Latvia’s garment industrys

Latvia’s garment industrys

Latvia has a long-standing tradition in textiles and garment manufacturing, rooted in centuries‑old practices like flax and hemp cultivation that supported linen export during the Hanseatic period . Today, this heritage informs a dynamic industry blending traditional craftsmanship with modern technology.

1. Industry Structure & Scale

The textile and clothing sector in Latvia comprises roughly 1,800–2,000 active companies, including small medium-sized enterprises specializing in sewing, weaving, lingerie, technical textiles, home textiles and niche artisanal products .

Employment ranges between 11,000–12,600 people .

Market forecasts for 2025: clothing output is estimated at about €142.9 million from ~1,347 firms, while the textile segment adds another €111–124 million in output/value‑added .

2. Economic Dynamics & Trends

Textile manufacturing has grown moderately (CAGR ~3.9% to 2024), with clothing manufacturing having contracted ~ 5.5% annually from 2019–2024 but expected to rebound . Apparel and textile exports generate significant foreign income: apparel market revenue in 2025 is estimated at US $875.7 million, with female apparel alone reaching US $500 million .

Industrial indicators: the turnover index for textiles manufacturing was 128.5 (2021 =100) in January 2025, a marked rise from December 2024, while the production index also increased to about 85.7 .

3. Export Orientation & Competitive Edge

Around 80% of Latvia’s textile and clothing output is exported, reaching over 140 countries including EU neighbours like Estonia, Lithuania, Germany and Sweden .

Competitive advantages: relatively low cost, short lead times, flexible small-batch production, high quality, and advanced capabilities such as laser cutting, waterproofing, embroidery and pattern work .

Both contract manufacturing (outsourcing hubs for EU brands) and niche local brands coexist; some companies now produce their own eco-conscious apparel collections .

4. Technological Adoption & Innovation

The sector has embraced modernisation via industrial-grade machines and automation.

There’s a growing orientation toward technical textiles — including medical, hygiene, composite and glass-fibre products — serving industries like automotive and aerospace .

Latvia’s industrial clusters (e.g., Liepāja SEZ) support textile/garment regional development with infrastructure, tax incentives, logistics and integrated export capabilities .

5. Cultural and Artisanal Elements

Handcrafted wool products — especially gloves, mittens, scarves and sweaters — reflect traditional Latvian motifs and are globally appreciated, often sold in local markets or online via platforms like Etsy .

Artisanal weaving and small-scale ateliers reinvigorate traditional techniques with modern design.

6. Challenges & Future Outlook

The clothing manufacturing segment recently declined due to global competition and cost pressures but is expected to recover as niche, sustainable, and value-added production grows .

Textile growth remains steady but modest (~0.7% CAGR to 2028), driven by tech adoption, sustainability, and EU demand .

Global disruptions—supply chain challenges, geopolitical tensions, regulatory shifts—are influencing strategic pivots toward automation, digitalisation, eco‑friendly fabrics, and regional nearshoring .

Summary
Latvia’s garment industry combines a rich artisanal tradition with modern capabilities. With nearly 2,000 firms and over 12,000 employees, it relies heavily on exports—from contract sewing for European brands to niche local eco‑fashion and technical textiles serving high‑tech sectors. Having weathered contraction, the industry is now realigning toward sustainable, high‑value production, supported by digitalisation, industrial clusters, and traditional craftsmanship. Continued investment in technology and environmental practices positions Latvia as a competitive hub in the European textile‑garment landscape.