Thing fashion site has its own resale marketplace and Zara is continuing to expand its Pre-Owned platform across Europe.

Fashion brands are also being urged to actively promote their sustainability credentials. However, they also need to be cautious of greenwashing, as consumers are becoming more discerning about genuine environmental claims. 

The UK’s Competition and Markets Authority (CMA) published an open letter to the UK’s fashion sector last year, that drew attention to its Green Claims Code and rules that all fashion companies should follow when making environmental claims: 

• Claims must be truthful and accurate;

• Claims must be clear and unambiguous;

• Claims must not omit or hide important information;

• Comparisons must be fair and meaningful;

• Claims must be substantiated;

• Claims must consider the full life cycle of the product or services.

Speaking at Source Fashion in London last summer, CMA’s assistant director of fashion retail Mike Coates told delegates the issue of greenwashing has been a “key priority” for the CMA for several years and is likely to remain a focus in the coming years.

He also shared the organisation has an increased focus on the fashion sector due to the volume of claims made in recent years.

3. Political instability 

Political turbulences and elections in European countries such as the UK and France have been undermining consumer confidence, prompting them to adopt a more cautious spending approach as they brace for potential disruptions. Additionally, the Russia-Ukraine conflict continues to affect European markets, particularly in Eastern Europe, leading to persistent supply chain issues. The resolution of this conflict remains uncertain, further contributing to economic instability and impacting consumer behaviour across the region.

More recently, there are concerns that the US under new president Donald Trump will implement tariffs on Europe’s fashion market. 

A spokesperson for Euratex, the voice of the European apparel and textile sector, told Just Style at the time it was “deeply concerned” by the threat of tariffs on European goods.

It stated: “The EU-US textile trade, worth more than EUR9.2bn, supports jobs and innovation in both [the apparel and textile sectors]. Tariffs disrupt these flows, harming businesses and consumers alike. Such measures could also indirectly impact Europe by diverting overcapacity from China, creating price distortions and unfair competition. Euratex urges both sides to pursue constructive dialogue and avoid unilateral actions, advocating for open, free and fair trade to ensure stability in this vital sector.”